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That definitely helps. I think in my first read, I had took

"Each Moon Sheet has room for 10 Sentences, but it begins empty, except for the Impulse created by the GM."   literally, not thinking about prepped sentences just not being on the sheet yet, in sort of hidden state.

So, I was going to not have any moon sentences, but have local stuff as factions or a bundle of npcs.  Reading the faction sentences it's clear that local stuff isn't intended there, but is instead for bigger global/interstellar powers players have less ability to write. 
I think I have a good understanding of them now.

Best of luck with everything. I appreciate the clarification and write up.

Looks neat so far. I'm working to get a group to try it out. Biggest question I have is on the game setup and open knowledge on sentences.

We should make a faction (but could be a place or village) with 3 +0 people sentences, and 3 +0 place sentences, that describe how a place or faction is going to work on players in the session, and might be some sort of creative means for someone to fail upon, or for the gm to push with. A little unclear on these.  Should these sentences be open knowledge for illuminating failure?

In the podcast play example, and the written game examples, it sounded like some of them were open, but I wasn't sure if that was something slowly revealed from previous sessions or if a certain amount should be broadcasted session 1.

Then come up with a bundle of npcs with 3 sentences each of various abilities that would work towards whatever goal the npcs have. Mix of skills, equipment, knowledge. These seem like they are secret until revealed.

Thanks for sharing your work!

I used Descent into Madness tonight as a quick fillin session when the  scheduled dm was sick. Worked well, enough bones and interesting space to run a quick impromptu session.