You get mixed reports on the egg so I will be most copying this from the wiki. This began while Tommy was in exile. It's also where most people begin to leave the Dream smp fandom. But please, don't. There lots more to cover.
But this will be long.
The Crimson, also known as The Egg, is a strange large red oval-shaped object that was discovered by BadBoyHalo while mining out his statue room before December 6, 2020. Since then, it has grown much larger and exhibits a strange phenomenon of weeping vines and tendrils that have been found across different locations of the SMP. The Egg appears to be sentient, talking to the infected in a strange language and also conversing with Foolish in English. Bad revealed during the Red Banquet that the Egg can indeed hatch, but it is unknown what it would hatch into.
The vines, also called Blood Vines, consist of nether wart blocks, crimson nylium, red wool, redstone, shroomlights, and more recently, red nether bricks, netherrack, and magma blocks. They reek of iron, and taste like metal. They appear to be slowly growing across the SMP, although recently with help from the infected, the vines are gradually being destroyed across the entire server except for the statue room. Notably, no vines have been seen in the outer parts of the server such as Technoblade's cabin, with the exceptions being Sam's base and Snowchester (where they were planted).
There are two factions which have been formed because of the Egg: the Eggpire made of members who have been controlled by the Egg to worship the Egg and use forceful ways to recruit other people, and the Pro-Omelette started by CaptainPuffy, which is made of people trying to stop the Egg growing and reverse its effects on the Eggpire's members.
Fundy has theorized that the Egg is somehow related to Dreamons, as the trophy room was originally dug by BadBoyHalo to assist the Dreamon Hunters.
It is currently destroyed by Foolish on June 3rd, 2022 and it’s unknown if it will return.
The Egg has the ability to communicate with people in strange whispers from an unknown language. Some of those affected by it have the ability to articulate, hear and understand the Egg's whispers, eventually being entranced by the Egg and obeying it. Others, however, may develop an instinctive dislike for the Egg while yet others are completely unaffected by it. The Egg manipulates people by promising to grant their deepest desires.
The members of the Eggpire have been promised things in return for serving the Egg. Ant was promised power and later stated Ant’s in real life boyfriend RedVelvetIsCake, Punz was promised chaos, Bad was promised Skeppy, and Ponk was promised comfort. Hannah is the only member who was never offered something by the Egg. It could be that the Egg grew fond of her because she could control flowers and plants, as shown as her using roses to help with her allergy to the Egg.
This may be the reason why Tommy does not seem as affected as others have been, since he already had everything he ever wanted, such as the discs in his ender chest.
People corrupted by the Egg will start showing more affection to the egg. Gradually, they will become more and more subservient to the Egg, until they have no personal identity, doing anything and everything for the Egg. They are prompted to spread the corruption through placing crimson nylium and crimson roots, the main source for the blood vines outside the statue room. However, it is also possible that the vines travel through spores collected on those who have recently visited the Egg, as mentioned by Sam, who was quick to wash himself and others who interacted with it off with holy water from Church Prime.
The corrupted seem to only be affected when the Egg is uncovered, as encasing the Egg with obsidian released the members from the trance. This is, so far, the only known method to stop the Egg's influence, but was abandoned after the Egg grew larger after absorbing the obsidian. Members freed from corruption can fall back under it again.
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DSMP canon lore
FantastikThis is for people who are interested in the dream smp story but don't want to watch hundreds of hours in lore. I'm writing this myself for the most part with a little help from the wiki where I have less knowledge on things. Chapters are in order...