I've used a "meta system" similar to Lunar Illumination to handle different kind of mystic enlightenment. The Challenges of the All of course vary depending on the individual mystic and her school of thought/guru lineage/etc. Fallen Mysticism is the equivalent of deliberating seeking out Occlusions, and using their vast Mastery to one's advantage.
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Dream Magic I've handled as a parallel magic system to the Big Three,
that borrows elements from each of them. Powerful Dream Beings can be
accessed like Divine Gods, and grant Dream Affinities. (Thella grants
the "True Dream" Affinity). Powerful methods of manipulating dreams
are like Sorcery: Warlocks of Adlanari have a Black Mirror Grimoire.
And finally individual dreams that people have can be bound and
bargained with like Spirits. (Example: The dreamer has a "Dream of
Flying", that grants them the ability to "Bird Like Flight")
In general Dream Magic is of limited use in the Waking World - in general, I will allow one to augment with it, but not use it as an active ability. In the Dream World (which is fairly easy to access, compared to the standard Otherworlds), Dream Magic is much more effective, and one could apply an otherworld penalty to all other forms of magic.
Elucidation, of course, makes this distinction irrelevant - however, as a form of Illumination, one must be concerned about being "dreamt out of existence" or "waking up too soon", and the other nefarious obstacles that would lead the unwary dream mage into "occlusion" (to borrow the Lunar Term). Effects of this will of course vary, but my favorite so far has been the creation of Dreamwraiths connected to aspects of the dreamers personality.
-Santo Sengupta
"aum shanti shanti shantih."
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