Media Molecule has announced that it's ending live support for Dreams later this year. You'll still be able to create and share projects, but starting from September 1st, the developers won't be hosting any more events in the game, and no more updates will be forthcoming either.
In a blog post on its website, Media Molecule describes the decision to end Dreams live support as "difficult". The studio says that it's moving on to an "exciting new project", which is why it's decided to end support for Dreams. There's no indication of what that project might be just yet, though.
In practical terms, the end of Dreams live support means that there won't be any more updates to the game, so no new developer-created content will be added. In addition, events like All Hallows' Dreams, the Impy Awards, and DreamsCom won't be happening anymore, so the community is on its own from September onwards.

Despite Media Molecule drawing live service elements of Dreams to a close, the studio says you'll still be able to make, share, and play creations with other players. In addition, the developer will "continue to share and celebrate creations in Dreams" on its social media channels and streams, and in-game Dreams curation work will also continue.
As well as live support ending, Media Molecule also detailed upcoming server migration information for Dreams. Starting from late May, limits will be imposed regarding storage; you'll have 5GB of storage available for your creations online and 1GB available offline. Photos will be limited to 256 online and 128 offline, while creations will be limited to 256 both online and locally.
It's well worth reading the full Dreams blog post, which goes into detail regarding exactly which features of Dreams won't be available anymore. This may be the end of an era, but it does at least sound like Media Molecule will continue to engage with the Dreams community after this change takes effect. Stay tuned for more info on whatever Media Molecule does next.