Summer of 2022 was an interesting time for DSMP enjoyers. There were still some creators who played on the server time to time, but the server had since been declared dead as creators finished out their final lore streams. Most didn't want to play on it to mess anything up or delete history, especially now that there were things left behind from a very beloved content creator who would never log in again. Others were simply too busy with other projects and riding the wave of popularity the SMP brought them in the first place. Still others refused to play on the server since they were rejected from the "main" lore and the audience didn't care about them.
At this point, Dream had tried everything to revive the server. From introducing new mechanics to rolling back the ban on industrial farms to creating a new world with new land generation connected via simple nether portal to adding new content creators to the server, nothing was working. The only views people were getting were from elaboratly planned lore streams or when one of the more popular creators hopped on for a little bit. Dream sat down with each creator individually and discussed what they would like going forward should there be a second server.
The overwhelming majority wanted simpler lore, as in, more loose and fun like how the beginning of the original server was leading up to the end of Season One. Others wanted better communication between creators. A dedicated space to announce when things were happening and an environment to potentially stop lore-planning in closed-off cliques. Creators would also have a minimum number of hours they must log onto the server (presumably each week) in order to stay on the server. This will also keep the players active and more likely to create the spontaneous improv lore that everyone loved so much.
With that in mind, Dream announced that Dream SMP Season Two (known as Volume Two here) would be a thing in mid-summer of 2022 to very mixed reviews. However, Dream promised that it would be relaxed and more like a for-fun server between friends like how it used to be with no continuation from the first server. This would allow creators who pidgeon-holed themselves into a character the freedom to interact with other creators again and hopefully attract a new audience. The plan would be rolled out sometime after the noise from TwitchCon San Diego died down.
It was a race, then, for creators to finish their character's story in a satisfying way before the new server rolled out. Some did grand streams. Others simply carried on with what they normally had. And yet others simply left their characters' endings up to the interpretation of the audience. Of course, Tommy's, Tubbo's, and Dream's endings ended in what was called "The Incident" (seperate from the Nuke) that teleported the three into a new server with their memories wiped. It was teased that lore might carry over from the old server, if at least in the form of history between characters. If anything, keeping the name Dream SMP would give itself high noteriety and popularity from name alone even if the new server has nothing to do with the old one simply because it keeps the momentum going (as opposed to creating a new name with a new identity with virtually all of the same content creators in the same context).
However, in the following months since TwichCon San Diego, mulitple victims stepped forward accusing Dream of alledgedly grooming underage teens and abusing his power as a content creator by messaging them from private accounts. As of this point in time, it is believed to be in the hands of the police/going to court, but that was enough to sour some content creators' and their audiences' view on any future plans for the SMP.
Tommy's finale is believed to be a remnant of Dream trying to do damage control and fix his reputation, or at least give his side of the story based on how out-of-character and completely unsatisfying the whole thing was. However, that is just a theory and hasn't been confirmed or denied either way.
As of December 2022, there are still mentions of the Dream SMP Season (Volume) Two returning but no announced return date. Aimsey and Ranboo have confirmed that they will not be playing on this new server. Tommy has alluded to the server in the past with lore plans but has since not brought it up. Tubbo has also expressed a willingness to play on the server to rebuild Bognor Regis, but has also mentioned that he doesn't know if he'll be able to maintain the required hours. It's doubtful that Wilbur would log into the server as he seems to be moving away from streaming as a whole. Quackity has Karmaland to fall back on, but I believe he hasn't said anything specifically about Season (Volume) Two. Niki and Phil will not be returning because they don't want their characters to forget Techno. Bad and Puffy have confirmed that their lore for the second season (volume) has already been planned out together. I personally don't know the status of other creators in regards to the new server.
The audience remains divided. On one hand, bringing back a popular server branded with the name of a potential groomer does not look good. On the other hand, many of the original creators who blew up from the first server would love to do the same thing again from scratch and their audience would love to watch. As of now, most are looking to other servers like Hermitcraft, Origins, and Empires to get their fix.
As of April 2023, Dream has released a statement saying that any and all plans for Dream SMP Season 2 have been cancelled. There will never be another server carrying that name. However, Dream also released a statement in the same breath announcing a new server ran by him called United SMP or usmp that sounds like it works very similarly to how Quackity is running the QSMP. As of now, nothing else has been released yet and to the best of everyone's knowledge, the server went offline shortly after the 4/10/2023 ender dragon event.