diff --git a/README.md b/README.md
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--- a/README.md
+++ b/README.md
@@ -17,6 +17,12 @@ const payloadIsVerified = await verify(request.body, signature, keyId, {
 // true or false
 ```
 
+## Dreamcode
+
+While implementing the lower-level functionality, we also dream big: what would our dream SDK for Coplitot extensions look like? Please have a look and share your thoughts and ideas:
+
+[dreamcode.md](./dreamcode.md)
+
 ## Contributing
 
 Please see [CONTRIBUTING.md](.github/CONTRIBUTING.md)
diff --git a/dreamcode.md b/dreamcode.md
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+# Copilot Extension Dreamcode
+
+Dream code is code that is not real. Its purpose is to create the most user-friendly SDK APIs from the perspectives of developers who want to build GitHub Extensions using JavaScript/Typescript.
+
+Please, any questions/feedback/feelings are welcome. This is a safe space. Please file issues or jump right in and start pull requests.
+
+## Features
+
+- Event-based API for receiving and responding to messages
+- Automated Payload verification
+- High-level APIs for different types of responses (text, confirmation, references, etc.)
+- High-level API for interacting with models
+
+## API
+
+```js
+import { createServer } from "http";
+
+import {
+  CopilotExtension,
+  createNodeMiddleware,
+} from "@octokit/copilot-extension";
+
+const copilotExtension = new CopilotExtension({
+  agent: "my-app-name",
+  prompt: {
+    defaultModel: "gpt-4o",
+  },
+});
+
+copilotExtension.on(
+  "message",
+  async ({ message, octokit, prompt, respond, log }) => {
+    log.info("Received a message:", message.content);
+
+    const { data: user } = await octokit.request("GET /user");
+    await respond.text(`Hello, ${user.login}!`);
+
+    await respond.confirmation({
+      title: "Would you like to hear a joke?",
+      message: "I have a joke about construction, but I'm still working on it.",
+      id: "joke",
+      // optional
+      meta: {
+        other: "data",
+      },
+    });
+  }
+);
+
+// https://github.com/github/copilot-partners/blob/6d1cde3a1abb147da53f1a39864661dc824d40b5/docs/confirmations.md
+copilotExtension.on(
+  "confirmation",
+  async ({ confirmation, octokit, prompt, respond, log }) => {
+    if (confirmation.id === "joke") {
+      if (confirmation.state === "dismissed") {
+        await respond.text("Okay, maybe next time!");
+        return;
+      }
+
+      await respond.text(
+        prompt.stream("Please tell me a joke about Mona Lisa, Github's mascot.")
+      );
+      return;
+    }
+
+    log.warn("Received an unknown confirmation:", confirmation.id);
+    await respond.text("Hmm, something went wrong. Please try again later.");
+  }
+);
+
+createServer(createNodeMiddleware(copilotExtension)).listen(3000);
+copilotExtension.log.info("Listening on http://localhost:3000");
+```
+
+## Notes
+
+Regarding the context passed to event handlers
+
+- `message` / `confirmation` / etc are objects as received by the user
+- `octokit` is a pre-authenticated octokit instance
+- `prompt` is based on my work at https://github.com/github/gr2m-projects/blob/167/github-models/167-github-models/README.md. A simple API to interact with GitHub models.
+- `respond` is an API to send different types of responses to the user
+- `log` is the logger as we use it in Octokit. See https://github.com/octokit/core.js?tab=readme-ov-file#logging
+
+On how to receive the events (transport layer)
+
+- `createNodeMiddleware` is something we have currently built into some of the Octokit SDKs, e.g. https://github.com/octokit/app.js?tab=readme-ov-file#createnodemiddlewareapp-options. However, I think we will move these out into separate packages, such as `@octokit/webhooks-middleware-node`, etc. But for now, we can just assume that we ship with it by default. We can also add other middlewares for Netlify/Vercel edge functions, lambda, etc.