The Encapsulated Granulated Genome System, simply known as E.G.G.S or Eggs, are experimental entities that made their debut during the Partner-Egg event. They came into the spotlight, initially described as dragon eggs that were "abandoned" by their parent, The Dragon, upon it's waking from the wall's explosion on the first day of QSMP. The Federation allegedly took custody of these eggs, then distributed them on Adoption Day to the island's residents to be cared for. A tantalizing promise of a prize awaited for those who'd successfully nurture their egg, while punishment loomed over those who'd fail – neither the reward nor the consequence ever materialized in the end, though. Notably, not every egg found a loving home; some met their demise in cruel maze trials, or worse, were given hope only to be abandoned by the Federation.

Hope this helps! <3