Dr. Tinker built the Dream Machine, which he hoped would make it possible to open a portal leading to all of the wondrous and pleasant dreams of the Funkeys. When his invention was completed, and the Dream Machine was finally activated, it was a success, and a portal was opened to Daydream Oasis. But to have dreams, you must have nightmares! When the Dream Machine opened a portal to Daydream Oasis, it simultaneously opened a portal to Nightmare Rift, the manifestation of all of the dark and dreadful nightmares of the Funkeys.

There's an old Funkey saying "I'd rather be Lucky than good." And nobody is more lucky than the Lucky, that is why, of course, they are called the Lucky.

Many, many years ago, The Lucky discovered, quite by accident, the secret to controlling all the rainbows in Terrapinia. The first thing they did with this skill was use it to find the pot of coins that everyone knows is at the end of rainbows. Since they have so many coins, they've never again had to work a day in their life! Because of this, the Lucky are always friendly and have a permanently sunny disposition, even when it's raining!