It's from the lost civilization Allagan. Existed before 1000 years and technologically advanced than the current garleans.
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It's spelled DalaMoon.
SPOILERS (don't know how to make the hidden box thingy).
The Allegan civilization built it and put it into orbit. The Allegan civilization was wiped out in the 4th Umbral Era. 1,500 years has passed between the 6th Umbral Era and this 7th Umbral Era. If we go by this and say they all happen at the same space of time, that would place Allegan civilization destruction about 4,500 years ago. This would mean that Dalamud was put into orbit about 4,500-5,500 years ago, sometime during the Allegan's Astral Era.
And from the wiki:
"Cid also mentions that Dalamud is actually a colossal machine created by the Allagans and is not a natural moon. To activate it and cast Meteor, ancient stones known as Allagan runestones are required."
Theirs with you.
I think it's a huge red pimple on a invisible dragon what you guys think?
It's the finger of the giant space buddha statue thingy from Asura Wrath.
Erm.. no haha. Let's not get fanfic mixed up in real lore, please ^^! I took the OP as a serious question and thus gave information that is found within the game.
The scene you're talking about is a disagreement over whether or not it is a good idea to use Dalamud and cast Meteor since the spell is very unreliable and they don't know exactly what will happen. It is fact that it is an Allegan-made colossal structure, "Artificial Moon," that is involved in summoning Meteor.
Convenient that Dalamud will be at its apex near the conclusion of the seventh umbral era. Around the moon mouse festival.