Wow it was trippy :) I didn't know you could make a game like this on Pico-8. It's quite something. I like how the tiles change with grass and mushrooms grow everywhere as we walk on the map. The acid trip effect gave me a little nausea but it was cool :) I didn't complete the game though. You mention a tree we need to hug in the description but i couldn't find tree of any sort.
I like the creative idea and the cute Pico-8 look. I also like the trotting sound effect of the rainbow pony :D