Someone needs to create a complete timeline of the Touhou series I will start:
Lord Tsukuyomi learns that aging is caused by impurities found on Earth. He discovers that Earth is an inherently impure place due to natural selection and wars; by contrasts, the moon does not have these impurities. [1]. He migrates to the moon and takes Eirin with him and establishes the Lunar capital. By being on the moon (a place with no impurities), Tsukuyomi and Eirin's bodies stop aging.
According to Kaguya, the Lunarians invented youkai to regulate the Earthling's impurity [2]. Kaguya also says that all magic found on Earth originated on the moon.
Yukari at some point launches an attack on the Lunar capital.
The humans started getting fed up with the Youkai, so they started exterminating them. In response to the exterminations, Yukari Yakumo initiates the Youkai Expansion Project. Yukari, along with other sages, create a boundary of illusion and reality around Gensokyo, logically creating a new world in the process. [3]. The youkai who are naturally weakened by the outside world, found Gensokyo to be a good home.
The humans invade the moon.
Citations:
[1] https://en.touhouwiki.net/wiki/Cage_in_Lunatic_Runagate/Third_Chapter
>The Earth is a world of impurity because it is this sort of blood-stained world. Living things tend to live on forever, but the impurity stole away their longevity. It was a world of the short-lived.
>However, there was a sage who realized that the impurity was stealing life from all living things.
>Lord Tsukuyomi took only relatives he had the utmost trust in and moved to the moon. The moon was completely without impurity. As a result, those who had moved to the moon forsook any lifespan.
[2] https://en.touhouwiki.net/wiki/Imperishable_Night/Story/Scarlet_Team%27s_Scenario
>We of the moon turned some on the Earth into monsters, to regulate the Earthlings' impurity.
>The moon granted many powers to the Earth.
>Most powers such as magic were originally those of the moon
[3] https://en.touhouwiki.net/wiki/Perfect_Memento_in_Strict_Sense/Yukari_Yakumo
>The project refers to a plan designed and implemented by Yukari in order to restore power to the youkai of Gensokyo, who felt pressured by the increase in the human population.
>By establishing Gensokyo as an illusionary world, and the outside as the real world, the youkai weakened by the outside world would naturally flock to Gensokyo; this was a truly epochal event.
>>16069636
Yukari did not create Gensokyo.
>>16069636
>Someone needs to create a complete timeline of the Touhou series
Not really.
>>16071851
Why not?
https://en.touhouwiki.net/wiki/Gensokyo_Timeline
>>16069636
It's time to end Gensokyo and the Moon. Erase it all.
>>16069636
>By being on the moon (a place with no impurities), Tsukuyomi and Eirin's bodies stop aging.
They're both ancient gods; they never aged to begin with. How did you suppose they even got to the Moon?
>According to Kaguya, the Lunarians invented youkai to regulate the Earthling's impurity
>Kaguya also says that all magic found on Earth originated on the moon.
This is purely a comment on the Lunarian mindset of taking credit as originators of everything. It isn't necessarily correct nor incorrect, and shouldn't be taken as absolute.
>In response to the exterminations, Yukari Yakumo initiates the Youkai Expansion Project
Very incorrect. Youkai extermination is a natural consequence of their threats on humans and is symbolic of a healthy relationship between humans and youkai; hence why youkai extermination in modern Gensokyo is a regular fact of life. It was the belief in youkai that was waning, which is the actual threat to the existence of youkai. This should be able to be concluded on its own, but it's also stated outright in Akyuu's monologue on page 153.