Now that we've got a funding page set up with the FSF, it's time to go official with the contest. We've actually been working on this for the past several months, building up a body of art to serve as the base theme for the contest. Since everyone (including yours truly) likes to look at pretty screenshots, I'll show you what we've got so far:
As you can see, we're aiming for a distinct victorian-style fantasy set that should be appropriate for the standard fantasy genre as well as steampunk. The sprite you see in the bottom link is the male version of the base sprite, which we're working on animating at the moment. We'll have nude versions of both the male and female base sprites as well as a small set of armor, clothes, hair, and accessories to go with them. Contest participants are encouraged to create more.
We'll keep you posted as things progress. Remember, the contest starts on June 1st, so be ready!
In the meantime, in order to fund prizes and expand the art set, we could use your help. Please see the Donation link above. Every little bit counts!