Design a sprite of an original character, then create at least two alternate colour schemes or outfits for that character.
Canvas size - Each individual sprite must be a maximum of 32 x 32. The total canvas size, however, is unrestricted.
Colours - Max 32 for the entire image.
Transparency - Required.
Animation - Optional.
Maybe if we do another challenge like this in the future we can have larger sprites.
Ha-ha! I have to agree that the canvas size is small but isn't it challenge-ing? 
Why do you have this amazing challenge when I have bad eye infection?! 
I must figure out a way to pixel characters somehow D,:
Well, ideally, each sprite should be directly comparable. So, I'll say that if you have to have different poses for each sprite, try to keep it minimal.
Maybe optional animation implies the possibility of recoloring the animation or frankensprites.
Since animation is allowed, seems you can make as many poses as you want.
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I see what you're getting at, should be fine.