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If I recall correctly, you can have palette swaps, but you are required to only display 4 colors on the screen at any given time. There were a few entries from last year that did some really nice palette swaps between levels (green palette to red palette, etc).

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Hm! I think the rules should be more explicit about this since if you were to take it literally you'd think only 4 colors for the entire game... so! It does say "Use 4 colors per game" not... "per level"

That was my thought too with the first GBJam I participated in. I do agree.

I'll write something up.