Wow, very interesting! If I am able to figure it out and implement it, would you mind me using this method with credits to you?
Viewing post in Low Knight (Demake Jam) comments
Feel free! No need for credit - palette cycling is an old, old technique with a lot of history behind it. It can be used for lots of cool stuff, eg. http://www.effectgames.com/demos/canvascycle/
In any case, have fun!