What a fantastic idea, @museful. It could be a laboratory, of sorts, in which we get feedback from Dramatica story experts while getting working knowledge and experience putting the theory into practice. Plus it will offer insight into how to apply this theory to shorter works. For me, the explanations on how to apply Dramatica to short works have always been rather sketchy—not sketchy/shady but sketchy/cursory. The tendency seems for people to appreciate and use the theory to generate and analyze longer works. So, I look forward to spirited challenges in which we synthesize the theory into shorter works of 5000-7000 words. But why vary the lengths. Why not flash fiction of less than 1000 words?
I'd do it for the challenge alone. Bragging rights for a month or so until the next contest completes could sweeten the pot. That's how things worked in a community where I cut my teeth learning how to write fiction. They often had flash fiction challenges. The winner got bragging rights and opportunity to develop the next challenge, whether it be a subject or theme, an inspiration image, a group of manadatory elements, or a first line. Participation was organic and didn't require a significant "prize" to garner reasonable participation: 4-10 entries normally a month. Though to have an hour of a story expert's consulting time or a free subscription to Jim's Atomizer at stake might surely ramp up participation.
How about just starting one for the heck of it? Maybe from a single fixed, randomly generated storyform (without gists)? And see what comes? What's the worst that could happen?
Fantastic idea. Go for it!