I like the concept of novels being fractals. A way of thinking about stories that I first read about in John Yorke’s book Into the Woods although I’ve since heard about it elsewhere. But essentially a book is made up of sentences, that form paragraphs, that form scenes, that form chapters, that form acts, that form the whole and each of those elements (perhaps not the individual sentences and paragraphs), but certainly scenes, chapters acts and the whole, should have the same structure. In reverse, a tree trunk, dividing into branches, dividing into twigs, dividing into leaves. Of course he describes it so much better than I, but the concept is sound. If you think of a scene or chapter as being a mini novel, the idea of writing flash fiction is just that - a mini novel! So using the competition to establish some lore for your fantasy sounds like an excellent approach to this.
I saw in another thread you’re pretty booked until May, so I wish you the best with your entry.
Yup - you’re right! Not going to get a chance to start this before May, but it’s still worth giving it a go since it’s a free entry. I can’t lose anything, but the experience is worth the effort.