Rules

Basic rules:
A death in the coliseum = that dragon must be exalted. This is the most essential rule of a nuzlocke.
All loot obtained in the coliseum is irrelevant, as is the loot obtained from gathering.
There are no restrictions about applying apparel to your dragons. Do whatever makes sense to you. Same goes for familiars.
Ping or message me if you take the challenge ;p (you don't actually /have/ to but I'd love to see how it goes!)
And, most crucially, all nuzlocke activity corresponds with the loot you obtain daily from Pinkerton's plundered pile!

If a dragon reaches level 25 it "retires". It can join the ranks of your main lair.

Drops of Fate:

Food: Coliseum time!
Plants: 10-20 matches
Insects: 20-30 matches
Seafood: 30-40 matches
Meat: 40-50 matches

You must select coliseum challengers in your lair using a random number generator. Then, select the coliseum arena that corresponds to the highest level dragon of that group (For a 'medium' mode, select the venue that is one tier down from that of highest level dragon). If your dragons level up while in an area, you can still stay there for the whole day. You can quit your battle streak at any time to regen health, and flee from battles if it is appropriate. Don't try do 50 matches in a row unless you want a wiped-out dragon!

(These ranges can also be altered to suit your level of activity/personal preference.)

Materials and trinkets: Flex your creative muscles!

Materials: Do some writing for your nuzlocke. How does your new nuzlocke clan change and develop? What are your dragons like personality-wise? How do they get along? How do they die? Is there an antagonist in this nuzlocke, or are they merely struggling against the forces of nature? Write dragon bios! Make a blog, or a thread for your challenge in the creative forums! Write short stories or paragraphs, or add to one big one adventure!

Trinkets: Do some art for your nuzlocke! Digital or traditional, use whatever medium feels best for you. Draw deaths. Draw dragons. Draw humanized versions of your dragons (if that's your sort of thing). Draw familiars and dragons together. It doesn't have to be that good or elaborate. If you make a nuzlocke thread, post your art there.

Obviously, you might not have time in your day to do something creative. If that's the case, don't worry about it. This challenge is meant to be fun and heart-wrenching, not a chore.

Rare drops: Wildcards

Familiars: Buy the cheapest dragon in the auction house of a specific breed. Use a random number generator (between 1-14) to determine which breed you will get! (Optionally: attach the familiar to the new dragon.)

1. Fae
2. Guardian
3. Mirror
4. Pearlcatcher
5. Ridgeback
6. Tundra
7. Spiral
8. Imperial
9. Snapper
10. Wildclaw
11. Nocturne
12. Coatl
13. Skydancer
14. Bogsneak

Apparel: Breed two of your dragons. The dragons you pick are up to you. You can also change one of the genes on a dragon, or use a scatterscroll if you are rich and crazy.

Note: You must flip a coin for each hatchling once they hatch. If tails, the dragon is dead and you must exalt it. This is in keeping with the origional Nuzlocke thread's rule, because I really like it.

Battle items: Uh-oh!!!

Flip a coin.
Heads = DEATH STREAK
Tails = Nothing happens

DEATH STREAK rules: Randomly select three dragons using a random number generator. Fight in the coliseum using the "food" rules 10 rounds consecutively (ie. you cannot leave that arena), quitting midway if a dragon dies. If you are using the easymode rules, switch to the hardmode rules for battlestones.

Starting out:
Using the method I detailed in the "familiar" possibility above, obtain a small number of dragons (I suggest 2 or 3). If they already have names, keep the name! If not, name them whatever you like. The challenge starts once all of the dragons, if they are hatchlings, grow into adulthood.

Alternatively, choose 2-3 existing dragons in your lair to participate. This has certain advantages (eliminates the need to wait for maturity and breeding cooldowns) but also some disadvantages (less random=less exciting).

You may want to "partition" your nuzlocke dragons away from your regular dragons so you don't get them mixed up.

Losing:
If your dragon count falls to zero you have a few options
1. Declare the challenge a "loss" and give up
2. Wait for Pinkerton to drop a familiar
3. Just say "welp" and buy another dragon from the AH without waiting for Pinkerton because you lack patience.