The donkey's face looks much better and the added volume of the PCs definitely brings that part of the scene far more into the limelight. Great! Just one little nitpick that you can consider when working on the facial expression later - perhaps use more of your lighter colors in the donkey's eye, or more of your darker colors on the little white patch around the eye. This is just for readability's sake, and maybe it's just me - for just a second I thought the donkey's eye was closed and that he just had a bead of sweat on his eyelid.
Incredible work though, good luck at the compo!

Okay then, if you insist on leaving the text the same, we'll talk about what you've just added.
I honestly cannot tell what the background is supposed to be. Bricks would be my first guess, but they read more as small rectangular buttons or pillows or something protruding from the wall. If you even look at reference pictures of bricks you'll notice that bricks have an alternating pattern, not one like yours. Also, making this background texture a light red somewhere in between the two shades of red in your title text only serves to make the title less readable. I don't mean to be rude, but it's actually a bit painful for me to try to read that text with the bright red repeating rectangles in back of it.
And what is below the "bricks"? Grass? A carpet? Are we viewing a cross-section of it from the side, or are we viewing it from above? It's entirely unclear as it appears to be one form, a big green rounded rectangular prism, with a little bit of texture on it. Making this a lot more readable is very important.
So even ignoring pixel-art techniques, at a basic art level this picture needs a lot of refining.
Finally, the knife below the logo looks very small and just slapped on. It's not an integral part of the title text or even the scene, it's just a knife sitting there below the text. It's also, as I mentioned before, so small that it's almost entirely unnoticeable.

It would probably help if you could tell us what it is exactly you've drawn when you post WIPs! That way we can be more specific in our help, and you can learn faster. And don't be afraid to spend some more time on your work, refining and reworking until you get exactly what you want.

completely off-topic from everything, but i just wanted to post this somewhere.
for Mac users annoyed with the blurry zooming on Pixelation, under EVERY browser, there's a solution. go to System Preferences, Universal Access, and turn Zoom on. then click Options, uncheck "Smooth Images", and check "Use scroll wheel with modifiers to zoom". I've set mine to ctrl+scroll. you could also just use a keyboard shortcut if you like, but the scrolling is more versatile.
when you click images on Pixelation, they'll still be blurry. but at least now you can get a pixeltastic zoom at whatever size you like. only problem is you can't get exact ratios like 2:1 or 4:1, but as long as you don't mind that, it's a lifesaver.

The text was correct, it read Україна, or Ukraine (Ukrayina) in Ukrainian.

Love it! Reminds me of the characters that are shown intermittently when an error occurs on the Game Boy Camera. Great style!