the outline is also removed (only use clusters for defining the shape)
Thats good and I think it looks better without so many outlines.
Please don't misunderstand me though, I'm not saying all outlines are bad.
Sometimes they are useful as a separator where for example you can't control the background some sprite is shown against.
Generally you would avoid outlines on background art and tiles, but perhaps consider them on sprites (especially when you can't control the background).
It doesn't always need to be a solid line, sometimes its good to skip the odd pixel where you might not even want some part to stand out too much.
This is by no means THE way to do pixel art but I'm finding it useful for my purposes.
About banding, yes I forgot what it was (I thought it was the edge of changing color) xD.
That was my bad to confuse you there.
Banding seems to have 2 meanings but the much more common usage is what Ai is explaining.
Perhaps there is some exclusive term for bands of colour (maybe I'll just call it that).

Not really happy with the sword but there you go.
Started off some alternative style of grass which I've been experimenting with lately.
Also messed with the blood and monitor a little.