Design Help...

I like it. And, I think this could work in a logo, if it was integrated into the text, as Coy mentioned above.

You know, if the business/game/product name was "Dragon", this could be the "O", but you'd have to be careful that the dragon doesn't overpower the company name, but rather compliments and enhances it. (make the rest of the letters the same size as the "O")

I also feel like it should have some light smoke coming out of his nostrils...

Cool drawing, thanks for sharing! I look forward to seeing the digital version!