The most recent explanation made by me was this:
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Providing a post is made on the forums, switching alignments to Renegade will be considered official instantly. A Renegade Baron must publicly petition on the forums and be publicly accepted by the Overlord to be Loyal. The Baron will be instantly recognized as Loyal upon acceptance of the Overlord. All challenge rules then apply upon these alignment switches.
As it is now, Parrot can do that. I am okay with this, as well. The reverse could happen, too. An Overlord can accept Loyalty from a Renegade Baron on the spot if it can benefit them. Political manuevering. Good stuff, right?
My concern that popped up as I was looking these over was this. Someone can go "Okay, I switch to Renegade to block this test." Then after the fight say "Okay, now I want to go Loyal." and the Overlord can say "Okay." and the Baron is Loyal again. It's something that could be abused.
So my proposal/thought is this. Once a Baron switches alignment, they are unable to switch it again for a period of (X) days.
Comments, suggestions and thoughts are welcomed.