Animated wallpapers work fine on Plasma natively. But, no: the contest is only for static images, as animated backgrounds tend to be quite resource hungry and we need Plasma to work smoothly on all kinds of hardware, including low-powered and older machines.
@Bro666 what if its a very small animation (eg. 2, 3 or 4 frames not changing much) and its tested to NOT be resource hungry?
like for example animated space with stars or a little waving water?
Unfortunately it is not in the nature of this specific contest. That said, we can take it under advisement and maybe we can do a contest for animated wallpapers next time around. I'm taking note and I'll bring it up.
How recently have you tried it? I tried an older version on Debian 11 with KDE Plasma 5.20, and indeed it didn't work well, with only a tiny amount of basic backgrounds actually working.
Last week I tried it again on Debian 12 with KDE Plasma 5.27, with the latest plugin version released earlier this month. It actually works very well now, with many complex backgrounds working!
Of course it is still not 100 percent compatible, some backgrounds can even crash your Plasma session (I highly recommend backing up your Plasma settings first). But definitely usable.