I would like to pick B & C.....but it will be hard to compete against Ethereum and Bitcoin when DragonChain is using Ethereum token.
Because as i understand, you still need to use Ethereum to pay for the fee every time you transfers your DragonChain tokens.

So basically DragonChain is helping to increasing the Ethereum price higher, because you need to use Ethereum to transfer your DragonChain token

DragonChain is a big project & with big visions...so it make more sense to used our own coins in the future.
Hope the DragonChain Development Team have a plans to replace our current ERC20 token in the future, in my opinions.
They will.. they just used eth to obtain the invest.