Dithering¶

The dithering texture used in Shadow Generations¶

A circle slowly dithering out (recreated in blender) (scaled up by 400%)¶
Dithering, specifically transparency dithering, is a technique used in shaders with alpha-clipping (which is usually used with the punch-through mesh layer) to make a fade-out effect without having to use transparency blending.
All Hedgehog Engine 2 shaders have dithering code implemented (only confirmed for Shadow Generations right now), but more research is required to understand under which circumstances it is used.