Transparency Dither

This effect is identical to the distance fade used in StandardMaterial3D under Distance Fade. Unlike distance-based fading, this dithering effect is controlled by the alpha component of the source color.

Source:
https://github.com/godotengine/godot/blob/master/scene/resources/material.cpp

Shader code

shader_type spatial;

const vec3 ign = vec3(0.06711056f, 0.00583715f, 52.9829189f);
uniform vec4 color: source_color = vec4(1.0, 1.0, 1.0, 0.5);

void fragment() {
	ALBEDO.rgb = color.rgb;
	if (color.a < 0.001 || color.a < fract(ign.z * fract(dot(FRAGCOORD.xy, ign.xy)))) {
		discard;
	}
}

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