A couple games I've been playing recently all have a similar goal of dithering objects when they approach the near clip plane. Super Mario Odyssey applies this dithering-near-clip-plane effect, but along with object intersection dithering for objects like Mario. I have an example of this dithering in Super Mario Odyssey later in this post.
How would one go about creating this effect in their graphics solution of choice?
The gifs might take a little while to get started. I couldn't get them to each be under 30 mb :(
Example in Super Mario Odyssey
The balloon of the Odyssey doesn't "exit dithering" until the camera is a good distance away from it. This could mean dithering is calculated based on object distance from camera, instead surface distance.
Flag starts out with a small dither density, and Mario has no dithering applied to him. Once the flag is fully opaque, Mario becomes dithered, but only in the portions that is covered. Also note Mario's coat tail has the "transparency dithering" applied to it. How are the object's shaders structured to allow this compound effect?
Below is a blown up image of Mario being dithered. Notice how dithering exists in intersection regions, and when behind objects!