Disclaimer: I may not know what I'm talking about
I was surprised to see in an update to Subnautica the feature of dithering. I always understood this was to fake more colours in applications that use less than 24 bits of colour. Now I read Unity provides it anyway to help with colour banding: https://docs.unity3d...-Dithering.html
Dark mod suffers from colour banding, too. I notice it mostly when the lantern is on and you're standing on a snowy texture.
Is this something that is feasible and could help?