I created a plane and applied a custom texture. The custom texture was created using a PNG image with transparent areas that “fade” from opaque to transparent (It’s for stylized clouds). However, the “fade” isn’t working, even though the material is set to masked and the texture node’s alpha channel is plugged into opacity mask.
masked opacity is a binary function. the pixel is whether solid or transparent. the threshold in the material settings is the factor where this “binary line” is. to get a gradient you’d have to use dithering. i tried to make clouds with that too. it looks pretty gnarly, means bad. you can try yourself and decide if you want that.
the other options you have are translucent material clouds and being careful how many layers you have. or you paint a stylized sky box texture.
I switched to translucence, as you suggest. Instead of layering, however, I added a multiply and scalar parameter node to grey scale mask I created in Photoshop. I cranked the parameter up to 5, and that gave a good result.