Here’s how I’d try it first:
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make a sphere collider for the max range damage can be applied
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on explosion, get all damageable actors overallped by that collider
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get their distance from the dynamite
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use map range clamped to apply damage based on distance ( you could also use a curve for finer control)
Thats the basics of it. Of course you may have additional things, like make sure there isn’t something obstructing the way like a brick wall. A line trace from dynamite to damageable actor can check for that.