“Mip Gen” or Mipmap Generation refers to the process of creating a chain of textures at varying resolutions (mipmaps) from a single base texture. These mipmaps are automatically generated when a texture is imported into the engine, and they help optimize performance by allowing the engine to use lower-resolution textures for objects further away from the camera, reducing both memory usage and rendering overhead
So, just set up Image texture like this:
You can also use this texture by choose it on the image in the widget. Depends on the task.
Reducing the image resolution is not a solution, because when we change the resolution of the monitor, we notice a deterioration in the texture quality.
The PNG texture mask in the material does not need to be changed to Alpha, this will result in the same sharp edges problem on closer view. Instead, you need to change the blend mode in the material to TranslucentGreyTransmittance.
Result:
