$translucent
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The $translucent
VMT command specifies that Source should use the alpha channel of $basetexture to mask the material on a pixel-by-pixel basis. It is available with UnlitGeneric, VertexLitGeneric, LightmappedGeneric and many more shaders.

$translucent
can sometimes cause rendering artefacts; consider $alphatest when this happens.
$translucent
cannot be used in conjunction with $envmap, and probably other parameters like it. If you have trouble, try stripping everything non-essential from your VMT.VMT syntax example
LightmappedGeneric { $basetexture "decals/mydecal" $decal 1 $decalscale 0.10 $translucent 1 }
Related parameters
$additive 1
- Renders the texture additively - its colors add to, instead of replacing, what is displayed behind.
$alpha <float>
- Scales overall material opacity by the given value. Every pixel with an alpha value less than 178 will be completely transparent in game - but values close to that will confuse the shader at distances (see $alphatest).