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Fancy

The "Fancy Graphics" option in the video settings of Minecraft allows player's to prioritise rendering efficiency over quality. When enabled, the fancy.json file loads materials rather than sad.json. In this file is a list of material paths along with a +defines property for some of the paths. This automatically adds the define to every material within the file.

json
[
	{"path":"materials/fancy.material", "+defines":["FANCY"]},
	{"path":"materials/entity.material", "+defines":["FANCY"]},
	{"path":"materials/terrain.material", "+defines":["FANCY"]},
	{"path":"materials/hologram.material"},
	{"path":"materials/portal.material", "+defines":["FANCY"]},
	{"path":"materials/cameraFacingSprite.material"},
	{"path":"materials/wireframe.material"}
]

To give a visual explaination, I will take my entity-based custom skybox as an example. It is saved in the entity.material file which means that when fancy graphics is enabled, the fancy properties will be applied which looks like this.

Fancy Enabled

If I were to add "-defines": ["Fancy"] to the material, it would render as if it were a real skybox.

Fancy Disabled