@lisyarus I don’t know how to convert raster images to SDF other than counting pixel distance. But what I’m getting at is if your alpha channel was close to 50% at the edge of the sprite and tapered with distance, normal resizing algorithms would preserve that edge. Right now you’ve got a 0%, 100% cliff and are hoping it smooths out to something useful.
You’d still need to use some of your tricks for getting the color channel to not blend with the transparent area.