Enable Automatic Texture Streaming for avatars and Auto VRAM settings
SplitScream
Since VRChat has an existing Texture Streaming system that is not yet enabled, it would be wise to allow players to automatically cap total avatars by VRAM budget. Giving players more performance for little graphical loss
If I have 6gbs of VRAM, allow me to assign a cap to the size to avatars, prioritize streaming a smaller streaming texture automatically, if they're friends, or prioritize getting the most avatars visible
It can also change based on how much VRAM the current world is using and can be dynamically calculated based on the remaining amounts
"this world has a dedicated 2gbs of VRAM, the 4gb remaining will be divided up X amount of visible players, thats 4 / X = Y amount of VRAM per avatar
Oh these avatars are over the Y budget, let's stream a smaller until they're at Y amount"
"Oh you're prioritizing friend avatars over everyone else, okay, your friends get the larger share while others are on a stricter budget"
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Invertex
That would definitely be nice, but would definitely require some decent work to implement and not have issues.
But an easier to implement option that could help the issue would be for them to adjust the mip-bias for models to be lower-resolution at closer distances when memory is getting tight. So the user gets better performance at the cost of a bit blurrier textures nearby.
Have an option to weight "friends" more favorably and give worse bias to others as well (or at the least just don't adjust friend's biases).