Bit crusher effect, producing a fuzzy, stepping distortion. At the moment the controls aren't tuned very well: doesn't do anything for small bits settings and the gate control is a bit clumsy.
The gate control is really a just straight-up gain; for lower bit settings you need to boost the volume so that the signal actually reaches the first bit threshold at all.
In the future, I plan to add a filter control so you can mess with the sound in interesting ways.EXAMPLE RECORDING
with Gate set to 30% and Bits set to 9.LATEST SOURCE CODE