(Just to clear things up, I'm FAR from being an expert at Danmakufu AND blending. In fact, I'm just an amateur at both.)
After so many years, some things in Danmakufu ph3 are still a mystery. For example, nobody hasn't even figured out what BLEND_SHADOW does yet.
Since ph3 is now THE engine that everyone who wants to start scripting in Danmakufu should use, undocumented things like these are abysmal.
So, BLEND_SHADOW.
It darkens every single object with a smaller layer than itself. It doesn't work if the object with the said blend is not layered above anything. (It's a ->shadow<-, what do you expect?)
An object with the blend also seems to completely ignore its alpha. Even if you set the object's alpha to 0, it still will be as visible as it was with 255.
Then, after experimenting a bit, I've discovered that
it also inverts the colors completely! Here's an image of a Doremy cutin with BLEND_SHADOW applied.

I think it might turn pure black into transparency as well, explaining why the Doremy cutin seems less transparent on the silvery moon, rather than on the blue background.
But that's as far as it goes for me. I have no idea what use could such a strange blend serve, but it sure is interesting.
EDIT: Actually, now I'm pretty sure it turns PURE WHITE into transparency, not pure black. The moon was just an illusion. Damn lunarians!