As we can not yet upload SVG's I wonder what the guidelines for uploading PNG or JPG's are? No matter what I try it still distort and pixelate the images, which is a bit annoying as it looks really bad compared to the crisp SVG's.
After uploading and cropping an image to use as the issue type icon, it is re-sized to 16x16 pixels in Jira. The more details the image has more blurry it gets, so what we can suggest is that you create a larger icon keeping only the main components of the image.
In addition to it, there's the following feature request regarding SVG avatars. You can add yourself as a watcher, comment, and vote to increase its popularity.
Regardless of the size you upload, Jira resizes icons to 16x16.
Display resolution for icon on a MacBook Pro is 32x32 px. So a 2x scaling is applied to our already resized image.
So it is better to not use custom icons feature. Looking at the implementation, Atlassian don't want anyone to use it any way.
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