This is a pretty standard encoder pattern. An even number must be entered below for a regular pattern.
3 tone Encoder
This encoder pattern should be recognized by an analog encoder. This could be used to tell if the wheels are moving in either direction. The vehicle could be moving either forward or backward. A number divisible by three must be used to give a regular pattern.
Multitone or Grayscale Encoder
This encoder pattern could be used to tell exactly where in each revolution a wheel has been turned. This assumes the printing is consistent.
4 tone Encoder
Maybe, more shades could benefit different applications. A number divisible by four must be used to give a regular pattern.
At this point, I was just having fun making a color wheel. I do not see this being used as a wheel encoder.