Direct answer

simulation-distance determines a radius of ticking chunks around players. Reducing it can lower active mobs and block work, but is not simply a graphics setting.

How to check it

  1. Inspect actual simulation-distance and view distance, including world overrides when applicable.
  2. Measure MSPT and mob/farm behavior with players spread out, because one spawn chunk area will not represent full load.
  3. Compare normal farms with a test of shorter simulation radius and note devices that stop processing when players move away.

Example: Reducing simulation distance might stop a farm six chunks from an AFK player but barely change chunk packet traffic. Test farm operation before calling the lower setting an improvement.

What to change

Use the smallest radius that meets the intended survival or minigame experience, and fix unusually expensive farms separately. Change one setting per test.

Software and version notes

Paper’s server properties and Spigot world settings can override each other. Chunk tickets or modded systems may change which areas remain active.

Verify the result

Confirm farms, crop growth and player interactions function at expected distances, and compare tick cost at the same player distribution.

References