This guide will show you how to reduce lag on your Minecraft server by reducing your View Distance and/or Simulation Distance in the server.properties file.
What is View Distance?
View Distance sets the amount of world data the server sends the client, measured in chunks in each direction of the player (radius, not diameter). It determines the server-side viewing distance.
Simulation Distance sets the number of chunks that will run in-game processes (even if they’re not visible): load entities, grow crops, run automatic contraptions, etc.
10 is the default/recommended. If you have major lag, reduce this value.
How to Reduce/Change the View/Simulation Distance?
You may view our guide here: Adjusting View Distance on your Minecraft Server
Simply change it to any value between 3 (minimum) to 32 (maximum).