This guide will show you how to reduce lag on your Minecraft server by reducing your "View Distance" in '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.
The "Far" viewing distance is 16 chunks, sending 1089 total chunks (the number of chunks that the server will load can be seen in the debug screen - pressing F3 key while in-game). "Normal" view distance is 8, for 289 chunks.
*10 is the default/recommended. If you have major lag, reduce this value*
How to reduce/change the View Distance?
You may view our guide here: Adjusting View Distance on your Minecraft Server
Simply change it to any value between 3 (minimum) to 15 (maximum).