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Not understanding how to properly use ticks for a server

Hi all,
I have been working on a project for some time now and finally made the decision to switch how ticks happen on my actors. After reading that “Event Tick” happens on each frame, I realized that if someone were to local host my game, the server tick rate would be tied heavily to their framerate (which really doesnt make sense to me. If the game gets heavy and drops frames, that means the server will not tick consistently at all through gameplay.)

So I found some posts on how to get around this, but they do not seem to have worked. My players were telling me that everything was screwy after making the below change. Players were teleporting and not in correct places, animations were all wrong, etc.

The post I had found was to set a function on the server that ticks at the tickrate I wanted. See attached picture. Supposedly, this would cause the host to run a server at 128 ticks per second, and not be tied to their framerate.

What is the appropriate approach to handling this? My guy feel is that running based on framerate is not the correct approach, however im at a loss and may have to revert back to it for now. How do games like Sea Of Thieves and Spellbreak handle this?​​​​​​