How does the timescale exactly work from the event calculating point of view? Does it slow down calculations? I'm asking, because I noticed that after setting timescale to 0.8, after quite a while, collision detection bugs didn't happen yet.
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It just changes the value of dt.
At 60 fps with a timescale of 1, dt will be ~0.0166.
If you change the timescale the the fps will stay the same but the frame time ( which is usually dt) will be multiplied by the timescale to give a new dt.
So for example at 60fps
If Timescale=2 then dt will be about 0.0333
Or if timescale = 0.5 dt will be about 0.00833