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This parameter controls the maximum number of seconds to process transactions before starting a new round. This is especially important when there is a queue in the transaction processing.
Together with the parameter "Maximum number of transactions processed in each round" this controls how often newly arrived transactions will be considered for prioritizing. A new round is started when at least one of the limits has been reached.
If these parameters are set too high, the overhead in the processing is increased, and the total throughput will be reduced.
If these parameters are set too low, longer time will potentially pass before new high priority transactions are discovered, and the users will experience delays in the system.