Baby Zombie or Baby Zombie Pigman riding a chicken spawns in Overworld and Nether respectively. When the rider is carefully killed, chicken stops being ridden and uses its own AI. No matter what, that chicken will still despawn as though it was a monster (range, mob cap, etc).
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Tails: Please elaborate or add a source saying it works as intended. It’s an animal and animals don’t despawn with range.
To prevent lag, see MC-42174.
Oh, that’s why. This seems weird because 1) chicken riders are very rare, 2) chickens can wind up underground on their own, possibly creating the lag too.
I think it would be just more logical to create a second egg version with damage value 1, which cannot be picked up by mobs. Or prevent mobs from picking up eggs whatsoever. Currently this despawn mechanic prevents resource-scarce worlds like Skyblock or superflat maps from accessing one more renewable resource.
Thank you for explaining though.
I showed a pen with water to make sure that chicken won’t glitch through the fence. This experiment can be recreated with any other pen type, the chicken will always despawn as though it was a monster.