Go into your Nvidia control panel and turn on vsync or limit the amount of frames to 60 for the game. Pretty sure if you turn on an FPS counter you're probably running like 100-200+ FPS.
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So I tried this, went to the NVIDIA Control Panel and did what you've suggested. I set this option to On and set a limit to 60 FPS. I also use the game option for Vsync + Limit Frame Rate at the bottom of the right-side panel.
It didn't change anything though. The GPU basically ramps up to 100% capacity for as long the as the application runs. The fans spin to max during all that time (part of the fan curve + temps, obviously they won't slow down if the temps are at a constant level).
I mean, it's not "dangerous", but it's not a sign of any optimizations. I wouldn't recommend running this game in a system that might have heat issues in a prolonged 'demanding' scenario (be it stress tests, highly demanding games, or unoptimized games or simulators and the likes). Even if a GPU (or a CPU) can run at high 'specified' temps, it's only safe to let that happen if the cooling solution is proper and the temps remain stable (high, perhaps, but stable and not constantly going up).
Now obviously this game is still in very early development and HenryTaiwan is not an army of developers, he's probably working alone and has a lot to do by himself. And this is related to optimizations surely. He should make sure that his application doesn't 'provoke' usage of 100% resources and hardware capabilities.
Essentially the real risks are:
1) Overheating.
If that does happen, it can potentially damage components (whatever in the system happens to overheat, motherboard stuff, GPU, Memory sticks, CPU, heck even Hard Drives), or - at the very least - it can produce errors, crashing and visual artifacts on the screen (if the GPU is the overheating component).
2) CPU Throttling.
If a CPU reaches the maximum thermal junction temps, it will 'normally' throttle to basically save itself. However, the 'action of' doing this throttling is an abrupt drop in CPU Voltage, which itself can crash applications if they happen to run when the throttling occurs. Example would be a CTD while playing a demanding game, but unbeknownst to the player the CPU just throttled and slows down to drop heat, but that caused the screen to freeze and followed itself by a crash to the desktop.
3) Obviously, fan noise.
Depends on people, and PC Case setups of course, but a 3-fans GPU like the RTX 3080 I have is quite audible when it's doing 100% work. The CPU fans are alright, in my case, nothing too loud regardless (Noctua fans are extremely silent in most scenarios). However I wouldn't imagine playing this game without headphones to help block out the fan noises coming from the tower, especially if it's an open side-panel tower setup.
Just Fair Warning: keep your temperatures in a safe spot when running this game (for now anyway).
So anyway, I'm just saying that this application as of now seems to simply use all of a GPU resources and make it work to its maximum capacity in a constant, non-stop manner. It's not a problem per se when a game - for example - does 'require' the GPU to ramp up a bit, but optimization means that the utilization of the maximum resources will be in a limited, controlled capacity with some pauses here and there. Just like modern CPUs that can boost themselves up, they do boost themselves on a PER-CORE manner (or a few cores at once), rather than a full-cores boost that would last for hours non-stop. There's always some cores that drop down, and the ones that dropped down are cooler than the others that are in demand, and there's a switching of power and boost doing back and forth between ones that can be solicited and ones that have been already but are too heated-up to boost again right away.
The 'issue' here with this game is that there's no pause in how much power is required out of the GPU. It merely goes to the max right away, asks 100% out of the card and never backs out even a tidbit from that. That's the issue, it needs to give the GPU some momentary rests in medium bursts here and there to keep the temps in check and slow down the FANs speeds to help reduce noise as well.