Reducing Starbound Lag

First, navigate to your Starbound install directory.

Open your Starbound folder:
[Steam directory]\SteamApps\common\Starbound​
If you've installed Starbound via GOG Galaxy:
[Galaxy directory]\Games\Starbound

Open \storage folder.

Edit starbound.config in that folder. Find the line that says "vsync". Change the value to false. Save the file.

Back out of that folder so you're in the root Starbound directory again.

Next, put the extracted mod folder into the folder called mods that could already be there. If it doesn't exist, create it.

Open the universe_server.config.patch file that's inside that folder residing in your mods directory now. If you have a higher core count than 4 you should change the value key that exists in the file to 8 or 16 depending on your CPU. This will allow Starbound to use more threads and improve performance. If you had no idea what any of that means, leave it at 4.

You can also download this pack of mods here and pick and choose ones to install. Some of them are more extreme like removing backgrounds from the world, but may help in specific use cases. To install, simply drag the .pak file from the extracted archive into the /mods folder like discussed above.

Reboot the game!