castner, it is a damping mechanism used to dampen resonance in the bass. It all depends on the cartridge you are using as to whether or not it will be a benefit.
Here ya go! Functionally when a tonearm reacts to the resonant frequency it produces a peak of output energy. This is seen as woofer pumping which is essentially the stylus over reacting to a small warp in the records surface. Fluid damping stops the stylus from over reacting. That is what is "damped".
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