Basically, water changes will dilute any substance in the water. Fresh water helps with disease prevention, prevents stunting in growing fish, and can promote spawning behavior.
For instance, if you put 1 cup of salt in a jar and only filled up with water when it started to evaporate, the salt will always be present. There may be salt crystals on the sides of the glass, but once you fill up the jar, the salt gets diluted back into the water. However, each day, you take out a bit of the water and refill it with fresh water while not adding salt. Eventually, you will remove all salt from the water. Now imagine this 1/2 cup of water is 1/2 cup of fish food and fish waste.
A lot of times, when you have fry, you are feeding several times a day and there are a lot of little guys to cause waste. Changing the water frequently removes the waste, prevents ammonia poisoning, diseases are kept at bay and generally the fry will respond with quicker growth & healthier systems.
Without Algae, death of mankind would be inevitable.
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