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Picture: Change Color Depth
This function allows you to select from the color resolutions for standard image formats. The higher the number, the more colors you will have with which to paint.

More colors in the palette also means that the file's size will usually be larger. You may keep the file size smaller when in 16-color or 256 color resolutions by using the Set Palette function to optimize the colors in the palette. In 256-color or 16-million color modes, you may also use the
Reduce Colors function in the Effects menu to eliminate unused colors or colors with similar values.