Hey there. It means the enemies will be scaled at 1,630 but your power is capped at -20 below that.
So whether you are 1,610, 1,630 or 1,650 (and upwards), you will always be effectively 1,610 while playing that mission, that's the highest anyone will be. So yes, there is no need to be higher than 1,610 to play it.
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Ok I understand now. I whish it was But just to say this really sucks. I am 1811 and everything does one-shot me and if I want to kill something I need to empty a clip or use a rocket launcher.. I have about 7K hours in destiny but the way it plays now is no fun any more... I like the DLC but not what they did by implementing the power cap. Hopefully is Starfield good and comes soon.....