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More sipes == less contact area on the ground, more tread squirm, less dry traction. Generally more noise as well. Probably slightly higher rolling resistance.
It can help on wet roads or snow and ice--IF you know what you're doing. (Hint: Tire manufacturers have spent many man-years figuring out what works.)
It's not anything I would even consider doing to my own tires. Nor would I want to try hand-siped tires from a local tire shop, unless the person doing the cutting has many years of experience doing just that.
-soD
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