Small VARCHAR2 variables are optimized for performance, and larger ones are optimized for efficient memory use. The cutoff point is 2000 bytes. For a VARCHAR2 that is 2000 bytes or longer, PL/SQL dynamically allocates only enough memory to hold the actual value. For a VARCHAR2 variable that is shorter than 2000 bytes, PL/SQL preallocates the full declared length of the variable. For example, if you assign the same 500-byte value to a VARCHAR2(2000 BYTE) variable and to a VARCHAR2(1999 BYTE) variable, the former takes up 500 bytes and the latter takes up 1999 bytes