The gate limits the amount of pressure the turbo can place on the carburetor. This protects the engine from boost levels that could damage the engine.
The wastegate on a Turbo Dodge Daytona is mounted on the exhaust housing of the turbo. Both the intake and exhaust manifold are on the back of the motor. The exhaust manifold connects to the exhaust housing of the turbo - directing the hot/compressed exhaust gasses to the turbine and allowing it to decompress across the turbine blades. The wastegate is a second path for these compressed gasses to go through - when the turbo is creating the wanted presure on the intake side. When the computer wants the turbo to make more boost the wastegate is closed, when the turbo is making enough boost the wastegate is opened - allowing the exhaust gasses to bypass the turbine and control how fast it is spinning. On the Dodge 2.2 and 2.5 turbo motors there is an airline run back to a pneumatic can on top of the turbo - connected on one end to the intake manifold, and another end to a solonoid controlled by the computer. When there is vaccum on the line, the wastegate stays closed. When boost starts to ramp up the line to the can is presurized, but the electronic solonoid (controlled by the computer) is open and allows the pressure to escape. When the map sensor tells the computer that the intake is at target pressure, it closes the solonoid on the air line to the can on the turbo. This causes the pressure to fill in the can - pushing on the rod connected to the swing-valve, which opens the wastegate and allows the exhaust gas to escape without going through the turbine. Just a warining - if you disconnect the line to the can on the turbo the computer cannot control the amount of boost, which makes your engine get too much air. It will not be able to put in enough fuel for it to run right, which will damage it. There is a technique some racers use called a bleed - where you "bleed" off some of the pressure going through the wastegate control air line, but these are dangerous it not done right (keep the engine from going into open loop condition). A better approach is to change the computer and allow it to push more boost in - and fuel.
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