chain slack question

Personally, I prefer a bit more slack than your 3/4". I aim for between 1" and 1 1/4" and once adjusted I bounce the back suspension with a fat girl (joking) sitting on the bike, to make sure the swing arm travels through it's range without the chain getting tight.
 
Jellyrug is right, you need to have slack for your suspension to work otherwise you are going to stretch out your chain prematurely.
 
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