Do streams propagate compatibility mode?

[Quentin Engles]

In the documentation, and streams handbook they say that streams go into compatibility mode when the data, or end events are used.

So if there this situation:

stream1 -> stream2 -> stream3

On stream2 the data event is used while stream1, and stream2 no event is used. How does this effect the other streams? Does the compatibility mode of stream2 pass to stream3?

If not then what mechanism is allowing this to happen?

I might look at the source of streams, but I'd also like a little explanation. Plus there's no guarantee I'm going to understand what I find in the source, or have the time to understand it all.

A confirmation that stream compatibility does, or does not propagate would be enough for me.