The length of wire from the contact tip to the metal is called stickout. With Mig and most fluxcore self shielded wires I'll run 3/8 to 1/2 inch stickout. NR-232, and NR-233, and Coreshield 8, along with fluxcore gas shielded wires I'll run 3/4 inch stickout. If you lengthen the stickout you increase the voltage, (to a point) if you shorten the stickout you drop the voltage, (which cools the puddle).
I'm going to ask the dumb questions here to see if I'm at least close to being on the right track...
If you increase the stickout, the resistance of the wire increases, and if the current is constant then the voltage increases (not infinitely but somewhat). Does this increase the weld penetration? I have noticed that changing the angle of the gun increases/decreases penetration to some extent but I've never tried increasing the stickout. I always thought the "right thing" to do was to keep the wire as short as possible without touching the gun tip to the weld. Don't ask me where I got that from but evidently it's not always the thing to do!