@emmanuelstuart

User retention often outweighs raw growth in assessing long-term project health. Rapid acquisition can create hype, but without sustained engagement, users churn quickly, and network effects weaken. Retention reflects product stickiness, satisfaction, and perceived value, directly influencing transaction volume, token utility, and protocol adoption. Low retention combined with high growth may temporarily inflate metrics but leads to unstable ecosystems vulnerable to competition. Conversely, projects with moderate growth but high retention build durable communities and predictable revenue or activity streams. For tokenomics, retained users are more likely to stake, participate in governance, or transact regularly. Long-term value is built not by the number of new sign-ups, but by the depth and consistency of engagement among the core user base.

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