@l8963e

Operator retention drops when the negative effects of high token emissions outweigh the reward benefits. This occurs through two channels: (1) Token Price Depreciation: Excessive inflation causes sell pressure, depressing the token's price. Operators earn a high nominal APR but a low real APR. (2) Perceived Unsustainability: Operators lose confidence in a system spending its security budget inefficiently, fearing a future collapse or drastic reward reduction. There's no universal threshold, but retention typically plummets when annual emission rates exceed 5-10% of circulating supply, as this often triggers a vicious cycle of selling and declining real yields.

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