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Tokenomics Framework

Why Tokenomics Matters

Standard IR benchmarks measure quality only. In production LLM systems, token cost is a first-class constraint:

  • Enterprise AI budgets are token-denominated
  • Latency scales with token count
  • Context window limits bound what can be retrieved
  • Cost per query determines whether a system is deployable at scale

Token Profiles

RAG

Metric Value
Tokens per query 3,000--5,000
Noise ratio High (off-topic chunk content)
Build cost Embed all chunks

GraphRAG

Metric Value
Tokens per query 2,000--8,000 (high variance)
Noise ratio Medium (compressed summaries)
Build cost HIGH (full text extraction)

CKG

Metric Value
Tokens per query 150--400
Noise ratio Near-zero (exact subgraph)
Build cost ZERO (CSV already exists)

Pricing Model

All costs computed at Claude Sonnet 4.6 pricing:

  • Input: $3 per 1M tokens
  • Output: $15 per 1M tokens

The Structure Premium Hypothesis

The token efficiency gap between CKG and RAG is proportional to the structural richness of the domain's DAG:

\[\text{dag\_richness}(d) = \frac{\text{edges}}{\text{concepts}} \times \text{mean\_indegree} \times \frac{1}{\text{orphan\_rate}}\]

If structure_premium correlates with dag_richness (\(r > 0.7\)), this validates the core claim: explicit structure is the source of the efficiency gain.