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It should be something you can raise through modding though.
And while it's possible to get 300% productivity in vanilla, I do believe the bigger motivation was to help out mods that make it easier to raise productivity, so they don't have to worry about net-positive recycler loops breaking the game entirely. Unless they explicitly want to allow it.
Hence the designs for direct loading of miners onto train wagons -- no belts, no inserters (at the loading side).
Tell me how it's not arbitrary when it takes LITERALLY hundreds of thousands possibly even millions of research to get to that level, you could be pissing out 100 ore on a single mining drill tick but hey! that recycler is gonna break the game eh? Honestly i wouldn't even use it myself but it's one of those things that is just makes me wonder why? For some nebulous 'balance' at extreme late game in this single player game with co op?
Do you actually know what the word arbitrary means? You've used it twice in this thread, then immediately gone and contradicted it.
If it has been specifically put in the game to prevent a positive recycling loop, it is not arbitrary.
Even more ridiculous is that you're saying it takes millions of resources to realistically reach it, so why do you even care?
Because regardless how OP a drill becomes, you still go through all processeing steps. Frome Ore/Scrap/Lava/Fruits/Astroid to the desired product.
With a net positive recycler loop, you skip that. All you need are some LDS and blue chips to kickstart a positive loop.
That is not arbitrary nor nebulous balance. It would kill core gameplay of this game.
You can't put productivity modules in beacons and nothing has enough module slots to get you anywhere near 300%.
If there is a %300 cap on the researches that would be a real bummer.
So what does this cap actually mean?
It's the combination of the infinite reseaches + productivity modules + machine productivity. Once a machine reaches +300% productivity, it won't increase further. The research itself is uncapped, but past +300% it is pointless. There is a point where machines don't need prod modules and you can switch it with speed modules.
The reason is simple. Recycler return 25% of the materials. With +300% productivity, one craft creates 4 products. 4 products recycled is enough for one craft (4*25%=100%). You reached a neutral recycle loop. If you could get more than 300%, you would create products out of nothing. I.e. +400% productivity means one craft creates 5 products, recycle 4 of them and you can create 5 products again. Each loop, you get one product for free with no initial cost.
Exceptions for this cap are mining prod, research prod and Scrap/Astroid recycling. The latter two, I'm not 100% sure, thou.