The Large Language Model (LLM) industry is currently focused on expanding context windows to facilitate long-term user narratives. However, this approach overlooks the inherent cognitive and economic constraints of the Transformer architecture. This paper defines "Mooyeon’s Paradox": a structural contradiction where increasing context leads to intelligence degradation through attention dilution while simultaneously causing costs to increase as a cumulative series — each new turn bearing the full cost of all prior turns in maintenance costs. We analyze this collapse through two dimensions: Cognitive Collapse, characterized by the "Lost in the Middle" phenomenon, and Economic Collapse, driven by the O (N²) complexity and the stateless nature of APIs. We further demonstrate that recent infrastructure-level responses, such as OpenAI's Responses API (2025), merely shift the computational burden rather than resolve the underlying paradox.
Mooyeon LEE (Tue,) studied this question.