Long-term retention RL models D1/D7 retention and LTV as delayed rewards: the true return of today's action (e.g., a recommended item) is observed days or weeks later, so a discount factor
γ is introduced to model cross-period value, with long-term objective
J=E[∑tγtrt] — small
γ favors the near term, large
γ the far term, trading off against short-term metrics (e.g., instant CTR). Delayed rewards create a credit-assignment problem: returns are hard to attribute to specific rounds/actions; common fixes include temporal decomposition, surrogate rewards, and sequential-decision frameworks.