Current sprawl effect doesn't make expansion prohibitive (it's quite the opposite), but pop sprawl increasing pop maintenance might do so.
Hence why I said sprawl should be manageable, but not necessarily trivially. Perhaps make bureaucrats produce admin cap again, but have it be a policy, where you can have them produce some admin cap and lots of unity, lots of admin cap and only some unity, or about equal amounts of both (but not a lot of either). And don't gate that policy behind a tradition (there's too many "must have" traditions already).
Or have system sprawl be a multiplier effect, rather than an additative value. If you, say, took the number of total systems and divided by the number of system you had the colonies in, and then multiplied your sprawl penalty by that, this would have a significant efficiency penalty on dense vs distributed empires. Dense- tall- empires with a Habitat in every system would be far more efficient than empires where habited sectors are months or years of travel time away from the next inhabited sector.
Now this is an example, not a recommendation, but you could absolutely use system sprawl in a different sense to incentivize tall vs wide.
(For example- instead of multiplying the penalty, decrease it in a way that favors the tight empires.)
Alternatively, have the multiplier be based on the ratio of developed to undeveloped systems.
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