This is somewhat new to me too. But if this helps, once the licensing is activated on the switch, it will need to periodically check for a valid license. By default it will check every 30 days, but can go up to 60 or 90 days before being considered no longer active.
I'm in the process of deploying an "On Prem", formerly known as a Satellite server. Which is nothing more than a local machine that the switches can register their license usage and then the server synchronizes this utilization with Cisco Software Central. This may be a good solution for you.
As far as I know, once a switch is out of compliance, the services shouldn't degrade, but there may be some gotchas I'm not yet aware of. It may however, make getting support or other needs accomplished.
Cisco DNA Software Demo Series - Cisco ThousandEyesRegister nowWednesday, May 12, 202110:00 am Pacific Daylight Time(San Francisco, GMT-07:00)SaaS applications and cloud-based services are increasingly critical for on-campus users, but they can be challen...