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No, that is not how the ccTLD is enforced by IANA. It has sole authority, and it is not automatic is any way. There have been a total of two retired domains, one in like 95 and km 2000.
They will not retire a domain under heavy use such as .io.
Yes, that is how the ccTLD is enforced by IANA.. And it is in fact an automatic process. There is a policy for requesting a single 5 year extension, but that extension request must be accompanied by a retirement plan, otherwise by policy the ccTLD has a 5 year grace period before being removed.
They will not retire a domain under heavy use such as .io.
Heavy use has not stopped them from attempting to retire other ccTLDs, it just delays the process.