So long as you're confident in the ability of any supervising microcontroller to keep up and catch every rising and falling edge (so as not to loose position to drift over time) you'd probably do well with an incremental quadrature encoder. Often you can do this by mounting magnets on a motor's backshaft (if it has a backshaft from the motor before the main shaft goes in to a reduction gearbox) which move past a hall sensor to give rising and falling edges as the backshaft turns (the gearbo meeans hundreds of backshaft turns, typically, per turn of the main output shaft).
Quadrature ensures that the microcontroller readings the encoder pulses knows at all times which direction the encoder is turning in, so always adds or subtracts each count as appropriate.
Multiplying gears to drive a rotary encoder from the main shaft can work, I've 3d printed them soemtimes, but any backlash in these gears gives an inaccuracy in the measured position versus the true position, and some deadband when the main shaft changes direction. I did it with a stack of 6 to 1 planetary units, driven from the carrier (usually the output shaft when in reduction mode) so as to make the sun spin 6 times faster. I stacked up two of these (36 fold speed increase), then had the final sun hold a ring of 10 magnets (5 pointed up, 5 pointed down, alternating per place) which spun past hall effect sensors. If you do this you must make sure the gearsae fairly loose and very low friction, because any friction on the final sun gear gets multiplied up in to a motion resisting torque of (in my case) 36 times that at the shaft you are controlling.
One can buy for about £7 a style of incremental quadrature encoder with hundreds of pulses per rotation (this style of thing, lots of sellers, and not limited to ones on amazon:
https://www.amazon.co.uk/Incremental-Encoder-E6B2-CWZ6C-Diameter-General-Purpose/dp/B08CCBMW96/ note that the test description for that encoder is odd, some nonsense about linear bearings, but follow the part name and you'll find similar form factor items of the same functionality) which uses optical sensors insie to track rotating glass wheels with darkened markings on them. It may be a bit bulky, it is the size of a small motor already, but it would be no bulkier than 3d printing your own gear train to multiply up before feeding to a several-pulses-per-turn magnetic encoder, and wouldn't have the backlash assocated with multiplying gears.
I've heard good things about absolute encoding with AS5600 style chips, these style of things can be addressed over I2C/SPI/UART and give you an absolute reading, so you won't have position dirft if you missed counting a rise/fall. Some have both a digital protocol interface and a quadrature output for incremental tracking.