As terminal agents scale to long-horizon, multi-turn workflows, a key bottleneck is not merely limited context length, but the accumulation of noisy terminal observations in the interaction history. Retaining raw observations preserves useful environment feedback, but also leads to context saturation and high token cost; conversely, naive compression may discard task-critical signals needed for subsequent actions. Because terminal environments are highly heterogeneous across repositories, commands, and execution states, heuristic-based or fixed-prompt compression methods are difficult to generalize. We propose TACO, a plug-and-play, training-free, self-evolving Terminal Agent Compression framework for existing terminal agents. TACO automatically discovers, refines, and reuses structured compression rules from interaction trajectories, enabling workflow-adaptive filtering of low-value terminal outputs while preserving task-relevant observations. Experiments on TerminalBench (TB 1.0 and TB 2.0) and four additional terminal-related benchmarks, including SWE-Bench Lite, CompileBench, DevEval, and CRUST-Bench, show that TACO consistently improves task performance and token efficiency across agent scaffolds and backbone models. On TerminalBench, TACO yields 1%-4% accuracy gains across strong agentic models and improves accuracy by around 2%-3% under the same token budget. On additional terminal-related benchmarks, it reduces total token consumption while maintaining or improving task success rates. These results suggest that self-evolving, workflow-adaptive observation compression is an effective path toward more reliable and efficient long-horizon terminal agents. The code is publicly available at https://github.com/multimodal-art-projection/TACO.
LLM-based coding agents solve software-engineering tasks through iterative interactions with development environments, where returned observations accumulate in the context and become a major source of inference cost. Observation compression reduces this cost by shortening observations before they are appended to the context. However, existing methods still exhibit an unsatisfactory efficiency-effectiveness trade-off, as they do not explicitly model how compression affects the agent's subsequent behavior. This paper proposes CoACT, an action-preserving observation compression method for coding agents. CoACT is built on next-action preservation (NAP), which requires a compressed observation to induce the same next action as the raw observation. By checking the agent's immediate next action, NAP provides a practical signal for whether a compression preserves the information needed for continued task solving. During training, a teacher model first generates multiple compressed candidates of each observation. CoACT then uses an action-preservation reward based on NAP to filter out candidates that would change the agent's next action, and uses a length-reduction reward to choose compact candidates as supervision for a lightweight compressor. Experiments on SWE-bench Verified with three agentic models show that CoACT reduces average total token consumption by 33.0% while maintaining task-solving effectiveness close to the uncompressed agent.
Recurrent context compression controls context growth in long-horizon agents, but its behavioral effects remain poorly understood. In this preliminary empirical study, we show that compression can weaken the influence of recent interactions, increasing blocked actions, repeated exploration, and instability across runs. Motivated by these observations, we introduce TRACE, a verifier-guided framework that evaluates individual compaction events through paired closed-loop continuations from the same environment state and uses summary preferences to optimize a natural-language compression prompt while keeping all models frozen. Initial results on AppWorld show improvements over existing compression baselines in task performance, multi-run reliability, and context--execution efficiency. These findings provide early evidence for boundary-local evaluation as a promising direction for reliable agent context compression.
Agents often work on complex problems that require millions of tokens of context, which necessitates compacting across sessions due to limited context windows. We develop CliffCompaction, an autocompaction technique that reduces cost by up to 50% under a bounded context while maintaining or improving performance on Terminal-Bench and achieving new levels of efficiency for test-time scaling and state-of-the-art results on KernelBench. The per-rollout savings of CliffCompaction make the performance--cost trade-off of test-time scaling more efficient, adding over 10 percentage points on Terminal-Bench for less than the cost of two full-context runs. Under parallel test-time scaling, CliffCompaction lets Kimi K2.6 match Opus 4.7, and exceed Opus 4.6 and GPT-5.3 Codex at lower cost. The key to CliffCompaction's effectiveness is that it keeps compacted information faithful by only truncating or dropping content, never rephrasing or rewriting it. We never compact a compaction---each pass operates only on original content, and prior compacted output is discarded, preventing context drift from accumulating. These properties sustain continual learning over sessions exceeding a million tokens: on KernelBench, CliffCompaction reaches CUDA kernel speedups of 2.23× after 200 steps and 3.58× after 400 steps, surpassing specialized search algorithms and trained agents despite being a general-purpose compaction technique. We open-source a scaffold-agnostic API-proxy implementation of CliffCompaction usable with Claude Code, Codex and other harnesses.