AGORA: Adapter-Grounded Observation-Action Retention for Inference-Free Prompt Compression in LLM Agents

Large language models process prompts by propagating activations through dozens of layers before generating a response. We ask whether the task-relevant information contained in an instruction prompt can be compressed into a single activation vector and re-injected into the model, replacing the original token sequence? We show this is achievable using a learned weighted sum of activations extracted at an intermediate layer and injected at an early layer of the target LLM. The compressed vector preserves task-relevant information, incurring an accuracy drop of under $2\%$ relative to full prompt processing. Beyond its practical implications, including reducing per-query computation for fixed instruction prompts without reprocessing the original token sequence, our analysis reveals structure in the activation space of LLMs: (i) mid-layer representations transfer meaningfully to early layers, suggesting a degree of cross-layer compatibility in how information is encoded; (ii) a single activation vector encodes a quantifiable and recoverable amount of semantic information; (iii) a weighted sum of activations is a robust representation compressor.

Tool-using language-model agents are governed not only by task prompts but also by persistent system-side instructions that specify tools, arguments, policies, execution protocols, and recovery. Compressing these agent control contexts (ACCs) can reduce input cost and context use, yet existing prompt-compression evaluations do not reveal whether the resulting control remains operationally reliable. We introduce CompressAgent, an environment-verified benchmark for ACC compression across nine independently constructed ACCs, three task families, three fixed Qwen API model identifiers, six retained-context budgets, and 15,525 runs. We uncover a nonlinear, method-dependent reliability frontier. At 75% retained context, generic rewriting and section-based compression achieve 92.7% and 92.4% success, close to the 93.8% full-context baseline. Between 50% and 35%, methods diverge sharply; at 35%, section-based, obligation-aware, and generic rewriting achieve 47.0%, 39.0%, and 19.9%. At retained-context budgets from 25% to 10%, executable protocols become fragile. Reliability also varies substantially across ACCs, making universal compressor rankings inappropriate and motivating per-context qualification. Failure analysis shows that compression primarily surfaces as tool-execution and action-parsing errors. These findings recast ACC compression from token reduction into a runtime-reliability problem that must be evaluated through executable outcomes.

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.