Context Distillation as Latent Memory Management

Efficient long-context inference is not only about reducing memory cost, but also about keeping useful contextual evidence accessible as generation proceeds. However, existing compression-oriented approaches, such as key-value (KV) cache compression and context compression, often either make an early decision about which contextual information to keep or rely on an external compressor. Such designs make it difficult to adapt the compressed context to the evidence needed by later reasoning steps. This paper introduces PReM (Preserve and Refresh Memory), a context-compression framework that maintains the long context as the model's internal layer-wise KV memory and learns what to preserve and when to refresh it. Specifically, PReM uses a dedicated memory layer to make memory-selection decisions, and a special memory token <m> to trigger refreshes during generation. To train this behavior, PReM introduces Phase-Separated Refresh Training, aligning memory selection with memory-conditioned generation while preserving continuity across refreshes. Experiments with 32K-token contexts show that PReM outperforms strong baselines under both 16x and 32x compression, while maintaining a favorable balance between answer quality and inference efficiency.

Transformer-based large language models (LLMs) achieve strong performance across many tasks, but their Key-Value (KV) cache grows linearly with sequence length, creating a severe memory bottleneck for long-context inference. Existing heuristic eviction methods (e.g., H$_2$O and SnapKV) rely on static attention or positional signals that often fail to capture a token's future predictive influence. We propose DistillCache, a reinforcement learning framework that formulates KV-cache eviction as a sequential decision problem. DistillCache learns a lightweight policy network using rich internal model signals (attention statistics, value norms, entropy, and position) and trains it with REINFORCE via a per-step KL-divergence reward to preserve the full-cache output distribution. On a 7B-parameter instruction-tuned Transformer (Mistral-7B-Instruct-v0.3), DistillCache retains 94.2% of full-cache accuracy on LongBench at a 25% cache budget, outperforming both strong heuristic baselines (H$_2$O, SnapKV) by up to 2.7 absolute points and, under our re-implementations, concurrent RL-based methods (ForesightKV, RLKV) by up to 1.4 points on long-context tasks. On reasoning benchmarks, DistillCache is competitive with the best concurrent method and surpasses it under aggressive compression. It also delivers up to 2.1x full-cache throughput while maintaining competitive practical efficiency. These results highlight the effectiveness of learned, distribution-aware policies for memory-efficient long-context LLM inference.

Large Language Models (LLMs) are increasingly expected to operate over long contexts, yet standard softmax attention incurs a KV cache that grows linearly with sequence length, quickly becoming the bottleneck for long context inference. A practical remedy is to evict less important KV entries; however, existing eviction policies are largely heuristic and struggle to capture the rich, input-dependent distribution of token importance. In this work, we introduce a learnable indexer that predicts KV importance, enabling more accurate retention of critical tokens. Meanwhile, naively evicting tokens permanently discards their information, leading to irreversible forgetting and degraded retrieval over long ranges. To address this, we propose a lightweight latent memory module that compresses evicted tokens into a compact, online-updated state and provides residual readouts to compensate for the attention contributions lost through KV eviction. Collectively, our method enables accurate long-context inference under a bounded KV budget, delivering consistent improvements on RULER (4K/16K) across Qwen, Mistral, and Llama models (up to 25 points under aggressive eviction), markedly more stable Needle-in-a-Haystack retrieval, and superior LongBench scores and compression curves compared to existing eviction policies.