From Tokens to States: LLMs as a Special Case of World Models and the Continuous Path Beyond

World models are now built on substantially different computational substrates. Latent recurrent state-space models such as PlaNet and the Dreamer family compress observations into recurrent states; token-based models such as IRIS quantize observations into a learned codebook and predict autoregressively with a transformer; and joint-embedding predictive architectures such as I-JEPA predict in a learned latent space with no pixel decoder. The interpretability methods applied to these models, including probing, activation patching, sparse autoencoders, and surprise analysis, share a common set of primitives, yet they are re-implemented from scratch for each architecture because existing hook-and-cache tooling assumes a transformer language model with no notion of actions, environment steps, or imagined rollouts. We argue that this fragmentation reflects the tooling rather than the models, and that the shared structure of world models is captured by a small typed interface. We present WorldModelLens, an open-source interpretability substrate organized around a capability-typed adapter: every model implements four required methods (encode, transition, initial state, sample) and declares a set of optional heads (decode, reward, continue, actor, critic) through an explicit capability descriptor, so that reinforcement-learning and self-supervised world models are first-class without either imitating the other. A single hook and cache layer exposes time-indexed activations, imagination rollouts, and intervention replay over this interface, allowing each analysis to be written once.

Large language model (LLM)-based agents are increasingly used in interactive textual environments, from web navigation and code editing to tool use and long-horizon dialogue. Yet many remain largely reactive, mapping observations to actions without an explicit model of how these environments are structured and evolve. This motivates text world models (TWMs): transition models over textual states that, given a state and a candidate action, predict the resulting webpage, terminal output, API response, or user reply, thereby supporting planning, efficient learning, and principled evaluation. We systematically review text world models for LLM-based agents, organized around a formal framework and the agent lifecycle: (1) Foundations, defining text world models and characterizing them by state representation and grounding domain; (2) Construction, taxonomizing LLM-as-WM and code-as-WM paradigms and reviewing methods for building them; (3) Application, examining how world models support agents at training time through experience synthesis and at inference time through planning, verification, and adaptation; and (4) Evaluation, covering both evaluation of the world model itself and its use as an evaluation environment for agents. We aim to consolidate this rapidly developing area, clarify its design space, and highlight open challenges for future research.

Token-based transformer world models have shown strong performance in visual reinforcement learning, but often suffer from temporal inconsistency in long-horizon rollouts, including object duplication, disappearance, and transmutation. A key reason is that most existing approaches treat next-frame prediction purely as a token generation problem, without considering the persistence of tokens across time. We introduce Identifiable Token Correspondence (ITC), a decoding step for token-based transformer world models that formulates next-frame prediction as a structured assignment problem with latent token correspondence variables: each next-frame token is explained either by copying a token from the previous frame or by generating a new one. ITC leaves the transformer architecture and training procedure unchanged and can be added on top of existing backbones. Our experiments show state-of-the-art performance on 4 challenging benchmarks. The proposed method achieves a return of 72.5% and a score of 35.6% on the Craftax-classic benchmark, significantly surpassing the previous best of 67.4% and 27.9%. We release our source code on https://github.com/snu-mllab/Identifiable-Token-Correspondence.