StateComp: Learning When to Compress History in Long Horizon Agents

Long horizon language model agents continually accumulate reasoning history, increasing context length and inference cost even after earlier decisions have been executed and observed. Unlike static Chain of Thought compression, removing historical reasoning can change future actions and the resulting interaction trajectory. We study when such reasoning can be safely forgotten. We propose Interaction Aware Compression for Long Horizon Reasoning (ICLR), a training free online method that ranks reasoning blocks using frozen proxy entropy while preserving actions, tool calls, and observations. On 260 WorkBuddyBench tasks, ICLR improves average reward from 0.699 to 0.718, while reducing input, output, and cache read tokens by 25.5%, 14.4%, and 33.3%, respectively. Ablations reveal trajectory amplification, where local reasoning deletion produces nonlinear changes in total computation by altering subsequent interaction. Representation probing, activation patching, and controlled trajectory analyses further suggest that historical reasoning becomes more replaceable once task relevant derived state has been reliably externalized into code, files, tool outputs, or environmental feedback. These results characterize agent reasoning as dynamic working state rather than permanent interaction history.

Long horizon language model agents continuously accumulate interaction history, increasing computational cost while making relevant information harder to preserve and reuse. Existing context management methods mainly focus on how to compress or retrieve history, but largely leave open whether the model itself already represents the need for these memory operations before they occur. We study the hidden state immediately before each agent action and find that compression and recall needs are already encoded in the model's internal representations. These signals cannot be explained by simple context length or interaction progress, and they exhibit distinct formation patterns across model depth. We further show that most memory decision information is preserved in a compact recent context, while selectively restored historical evidence complements the long range dependencies that recent context misses. Based on these findings, we propose Preaction Memory with Evidence Retrieval (PaMER), which combines state guided compression with external evidence retrieval. PaMER+ further introduces step level evidence selection to recover only the historical information required by the current task. Experiments on WorkBuddyBench, across multiple context management baselines and model backbones, show that our framework substantially reduces context consumption while maintaining competitive task performance.

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.