cs.AISep 26, 2026

The Price of Token Boundaries: Compression Certificates and Prediction

Authors: Yuhao Du, Shunian Chen

Organizations: The Chinese University of Hong Kong, Shenzhen · Shenzhen Loop Area Institute

Abstract

Pre-tokenisation restricts which text fragments can become prediction units, but its compression cost is obscured when tokenisers are compared only under the same boundaries. We measure this cost by bounding the minimum token count from both sides, with and without a regular-expression boundary rule. Nonnegative prices on token occurrences yield a lower bound through shortest paths and vocabulary-budget selection; maximising over all prices recovers the linear programming relaxation, and an independent integer checker certifies the reported values. On English Wikipedia, boundaries increase the optimal token count by 28.3--36.8%. Byte pair encoding lies 2.1% above the constrained lower bound, but 10.9% above the unrestricted bound. Compression and prediction favour different dictionaries: at 85M non-embedding parameters and matched training-token budgets, unrestricted fitting yields higher mean held-out bits per byte under a common unrestricted decoder in all 12 languages in the paired study and 11 of 12 under independent tuning and evaluation. To study intermediate boundary policies, we introduce boundary licences, which limit the vocabulary entries permitted to cross cuts and admit the same form of certificate. On separate English and Chinese fitting corpora, licensing 10% of the vocabulary budget recovers 85.2% and 100.0% of the achieved token-count reduction from removing all cuts. These results quantify the compression cost of boundaries while separating it from the prediction quality of the resulting token units.

Figures & tables

Appendix figures & tables17 assets

Supplementary material from the paper’s appendix.

Appendix

Explore similar work

May 21, 2026

Tokenization with Split Trees

We introduce Tokenization with Split Trees (ToaST), a subword tokenization method that directly optimizes compression under a new recursive inference procedure. ToaST greedily splits each pretoken into a full binary tree using precomputed byte n-gram counts, independent of any vocabulary. Given a vocabulary, inference recursively descends each split tree and emits the first in-vocabulary node reached on each path. Vocabulary selection is formulated as an Integer Program (IP) that minimizes the total token count over all split trees under this inference procedure. The Linear Programming (LP) relaxation is near-integral in practice, yielding provably near-optimal vocabularies, with training time empirically scaling quadratically in the number of split trees. On English text, ToaST reduces token counts by more than 11% compared to BPE, WordPiece, and UnigramLM at vocabulary sizes of 40,960 and above, reducing the number of inference tokens for models using this tokenizer, thus extending the effective context length. ToaST also uses common single-byte tokens less frequently than these baselines, leading to a substantial improvement in Renyi efficiency. In experiments training 1.5B parameter language models, ToaST achieves the highest CORE score, outperforming baselines by 2.6%--7.6%, with significance for two of three, and scoring best on 13 of 22 individual tasks.
Feb 15, 2026

You Can Learn Tokenization End-to-End with Reinforcement Learning

Tokenization is a hardcoded compression step which remains in the training pipeline of Large Language Models (LLMs), despite a general trend towards architectures becoming increasingly end-to-end. Prior work has shown promising results at scale in bringing this compression step inside the LLMs' architecture with heuristics to draw token boundaries, and also attempts to learn these token boundaries with straight-through estimates, which treat the problem of drawing discrete token boundaries as a continuous one. We show that these token boundaries can instead be learned using score function estimates, which have tighter theoretical guarantees due to directly optimizing the problem of drawing discrete token boundaries to minimize loss. We observe that techniques from reinforcement learning, such as time discounting, are necessary to reduce the variance of this score function sufficiently to make it practicable. We demonstrate that the resultant method outperforms prior proposed straight-through estimates, both qualitatively and quantitatively at the 100100 million parameter scale.
May 2, 2026

Compute Optimal Tokenization

Scaling laws enable the optimal selection of data amount and language model size, yet the impact of the data unit, the token, on this relationship remains underexplored. In this work, we systematically investigate how the information granularity of tokens, controlled by the compression rate (i.e., average bytes of text per token), affects scaling trends. We train 988 latent tokenized models (BLT) ranging from 50M to 7B parameters that enable setting the desired compression rate. This flexibility allows us to study the role of compression rate well beyond 4.57 bytes per token obtained with a popular BPE tokenizer. Our experiments reveal that in compute-optimal configurations, model parameter counts scale proportionally to data size measured in bytes, not in tokens as commonly perceived (Kaplan et al., 2020; Hoffmann et al., 2022). Furthermore, we discover that the optimal compression rate differs from the one obtained with BPE and decreases with compute. These findings generalize to both latent and subword tokenization, as well as to languages other than English, guiding language model developers on tokenization scheme selection for maximal compute efficiency.