The Physical Cost of Context: Quality-Constrained Resource Accounting for Coding Agents

Two prompts can request the same code change and produce the same correct patch, yet cause a coding agent to perform radically different kinds and amounts of work. We study this effect in a preregistered benchmark spanning 4,644 valid runs, 24 deterministic coding tasks, seven reasoning models, and two real agent harnesses. The central finding is that prompt wording does not merely scale total effort; it changes where that effort is spent. Multiple approaches and deep thinking primarily inflate reasoning. Multiple approaches increases reasoning by 2.4x to 7.4x across all six open models and creates about three elaborated but discarded solution branches, while still yielding only one implemented solution and no success gain. Maximum certainty activates a different pathway: repeated verification propagates into extra test runs, tool calls, turns, latency, and context growth. Runs with high redundant verification cost 18x the clean-run median, execute 2.5x more tool calls, and take 3x longer, again without a success gradient. These mechanisms therefore have distinct cost carriers: some prompts are reasoning-heavy and token-borne, while others are tool-heavy and system-borne. Harness design amplifies both effects and changes cost per successful task by 5x to 30x in our setting. The findings survive a frozen holdout, paraphrase tests, a Kimi-K3 replication, and a first-party Claude Sonnet 5 study. In contrast, bounded-efficiency wording preserves diagnosis and final validation while avoiding the measured waste mechanisms. Prompt engineering for coding agents is therefore work design: it determines what the agent thinks through, what it executes, and when it stops.

Large Language Model (LLM) agents can handle increasingly complex tasks, navigating long trajectories of observations and actions. As these trajectories grow, key-value (KV) cache I/O and storage become the dominant cost. Trajectories can also exceed the LLM's maximum context length, requiring control over active cache growth. Prior work uses context engineering to reduce cache size by trimming or summarizing history. However, modifying the trajectory prefix invalidates subsequent cached states and triggers costly re-prefilling of retained context. Task accuracy can also suffer when too little context is retained to limit re-prefill costs. We propose cache engineering as a new scheme. It allows agents to directly control their active KV cache without modifying the trajectory or re-prefilling retained context. Specifically, agents can proactively use drop to exclude selected cache from future attention and repos to adjust retained keys' position encodings. We formalize these cache operations and identify history dependence as a serving challenge: identical token sequences can yield different cache states under different cache operation sequences, making prefix matching insufficient for correct cache reuse. Thus, we co-design the AKV serving engine. It provides a stateless interface compatible with existing serving APIs, while internally managing stateful cache reuse, eviction, and restoration. Experiments show that a tool-response rolling-drop cache policy improves average benchmark scores by 1.7 points and reduces average cost by 27.7%, compared with conventional threshold-triggered summarization. With AKV, it achieves up to 1.2x the output throughput and a 1.5x speedup in P95 request latency. Recursive self-improvement of cache policies further reduces cost by 7.1% over expert design. Our code is at https://github.com/thu-nics/AKV.

Context compression is widely proposed as a way to cut the token bill of LLM coding agents, and public benchmarks report that aggressive compression preserves task-solving quality. These two facts do not imply the third one commonly assumed: that compressing file reads saves money in a real multi-turn agent. We instrument a production compression gateway (Paritok) between coding agents (Claude Code, Codex) and frontier LLMs (Claude Sonnet, GPT-5), and decompose the token bill of real sessions into three independent levers: tool-schema filtering, content compression of file reads and tool output, and history summarization. Measured in isolation under controlled A/B runs, the three save at fundamentally different rates. Tool-schema filtering removes a fixed block every turn, roughly 21K-57K tokens on a typical turn; it is linear in the turn count N and the only unambiguously and reproducibly positive lever. Content compression saves only about 2% of the cache-priced prefix per turn, but compressed reads accumulate in history and are re-sent on every later turn, so its cumulative saving grows quadratically, about 3350*N^2 tokens (measured), overtaking the fixed tool-filter saving within roughly 6 turns until the context window caps it. A non-destructive gateway lets the agent pull original bytes back on demand; each recall re-sends exactly the one segment just compressed away, so its cost is fixed and bounded rather than a multiplicative blowup, and heavy recall spends the accumulated saving back one segment at a time. Finally, a strong single-shot compression benchmark - 86.5% of SWE-bench quality retained at a 25.7% compression rate, achieved by the model this gateway deploys (Paritok-4B, reported separately) - is orthogonal to multi-turn agent cost and must not be cited as a cost-saving argument. We distill the results into an actionable recipe for where token-saving effort pays off.