Applying LZ77-style sequence compression and LZW substitution to LLM context reduction
Hey everyone,
I’ve been experimenting with token optimization for LLM agent frameworks by treating terminal and tool outputs as a data compression problem rather than a text-filtering one.
The pipeline uses a bidirectional 42-stage architecture:
Algorithmic Reduction: Raw text passes through an LTSC (LZ77-style lossless sequence compression) layer combined with LZW token substitution to eliminate repetitive terminal patterns dynamically.
Structural Compaction: Code segments are reduced to AST skeletons, and nested JSON payloads are flattened into tabular structures (TOON) to minimize semantic token weights.
0-Risk Fallback: A local comparison check runs at every stage. If a compression layer increases string length or corrupts format, it instantly rolls back.
Response Filtering: A 7-stage outbound filter targets conversational boilerplate and normalizes whitespace.
In production testing, this algorithmic pipeline hits a 74% overall token compression rate (up to 93% on highly repetitive logs) without degrading the model's underlying reasoning capabilities.
I'd love to discuss the theoretical limits of combining algorithmic text sequence compression with LLM tokenizers, or how to better handle progressive disclosure as context fills up.! #technology