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Does compacting tool output lower a coding agent's API bill?

This story is from 2026-10-08. It is preserved in the archive; the latest stories are on the live feed.

Coding agents resend old tool output on every turn, so replacing it with something smaller looks like an obvious saving. I built that as a Torana plugin, broke it once, rebuilt it, and measured it. On DeepSeek V4 Pro the saving was about 2% per session, smaller than ordinary run-to-run variation, b…

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  1. 2026-10-08 04:37 · DEV Community — AI
    Does compacting tool output lower a coding agent's API bill?

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