Common Context Optimization

Priority: P1 (HIGH)

1. Observation Masking (Noise Reduction)

Problem: Large tool outputs (logs, JSON lists) overwhelm context and degrade reasoning.

Solution: Replace raw output with semantic summaries _after_ consumption.

• Identify outputs exceeding 50 lines or 1 KB.
• Extract critical data points immediately.
• Mask by rewriting history to replace raw data with summary placeholder.
• See references/masking.md for patterns.

See implementation examples for masking patterns.

2. Context Compaction (State Preservation)

Problem: Long conversations drift from original intent.

Solution: Recursive summarization that preserves _State_ over _Dialogue_.

• Trigger compaction every 10 turns or 8k tokens.
• Compact:
• Keep: User Goal, Active Task, Current Errors, Key Decisions.
• Drop: Chat chit-chat, intermediate tool calls, corrected assumptions.
• Format: Update System Prompt or Memory File with compacted state.
• See references/compaction.md for algorithms.

See implementation examples for compacted state format.

3. KV-Cache Awareness (Latency)

Goal: Maximize pre-fill cache hits.

• Static Prefix: Enforce strict ordering — System -> Tools -> RAG -> User.
• Append-Only: Never insert into middle of history; append new turns only.

References

• Observation Masking Patterns
• Compaction Algorithms

Anti-Patterns

• No raw tool dumps: Mask large outputs immediately after extracting data.
• No unbounded growth: Compact every 10 turns to preserve intent over dialogue.
• No middle insertions: Append-only history maximizes KV cache hits.