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Token Optimization

Token Optimization is the strategic management of LLM input and output payloads to minimize costs and latency by removing redundant data, summarizing context, or prioritizing high-relevance chunks. The primary trade-off involves balancing aggressive context pruning for speed and cost against the risk of losing granular details required for complex reasoning or accurate RAG grounding.

Definition

Token Optimization is the strategic management of LLM input and output payloads to minimize costs and latency by removing redundant data, summarizing context, or prioritizing high-relevance chunks. The primary trade-off involves balancing aggressive context pruning for speed and cost against the risk of losing granular details required for complex reasoning or accurate RAG grounding.

Disambiguation

Focuses on linguistic unit management for LLM throughput, not hardware memory or database storage efficiency.

Visual Metaphor

"The Editor's Red Pen: Striking out redundant words in a manuscript to meet a strict page count while ensuring the plot remains coherent."

Key Tools
TiktokenLLMLinguaLangChain (LongContextReorder)LlamaIndex (NodePostprocessors)Hugging Face Tokenizers
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Conceptual Overview

Token Optimization is the strategic management of LLM input and output payloads to minimize costs and latency by removing redundant data, summarizing context, or prioritizing high-relevance chunks. The primary trade-off involves balancing aggressive context pruning for speed and cost against the risk of losing granular details required for complex reasoning or accurate RAG grounding.

Disambiguation

Focuses on linguistic unit management for LLM throughput, not hardware memory or database storage efficiency.

Visual Analog

The Editor's Red Pen: Striking out redundant words in a manuscript to meet a strict page count while ensuring the plot remains coherent.

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