Why Pay for Long Reasoning When Rewrite Do Trick? Causal Effects of Reasoning History Compaction on Future Generation and Agent Cost
Abstract
Rewriting reasoning histories into compact state records reduces future reasoning length and token costs in open-weight models without retraining.
Reasoning substantially improves language models' ability to solve difficult problems, but long reasoning traces make these gains expensive. Efficient reasoning should express useful analysis in fewer tokens by reducing repetition and text that adds little value to solving the problem. Progress in proprietary models motivates this goal, yet their hidden scratchpads limit direct study of how it is achieved. We investigate whether open-weight models can generate less verbose reasoning by changing the form of their own earlier thoughts, without retraining. Our intervention rewrites prior reasoning into compact state records before pending tool results are revealed, then compares continuations from original and compact histories. Across the tested models, accepted compact histories usually shorten future reasoning; a coding case study also shows less repeated verification after a shared candidate solution. In software-agent deployments, compaction can reduce total spending, although task quality and rewrite-inclusive time depend on the target and compressor. These findings identify reasoning history as one way to reduce future reasoning-token use and motivate model-specific compaction policies evaluated for both efficiency and retained capability.
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ShortReasoning
In ShortReasoning, I show that rewriting a model’s earlier reasoning into compact state can shorten its newly generated reasoning without retraining.
In the coding-agent case study, MiniMax M3 with external compaction cost 34% less and used 59% less summed model-request time, including rewrite overhead.
(all “frontier” open models from july 2026 were tested - DeepSeek, Nemotron, GLM, Kimi, MiniMax and all on average produce shorter reasoning)
I built a simple compactor, but there is plenty anyone can play with:
- Which model compacts: a specialist fine-tune, a smaller cheaper model, or a fast “System 1”-style model. Classifiers could help select what to keep.
- What context it gets: one reasoning block, or more of the task and history?
- How much it compacts: individual blocks, many-to-many rewrites, or many-to-one summaries.
- How faithfully: aim to preserve information, as I did, or summarize only the most important parts.
- How inference is scheduled: run compression asynchronously alongside tool execution to potentially hide some rewrite latency.
Broader takeaway
Across all six tested routes, accepted compact histories led to shorter median continuations. My bet is that the capability is already there across most, perhaps all, current open-weight reasoning models. We should incentivize future generations to use it, expressing useful analysis in fewer tokens while keeping their problem-solving ability.
This method can already generate compact traces for simple self-distillation. The compressor can be the model itself, or potentially a weaker model, since rewriting may be easier than solving the original task.
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