Token Management

Domain: Agent Fundamentals

🎯 Motivation

Agents consume tokens with every LLM call. Managing tokens - using smaller context, compressing history, choosing efficient models - controls cost.

📋 Concrete Example

Management: summarize old conversation (reduces context tokens), use a cheaper model for simple steps (reduces cost per token), limit tool output length (reduces input tokens).

🔗 Analogy

Managing water usage - turn off the tap while brushing teeth, use a low-flow showerhead, fix leaks. Same cleanliness, less water. Token management achieves the same result with fewer tokens.