token-optimization

name	token-optimization
description	Use when the user says 'token optimization', 'save tokens', 'context window', 'reduce tokens', 'token stack', or 'TokenStack', or asks about extending context window capacity. Covers TokenStack, the built-in compression proxy that shrinks Claude Code tool output before it reaches the Anthropic API. Do NOT use for proxy troubleshooting or live status (Compress skill).
version	2.0.0
license	Proprietary - MemStack Pro by CW Affiliate Investments LLC. See LICENSE.txt

Token Optimization Guide - TokenStack

One built-in compression proxy that shrinks Claude Code tool output before it reaches the Anthropic API.

Activation

When this skill activates, output:

TokenStack - enabling compression & reading your savings...

Then execute the protocol below.

Context Guard

Context	Status
User asks about token savings or context optimization	ACTIVE - full guide
User says "TokenStack", "token stack", "reduce tokens"	ACTIVE - relevant section
User wants to enable or confirm the proxy	ACTIVE - enable steps
User asks how to read their savings	ACTIVE - dashboard section
Proxy crash, health check, or live status	DORMANT - use Compress skill
User is actively coding (no optimization discussion)	DORMANT - do not activate

What TokenStack Is

TokenStack is a single transparent proxy that sits between Claude Code and the Anthropic API. It intercepts each request, compresses the bulky tool output inside it, and forwards the smaller payload upstream. Less text per turn means more usable context and lower token cost.

It is built into the memstack-skill-loader package. There is nothing extra to install: if you have MemStack, you have TokenStack.

Earlier versions documented a 3-layer manual setup (Serena MCP, RTK CLI, and the Headroom API proxy). That stack is retired. TokenStack supersedes all three. There is no pip install, no Rust binary, no MCP server, and no command prefixing.

Enabling It

Start the dashboard with the proxy flag:

python -m memstack_skill_loader dashboard --with-proxy

This starts the TokenStack proxy on 127.0.0.1:8787 and sets ANTHROPIC_BASE_URL for you, so Claude Code traffic routes through it automatically. No manual environment configuration is needed.

Options:

• --proxy-port N changes the proxy port (default 8787).
• To run only the proxy without the dashboard: python -m memstack_skill_loader proxy.

Free vs Pro Transforms

Free-tier transforms run on every request and are lossless (they remove only redundant formatting):

Transform	What it removes
Strip ANSI codes	terminal color and escape sequences
Strip trailing whitespace	end-of-line padding
Collapse blank lines	runs of empty lines
Dedup consecutive identical lines	repeated identical lines
Strip preambles	"Here is the contents of file..." lead-ins
Collapse inline whitespace (Python)	redundant intra-line spacing

Pro tier (active with a valid Pro license) adds seven more transforms on top:

Transform	Effect
AST truncation	Shortens Python function bodies while keeping signatures and type annotations. Largest single saving (around 78% on line-numbered Python). Lossy by design: Python code blocks are not preserved byte-for-byte.
JSON compression	Minifies verbose JSON output
Log deduplication	Folds repeated log lines
Path compression	Shortens long repeated file paths
Markdown stripping	Removes decorative markdown
System-prompt compression	Compresses system-prompt boilerplate
Conversation-history dedup	Drops duplicated earlier message blocks

Only AST truncation is lossy. Every other transform reduces tokens without changing meaning.

Confirming It Routes

The dashboard shows a proxy indicator with a live PRO or FREE tier badge plus your session and 30-day savings percentages. If the badge is present, traffic is routing through TokenStack.

A quick health check from a terminal:

curl http://127.0.0.1:8787/health

Reading Your Savings

The dashboard reports savings in three places:

• Overview header: tokens saved for the current session and lifetime.
• Burn Report: a per-transform breakdown with estimated cost, filterable by all-time, daily, weekly, and monthly.
• Per-Agent Token Cost: the Burn Report also splits cost across the Manager, Builder, and Reviewer agents.

What You Actually Do

1. Enable the proxy: python -m memstack_skill_loader dashboard --with-proxy.
2. Optionally activate a Pro license to unlock the seven Pro transforms.
3. Read your savings on the dashboard (Overview header and Burn Report).

No installs, no MCP servers, no command prefixing.

Relationship to Other Skills

Skill	Scope	When to Use
Token Optimization (this)	What TokenStack is, how to enable it, free vs Pro, reading savings	Understanding or turning on compression
Compress	Proxy health and live status troubleshooting	Proxy not routing, health checks
Context DB	SQLite fact store	Reducing repeated reads of project context

Level History

• Lv.1 - Base: legacy 3-layer manual guide (Serena MCP, RTK CLI, Headroom API proxy). Retired. (Origin: MemStack Pro, Mar 2026)
• Lv.2 - Rewrite: replaced the retired 3-layer manual stack with the built-in TokenStack proxy. Documents the verified enable command, free vs Pro transforms, proxy confirmation, and dashboard savings. (Jun 2026)