Prefix Caching Could Cut Agent Loop Costs 50x

Two viral posts explain prefix caching: agent loops resend the same system prompt, tool definitions and history every turn, and cached hits cost only about 2% of normal input pricing, cutting costs up to 50x.

2026-10-28 ~ 2026-10-30 · 2 related posts

• Cached tokens explained: how prefix caching cuts agent costs to 2% and what breaks the hit rate — Arindam_1729 · 2026-10-28
• Cached tokens explained: agent loops overpay for the same prefix, 50x savings — Arindam_1729 · 2026-10-30