Token Economics: How Cache & Latency Impact Pricing

AccBalanced · x · 2026-08-30

A breakdown of token pricing logic, distinguishing between input tokens (prompt), cached input tokens (preprocessed prefix), cache writes (maintaining state), and output tokens (autoregressive generation, most expensive). It notes that batch inference is cheaper than real-time, while lower latency costs more. The total token price must account for all these components, impacting token market pricing strategies.

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