Microsoft's open-source TokenEconomizer cuts coding agent costs 18-31%

udmrzn · x · 2026-10-31

Microsoft open-sourced TokenEconomizer, a plugin that cuts token costs for coding agents like Claude Code and Codex by 18.4–30.9% on average across 277 SWE-Bench tasks—without changing models or modifying the agents. It works via three mechanisms: remembering lessons from past project mistakes, pruning unused tool definitions from context, and detecting error loops to nudge agents toward new approaches. Supports Claude Code, Codex, Copilot CLI and Pi. All 5 tested model configurations reduced costs, and 4 of 5 improved task success rates. The loop-breaking feature is arguably the most practical, addressing agents burning tokens on repeated failed attempts.

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