AI Briefing
KO

Claude Code Token Usage Cut by 50%

·2026.04.21 23:13

Key point

By reducing repeated reads and verbose output in Claude Code, measured savings of 50%+ input and 20%+ output tokens were achieved.

Details

Built a token optimizer for Claude Code to reduce the cost of repeatedly reading the same files and the cost of prose that bloats responses.

It consists of three parts.

  • caveman: Injects output compression rules via the UserPromptSubmit hook, keeping code, errors, commits, and PRs while removing only chit-chat and euphemisms.
  • OpenWolf: Wraps the Read hook to replace repeated file reads with cached descriptions, and persists project memory and buglog across sessions.
  • Dashboard: At http://127.0.0.1:3847, records per-session token usage as local JSON, separating the prose axis from tool_use tokens.

A lower-bound estimate from n=17 sessions showed 50%+ savings in input tokens, 20%+ reduction in output, and 35%+ savings when isolating just the prose axis.

Installation is done by pasting a one-line command into a Claude Code session; it backs up ~/.claude/settings.json, verifies with npm run doctor, and proceeds without root privileges, according to the announcement.

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