Tokens Are a Finite Resource: A Budget Allocation Framework for Complex Agents
The frontier models now advertise context windows of 200K, 1M, even 2M tokens. Engineering teams treat this as a solved problem and move on. The number is large, surely we'll never hit it.
Then, six hours into an autonomous research task, the agent starts hallucinating file paths it edited three hours ago. A coding agent confidently opens a function it deleted in turn four. A document analysis pipeline begins contradicting conclusions it drew from the same document earlier in the session. These are not model failures. They are context budget failures — predictable, measurable, and almost entirely preventable if you treat the context window as the scarce compute resource it actually is.
