arXiv:2608.00311v2 Announce Type: replace

Abstract: Long-context inference with large language models (LLMs) is costly: self-attention during prefill scales quadratically with sequence length, and the key-value (KV) cache grows with the number of processed tokens. Larger context windows also do not ensure reliable evidence use. Context compression reduces this cost, but many soft-compression methods use LLMs as compressors and rely on compact memory tokens both to preserve information and to condition the decoder. We propose SeDeM, a selective decompression framework that decouples compact memory storage from decoder conditioning. SeDeM stores context as compact hidden-state memory blocks, selects query-relevant blocks, and decompresses only the selected blocks for decoder conditioning. Thus, the decoder avoids both full-context processing and direct generation from highly compressed memory slots. On four long-context QA benchmarks, SeDeM achieves higher QA scores than the compression baselines in our main comparison in both 1B and 3B same-backbone settings, and with the 3B backbone exceeds full-context fine-tuning on three datasets. SeDeM also provides favorable quality--efficiency trade-offs, achieving 1.74--2.46$\times$ lower online time-to-first-token and 1.08--1.10$\times$ higher autoregressive decoding throughput relative to ICAE while maintaining strong answer quality.