Uh - dude - this means you're paying 10x in token costs because there's no caching.
If you 're-write token history' then you can't cache tokens.
It means for any reasonably long conversation, the llm has to reprocess the entire history as preflow on every prompt.
Are you sure you're really doing what you say you're dong, and how is it not blowing up your budget?
Did you have to build your own harness for this? Or hack Claude Code or something?
Perhaps more persnickety, it pushes the LLM out of distribution - if it’s unnatural for it to write in plain language without the prompt stack, your prefix will be an unnatural conversation which can reduce intelligence in hard to measure ways, especially over long conversations.
Not saying don’t do it, clarity is perhaps worth the intelligence hit, but it’s not going to be a free lunch.
I feel I fight them less with this setup. They get so lost in their own invented bullshit they stop being useful pretty often without it. So I would take bets on that :)