What Are Tokens?

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Tokens are the basic units that AI language models use to process and understand text. Think of them as the "building blocks" of language that the AI reads and generates.

How it works:

Why tokens matter:

  1. Cost: Most AI services charge based on tokens used (both input and output)
  2. Context limit: AI models have a maximum token limit for chat conversation
  3. Response limits: The AI can only generate a certain number of tokens per response

Practical examples:

3 Types of Tokens

When you chat with AI in ISEKAI ZERO, tokens work in three different ways:

1. Input Tokens

2. Cache Tokens (Smart Memory System)

3. Output Tokens

How Tokens Flow in a Conversation

Step 1: You Send Your Action 

Your prompt becomes Input Tokens.

"I try to convince the guards I'm just a normal traveler."

Step 2: AI Processes Your Request 

The AI reads your message along with relevant Cache Tokens (previous story context) to understand the situation.

Step 3: AI Responds 

The AI generates a story continuation as Output Tokens.

The guard eyes you suspiciously. "Normal travelers don't have horns," he mutters, hand moving to his sword...

Step 4: Important Details Get Cached 

The AI automatically saves key information from this exchange as Cache Tokens for future use. This makes your next interaction faster and cheaper because the AI doesn't need to reload the entire conversation history—it already remembers the important parts.

Why This Matters

Why Do Costs Vary Between Messages?

You often notice that some messages cost more than others, even if they are similar in length. 

Here's why:

The Cache System Works on "Best Effort"

The AI tries to cache (save) your conversation history to reduce costs, but it can only reuse what is still valid. The cache system does its best effort with the current context. Not all llm model support cache.

Important: Cached tokens are significantly cheaper than regular input tokens but the exact discount varies depending on the situation.

How Cache Saves You Money

Example:

The savings:

Why Cache Effectiveness Varies

Cache works GREAT when: 

✅ You are actively chatting (within 5 minutes of last message)
✅ Your conversation history stays unchanged
✅ Character details remain the same
✅ No edits to previous messages

Cache is LOST or REDUCED when: 

5+ minutes pass without interaction (cache expires)
❌ You edit a previous message (invalidates cache from that point)
❌ You modify character details (changes the context)
❌ Previous conversation turns are altered
❌ AI provider service degration

The 5-Minute Rule

Your cache expires after 5 minutes of inactivity.

This is why costs can spike after breaks. The AI has to reload everything at full price.

Bottom Line

The cache system tries to save you money, but it needs:

  1. Continuous interaction (replies within 5 minutes)
  2. Unedited conversation history
  3. Unchanged character information

Pro Tips for Lower Costs:

Cache is "Best Effort" — Not Guaranteed

It's important to understand that caching is a best effort system, meaning it tries to work but success is never guaranteed. Several factors beyond your control can cause cache to fail:

Why cache can fail unexpectedly:

What this means for you:

Even if you do everything "right" (reply within 5 minutes, don't edit messages, etc.), you may occasionally see higher costs due to cache misses. This is normal and expected — it's simply how distributed AI systems work.

The bottom line: Cache saves you money on average over time, but any individual message might not benefit from caching. Think of it as a discount that usually applies, not a guarantee.

How Tokens are Calculated?

Example:

DeepSeek V3.2, it costs

Total Tokens: 61,810

Cost Calculations

Total Cost: 1.00563876 Mana 


If ALL 61,608 prompt tokens were charged at FULL price,

Without Cache: 1.8201834 Mana 

Total Tokens Saved: 0.8147958 Mana (44.75% cheaper)

Token Types Summary

Feature

Input Tokens

Cache Read Tokens

Output Tokens

Description

What you send

What AI remembers

What AI generates

Cost

Moderate

Very cheap

Most expensive

Reason

AI reads your text

AI reuses stored content

AI creates new content


Revision #17
Created 30 December 2025 15:20:15 by Cloudy
Updated 23 January 2026 22:07:41 by Louis