How Much Cache Does Reasoning Need? Depth-Cache Tradeoffs in KV-Compressed Transformers

TL;DR

This paper investigates the theoretical limits of KV cache compression in Transformer models for multi-step reasoning, providing bounds on depth, bandwidth, and error scaling.

Contribution

It introduces new bounds on Transformer depth related to cache size and compression, and analyzes the impact of cache adaptivity on reasoning accuracy.

Findings

Proves upper and lower bounds on Transformer depth with compressed KV caches.

Identifies bandwidth limitations when attention dimension times precision exceeds log n.

Shows adaptive caches outperform oblivious caches in error scaling for multi-hop reasoning.

Abstract

The key-value (KV) cache is the dominant memory bottleneck during Transformer inference, yet little is known theoretically about how aggressively it can be compressed before multi-step reasoning degrades. We study this through $k$-hop pointer chasing on $n$ tokens under a shared KV cache of size $s$, attention dimension $m$, $H$ heads, $p$-bit precision, and a locality-respecting cache controller (satisfied by all standard KV-compression methods). We give three results. (1) Product depth lower bound (conjectured). We conjecture that any such Transformer ($n \geq 4k$, $s \leq \sqrt{n}/4$) requires depth $L = \Omega(\lceil k/s \rceil \cdot \lceil \log_2 n/(Hmp) \rceil)$, and isolate the sole remaining gap as a probabilistic step on the joint distribution of cache trace and pointer chain. Unconditionally, we prove a matching upper bound $L = O(\min(k, \lceil k/s \rceil \log s) \cdot \log n/(mp))$ via windowed pointer doubling, and a max-bound $L = \Omega(\max(\lceil k/s \rceil, \log n/(Hmp)))$. Closing the conjecture amounts to upgrading max to product. (2) Bandwidth barrier. The product bound binds only when $Hmp \lesssim \log n$. Any lower bound provable via per-window distinguishability counting -- including reachability, bandwidth, and combinations -- cannot exceed $\lceil k/s \rceil$ once $Hmp \geq \log_2 n$. Breaking this requires lifting unconditional communication-complexity bounds for pointer chasing to Cache-Transformer depth. (3) Adaptive vs oblivious error scaling. Under random cache over $T = \lceil \log_2 k \rceil$ doubling stages, oblivious caches give $\Pr[\mathcal{E}] \leq (s/(n-T))^T + 2T^3/n$ (exponential in $T$), while adaptive locality-respecting caches achieve $\Pr[\mathcal{E}] = s/n$ exactly, independent of $T$. The $\Omega((n/s)^{T-1})$ separation explains why heavy-hitter eviction empirically dominates random eviction for multi-hop reasoning.