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Garry Tan Was Right: "MCP Sucks Honestly." I Have the Token Receipts.

A developer's token audit of MCP servers reveals that a typical setup of 10 servers injects 111,713 tokens into the context window before any user query, costing up to $2,376 per year in API fees. The audit found that Google Drive's schema alone consumes 47,293 tokens, and that 3 of 10 servers were never used weekly. The developer built a CLI tool called mcptoon that compresses MCP schemas by 97%, reducing annual costs from $2,376 to $69.

read4 min views4 publishedAug 23, 2026

"MCP sucks honestly. Context window eats too much, auth is a mess. I wrote a CLI wrapper in 30 minutes and it works better."

When YC's CEO says this on X, people listen. But nobody had the data to back it up.

Until now.

Three things happened in the last 6 months that changed how I think about MCP:

The community split into two camps:

Both are wrong. The problem isn't MCP. The problem is what MCP does to your context window.

I connected 10 MCP servers to a token counter. Here's what I found:

MCP Server Tools Token Cost Equivalent
Sequential Thinking 3 890 This blog post
Brave Search 8 2,103 A short email
Filesystem 11 3,847 A README
Memory 9 2,567 A meeting note
Puppeteer 15 5,890 A chapter of a book
Postgres 19 8,231 A whitepaper
GitHub 28 12,440 A court filing
Notion 24 13,780 A legal contract
Slack 22 14,672 A novella chapter
Google Drive
31
47,293
Half of a novel
Total
170
111,713
A short book

One MCP server — Google Drive — injects 47,293 tokens into your context before you ask a single question.

The entire works of Shakespeare is 900K tokens. Google Drive's schema is 5% of Shakespeare. For listing files.

At Claude 3.5 Sonnet pricing ($3/M input tokens, $15/M output):

Scenario Tokens Cost Annual Cost
1 server (minimal) 3,847 $0.01/conv $4.40/yr
3 servers (common) 14,528 $0.04/conv $19.40/yr
5 servers (typical) 33,061 $0.10/conv $44/yr
10 servers (max) 111,713 $0.34/conv $1,496/yr
10 servers + 20 tool calls ~180,000 $0.54/conv $2,376/yr

Assumptions: 20 conversations/day, 220 working days/year.

$2,376/year. In JSON braces. For tools you might not even use.

Anthropic published a blog showing that complex MCP workflows can consume 150,000+ tokens. Their solution? A 98.7% token reduction by moving tool definitions from context to runtime code.

Translation: The fix for MCP's token waste is to stop using MCP the way MCP was designed.

Cloudflare went further. Their 2,500-endpoint API originally required 1.17M tokens of schema. They compressed it to 1K by exposing just two functions: search

and execute

.

1,170,000 → 1,000.

That's not an optimization. That's an architecture admission.

Money is measurable. But the worse cost is what MCP bloat does to your agent's intelligence:

Without MCP bloat (3K tokens overhead):

Context used by schemas:    2% 
Context for reasoning:     98%
Conversation longevity:     40+ messages
Tool selection accuracy:   high (few tools to choose from)

With MCP bloat (111K tokens overhead):

Context used by schemas:   56%
Context for reasoning:     44%  
Conversation longevity:     15 messages
Tool selection accuracy:   low (170 tools, model gets confused)

Your agent isn't getting dumber. Your context window is getting fuller.

Do you? I audited my own setup:

Server Token Cost Used/Week CLI Alternative
GitHub 12,440 3
gh (built into Claude Code)
Slack 14,672 0 slack-cli
Google Drive 47,293 1 gdrive
Notion 13,780 2 API + curl
Puppeteer 5,890 0
playwright CLI

Three servers were used zero times per week. Two more had direct CLI equivalents. I was paying $1,346/year for tools I never touched.

After the audit, I kept 3 servers, removed 7, and proxied the remaining 3 through mcptoon:

pip install mcptoon
Metric Before After
Servers 10 3
Schema tokens 111,713 3,247
Reduction 97%
Annual cost $2,376 $69
Savings $2,307

mcptoon wraps your MCP servers and compresses their schemas into a TOON format — 97% smaller, same functionality, zero dependencies.

Garry Tan was right. Not because MCP is fundamentally broken — it's not. The protocol is fine. But the implementation pattern — every tool schema into context at startup — is a tax on every developer using it.

The evidence is overwhelming:

The fix isn't a new protocol. It's a smarter proxy layer.

pip install mcptoon

Or just remove your unused MCP servers. That's free and takes 2 minutes.

"MCP was a mistake" is too strong. But "MCP as currently implemented is burning your token budget" is exactly right.

All data measured with tiktoken (cl100k_base). Scripts: GitHub. Independent, not affiliated with Anthropic, YC, or Perplexity.

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