# KV Cache Compression Through the Lens of Transform Coding > Source: > Published: 2026-08-17 04:00:00+00:00 arXiv:2608.14191v1 Announce Type: new Abstract: The key-value (KV) cache stores information from past tokens and is a major memory bottleneck in long-context inference. Existing quantization methods address this bottleneck by representing the KV cache uniformly with lower-precision data types and designing quantization schemes to minimize reconstruction error in the cache itself, without accounting for how that error propagates through attention mechanisms. We prove that, under a white-noise quantization model, the expected attention-aware distortion decomposes into additive key and value contributions that factor across tokens and channels. Building on transform coding and reverse water-filling, which are classical tools from signal processing and rate-distortion theory, we introduce Attention-Aware Transform Coding (AATC), which allocates bits over a calibration set to minimize attention-aware distortion. On Llama-3.1-8B-Instruct and Qwen-2.5-7B-Instruct, evaluated across LongBench, RULER, GSM8K, MMLU-Pro, and MATH-500, our method achieves near-lossless accuracy at approximately $5.8\times$ compression, whereas each baseline degrades in at least some settings.