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01 · Context Quality

Signal Density

The ratio of useful information to total tokens in a prompt. High signal density = low reasoning tax.

Signal Density is the metric behind Context Clarity. It answers a simple question: of all the tokens in this prompt, what percentage is the model actually going to use? A prompt with 90% Signal Density means 9 out of 10 tokens are doing useful work. A prompt with 20% Signal Density means the model is wading through 4 tokens of noise for every 1 token of value. Low Signal Density is the primary driver of Reasoning Tax — the model is literally paying to read things it doesn't need.

Example
Two teams send the same coding task to the same model. Team A's prompt is 5,000 tokens with Signal Density of ~25% — it includes the full README, the entire config file, and three pages of API docs, when only the endpoint signature matters. Team B's prompt is 1,500 tokens with Signal Density of ~85% — just the function to modify, the relevant type definitions, and the specific requirement. Team B gets better results at 30% of the cost. The model didn't get smarter for Team B; it just had less noise to filter.

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