Abstract
Sequence modeling universally relies on discrete subword tokenization to circumvent the \mathcal{O}(N^2) computational intractability of native byte-level attention. However, this heuristic quantization imposes artificial morphological boundaries, enforces vocabulary dependence, and fractures the continuity of the optimization landscape. To resolve this dichotomy, we introduce \textbf{HoloByte}: a strictly tokenizer-free framework utilizing Continuous Hyperspherical Distillation. HoloByte partitions discrete byte sequences into fixed-capacity chunks and projects them into a continuous, strictly bounded hyperspherical manifold via an invertible, dimension-preserving orthogonal rotation operator. This spatial superposition allows a macroscopic transformer to operate exclusively on compressed continuous representations, formally reducing the exact attention time complexity from \mathcal{O}(N^2D) to \mathcal{O}\left( \frac{N^2}{W^2}D + ND^2 \right). A localized causal micro-decoder subsequently unbinds these representations to compute exact byte-level distributions. To govern this continuous trajectory, we propose a dual-objective formulation incorporating a mathematically precise Holographic Latent Mean Squared Error, which strictly bounds the gradient and guarantees asymptotic stability. Theoretically, we derive the minimal embedding dimension D = \Omega(W \ln |\mathcal{V}|) required to ensure error-free discrete recovery from the continuous manifold. Empirically, under strictly matched parameter constraints, HoloByte is systematically outperforming a comparable discrete Byte-Pair Encoding (BPE) baseline. These results establish Continuous Hyperspherical Distillation as a mathematically rigorous and computationally tractable foundation for vocabulary-invariant sequence modeling. The code is available at https://github.com/VladimerKhasia/HoloByte
