> are they essentially holding back sort of unweighted parameters built in to the model architecture which they can then populate with new context during 'sleep' and then using the techniques outlined in the 'dream' section to reinforce...

Sort of. As the model is interacted with, short term "memories" are accumulated in a sort of buffer/cache. During "sleep" these "memories" are given a ranking/score, and the useful bits are integrated into the weights.

They say the weight update can be done by computing a transform where the end state is the old weights with the addition of the useful semantic knowledge contained in memories. Rather than just additively chucking the entire memory concepts into weights. That's pretty neat.

The subtext for the memory architecture diagram sums the whole thing up pretty tidily I think:

  > Input streams from the active phase are stored in short-term memory before entering the sleep cycle, which bifurcates into Consolidation (transferring fragile short-term tokens into expanded long-term parametric memory using low-rank structures and MoE) and Dreaming (autonomous self-improvement via synthetic routing with random experts and RL refinement).