Transformers retain an explicit history of the sequence, allowing attention to directly retrieve past representations. However, the size of the KV-Cache and the cost of a new token increase with the context length. State Space Models compress the past into a fixed-size recurrent state, at the cost of reduced addressability. We present the Dynamical Memory Transformer (DMT), a hybrid architecture that separates sequence encoding from information reading. The encoder uses several memory units, each implemented by a dynamical system with a complex diagonal recurrent matrix. An input-dependent leak rate controls their updates. The decoder then uses attention to read and combine their outputs, without going through the token history. The formulation of the recurrence allows an associative scan with O(T ) total work and O(log T ) parallel depth, with fixed dimensions. During autoregressive inference, the recurrent states and the convolution cache remain fixed in size. We compare DMT with Mamba and Transformer on cognitive and language modeling tasks, and show its strengths and limitations: DMT achieves the best results on several cognitive tasks and language modeling performance close to that of Transformer, but remains behind Mamba in language modeling. On selective copy, DMT also shows stronger length extrapolation than Mamba and Transformer. These results demonstrate that parallel dynamical memory units are a promising mechanism for retaining and using information over sequences.

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