It is shown that for a given ordered node-labelled tree of size n and with s many different node labels, one can construct in linear time a top dag of height O(logn) and size O(n/logσn)∩O(d⋅logn), where σ=max{2,s} and d is the size of the minimal dag. The size bound O(n/logσn) is optimal and improves on previous bounds.
@article{arxiv.1712.05822,
title = {Optimal top dag compression},
author = {Markus Lohrey and Carl Philipp Reh and Kurt Sieber},
journal= {arXiv preprint arXiv:1712.05822},
year = {2017}
}