We present a new approach to dynamic mesh compression, which combines compression with simplification to achieve improved compression results, a natural support for incremental transmission and level of detail. The algorithm allows fast progressive transmission of dynamic 3D content. Our scheme exploits both temporal and spatial coherency of the input data, and is especially efficient for the case of highly detailed dynamic meshes. The algorithm can be seen as an ultimate extension of the clustering and local coordinate frame (LCF)-based approaches, where each vertex is expressed within its own specific coordinate system. The presented results show that we have achieved better compression efficiency compared to the state of the art methods