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ReTaCo introduces a novel loss function for on-policy distillation that addresses the computational cost of transmitting full vocabulary distributions by grouping omitted tokens into a single residual symbol. Theoretical proofs and numerical experiments demonstrate that this approach effectively recovers underestimated tokens while maintaining relative probability rankings, yielding superior performance on mathematics and code benchmarks compared to existing entropy-aware methods.
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ReTaCo: Residual-Target Control for On-Policy Distillation

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arXiv:2609.39275v1 Announce Type: new Abstract: On-policy distillation (OPD) trains a student on its own generated prefixes with token-level teacher feedback, but transmitting or storing the teacher's full-vocabulary distribution at every token is costly. Entropy-aware OPD (EOPD) adds forward supervision to reverse KL to help the student recover plausible tokens it underestimates, using only the teacher's top-$k$ probabilities to limit cost. Because EOPD renormalizes these probabilities, its target assigns no mass to the omitted vocabulary. We prove that the resulting loss keeps pushing the student's top-$k$ mass toward one even after the student matches the teacher's relative probabilities within the top-$k$ set, so the teacher itself is not a stationary point whenever the omitted tokens have positive teacher probability. We propose ReTaCo (Residual-Target Control), which keeps the top-$k$ tokens individually and groups the remaining tokens into one residual symbol, and pairs this forward target with a single-sample estimator whose expectation equals the full-vocabulary reverse KL. With teacher top-$k$ mass $m$, the residual target is $(1-\beta)(1-m)$ for $\beta\in[0,1]$: $\beta=0$ preserves the teacher's mass, and larger $\beta$ moves more mass onto the top-$k$ tokens without changing their relative probabilities. At a fixed prefix, we prove that the population objective has a unique optimum whose top-$k$ mass lies between $m$ and $m+\beta(1-m)$ and increases monotonically with $\beta$; at $\beta=0$, underestimated top-$k$ tokens still receive non-vanishing recovery gradients. Numerical optimization confirms these predictions, and across three teacher-student pairs, ReTaCo outperforms EOPD on most mathematics and code benchmarks.

Abstract:On-policy distillation (OPD) trains a student on its own generated prefixes with token-level teacher feedback, but transmitting or storing the teacher's full-vocabulary distribution at every token is costly. Entropy-aware OPD (EOPD) adds forward supervision to reverse KL to help the student recover plausible tokens it underestimates, using only the teacher's top-$k$ probabilities to limit cost. Because EOPD renormalizes these probabilities, its target assigns no mass to the omitted vocabulary. We prove that the resulting loss keeps pushing the student's top-$k$ mass toward one even after the student matches the teacher's relative probabilities within the top-$k$ set, so the teacher itself is not a stationary point whenever the omitted tokens have positive teacher probability. We propose ReTaCo (Residual-Target Control), which keeps the top-$k$ tokens individually and groups the remaining tokens into one residual symbol, and pairs this forward target with a single-sample estimator whose expectation equals the full-vocabulary reverse KL. With teacher top-$k$ mass $m$, the residual target is $(1-\beta)(1-m)$ for $\beta\in[0,1]$: $\beta=0$ preserves the teacher's mass, and larger $\beta$ moves more mass onto the top-$k$ tokens without changing their relative probabilities. At a fixed prefix, we prove that the population objective has a unique optimum whose top-$k$ mass lies between $m$ and $m+\beta(1-m)$ and increases monotonically with $\beta$; at $\beta=0$, underestimated top-$k$ tokens still receive non-vanishing recovery gradients. Numerical optimization confirms these predictions, and across three teacher-student pairs, ReTaCo outperforms EOPD on most mathematics and code benchmarks.

Machine Learning (cs.LG)

arXiv:2609.39275 [cs.LG]

(or arXiv:2609.39275v1 [cs.LG] for this version)

https://doi.org/10.48550/arXiv.2609.39275 Focus to learn more arXiv-issued DOI via DataCite (pending registration)

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