# TRACE: Turn-level Reward Assignment via Credit Estimation for Long-Horizon Agents

arXiv: https://arxiv.org/abs/2607.13988 · HTML: https://mlsanity.com/paper/2607.13988/

## Key facts

- Cited by 16 papers in the map (data through 14 Oct 2026).
- Builds on 79 of its 89 references that are in the map.
- First posted on arXiv 15 Jul 2026.

## Builds on (most cited first, 30 of 79)

- [Proximal Policy Optimization Algorithms](https://mlsanity.com/paper/1707.06347/) (2017)
- [DeepSeekMath: Pushing the Limits of Mathematical Reasoning in Open Language Models](https://mlsanity.com/paper/2402.03300/) (2024)
- [Qwen3 Technical Report](https://mlsanity.com/paper/2505.09388/) (2025)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Judging LLM-as-a-Judge with MT-Bench and Chatbot Arena](https://mlsanity.com/paper/2306.05685/) (2023)
- [Reflexion: Language Agents with Verbal Reinforcement Learning](https://mlsanity.com/paper/2303.11366/) (2023)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [Let's Verify Step by Step](https://mlsanity.com/paper/2305.20050/) (2023)
- [HotpotQA: A Dataset for Diverse, Explainable Multi-hop Question Answering](https://mlsanity.com/paper/1809.09600/) (2018)
- [SWE-bench: Can Language Models Resolve Real-World GitHub Issues?](https://mlsanity.com/paper/2310.06770/) (2023)
- [WebArena: A Realistic Web Environment for Building Autonomous Agents](https://mlsanity.com/paper/2307.13854/) (2023)
- [ToolLLM: Facilitating Large Language Models to Master 16000+ Real-world APIs](https://mlsanity.com/paper/2307.16789/) (2023)
- [MetaGPT: Meta Programming for A Multi-Agent Collaborative Framework](https://mlsanity.com/paper/2308.00352/) (2023)
- [WebGPT: Browser-assisted question-answering with human feedback](https://mlsanity.com/paper/2112.09332/) (2021)
- [SWE-agent: Agent-Computer Interfaces Enable Automated Software Engineering](https://mlsanity.com/paper/2405.15793/) (2024)
- [Search-R1: Training LLMs to Reason and Leverage Search Engines with Reinforcement Learning](https://mlsanity.com/paper/2503.09516/) (2025)
- [Qwen3 Embedding: Advancing Text Embedding and Reranking Through Foundation Models](https://mlsanity.com/paper/2506.05176/) (2025)
- [WebShop: Towards Scalable Real-World Web Interaction with Grounded Language Agents](https://mlsanity.com/paper/2207.01206/) (2022)
- [Mind2Web: Towards a Generalist Agent for the Web](https://mlsanity.com/paper/2306.06070/) (2023)
- [OSWorld: Benchmarking Multimodal Agents for Open-Ended Tasks in Real Computer Environments](https://mlsanity.com/paper/2404.07972/) (2024)
- [GAIA: a benchmark for General AI Assistants](https://mlsanity.com/paper/2311.12983/) (2023)
- [OpenHands: An Open Platform for AI Software Developers as Generalist Agents](https://mlsanity.com/paper/2407.16741/) (2024)
- [Math-Shepherd: Verify and Reinforce LLMs Step-by-step without Human Annotations](https://mlsanity.com/paper/2312.08935/) (2023)
- [ChatDev: Communicative Agents for Software Development](https://mlsanity.com/paper/2307.07924/) (2023)
- [Solving math word problems with process- and outcome-based feedback](https://mlsanity.com/paper/2211.14275/) (2022)
- [Group Sequence Policy Optimization](https://mlsanity.com/paper/2507.18071/) (2025)
- [BrowseComp: A Simple Yet Challenging Benchmark for Browsing Agents](https://mlsanity.com/paper/2504.12516/) (2025)
- [API-Bank: A Comprehensive Benchmark for Tool-Augmented LLMs](https://mlsanity.com/paper/2304.08244/) (2023)
- [Executable Code Actions Elicit Better LLM Agents](https://mlsanity.com/paper/2402.01030/) (2024)
- [Group-in-Group Policy Optimization for LLM Agent Training](https://mlsanity.com/paper/2505.10978/) (2025)

## Built on by (most cited first, 16 of 16)

- [DRACO: Fine-Grained Credit Assignment with Dynamic Rubrics for Long-Horizon Agent Training](https://mlsanity.com/paper/2609.04094/) (2026)
- [TCPO: Turn-Level Credit Policy Optimization](https://mlsanity.com/paper/2608.01667/) (2026)
- [How Much, Then Where: Credit-Conserving Action-to-Token Allocation for Multi-Turn Agent Reinforcement Learning](https://mlsanity.com/paper/2608.07118/) (2026)
- [ExecCritic: Learn to Test, Test to Improve for Coding Agents](https://mlsanity.com/paper/2609.09133/) (2026)
- [SkillGate: Training In-Policy Skill Selection in Long-Horizon Agents](https://mlsanity.com/paper/2608.18852/) (2026)
- [Large Distant Gradients Need Not Be Reliable: reliability-weighted credit assignment for long-horizon autoregressive forecasting](https://mlsanity.com/paper/2609.12890/) (2026)
- [Critical-State RL: Diagnosing Trainable States for Multi-Turn Tool Use](https://mlsanity.com/paper/2609.24985/) (2026)
- [Toolcompass: Guiding Tool Trialing, Not Suppressing It](https://mlsanity.com/paper/2609.25678/) (2026)
- [Verifiable Hidden Dynamics Play: Generating Agentic RL Environments from Solved Mechanisms](https://mlsanity.com/paper/2609.27321/) (2026)
- [R2 Flow: Recursive Self-Improvement via Recursive Skill Evolution](https://mlsanity.com/paper/2609.33867/) (2026)
- [SkillRubric: Co-Evolving Actor Guidance and Evaluator Rubrics for Multimodal Agents](https://mlsanity.com/paper/2609.34557/) (2026)
- [LoGo: Local-Global Rewards for Consistent Long-Horizon Video Generation](https://mlsanity.com/paper/2610.03636/) (2026)
- [LLM Value Functions for Credit Assignment in Agentic RL](https://mlsanity.com/paper/2610.15840/) (2026)
- [Of Errors and Echoes: Responsibility-Aware Credit Assignment for Tool-Use Agents](https://mlsanity.com/paper/2610.16027/) (2026)
- [WorkRover: Scaling Long-Horizon Cowork Agent Training Via Recursive Environment Evolution](https://mlsanity.com/paper/2610.18067/) (2026)
- [Contextual Credit Policy Optimization](https://mlsanity.com/paper/2610.19103/) (2026)

## Abstract (arXiv)

Multi-turn agents solve complex tasks through extended sequences of tool interactions before producing a final answer, making credit assignment a fundamental challenge during post-training. Outcome rewards provide reliable supervision for short-horizon reasoning, but become sparse and high-variance as trajectories grow to tens or hundreds of tool calls. They can also be misleading: a failed rollout may contain many useful actions that move the agent closer to the goal, yet outcome-only training assigns them the same negative advantage as the eventual mistake. We propose TRACE (Turn-level Reward Assignment via Credit Estimation), a dense credit-assignment method for agentic reinforcement learning. TRACE represents rollouts as state transitions at tool-call boundaries, obtains gold-answer log-probabilities from a frozen reference model, transforms them into log-ratio state values, and derives per-action rewards as Temporal-Difference changes in those values. This requires no additional critic or process-label training, and its one-step log-ratio TD component telescopes across redundant tool calls. On long-horizon complex search, TRACE substantially improves base-model tool-use ability using pure RL, without a cold-start supervised fine-tuning stage, an agentic mid-training stage, or training on live-web data. On the closed-web BrowseComp-Plus benchmark, it raises Qwen3-4B from 7.2 to 35.6 and Qwen3-30B-A3B from 8.4 to 42.6. The learned search behavior also transfers to open-web benchmarks, and the learning curves show earlier improvement and faster convergence during RL training.