# Trace-Based On-Policy Distillation for Masked Diffusion Language Models

arXiv: https://arxiv.org/abs/2607.16872 · HTML: https://mlsanity.com/paper/2607.16872/

## Key facts

- Cited by 7 papers in the map (data through 14 Oct 2026).
- Placed in Discrete and text diffusion, one of 14 directions in Diffusion models.
- Builds on 24 of its 41 references that are in the map.
- First posted on arXiv 18 Jul 2026.

## Placed in

- Diffusion models / [Discrete and text diffusion](https://mlsanity.com/diffusion/discrete-and-text-diffusion/)

## Builds on (most cited first, 24 of 24)

- [Training language models to follow instructions with human feedback](https://mlsanity.com/paper/2203.02155/) (2022)
- [Proximal Policy Optimization Algorithms](https://mlsanity.com/paper/1707.06347/) (2017)
- [Distilling the Knowledge in a Neural Network](https://mlsanity.com/paper/1503.02531/) (2015)
- [DeepSeekMath: Pushing the Limits of Mathematical Reasoning in Open Language Models](https://mlsanity.com/paper/2402.03300/) (2024)
- [Score-Based Generative Modeling through Stochastic Differential Equations](https://mlsanity.com/paper/2011.13456/) (2020)
- [Direct Preference Optimization: Your Language Model is Secretly a Reward Model](https://mlsanity.com/paper/2305.18290/) (2023)
- [Deep Unsupervised Learning using Nonequilibrium Thermodynamics](https://mlsanity.com/paper/1503.03585/) (2015)
- [Measuring Mathematical Problem Solving With the MATH Dataset](https://mlsanity.com/paper/2103.03874/) (2021)
- [DistilBERT, a distilled version of BERT: smaller, faster, cheaper and lighter](https://mlsanity.com/paper/1910.01108/) (2019)
- [Trust Region Policy Optimization](https://mlsanity.com/paper/1502.05477/) (2015)
- [Structured Denoising Diffusion Models in Discrete State-Spaces](https://mlsanity.com/paper/2107.03006/) (2021)
- [Diffusion-LM Improves Controllable Text Generation](https://mlsanity.com/paper/2205.14217/) (2022)
- [On-Policy Distillation of Language Models: Learning from Self-Generated Mistakes](https://mlsanity.com/paper/2306.13649/) (2023)
- [SFT Memorizes, RL Generalizes: A Comparative Study of Foundation Model Post-training](https://mlsanity.com/paper/2501.17161/) (2025)
- [Open-Reasoner-Zero: An Open Source Approach to Scaling Up Reinforcement Learning on the Base Model](https://mlsanity.com/paper/2503.24290/) (2025)
- [Fast-dLLM: Training-free Acceleration of Diffusion LLM by Enabling KV Cache and Parallel Decoding](https://mlsanity.com/paper/2505.22618/) (2025)
- [LLaDA 1.5: Variance-Reduced Preference Optimization for Large Language Diffusion Models](https://mlsanity.com/paper/2505.19223/) (2025)
- [Scaling Diffusion Language Models via Adaptation from Autoregressive Models](https://mlsanity.com/paper/2410.17891/) (2024)
- [Mercury: Ultra-Fast Language Models Based on Diffusion](https://mlsanity.com/paper/2506.17298/) (2025)
- [LLaDA2.0: Scaling Up Diffusion Language Models to 100B](https://mlsanity.com/paper/2512.15745/) (2025)
- [SDAR: A Synergistic Diffusion-AutoRegression Paradigm for Scalable Sequence Generation](https://mlsanity.com/paper/2510.06303/) (2025)
- [Speculative Knowledge Distillation: Bridging the Teacher-Student Gap Through Interleaved Sampling](https://mlsanity.com/paper/2410.11325/) (2024)
- [Principled RL for Diffusion LLMs Emerges from a Sequence-Level Perspective](https://mlsanity.com/paper/2512.03759/) (2025)
- [MDPO: Overcoming the Training-Inference Divide of Masked Diffusion Language Models](https://mlsanity.com/paper/2508.13148/) (2025)

## Built on by (most cited first, 7 of 7)

- [Hesitation-Aware On-Policy Distillation for Diffusion Language Models](https://mlsanity.com/paper/2609.33301/) (2026)
- [CT-OPD: Counterfactual Trace On-Policy Distillation for Diffusion Vision-Language Models](https://mlsanity.com/paper/2609.32781/) (2026)
- [Look Before You Select: Rethinking Vocabulary Sparsification in On-Policy Distillation](https://mlsanity.com/paper/2609.34386/) (2026)
- [On Trajectory-Aware Training for Masked Diffusion Language Models](https://mlsanity.com/paper/2609.37974/) (2026)
- [Towards Unbiased On-Policy Distillation for Block Diffusion Language Models](https://mlsanity.com/paper/2610.05373/) (2026)
- [JustOPD: On-Policy Distillation from Autoregressive to Diffusion Language Models](https://mlsanity.com/paper/2610.17397/) (2026)
- [Match the Canvas, Not Just the Answer: Predictability-Aware SFT for Diffusion Language Models](https://mlsanity.com/paper/2610.18001/) (2026)

## Abstract (arXiv)

Diffusion large language models (dLLMs) are a promising alternative to autoregressive generation. However, reasoning-oriented post-training for dLLMs remains challenging. Supervised fine-tuning (SFT) for dLLMs requires dense but often off-policy masked states, while reinforcement learning (RL) relies on sparse rewards or value modeling. This paper proposes trace-based on-policy distillation (TOPD), a teacher-supervised framework that transfers reasoning ability to a target dLLM without reward estimation. The key idea is to supervise a dLLM on its own denoising trajectory, focusing on the trace-aligned token decisions that form the final response. Specifically, TOPD samples on-policy diffusion trajectories from the target dLLM, obtains teacher token distributions from a teacher model on the corresponding partially denoised states, and updates the target dLLM with a token-level Reverse Kullback-Leibler (Reverse-KL) objective. This design preserves dense teacher supervision while aligning training with the model's own denoising states. On mathematical reasoning benchmarks, TOPD enables SDAR-4B-Chat to match the MATH500 accuracy of its RL-trained counterpart TraDo-4B-Instruct, with gains of +5.7 under static evaluation and +4.5 under dynamic evaluation. Compared with the RL-trained counterpart, TOPD achieves this with 4× fewer rollout rounds, corresponding to an estimated 96.0× to-accuracy model-compute speedup.