# Beyond Token-Local Imitation: Reward-Compatible Temporal Credit Assignment for On-Policy Distillation

arXiv: https://arxiv.org/abs/2609.16937 · HTML: https://mlsanity.com/paper/2609.16937/

## Key facts

- Cited by 3 papers in the map (data through 14 Oct 2026).
- Placed in On-policy and self-distillation for LLMs, one of 12 directions in Knowledge distillation.
- Builds on 29 of its 38 references that are in the map.
- First posted on arXiv 15 Sep 2026.

## Placed in

- Knowledge distillation / [On-policy and self-distillation for LLMs](https://mlsanity.com/distill/on-policy-and-self-distillation-for-llms/)

## Builds on (most cited first, 29 of 29)

- [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)
- [DeepSeek-R1: Incentivizing Reasoning Capability in LLMs via Reinforcement Learning](https://mlsanity.com/paper/2501.12948/) (2025)
- [Efficient Memory Management for Large Language Model Serving with PagedAttention](https://mlsanity.com/paper/2309.06180/) (2023)
- [Measuring Mathematical Problem Solving With the MATH Dataset](https://mlsanity.com/paper/2103.03874/) (2021)
- [DAPO: An Open-Source LLM Reinforcement Learning System at Scale](https://mlsanity.com/paper/2503.14476/) (2025)
- [HybridFlow: A Flexible and Efficient RLHF Framework](https://mlsanity.com/paper/2409.19256/) (2024)
- [LiveCodeBench: Holistic and Contamination Free Evaluation of Large Language Models for Code](https://mlsanity.com/paper/2403.07974/) (2024)
- [Is Your Code Generated by ChatGPT Really Correct? Rigorous Evaluation of Large Language Models for Code Generation](https://mlsanity.com/paper/2305.01210/) (2023)
- [DeepSeek-V4: Towards Highly Efficient Million-Token Context Intelligence](https://mlsanity.com/paper/2606.19348/) (2026)
- [On-Policy Distillation of Language Models: Learning from Self-Generated Mistakes](https://mlsanity.com/paper/2306.13649/) (2023)
- [Process Reinforcement through Implicit Rewards](https://mlsanity.com/paper/2502.01456/) (2025)
- [Policy Distillation](https://mlsanity.com/paper/1511.06295/) (2015)
- [Rethinking On-Policy Distillation of Large Language Models: Phenomenology, Mechanism, and Recipe](https://mlsanity.com/paper/2604.13016/) (2026)
- [DeepMath-103K: A Large-Scale, Challenging, Decontaminated, and Verifiable Mathematical Dataset for Advancing Reasoning](https://mlsanity.com/paper/2504.11456/) (2025)
- [Learning beyond Teacher: Generalized On-Policy Distillation with Reward Extrapolation](https://mlsanity.com/paper/2602.12125/) (2026)
- [Entropy-Aware On-Policy Distillation of Language Models](https://mlsanity.com/paper/2603.07079/) (2026)
- [Revisiting On-Policy Distillation: Empirical Failure Modes and Simple Fixes](https://mlsanity.com/paper/2603.25562/) (2026)
- [Scaling Reasoning Efficiently via Relaxed On-Policy Distillation](https://mlsanity.com/paper/2603.11137/) (2026)
- [JustRL: Scaling a 1.5B LLM with a Simple RL Recipe](https://mlsanity.com/paper/2512.16649/) (2025)
- [Nemotron-Cascade 2: Post-Training LLMs with Cascade RL and Multi-Domain On-Policy Distillation](https://mlsanity.com/paper/2603.19220/) (2026)
- [SCOPE: Signal-Calibrated On-Policy Distillation Enhancement with Dual-Path Adaptive Weighting](https://mlsanity.com/paper/2604.10688/) (2026)
- [Asymmetric On-Policy Distillation: Bridging Exploitation and Imitation at the Token Level](https://mlsanity.com/paper/2605.06387/) (2026)
- [KL for a KL: On-Policy Distillation with Control Variate Baseline](https://mlsanity.com/paper/2605.07865/) (2026)
- [Are Full Rollouts Necessary for On-Policy Distillation?](https://mlsanity.com/paper/2605.31490/) (2026)
- [STAPO: Stabilizing Reinforcement Learning for LLMs by Silencing Rare Spurious Tokens](https://mlsanity.com/paper/2602.15620/) (2026)
- [SAF-OPD: Stable Advantage Fusion for On-Policy Distillation](https://mlsanity.com/paper/2607.29209/) (2026)
- [Reward-Weighted On-Policy Distillation with an Open Property-Equivalence Verifier for NL-to-SVA Generation](https://mlsanity.com/paper/2605.13501/) (2026)
- [Momentum as Residual-Driven Multiplier Correction for Deep Learning Optimization](https://mlsanity.com/paper/2608.12925/) (2026)

## Built on by (most cited first, 3 of 3)

- [1% of Tokens Can Be Enough: On Gradient Estimation in On-Policy Distillation](https://mlsanity.com/paper/2609.24432/) (2026)
- [Solving Without Stopping: On-Policy Distillation at Small Scale](https://mlsanity.com/paper/2609.37326/) (2026)
- [Branching On-Policy Distillation](https://mlsanity.com/paper/2610.13481/) (2026)

## Abstract (arXiv)

On-policy distillation (OPD) has emerged as an effective approach for large language model post-training, yet existing objectives face a trade-off between objective fidelity and optimization stability. Token-level OPD provides stable but local supervision, whereas sequence-level OPD captures future credit at the cost of horizon-dependent variance. We establish a unified temporal-credit view of these formulations, showing that practical token-level OPD can be interpreted as a temporal approximation to the sequence-level reverse-KL gradient. Building on this connection, we propose γOPD (GammaOPD), which uses discounted temporal credit assignment to balance long-horizon supervision and optimization stability, while admitting a horizon-independent variance bound. We further develop a reward-compatible bounded mixing (RBM) mechanism for γOPD that balances verifiable outcome feedback with the discounted OPD advantage to move beyond purely teacher-dependent optimization. Experiments on mathematical and code reasoning demonstrate consistent improvements over existing OPD methods across vanilla, size-mismatched, and multi-teacher distillation settings.