# Spend Teacher Tokens Where They Matter: Success-Referenced On-Policy Distillation

arXiv: https://arxiv.org/abs/2610.02678 · HTML: https://mlsanity.com/paper/2610.02678/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in On-policy and self-distillation for LLMs, one of 12 directions in Knowledge distillation.
- Builds on 14 of its 22 references that are in the map.
- First posted on arXiv 2 Oct 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, 14 of 14)

- [Qwen3 Technical Report](https://mlsanity.com/paper/2505.09388/) (2025)
- [Measuring Mathematical Problem Solving With the MATH Dataset](https://mlsanity.com/paper/2103.03874/) (2021)
- [Let's Verify Step by Step](https://mlsanity.com/paper/2305.20050/) (2023)
- [DAPO: An Open-Source LLM Reinforcement Learning System at Scale](https://mlsanity.com/paper/2503.14476/) (2025)
- [On-Policy Distillation of Language Models: Learning from Self-Generated Mistakes](https://mlsanity.com/paper/2306.13649/) (2023)
- [Skywork Open Reasoner 1 Technical Report](https://mlsanity.com/paper/2505.22312/) (2025)
- [TIP: Token Importance in On-Policy Distillation](https://mlsanity.com/paper/2604.14084/) (2026)
- [Not All Disagreement Is Learnable: Token Teachability in On-Policy Distillation](https://mlsanity.com/paper/2605.26844/) (2026)
- [LLM Reasoning as Trajectories: Step-Specific Representation Geometry and Correctness Signals](https://mlsanity.com/paper/2604.05655/) (2026)
- [SelecTKD: Selective Token-Weighted Knowledge Distillation for LLMs](https://mlsanity.com/paper/2510.24021/) (2025)
- [Multi-Rollout On-Policy Distillation via Peer Successes and Failures](https://mlsanity.com/paper/2605.12652/) (2026)
- [Prefix-Guided On-Policy Distillation: Mining Golden Trajectories from Rollouts](https://mlsanity.com/paper/2606.21994/) (2026)
- [ReNIO: Reweighting Negative Trajectory Importance for LLM On-Policy Distillation](https://mlsanity.com/paper/2606.23104/) (2026)
- [Hidden States Know Where Reasoning Diverges: Credit Assignment via Span-Level Wasserstein Distance](https://mlsanity.com/paper/2604.23318/) (2026)

## Abstract (arXiv)

On-policy distillation (OPD) combines student-generated rollouts with dense token-level supervision from a teacher, but providing such supervision for every rollout requires substantial teacher computation. We introduce Success-Referenced On-Policy Distillation (SR-OPD), which reduces this cost by selecting which prompts and rollouts receive teacher supervision. When the student produces both successful and failed rollouts for the same prompt, a successful rollout can serve as a natural reference for selecting failed rollouts. SR-OPD therefore focuses on such prompts and prioritizes failed rollouts whose hidden-state trajectories show sustained divergence from a successful reference, while accounting for estimated teacher-input cost. Across three teacher-student pairs and six mathematical reasoning benchmarks, SR-OPD uses only 3.46-5.02% of the teacher-input tokens required by Vanilla OPD in the one-pass setting while maintaining comparable reasoning performance. Under a controlled setting matched to 5% of Vanilla OPD's teacher-input budget, further experiments support both key design choices: focusing supervision on prompts with both successful and failed rollouts, and using successful rollouts to guide failure selection. These results indicate that a student's own successful behavior can serve as a useful reference for allocating teacher supervision under a fixed teacher-input budget.