cs.AIMar 11, 2026

PACED: Distillation and On-Policy Self-Distillation at the Frontier of Student Competence

Authors: Yuanda Xu, Hejian Sang, Zhengze Zhou, Ran He, Zhipeng Wang

Organizations: LinkedIn Corporation

Abstract

Standard LLM distillation treats all training problems equally -- wasting compute on problems the student has already mastered or cannot yet solve. We empirically show that this inefficiency has a precise gradient-level signature: the cross-problem gradient signal-to-noise ratio (SNR) follows a bell curve over student pass rate, collapsing at both extremes. We propose PACED, which weights each problem by w(p)=p(1−p)w(p) = p(1{-}p) where pp is the student's empirical pass rate -- concentrating training on the zone of proximal development. This requires only student rollouts, no architectural changes, and no hyperparameters. We prove the Beta kernel w(p)=pα(1−p)βw(p) = p^α(1{-}p)^β is the leading-order optimal weight family arising from the SNR boundary-collapse structure, and is minimax-robust under misspecification (worst-case efficiency loss O(δ2)O(δ^2)). Across Qwen3, Qwen2.5, and Llama-3 families, PACED sets a new state of the art in our experimental setting on MATH-500, AIME2024, and AIME2025, improving over unweighted distillation by up to +8.2\mathbf{+8.2} and over the strong AKL baseline by up to +3.6\mathbf{+3.6}, while reducing forgetting to 1.4%\mathbf{1.4\%} and 0.6%\mathbf{0.6\%} in distillation and self-distillation. A two-stage forward-then-reverse KL schedule pushes gains further to +5.8\mathbf{+5.8} over standard forward KL on the hardest benchmark.

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