TRACE: Distilling Where It Matters via Token-Routed Self On-Policy Alignment

On-policy self-distillation (OPSD) provides dense, token-level supervision for reasoning models by aligning a model's own distribution with that under privileged context, typically a verified solution. However, we show that the resulting distributional gap concentrates on style tokens rather than task-bearing ones, as the hinted model tends to produce shorter, more direct outputs. We term this pathology \emph{privilege-induced style drift}, which can destabilize training and shorten responses. To address this, we propose \textbf{RLCSD} (Reinforcement Learning with Contrastive on-policy Self-Distillation), which mitigates this drift by contrasting the teacher-student gap under a correct hint against that under a wrong hint, suppressing style shifts induced by hints regardless of correctness and yielding a signal more concentrated on task-bearing tokens. Experiments on Qwen3 (1.7B/4B/8B) and Olmo-3-7B-Think across mathematical and logical reasoning show that RLCSD consistently outperforms GRPO and prior OPSD methods, with additional results on agentic tasks supporting broader applicability. We further show that the contrastive principle is general: it plugs into existing OPSD methods to improve them, and its underlying insight extends to broader cross-model on-policy distillation.

On-policy self-distillation trains a reasoning model on its own rollouts while a teacher, often the same model conditioned on privileged context, provides dense token-level supervision. Existing objectives typically weight the teacher's token-level signal uniformly across a chain-of-thought sequence, despite substantial variation in the entropy of the teacher's predictive distribution. We propose EGRSD (Entropy-Guided Reinforced Self-Distillation), which unifies token-level updates through three signals: a reward-grounded direction, a teacher-student likelihood-ratio magnitude, and the proposed teacher-entropy confidence gate that down-weights high-entropy token positions while maintaining a nonzero lower bound on every token weight. We further introduce CL-EGRSD, a causal-lookahead variant that distinguishes sustained high-entropy spans from transient high-entropy positions whose following context rapidly becomes low entropy. Experiments with Qwen3-4B and Qwen3-8B in thinking mode show that EGRSD and CL-EGRSD advance the accuracy-length frontier among the compared trainable methods.

On-policy distillation offers dense, per-token supervision for training reasoning models; however, it remains unclear under which conditions this signal is beneficial and under which it is detrimental. Which teacher model should be used, and in the case of self-distillation, which specific context should serve as the supervisory signal? Does the optimal choice vary from one token to the next? At present, addressing these questions typically requires costly training runs whose aggregate performance metrics obscure the dynamics at the level of individual tokens. We introduce a training-free diagnostic framework that operates at the highest resolution: per token, per question, and per teacher. We derive an ideal per-node gradient defined as the parameter update that maximally increases the student's probability of success. We then develop a scalable targeted-rollout algorithm to estimate this gradient efficiently, even for long chains of intermediate thoughts. The gradient alignment score, defined as the cosine similarity between this ideal gradient and any given distillation gradient, quantifies the extent to which a particular configuration approximates the ideal signal. Across a range of self-distillation settings and external teacher models, we observe that distillation guidance exhibits substantially higher alignment with the ideal on incorrect rollouts than on correct ones, where the student already performs well and the teacher's signal tends to become noisy. Furthermore, we find that the optimal distillation context depends jointly on the student model's capacity and the target task, and that no single universally effective configuration emerges. These findings motivate the use of per-task, per-token diagnostic analyses for distillation.