On-policy distillation (OPD) has a property absent in offline distillation and RL: teacher supervision quality depends on student competence. Incoherent rollouts yield noisy gradients; already-mastered tokens yield redundant ones. This creates waste at three scales (tokens, training phases, and prompts) yet existing methods supervise uniformly. We introduce SEAD, which uses entropy as a unified probe of this competence-dependent degradation at three scales: (1) joint teacher-student entropy partitions tokens into zones receiving tailored divergences or zero gradient (approx. 50% skipped); (2) a cosine schedule anneals from forward to reverse KL as competence grows; (3) a competence-gated curriculum introduces prompts easy-to-hard. These components are symbiotically necessary: token selection requires coherent rollouts (curriculum), annealing requires monotonic improvement (also curriculum). On OLMo-3 (7B to 32B), SEAD achieves +4.8 avg accuracy over vanilla OPD across six math benchmarks, with ablations confirming super-additive interactions.
On-policy distillation (OPD) offers dense token-level supervision as an alternative to the sparse outcome-level advantages of reinforcement learning with verifiable rewards (RLVR). However, the teacher scores student-generated trajectories that are inherently off-policy for it, so the reliability of its supervision, and hence the source of the student's improvement, remains unclear. We quantitatively analyze teacher supervision during OPD training and find substantial noise whose prevalence increases with teacher scale. Surprisingly, the student policy is insensitive to such noise, converging to comparable performance regardless of whether noisy supervision is retained or removed. Does OPD distill at all? By analyzing what drives its gains, we find that learning concentrates on low log-probability tokens, and using a single fixed negative advantage matches the performance of teacher-provided ones. This suggests that OPD works largely by suppressing low log-probability tokens, which requires no teacher. These findings motivate On-Policy Self-Adaptation (OPSA), a supervision-free method using entropy-adaptive negative advantages. It assigns stronger learning signals to high-entropy positions, suppressing tail tokens, and evenly redistributing probability mass among head tokens. Compared with the base \texttt{Qwen3-1.7B}, OPSA improves Avg@32 by 35.41 points on AIME24, corresponding to a 263% relative gain, and more than doubles Pass@32 across all three benchmarks. It also outperforms OPD by 16.77 points in Avg@32 on AIME24. Extensive experiments and analyses across model families and tasks further demonstrate its effectiveness and generalizability.
On-policy distillation transfers reasoning capabilities by training a student model on its own generated trajectories using token-level feedback from a teacher. However, we identify a critical bottleneck, \textbf{Supervision Fidelity Decay (SFD)}: as student-generated prefixes lengthen, the teacher's next-token distribution becomes less confident and less discriminative. Consequently, the teacher-dependent corrective signal in reverse-KL distillation weakens, causing student drift to compound across long reasoning chains. To mitigate SFD, we introduce \textbf{Lookahead Group Reward (\ours{})}. Building on the insight that next-step teacher confidence reflects the discriminative strength of future reverse-KL supervision, \ours{} evaluates the student's top-K candidate tokens by the teacher confidence they induce at the subsequent step and assigns a group-normalized reward. To maintain computational efficiency, we further design an entropy-triggered tree-attention mechanism. Across six math and code benchmarks, \ours{} improves mean@8 by \textbf{2.57} points over OPD for a 7B student, with gains increasing in longer-generation and reaching +\textbf{4.92} points on AIME-26 at 39k tokens.
On-policy distillation (OPD) offers superior capacity transfer by supervising student-sampled trajectories with dense token-level signals. To furnish high-quality supervision sources and thereby elevate the performance frontier of distillation, an intuitive direction is to infuse privileged information to either teacher or student itself. However, this additional input induces a potential failure mode we dub privilege illusion: a pattern that conflates the transferable capability gap that students are meant to close, and the information asymmetry gap that can only be mimicked but never replicated. This issue is further amplified by the inherent non-uniformity of token-level supervision, where only a small subset of tokens carries pivotal capability-bearing signals. To this end, we propose DOPD, an advantage-aware dual distillation paradigm that dynamically routes token-level supervision between privileged teacher and privileged student policies based on their advantage gap and relative probabilities. Each token receives supervision of different strength, objective, and strategy from either teacher or student itself, which transfers credible capability while simultaneously receiving auxiliary signals, to alleviate privilege illusion. Extensive experiments on both large language model (LLM) and vision-language model (VLM) settings demonstrate that DOPD consistently outperforms Vanilla OPD and other counterparts. Further results on stability, robustness, continual learning, and out-of-distribution tasks validate its superiority.