cs.CLSep 14, 2026

Breaking the Token Ceiling: Distilling Smaller, Stronger Byte Models

Authors: Kalyani Marathe, Artidoro Pagnoni, Tomasz Limisiewicz, Margaret Li, Mike Lewis, Luke Zettlemoyer, Srinivasan Iyer

Abstract

Small models are made more capable through distillation from a larger one that shares their tokenization scheme. However, do distilled byte and token models behave similarly in terms of scaling trends as compute and data increases? To enable this comparison, we introduce two variants to efficiently convert token logits to Byte Logits: 1) approximate: Marginalize-It, and 2) exact: End-Of-Token. We then present the first large scale study of overtraining decoder-only dense transformer models varying two dimensions simultaneously: the tokenization scheme (Tokens, Bytes, Bytes w/ eot) and the training objective (Distillation vs. Cross-Entropy), sweeping layer-parameter-matched models with roughly 1 billion parameters up to 1 trillion bytes of data. Across eight benchmarks spanning three categories: Multiple Choice QA, Language Generation, and Machine Translation, we find that Token-1B models outperform byte models (End-Of-Token-1B and Bytes-1B) in the low-FLOP regime but eventually plateau; byte models start worse yet surpass Token-1B models with more compute, reaching a higher downstream task performance ceiling. Extrapolating the average top-1 error vs. validation BPB scaling laws predicts that, asymptotically, distilled End-Of-Token-1B outperforms distilled Token-1B by up to 4%. They are also far more data efficient, matching the performance of distilled Token-1B using only one-sixth of the training data. Moreover, by operating over a small vocabulary of 256 bytes instead of on the order of 100K tokens, they circumvent the need for top-k truncation during logit dumping, while also reducing logit storage costs to roughly one-fifth. Finally, our downstream performance scaling laws predict that our distilled End-Of-Token-1B models asymptotically surpass the Llama 3.2-1B, Gemma-3-1B-pt, and Gemma 2B models on averaged downstream tasks by up to 6.5%, 8.1%, and 2.1%, respectively.

Explore similar work

May 2, 2026cs.CL

Compute Optimal Tokenization

Scaling laws enable the optimal selection of data amount and language model size, yet the impact of the data unit, the token, on this relationship remains underexplored. In this work, we systematically investigate how the information granularity of tokens, controlled by the compression rate (i.e., average bytes of text per token), affects scaling trends. We train 988 latent tokenized models (BLT) ranging from 50M to 7B parameters that enable setting the desired compression rate. This flexibility allows us to study the role of compression rate well beyond 4.57 bytes per token obtained with a popular BPE tokenizer. Our experiments reveal that in compute-optimal configurations, model parameter counts scale proportionally to data size measured in bytes, not in tokens as commonly perceived (Kaplan et al., 2020; Hoffmann et al., 2022). Furthermore, we discover that the optimal compression rate differs from the one obtained with BPE and decreases with compute. These findings generalize to both latent and subword tokenization, as well as to languages other than English, guiding language model developers on tokenization scheme selection for maximal compute efficiency.
Tomasz Limisiewicz, Artidoro Pagnoni, Srini Iyer +6
Jul 24, 2026cs.LG

Cross-Tokenizer On-Policy Distillation via Byte-Prefix Marginalization

Open-weight language models from different families exhibit complementary capabilities, motivating their consolidation into a compact student through on-policy distillation (OPD). However, full-vocabulary OPD typically assumes a shared tokenizer, while existing cross-tokenizer methods may discard teacher probability mass or assign it to student tokens with unrelated content. We introduce Byte-Prefix Marginalization (BPM), which re-expresses the teacher's next-token distribution over the student vocabulary in a shared byte space. Specifically, BPM assigns each teacher token's probability to the longest student token whose byte representation is a prefix of the teacher token's bytes, aggregates mass mapped to the same student token, and places otherwise unmatched mass in an explicit residual category. This produces a vocabulary-complete, byte-aligned, and mass-preserving target for dense OPD. The target exactly recovers the teacher-induced byte-prefix marginal when the relevant prefix does not span multiple teacher tokens (a condition satisfied at more than 99% of training positions) and uses a mass-preserving, chain-factorized lower bound otherwise. Across Qwen3-32B, GLM-Z1-9B-0414, and MiniMax-M2.7 as teachers, BPM consistently outperforms current cross-tokenizer methods on six mathematics and programming benchmarks, improving six-benchmark avg@8 by 3.7-6.6 points over the strongest baselines.
Hao Wang, Kun Yuan, Wenlin Zhong +4
Feb 15, 2026cs.LG

You Can Learn Tokenization End-to-End with Reinforcement Learning

Tokenization is a hardcoded compression step which remains in the training pipeline of Large Language Models (LLMs), despite a general trend towards architectures becoming increasingly end-to-end. Prior work has shown promising results at scale in bringing this compression step inside the LLMs' architecture with heuristics to draw token boundaries, and also attempts to learn these token boundaries with straight-through estimates, which treat the problem of drawing discrete token boundaries as a continuous one. We show that these token boundaries can instead be learned using score function estimates, which have tighter theoretical guarantees due to directly optimizing the problem of drawing discrete token boundaries to minimize loss. We observe that techniques from reinforcement learning, such as time discounting, are necessary to reduce the variance of this score function sufficiently to make it practicable. We demonstrate that the resultant method outperforms prior proposed straight-through estimates, both qualitatively and quantitatively at the 100100 million parameter scale.
Sam Dauncey, Roger Wattenhofer