Trapped by Their Own Rollouts: Understanding Aggregation--Rollout Feedback in Federated On-Policy Distillation

On-policy distillation (OPD) improves language-model post-training by letting the student learn from its own sampled trajectories under teacher supervision, aligning the training process with inference-time behavior. However, the rollout policy in OPD is usually treated as fixed: each round samples directly from the current student. We show that this choice can create a compounding teacher--student mismatch, because it requires the teacher to provide effective supervision on whichever trajectories the student samples, including ones less reachable by the teacher itself. On such trajectories, teacher supervision can become noisy or even misleading, leading to undesirable student patterns such as repetition. Moreover, since the updated student in turn defines the rollout policy of subsequent rounds, these patterns persist and potentially amplify over training. This failure mode suggests that improving OPD requires treating the rollout policy itself as an optimization target, rather than only modifying the distillation objective. We propose Mixture Proposal On-Policy Distillation (MPOPD), which derives a student-anchored, teacher-guided rollout distribution from a local trust-region objective based on relative teacher support. The resulting target is a geometric mixture of the student and teacher policies, and we introduce a proposal policy that approximates this mixture, enabling rollout generation in a single forward pass. Experiments on 16 math, knowledge, and medical reasoning benchmarks show consistent gains over OPD and recent variants. On math reasoning, our method improves average accuracy by 6.91 over OPD on Qwen3-4B-Base while reducing average generation length by 41%, suggesting that rollout policy design provides an effective way to improve OPD.

On-policy distillation (OPD) provides dense teacher supervision along student-generated trajectories, but its online rollout process incurs substantial computational cost, particularly when a few long responses delay batch completion. Existing acceleration methods typically control rollout length using fixed budgets or absolute teacher--student agreement thresholds, which may not reflect learning progress across different models and training stages. We propose Adaptive FastOPD, a progress-aware strategy that expands the rollout horizon only when learning near the current boundary region has plateaued and the current horizon is sufficiently utilized. The former is determined from four teacher--student signals measured relative to their values upon entering each horizon, making expansion responsive to stage-specific progress rather than a predefined step interval or an absolute threshold on the raw agreement signals, while the latter prevents a small number of long responses from triggering increases in rollout cost. Across two teacher--student pairs, Adaptive FastOPD achieves the highest average performance while reducing training time by 49.1--71.2% relative to OPD 15K, and remains robust across a range of hyperparameter settings.

On-policy distillation (OPD) is increasingly used in LLM post-training because it can leverage a teacher model to provide dense supervision on student rollouts. The standard implementation, however, usually reduces distribution matching to a sampled-token log-ratio, which can make the learning signal fragile on long rollouts whose prefixes drift away from the teacher's typical support. We revisit this formulation from both theoretical and implementation perspectives. Theoretically, token-level OPD is biased relative to sequence-level reverse-KL minimization, but admits a substantially tighter worst-case variance bound; a controlled synthetic study further shows that stronger future-reward coupling increases gradient variance and destabilizes training. Empirically, we identify three failure modes of sampled-token OPD: imbalanced token-level supervision, unreliable teacher guidance on student-generated prefixes, and tokenizer or special-token mismatch. These findings motivate teacher top-K local support matching, a truncated reverse-KL objective that compares teacher and student distributions over a teacher-supported token set at each prefix, together with top-p rollout sampling and special-token masking. Across single-task reasoning and multi-task benchmarks spanning agentic and reasoning settings, this objective improves optimization stability and yields a +19.8% performance gain over standard sampled-token OPD baselines, providing a practical recipe for more stable on-policy distillation.