Recurrent Self-Improvement: Dynamic Cross-Loop On-Policy Distillation for Looped Language Models

Looped language models increase effective depth by repeatedly applying a shared block of layers, but existing large-scale recipes require multi-stage training over trillions of tokens, while the benefits of recurrence remain difficult to separate from differences in data and training. In this work, we establish practical training recipes for looped language models, with three main results. (1) We develop a compute-efficient from-scratch pipeline that reduces the training budget from 7.7T tokens in Ouro to 310B tokens while retaining strong reasoning performance. Pretraining followed by high-quality mid-training, together with learning-rate warmup and stronger exit-gate regularization, enables stable recurrent training without prior multi-stage schedules. (2) Under controlled comparisons, our 1.4B LoopLM outperforms a parameter-matched dense model trained on the same data and token budget on all 12 evaluated benchmarks, including +14 points on GSM8K, +10 on MATH, and +22 on DROP. At matched inference compute, it approaches a 3.9B dense model on mathematical reasoning and reading comprehension while using only 36% as many parameters. (3) We introduce a minimal recipe for converting pretrained dense models into looped ones: a single learned input-mixing scalar and a smoothed exit loss, with no step-specific parameters. Applied to Qwen3-1.7B-Base, Looped Qwen improves over an identically continued dense baseline on every evaluated benchmark across two data regimes, with statistically clear gains on GSM8K, MATH, and MMLU-Pro on the curated mixture. Together, these results make looped language models substantially cheaper to train from scratch and practical to introduce into existing pretrained checkpoints, while isolating the gains due to recurrence itself.

Looped Language Models (LoopLMs) perform "latent reasoning" by recursively refining internal latent representations with shared weights, offering a more effective alternative to explicit verbal reasoning. Despite their effectiveness, we find that LoopLMs remain prone to loop instability: unstable refinement across iterations can produce localized uncertain "hard" tokens associated with reasoning errors. To address this, we propose LoopCD, loop-wise contrastive decoding that enhances the reasoning performance of LoopLMs by intervening on these tokens at inference time. Specifically, we exploit the internal dynamics of LoopLMs and contrast the logits from earlier iterations with logits from the last refined iteration to form the final sampling distribution. We find that this strategy is highly efficient, introducing only negligible inference overhead and requiring no additional training, while effectively improving reasoning performance by naturally refining reasoning-critical hard tokens. Extensive experiments show that our method improves the performance of recent representative LoopLMs across various reasoning tasks.

On-policy distillation (OPD) trains a student model by having it generate trajectories, then matching its next-token predictions with an external teacher's next-token predictions. This provides dense, token-level supervision to the student. On-policy self-distillation (OPSD) eliminates the need for the external teacher. Specifically, a second frozen copy of the student model, now given the ground truth in its context, serves as the teacher. The student model only receives the problem and learns to mimic the privileged teacher model, while the teacher remains frozen throughout training. Previous work showed that freezing the teacher is useful for training stability, but we argue that this can prevent the teacher from incorporating the improvements learned by the student during training. Our primary contribution is to address this limitation with a recursive framework built around two complementary components. First, we let the privileged teacher co-evolve with the student so that revision learned in one round can guide the next, a process we refer to as Dynamic Co-Evolution (DCE). Second, because stronger revision can also make responses too verbose and self-critical, we additionally train on shorter, verified rewrites of the model's own on-policy responses. We call this complementary objective Self-Refined Concise Learning (SRCL). Overall, our comprehensive evaluations show that DCE+SRCL outperforms OPSD across multiple model scales and four competition-level mathematics benchmarks. Specifically, on Qwen3-8B, DCE+SRCL reaches 65.97% Average@12, outperforming OPSD by 35.62 percentage points while reducing mean output length by 7.80% relative to DCE alone.