DICE: Decentralized Incentive-driven Federated Learning for Efficient & Scalable Customization of Pretrained Models in Web3

Balancing convergence efficiency and robustness under Differential Privacy (DP) is a central challenge in Federated Learning (FL). While AdamW accelerates training and fine-tuning in large-scale models, we find that directly applying it to Differentially Private FL (DPFL) suffers from three major issues: (i) data heterogeneity and privacy noise jointly amplify the variance of second-moment estimator, (ii) DP perturbations bias the second-moment estimator, and (iii) DP amplify AdamW sensitivity to local overfitting, worsening client drift. We propose DP-FedAdamW, the first AdamW-based optimizer for DPFL. It restores AdamW under DP by stabilizing second-moment variance, removing DP-induced bias, and aligning local updates to the global descent to curb client drift. Theoretically, we establish an unbiased second-moment estimator and prove a linearly accelerated convergence rate without any heterogeneity assumption, while providing tighter $(\varepsilon,δ)$-DP guarantees. Our empirical results demonstrate the effectiveness of DP-FedAdamW across language and vision Transformers and ResNet-18. On Tiny-ImageNet (Swin-Base, $\varepsilon=1$), DP-FedAdamW outperforms the state-of-the-art (SOTA) by 5.83%. The code is available in Appendix.

In federated learning (FL), accommodating clients with diverse resource constraints remains a significant challenge. A widely adopted approach is to use a shared full-size model, from which each client extracts a submodel aligned with its computational budget. However, regardless of the specific scoring strategy, these methods rely on the same global backbone, limiting both structural diversity and representational adaptation across clients. This paper presents FRAMP, a unified framework for personalized and resource-adaptive federated learning. Instead of relying on a fixed global model, FRAMP generates client-specific models from compact client descriptors, enabling fine-grained adaptation to both data characteristics and computational budgets. Each client trains a tailored lightweight submodel and aligns its learned representation with others to maintain global semantic consistency. Extensive experiments on vision and graph benchmarks demonstrate that FRAMP enhances generalization and adaptivity across a wide range of client settings.

Personalized Federated Learning (PFL) aims to train customized models for clients with highly heterogeneous data distributions while preserving data privacy. Existing approaches often rely on heuristics like clustering or model interpolation, which lack principled mechanisms for balancing heterogeneous client objectives. Serving $M$ clients with distinct data distributions is inherently a multi-objective optimization problem, where achieving optimal personalization ideally requires $M$ distinct models on the Pareto front. However, maintaining $M$ separate models poses significant scalability challenges in federated settings with hundreds or thousands of clients. To address this challenge, we reformulate PFL as a few-for-many optimization problem that maintains only $K$ shared server models ($K \ll M$) to collectively serve all $M$ clients. We prove that this framework achieves near-optimal personalization: the approximation error diminishes as $K$ increases and each client's model converges to each client's optimum as data grows. Building on this reformulation, we propose FedFew, a practical algorithm that jointly optimizes the $K$ server models through efficient gradient-based updates. Unlike clustering-based approaches that require manual client partitioning or interpolation-based methods that demand careful hyperparameter tuning, FedFew automatically discovers the optimal model diversity through its optimization process. Experiments across vision, NLP, and real-world medical imaging datasets demonstrate that FedFew, with just 3 models, consistently outperforms other state-of-the-art approaches. Code is available at https://github.com/pgg3/FedFew.