Look Before You Select: Rethinking Vocabulary Sparsification in On-Policy Distillation

Yongliang Miao, Shuang Liu, Yanguang Liu, Yandong Bai, Mengnan Du

On-policy distillation (OPD) uses teacher correction on student-generated responses. Full-vocabulary correction can provide important corrections even for tokens that the student assigns low probability, but backpropagating through all token logits becomes memory-intensive for long sequences. Existing memory-saving approaches estimate corrections from sampled tokens or restrict supervision to the student's TopK tokens, introducing sampling noise or changing the full-vocabulary correction. We introduce \textbf{SparseOPD}, which uses full-vocabulary teacher correction to determine which corrections matter before selecting the token logits to differentiate. SparseOPD first constructs the full-vocabulary correction without retaining its backward graph, then selects tokens by correction magnitude rather than student probability. Signed residual compensation preserves the total promoting and suppressing correction mass, while correction-aware budget allocation distributes the sparse support across positions. Finally, the update backpropagates only through the selected token logits. Across six task--scale settings spanning mathematics, chemistry QA, and multimodal reasoning, SparseOPD…