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

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 **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 outperforms Sampled Token and TopK in task-average accuracy and matches or exceeds Full Vocabulary. Gradient cosine similarity reaches 99% on 4B mathematics, while 8K full-parameter profiling shows 70.5% lower backward memory.