On-Policy Residual Learning for Diffusion Language Models

Residual context is key to unlocking the speed-quality Pareto frontier of diffusion language models (DLMs) by carrying forward predictive distributions across denoising steps. Yet turning this seemingly simple mechanism into an effective learning paradigm is far from simple: there is no clear recipe for how residual context should be learned. We introduce ORL, a framework for on-policy residual learning in DLMs. Algorithmically, we identify that residual learning is inherently on-policy. ORL learns from model-induced residual trajectories on the fly and introduces an entropy-contraction objective that sharpens predictions as the model revisits its own predictions. System-wise, exact resid...

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