arXiv Computation and Language By Byung-Kwan Lee, Ximing Lu, Shizhe Diao, Minki Kang, Saurav Muralidharan, Karan Sapra, Andrew Tao, Pavlo Molchanov, Yejin Choi, Yu-Chiang Frank Wang, Ryo Hachiuma

Zone of Proximal Policy Optimization: Teacher in Prompts, Not Gradients

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The paper introduces Zone of Proximal Policy Optimization (ZPPO), a method that keeps a teacher model inside prompts rather than in the policy gradient to improve knowledge distillation for small students. ZPPO creates two types of reformulated prompts—Binary Candidate-included Questions (BCQ) and Negative Candidate-included Questions (NCQ)—to expose students to correct and incorrect responses, and uses a replay buffer to focus training on hard questions until the student’s accuracy improves. Experiments on the Qwen3.5 family with a 27B teacher across 31 benchmarks show that ZPPO outperforms both off‑policy and on‑policy distillation methods, especially at the smallest student scales.

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