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Break the Trade-off Between Watermark Strength and Speculative Sampling Efficiency for Language Models

ICLR 2026 · Large language models › Reasoning and chain of thought · approach: Speculative decoding

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Revisits the watermark-speculative sampling trade-off with a KL-based watermark strength measure, derives Pareto curves for Gumbel-max and SynthID, and proposes pseudorandom draft-token acceptance that achieves maximal strength and maximal acceptance while improving detectability.

Problem

Watermarking LLM outputs with speculative sampling was shown to face an impossibility: higher watermark strength reduces acceptance rate. Prior strength definitions are binary, so intermediate trade-offs cannot be characterized.

Approach

Define watermark strength as expected KL divergence between watermarked and original token distributions (equal to entropy minus expected watermarked entropy, bounded by entropy of P), characterize the strength-efficiency Pareto frontier as a constrained optimization, and make the draft-token acceptance decision pseudorandom so the whole generation is a deterministic function of pseudorandom varia

Key results

Surprising findings

Limitations

Experimental setup

Datasets: ELI5 C4

Benchmarks: ELI5 C4

Metrics: AATPS TPR at FPR 1% PTT LOGPPL ROC AUC

Baselines: Standard Speculative Sampling Ars-Prior Bayes-Prior

Builds on: speculative sampling Gumbel-max watermark SynthID Hu et al. watermark speculative sampling trade-off

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