MDM-Prime-v2: Binary Encoding and Index Shuffling Enable Scaling of Diffusion Language Models

Chen-Hao Chao, Wei-Fang Sun, Junwei Quan, Chun-Yi Lee, Rahul G Krishnan


Abstract
Masked diffusion models (MDM) exhibit superior generalization when learned using a Partial masking scheme (Prime). This approach converts tokens into sub-tokens and models the diffusion process at the sub-token level. We identify two limitations of the MDM-Prime framework. First, we find that the functional form of the subtokenizer significantly increases the log-likelihood value in the objective when paired with commonly used Byte-Pair-Encoding (BPE) tokenizers. Second, we lack tools to guide the hyperparameter choice of the token granularity in the subtokenizer. To address these limitations, we analyze the optimal design of the subtokenizer that minimizes MDM-Prime training objective and develop MDM-Prime-v2, a masked diffusion language model which incorporates Binary Encoding and Index Shuffling. Our analysis characterizes how token granularity and sub-token entropy influence the training objective and downstream performance, providing principled criteria for subtokenizer design. When extending the model size to 1.1B parameters, MDM-Prime-v2 demonstrates superior average zero-shot accuracy across eight commonsense reasoning benchmarks, outperforming similar-sized baselines including GPT-Neo, OPT, Pythia, Bloom, SMDM, and TinyLLaMA.
Anthology ID:
2026.emnlp-main.556
Volume:
Proceedings of the 2026 Conference on Empirical Methods in Natural Language Processing
Month:
October
Year:
2026
Address:
Budapest, Hungary
Editors:
Hung-Yi Lee, Sunipa Dev, Jessy Li, Desmond Elliott
Venue:
EMNLP
SIG:
SIGDAT
Publisher:
Association for Computational Linguistics
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Pages:
12748–12777
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URL:
https://aclanthology.org/2026.emnlp-main.556/
DOI:
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Cite (ACL):
Chen-Hao Chao, Wei-Fang Sun, Junwei Quan, Chun-Yi Lee, and Rahul G Krishnan. 2026. MDM-Prime-v2: Binary Encoding and Index Shuffling Enable Scaling of Diffusion Language Models. In Proceedings of the 2026 Conference on Empirical Methods in Natural Language Processing, pages 12748–12777, Budapest, Hungary. Association for Computational Linguistics.
Cite (Informal):
MDM-Prime-v2: Binary Encoding and Index Shuffling Enable Scaling of Diffusion Language Models (Chao et al., EMNLP 2026)
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https://aclanthology.org/2026.emnlp-main.556.pdf