CharacterFlywheel: Scaling Iterative Improvement of Engaging and Steerable LLMs in Production

Yixin Nie, Lin Guan, Zhongyao Ma, Anchit Gupta, Yipin Zhou +17 more
3/2/2026
cs.CLcs.AIcs.SI

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Abstract

This report presents CharacterFlywheel, an iterative flywheel process for improving large language models (LLMs) in production social chat applications across Instagram, WhatsApp, and Messenger. Starting from LLaMA 3.1, we refined models across 15 generations using data from both internal and external real-user traffic. Through continuous deployments from July 2024 to April 2025, we conducted controlled 7-day A/B tests showing consistent engagement improvements: 7 of 8 newly deployed models demonstrated positive lift over the baseline, with the strongest performers achieving up to 8.8% improvement in engagement breadth and 19.4% in engagement depth. We also observed substantial gains in steerability, with instruction following increasing from 59.2% to 84.8% and instruction violations decreasing from 26.6% to 5.8%. We detail the CharacterFlywheel process which integrates data curation, reward modeling to estimate and interpolate the landscape of engagement metrics, supervised fine-tuning (SFT), reinforcement learning (RL), and both offline and online evaluation to ensure reliable progress at each optimization step. We also discuss our methods for overfitting prevention and navigating production dynamics at scale. These contributions advance the scientific rigor and understanding of LLMs in social applications serving millions of users.

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@article{nie2026characterflywheel,
  title  = {CharacterFlywheel: Scaling Iterative Improvement of Engaging and Steerable LLMs in Production},
  author = {Yixin Nie and Lin Guan and Zhongyao Ma and Anchit Gupta and Yipin Zhou and Xiao Li and Zhengping Zhou and Raymond Zeng and Gelin Zhou and Shigan Chu and Ajay Thampi and Wancen Mu and Nathan Shuster and Ketong Wang and Lin Chen and Jason Brewer and Derek Hao Hu and Alexander McCauley and Jason Weston and Sem Park and Na Zhang and Kevin Tang},
  year   = {2026},
  eprint = {2603.01973},
  archivePrefix = {arXiv},
  url    = {http://arxiv.org/abs/2603.01973v1}
}

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