PACO: Proxy-Task Alignment and Online Calibration for On-the-Fly Category Discovery

On-the-Fly Category Discovery (OCD) requires a model, trained on an offline support set, to recognize known classes while discovering new ones from an online streaming sequence. Existing methods focus heavily on offline training. They aim to learn discriminative representations on the support set so that novel classes can be separated at test time. However, their discovery mechanism at inference is typically reduced to a single threshold. We argue that this paradigm is fundamentally flawed as OCD is not a static classification problem, but a dynamic process. The model must continuously decide 1) whether a sample belongs to a known class, 2) matches an existing novel category, or 3) should initiate a new one. Moreover, prior methods treat the support set as fixed knowledge. They do not update their decision boundaries as new evidence arrives during inference. This leads to unstable and inconsistent category formation. Our experiments confirm these issues. With properly calibrated and adaptive thresholds, substantial improvements can be achieved, even without changing the representation. Motivated by this, we propose PACO, a support-set-calibrated, tree-structured online decision framework. The framework models inference as a sequence of hierarchical decisions, including known-class routing, birth-aware novel assignment, and attach-versus-create operations over a dynamic prototype memory. Furthermore, we simulate the proxy discovery process to initialize the thresholds during offline training to align with inference. Thresholds are continuously updated during inference using mature novel prototypes. Importantly, PACO requires no heavy training and no dataset-specific tuning. It can be directly integrated into existing OCD pipelines as an inference-time module. Extensive experiments show significant improvements over SOTA baselines across seven benchmarks.

TALON: Test-time Adaptive Learning for On-the-Fly Category Discovery

On-the-fly category discovery (OCD) aims to recognize known categories while simultaneously discovering novel ones from an unlabeled online stream, using a model trained only on labeled data. Existing approaches freeze the feature extractor trained offline and employ a hash-based framework that quantizes features into binary codes as class prototypes. However, discovering novel categories with a fixed knowledge base is counterintuitive, as the learning potential of incoming data is entirely neglected. In addition, feature quantization introduces information loss, diminishes representational expressiveness, and amplifies intra-class variance. It often results in category explosion, where a single class is fragmented into multiple pseudo-classes. To overcome these limitations, we propose a test-time adaptation framework that enables learning through discovery. It incorporates two complementary strategies: a semantic-aware prototype update and a stable test-time encoder update. The former dynamically refines class prototypes to enhance classification, whereas the latter integrates new information directly into the parameter space. Together, these components allow the model to continuously expand its knowledge base with newly encountered samples. Furthermore, we introduce a margin-aware logit calibration in the offline stage to enlarge inter-class margins and improve intra-class compactness, thereby reserving embedding space for future class discovery. Experiments on standard OCD benchmarks demonstrate that our method substantially outperforms existing hash-based state-of-the-art approaches, yielding notable improvements in novel-class accuracy and effectively mitigating category explosion. The code is publicly available at \textcolor{blue}{https://github.com/ynanwu/TALON}.