LIP-123: Restart the Treasury Reward Cut, Again

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Summary

This proposal restarts round-based treasury rewards by setting treasuryRewardCutRate back to 1e26 (10%), so the onchain treasury resumes accumulating LPT.

This is the same parameter change adopted under LIP-101, at the same rate. It follows the pre-proposal discussion here, where there was reasonable alignment to restarting at 10%.

Motivation

The treasury is key to supporting strategic investments, protocol security and other capital and resource needs for the project. As of now, the onchain treasury is not accumulating LPT, having hit the “treasury ceiling” and reset the treasury reward cut to 0%.

Livepeer 2.0 brings a number of strategic proposals and we need certainty that the treasury will be re-populating before making important decisions around these proposals.

Specification

Implementation of this LIP will update the target parameter with the new value:

Parameter Current Proposed
treasuryRewardCutRate 0 1e26

The parameter uses 27-digit fixed-point precision, with 1e26 representing 10%. Technical details are outlined in LIP-92.

Rationale

The treasury is key to supporting strategic ecosystem investments and public goods. As such, the desired treasuryRewardCutRate should reflect the value that best supports us in achieving those ecosystem goals.

10% is the rate that applied throughout the life of the onchain treasury, including under LIP-101. Holding it constant keeps the parameter predictable for stakeholders and keeps this proposal a narrow, reversible restart rather than a re-litigation of the rate itself. If the community wants to revisit the level, that is better handled as a separate proposal on its own merits.

Process and next steps

The LIP has been submitted as a Draft here.

Following the LIP-1 process, it is in draft and will move to Last Call asap:

  1. Draft — open for discussion in this thread
  2. Last Call — ~10 days for final objections
  3. Proposed — an onchain poll is created per LIP-16
  4. Accepted / Final — executed by the core team

Feedback welcome. I will post here again when it is moved to Last Call.