# LIP-123: Restart the Treasury Reward Cut, Again

**URL:** <https://forum.livepeer.org/t/lip-123-restart-the-treasury-reward-cut-again/3354>\
**Category:** Uncategorized\
**Created:** [September 15, 2026, 10:27am UTC](https://forum.livepeer.org/t/lip-123-restart-the-treasury-reward-cut-again/3354 "2026-09-15T10:27:05Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![b3nnn](https://avatars.discourse-cdn.com/v4/letter/b/a587f6/32.png) [@b3nnn](https://forum.livepeer.org/u/b3nnn)\
**Post date:** [September 15, 2026, 10:27am UTC](https://forum.livepeer.org/t/lip-123-restart-the-treasury-reward-cut-again/3354/1 "2026-09-15T10:27:05Z")

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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](https://github.com/livepeer/LIPs/blob/master/LIPs/LIP-101.md), at the same rate. It follows the pre-proposal discussion [here](https://forum.livepeer.org/t/pre-proposal-restart-the-treasury-reward-cut-at-10-again/3273), 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](https://github.com/livepeer/LIPs/blob/master/LIPs/LIP-92.md).

## 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](https://github.com/livepeer/LIPs/pull/123).

Following the [LIP-1](https://github.com/livepeer/LIPs/blob/master/LIPs/LIP-1.md) 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](https://github.com/livepeer/LIPs/blob/master/LIPs/LIP-16.md)
4. **Accepted / Final** — executed by the core team

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

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**Author:** ![b3nnn](https://avatars.discourse-cdn.com/v4/letter/b/a587f6/32.png) [@b3nnn](https://forum.livepeer.org/u/b3nnn)\
**Post date:** [September 29, 2026, 11:38pm UTC](https://forum.livepeer.org/t/lip-123-restart-the-treasury-reward-cut-again/3354/2 "2026-09-29T23:38:54Z")

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Proposal is in “Last Call” and will move onchain for voting next week 🙂

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<div class="post-metadata">

**Author:** ![b3nnn](https://avatars.discourse-cdn.com/v4/letter/b/a587f6/32.png) [@b3nnn](https://forum.livepeer.org/u/b3nnn)\
**Post date:** [October 9, 2026, 1:29am UTC](https://forum.livepeer.org/t/lip-123-restart-the-treasury-reward-cut-again/3354/3 "2026-10-09T01:29:26Z")

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The proposal is now live. Please review and vote [here](https://explorer.livepeer.org/voting/0x0f7e33a3601a3e94a3d5bd245587fa6cf210071a)

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<div class="post-metadata">

**Author:** ![b3nnn](https://avatars.discourse-cdn.com/v4/letter/b/a587f6/32.png) [@b3nnn](https://forum.livepeer.org/u/b3nnn)\
**Post date:** [October 21, 2026, 10:41pm UTC](https://forum.livepeer.org/t/lip-123-restart-the-treasury-reward-cut-again/3354/4 "2026-10-21T22:41:22Z")

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Confirming here also that LIP-123 passed and that it has now been executed onchain. PR to update the [LIP to Final](https://github.com/livepeer/LIPs) is in progress. Thanks all.