Livepeer Governance Process

Help: Getting Started
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Abstract

This post serves as a comprehensive guide for anyone seeking to create and fund a Special Purpose Entity (SPE) in the Livepeer ecosystem. Inspired by established governance frameworks introduced in LIP-89 and enhanced by subsequent upgrades (LIP-90, LIP-91, and LIP-92). This guide breaks down the governance process into clearly defined phases, ensuring that community members can easily follow each step, from shaping an SPE idea, to onchain voting, to full implementation and accountability reporting. GovWorks will periodically update this post to ensure it remains in line with the latest governance frameworks.

Key Takeaways:

  • SPE creators must engage with the community early and often.
  • A formal SPE Pre-Proposal initiates the SPE formation process.
  • A comprehensive SPE Proposal, with clear milestones and budget, is required before onchain voting.
  • Onchain proposals require 100 staked LPT to submit, 33% quorum, and a simple majority (>50%) “For” vote to pass.
  • GovWorks provides mentorship, helps refine proposals, and fosters best practices.

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Phase 1: SPE Idea - Request for SPE (Optional)

  • Formulate the Idea: Anyone wishing to establish an SPE should begin by clarifying its intended purpose, goals, and alignment with Livepeer’s vision (e.g., protocol development, community initiatives, or ecosystem growth).
  • Submit an RFS in the GovHub:
    • Location: Fill the feedback form in the GovHub.
    • Format: Use the standardized RFS form to include:
      • Proposed name and scope of the SPE
      • Problem statement or opportunity being addressed
      • Preliminary structure, budget, and timeline
      • Requested feedback and discussion points
  • Community Discussion & Refinement: Openly discuss your RFS with community members, Orchestrators, and delegators. Incorporate feedback to refine your SPE’s scope and objectives and engage in Treasury Talks or Community Calls for synchronous feedback.
  • GovWorks Review: GovWorks confirms alignment with Livepeer’s mission and helps identify potential contributors or relevant existing SPEs that might fulfill your idea. If your initiative can fit under a current SPE’s mandate, consider joining forces there. Otherwise, proceed to form a new SPE.

Phase 2: Drafting the SPE Proposal

  • SPE Proposal Draft: Based on the RFS and community input, create a draft SPE Pre-Proposal following the SPE Proposal Template. Clearly define the SPE’s goals, team structure, budget, milestones, and KPIs or success metrics.

  • Post to the Forum: Create a new topic in the Treasury category of the Livepeer Forum. The recommendation for the title is: “[SPE Pre-Proposal] ”. The SPE Proposal must remain in the forum for at least 7 days, giving the community ample time to review and comment.

  • Address Feedback: Continuously engage with questions or concerns raised in the forum thread. Revise the SPE Proposal draft if needed to reflect community input more accurately.

  • GovWorks Final Check: Before moving forward, obtain a clear “go-ahead” signal from GovWorks confirming the draft is ready for onchain submission. The hard requirements to signal readiness are:

    • SPE Proposal Template is fully completed.
    • 7-day forum discussion period concluded.
    • Major community concerns are addressed.

Phase 3: SPE Proposal Onchain Submission

  • Confirm Wallet Requirements: You must have an EVM-compatible wallet that can receive the treasury payout. A multi-signature (multi-sig) wallet is highly recommended for security and shared accountability.
  • Staked LPT Requirement: The Livepeer governance contract requires the proposer to have at least 100 staked LPT to submit an onchain proposal. If needed, GovWorks can connect you with an existing staker who meets this requirement to submit the proposal on your behalf.
  • Publishing Onchain: Submit the final SPE Proposal to the Livepeer Treasury, ensuring the proposal text matches the final version posted in the forum and it contains a link to the original forum post in the proposal’s description to provide context and transparency.

Phase 4: Onchain Voting

  • Voting Periods: Once submitted, the proposal enters a Voting Delay of ~21 hours (1 Livepeer Round). After the delay, the Voting Period opens for 10 Rounds (~9 days).
  • Casting Votes: Any Orchestrator with delegated LPT can vote “For”, “Against”, or “Abstain”. Individual delegators may detach their votes from their Orchestrator to vote independently.
  • Passing Criteria: To pass Quorum, at least 33% of total staked LPT must vote (including any “Against” or “Abstain” votes). By simple majority, the vote will pass if more than 50% of votes cast are “For.”
  • Snapshot & Final Tally: After the Voting Period, the governance contract snapshots the result. If both Quorum and Majority are met, the proposal passes. Otherwise, it fails and must be resubmitted or revised if the proposer still wants to pursue it.

Phase 5: Implementation and Accountability

  • Funding & SPE Formation: If the proposal passes, the treasury transfer (if applicable) is executed to the proposer’s designated wallet. The SPE now becomes an active entity within the Livepeer ecosystem, tasked with delivering its stated goals.
  • Ongoing Reporting & Milestones: SPEs are encouraged to follow the Contribution Efficiency Framework to track progress. Active SPEs publish periodic updates in the Livepeer Forum to maintain transparency, including budget usage, milestones reached, and next steps.
  • Community Engagement: Continue to solicit feedback from Orchestrators, delegators, and the broader community. If new funding or an extension is needed, follow a similar governance cycle (possibly streamlined if the scope of work is the same).
  • Adjusting & Evolving: As goals are met or refined, an SPE may update its objectives or request additional resources. Major changes (budget amendments, expansions of scope, etc.) generally require a fresh onchain vote to maintain accountability.

Further Resources & Next Steps

  • GovWorks Mentorship:
    For personalized guidance, reach out to GovWorks to refine your proposal and navigate each governance phase.
  • SPE Dashboard:
    Consult the SPE Dashboard for insights into existing entities, open initiatives, and available funding.
  • Livepeer Governance Forum and Discord channel:
    Stay active in the Livepeer Forum and Governance Discord channel for real-time discussions, feedback, and updates on governance.

In Summary

By following these five phases, from the initial Request for SPE (RFS) to final implementation, you ensure your proposal is well-vetted, aligns with Livepeer’s mission, and benefits from broad community support. Whether you’re a developer, designer, marketer, or community organizer, the Livepeer governance process provides clear guidelines for funneling efforts and resources into productive initiatives.

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This makes it very clear on how to get started. :clap:

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