Pre-Proposal: Network Engineering SPE II

Proposed by: Rich O’Grady, Ecosystem Director, Livepeer Foundation.


Abstract

The Network Engineering SPE funds the work that makes the Livepeer network easier to participate in: builders, orchestrators, delegators and, if 2.0 lands as planned, validators. Round one proved the SPE’s value as a funding mechanism. It also showed that one pool with one technical reviewer and no clear outcomes can lack direction. So round two keeps the mission and changes the shape: four tracks, one named owner on each, one outcome per track to hit by the end of the year, and the capital sitting with those owners rather than being held centrally.

Request: $230,000 USD-equivalent in LPT, 1 Sep to 31 Dec 2026

Preceded by: the Network Engineering SPE pilot, 15 May to 30 Aug 2026, $95,000

Feedback session: Network Engineering Priorities - 11th August


Mission

The mission of the SPE is to make the Livepeer network easy to participate in: easy for all participants to build on, operate, validate and delegate for.

It focuses on the key actors within the Livepeer network:

  • Builders - developers, agents and gateways bringing demand to the network.
  • Orchestrators - node operators providing capabilities and completing jobs.
  • Delegators - staking tokens to Orchestrators to secure the network.
  • Validators - validating work completed by Orchestrators (with Livepeer 2.0)

To achieve this mission, the SPE will aim to unite key engineering leaders around one vision, and empower them with capital, talent and programmes. By working with the community, the SPE will give these leaders a clear mandate to remain accountable to, while providing operational support with mechanisms that can fund critical engineering work quickly.

The SPE will divide the work to be done into four tracks. These tracks focus the SPE on four personas, each with its own outcome, a single owner responsible and a set of milestones to achieve it. These owners can be funded by the SPE or receive a salary from another core organisation (e.g. the Livepeer Foundation or Livepeer Inc).

The capital from the SPE is deployed to fund the work to complete these milestones through a variety of mechanisms (RFPs, grants, bounties, fixed contracts). After discussing this in a recent feedback session, the SPE will use a variety of funding mechanisms to ensure that we find the right person for the right task at the right cost.


Rationale

What’s changed from the pilot SPE

This Network Engineering SPE will be structured differently from the pilot.

The pilot SPE structure was focused on three directional priorities with a combined pot for RFPs and grants (direct or retroactive). This model had a great deal of flexibility baked in. However, it (a) lacked concrete outcomes or goals that were clearly set at the beginning; (b) had a review bottleneck with the Technical Director; and (c) did not have strong enough accountability. See the full retro here.

This SPE is structured differently. It splits the work into four tracks, each around a core ecosystem stakeholder: Builder, Orchestrator, Delegator and Validator. Each track then gets one owner, one outcome by the end of the year, and a budget the owner controls.

The owner is on the hook for the outcome. They can route the funding allocated to other contributors to complete the work.

Four new tracks to focus work

The four tracks are places where our claim to be an open network still falls down in practice:

Track Owner Outcome by 31 Dec
Easy to build
Builder
Mike Zupper A developer can go from a clean machine to a working, paid call on the Livepeer stack using only the published documentation, without contacting an operator. Both payment paths work: funding from a wallet by default, and Pymthouse for anyone who does not want to hold one.
Easy to operate
Orchestrator
Josh Allmann Livepeer has a network substrate that connects demand to supply end to end, where new capabilities can be introduced without building a new integration stack each time, with enough observability to gauge performance and diagnose issues, and every capability is discoverable with clear pricing by an application.
Easy to delegate
Delegator
Elliott Conway Make self-custody delegation clear, competitive and economically informed for Livepeer 2.0, so delegators understand their rewards and can identify when moving stake may improve them. Success primarily means improving journey conversion and ultimately delegation volume, provided upstream interest does not decline.
Easy to validate*
Validator
Shane Burgett Self-dealing and gaming Livepeer tokenomics are expensive and untenable, with the network protected from token exploitation through a combination of economic levers, network data and social consensus through a new class of participant, Validators. Lead testing of methods to further validate work on the network, protecting users from dishonest or low-quality operators.

*We do not yet know whether validation means a full validator set with on-chain scoring, or existing participants carrying an extra responsibility. The shape of this track therefore has licence to change depending on how it evolves.

How funds reach contributors

For this SPE, owners will pick the mechanism per task. Different mechanisms can be used depending on whether the work is defined, a contributor has been identified, or the price of work still needs to be determined.

This decision emerged out of the roadmap session from August 11th, where community members suggested that there was no need to over-index on one or two mechanisms.

The suggested mechanisms that could be used are:

Mechanism When an owner reaches for it Funding amount
RFP Scope is clear but the right contributor is neither in the network nor known to us. $5,000 to $30,000
Direct grant Scope is clear and the builder is obvious. Paid against milestones. Moved the most capital last round. Up to $20,000
Retroactive grant Work has already shipped against a problem the community named publicly first. Up to $10,000
Scoping grant The work cannot be specified yet, and specifying it is the deliverable. New this round. Up to $5,000
Bounty Small and self-contained, worth opening to anyone. Spendable directly by a committee member, no application path. $500 to $2,000
Fixed contract Sustained ownership of a surface over 2 to 4 months, with milestones set by the track owner. $5,000 to $40,000

What this SPE isn’t

  • Not funding the agent framework. The Livepeer agent will be funded separately, across Inc, the Foundation and the treasury.
  • Not a demand generation or credits fund. Go-to-market and end-user product work will sit within another SPE proposal coming soon.
  • Not protocol design. Livepeer 2.0 is designed and voted on elsewhere. This funds getting the people already here across to it.
  • Not an open-ended pool. Every disbursement needs a verified definition of done.

SPE Governance Structure

Roles & responsibilities

Role Who Responsibilities Paid by SPE
Chairperson Rick Staa Ensures code reviews are completed in a timely fashion. Rules on architectural decisions that cross track boundaries where owners cannot agree. No, paid by the Foundation
Committee Rick Staa, Josh Allmann, Elliott Conway, Mike Zupper, Shane Burgett Sets each track’s outcome, defines and reviews milestones, signs off and merges code, decides allocations brought by another member Three of four, as track owners
Track owner Josh Allmann, Elliott Conway, Mike Zupper, Shane Burgett Presents three to five milestones, allocates the track budget, picks the mechanism per task, brings in contributors to do the work $20,000 each, where not already paid by Inc or the Foundation
Foundation Operations Rich O’Grady, Ben Perez, Mehrdad Sadeghi Programme management, bringing in new contributors, treasury and payment operations, monthly reporting, final sign-off on release of funds. Buys in independent review per task so payouts do not queue behind one calendar No, though bought-in review is paid from the bounty pot

Committee operations

  • Voting. When a member brings an allocation, a sign-off or a scope change forward, there is a simple majority vote. Where a committee member is absent, a Foundation Operations team member will step in so a decision is never held up by a diary. The Foundation Operations team also holds the final gate on payment and releases funds only once the definition of done is verified.
  • Code review. Review is a named committee responsibility: every contribution funded by this SPE will aim to receive an approval or a rejection with reasons within a month.
  • Conflicts of interest. We will introduce a rule that a track owner may direct no more than 50% of their own track allocation to themselves or to an entity they control. It will also be disclosed on the forum when it happens, with the member recused and Foundation Operations releasing the funds. Any contributors paid by the Foundation or Livepeer Inc will not receive further compensation from the SPE.

Timeline & Milestones

SPE Timeline

1st September - Track milestones finalised. Each track owner has finalised their respective milestones (see below).

8th September - SPE proposal passed. Funds secured, weekly committee meeting running and payment operations set up.

29th September - First monthly update published. Published on the forum, covering work funded and delivered per track, funds committed and disbursed, code merges and every committee decision with its rationale.

20th December - Retro completed. Each track assessed against its outcome, total spend against budget, and a recommendation per track: continue, change owner, or stop. Community session held alongside it.

Milestones

Each track will have its own milestones, which will be tracked and reported on by their respective owners. These will be developed before the proposal goes onchain.

For this pre-proposal, there are some directional commitments tied to the outcomes detailed above. These are per track:

Easy to build
• First call works without a wallet or setup
• Clients can discover, price, pay for and invoke services through standard interfaces
• Payments and metering work across supported service types without bespoke integration
• You can see what a job costs, before and after you run it
• Docs and SDK match what’s actually deployed.

Easy to operate
• Live Runner covers the operator path end to end
• Discovery path for capabilities, hardware, pricing, etc
• Operators can determine why a job failed, including failures outside their control
• A capability can be onboarded self-serve and validated before deployment
• There is a credible path from today’s network architecture to 2.0

Easy to delegate
• Delegators and node operators can understand reward history and why rewards changed
• Validator activity, scores and health are understandable if Validators 2.0 proceeds
• Core delegation terms and actions become clearer: rewards, fees, risks, unbonding, delegation, switching and exit
• Funnel conversion is measurable against a baseline so changes can be evaluated
• If MFS is adopted, delegators can see which nodes out- or under-earn relative to stake, and where moving stake could unlock more rewards

Easy to validate
• Validators act as guardians, with mechanisms to protect Livepeer’s economics
• LPT is protected from exploitation: self-dealing and tokenomics gaming
• Token exploitation is visible in network data, and the community has the evidence it needs to act
• Real testing has begun on the long-term challenge: validating the work itself, protecting users from false data and low-quality work

Note: In the coming days, formal milestones will be defined for each track. The aim is to publish these in time for the final proposal, once we have received feedback from the community.


Budget Breakdown

$230,000 USD-equivalent in LPT for one four-month cycle, sized on the 30-day moving average LPT price at approval.

Budget Overview

Line Allocation What it funds
Track owner, Validate $20,000 Accountable ownership and delivery of the Validate outcome. ~15 hours/week, 4 months.
Track owner, Delegate $20,000 Accountable ownership and delivery of the Delegate outcome. ~15 hours/week, 4 months.
Track owner, Build $20,000 Accountable ownership and delivery of the Build outcome. ~15 hours/week, 4 months.
Build track, contributors $50,000 SDK, payment clearinghouse, service registry and schema contract, discovery, docs and capability templates, metering and spend transparency
Operate track, contributors $30,000 Operator tooling, diagnostics and real job state, Live Runner developer experience, capability supply, migration tooling and the 2.0 upgrade path
Delegate track, contributors $20,000 Explorer delegator experience, lockup transparency, staking guidance, subgraph engineering, including audit remediation, and research into what 2.0 changes for delegators
Validate track, contributors $30,000 Provisional, released only if the track activates
Bounties, grants and research $20,000 Cross-track work no single track owns: a bounty pot spendable directly under a per-item cap, scoping grants, retroactive grants, and bought-in review
Buffer $20,000 Held against LPT price movement, so a falling price is not a pay cut mid-milestone
Total $230,000

Budget Notes

  • Reallocation between tracks is possible at the end of each month with a published decision.
  • A track owner works inside their allocation and brings anything larger to the committee.
  • A track owner may direct no more than 50% of their own track allocation to themselves, using established milestone-based mechanisms (e.g. grants or bounties).
  • No contributors funded by Livepeer Inc or the Livepeer Foundation will receive further funding from the SPE.
  • The three track owners for Validate, Delegate and Build will each be compensated with a fixed contract of $5,000 per month. Payments can be withheld for extreme neglect of their role.
  • Payouts in LPT at a 7-day average price at the point of payment.
  • We will manage the treasury position on receipt rather than sitting on $230,000 of LPT for four months, so contributors get what they were promised whatever the price does.
  • Anything unspent carries over to the next round, or goes back to the treasury if there isn’t one. Incomplete work at 31 December gets a short remediation window first.

Transparency and Accountability

  • Monthly written updates on the forum: work funded and delivered per track, milestones signed off and missed, funds committed and disbursed against allocation, and every committee decision with its rationale.
  • A public per-track financial record of allocation, commitment and disbursement, updated monthly rather than reconciled at the end.
  • Every conflict disclosed at the point of the decision, with the recusal published.
  • Every self-allocation by a committee member published against the 50% cap and reviewed by the committee.
  • A closing retro and community session by 20th December.

Key Terms

  • Track. A body of work built around one core ecosystem stakeholder, with one owner and one outcome.
  • Foundation Operations. The Foundation team running programme management, payments and reporting, and holding the final gate on releasing funds.
  • Builder. Anyone building on the network: developers, agents and gateways putting work through it.
  • Orchestrator. An operator running hardware that serves jobs on the network, also referred to as an operator.
  • Delegator. Someone staking LPT to an orchestrator and earning a share of their rewards and fees.
  • Validator. Under 2.0, a participant that independently checks and scores what the network did. Whether that is a new role or an existing one carrying an extra responsibility is not yet decided.
  • Payment clearinghouse. The auth and billing layer that lets a client pay for network work without using a crypto wallet.
  • Live Runner. The runtime an orchestrator deploys to serve capabilities on the network.
  • Capability. A specific job type an orchestrator advertises and can be paid to run.
  • Passthrough. Serving a capability by routing it to a third-party provider rather than running it on your own hardware.
  • Service registry. The single place capabilities, hardware and pricing are advertised so a gateway can discover and price them.
  • Subgraph. The indexed on-chain data that feeds the Explorer, console and dashboards. Not real-time, and not used for orchestration.
  • Explorer. The public interface where delegators and orchestrators stake, vote and see network activity.

CTA: Please Give Your Feedback

We want to ensure that we are funding network engineering that is valued by the community. Much of what is included above is based on the feedback of the community within the roadmap session from August 11th. We also know that there are some blind spots.

We want to move fast. But we also want to get this right. We therefore ask you to give feedback on:

  • Focus - have we chosen the right tracks and outcomes, and included the right work?
  • Budget - have we over- or under-budgeted for the work that is at hand?
  • Governance - what can we do to improve the governance structure of the SPE?

Thanks in advance for your feedback, questions and ideas.

6 Likes

I support this proposal as the expected outcome is very much needed for Livepeer 2.0 and most importantly it addresses the shortcomings of the previous Network Engineering SPE. I am looking forward to when the formal milestones will be defined so each track owner can have a clearer picture of the end goal.

1 Like

Supportive of the overall direction here the four track structure with named owners and their own budgets is a clear improvement on the pilot and I’m glad to see operator diagnostics and self serve capability onboarding . Those are real pain points and it’s good to see them funded properly.

One thing I keep coming back to though: the demand side. I’ve raised this before and was told it was coming, and I understand the GTM work sits in a separate SPE but that SPE still has no budget, no scope and no date, while this one is asking for $230k now. That sequencing is uncomfortable.

So my question is simply: when does the demand focused SPE land, and what does it cover? Not asking to slow this one just that the two need to move together !

1 Like

looks good to me, anything to attempt to bring demand gets my vote. Demand, PMF, builders… go go go

2 Likes

Supportive of the direction, especially the named ownership. I think this is certainly valuable spend and a viable plan.

I would like to see “Easy to build” include uptime information and failovers. Seeing what a job will cost is one question … but what happens if it fails? With a decentralized network, I can’t go yell at my account manager. If a 3hr task fails at the 2.5hr, I’m out of luck and out of money. This is a total showstopper. Some visibility into expected performance and/or available recourse in case of failure. would go a long way towards helping buyers understand the tradeoffs they’re making on a relatively unproven service.

Lastly, in light of the treasury fill-up proposal, I would love to see a companion GTM SPE. Technical excellence, while foundational, is only part of the battle.

1 Like

I like this next stage of the Network Engineering SPE to keep building on the network. Getting builders here and working is very important for this next chapter of the network.

If could suggest one thing: I would like to see the live-runners export pricing in USD in addition to or rather than wei to cut an additional conversion needed.

1 Like

We believe the proposed structure and focus areas are a positive step forward for the network, and we’re happy to support Network Engineering SPE II.

1 Like

I think this proposal captures the spirit of what SPEs have always been intended to be - a specialized team of experts focused on public goods contributions, with the ability to both execute and allocate out funds to help in the execution of that area. In this case, the named experts are the track owners who are talented developers owning named, important tracks of work, broken down by persona.

My personal viewpoint is that the proposal actually understates the connection to Livepeer 2.0 and how important the work is to make the full network vision come to reality across these tracks.

  • The build track should focus on the self-sovereign access paths to using the network capabilities through agents.
  • The operate path should focus on making it easy to add/remove capabilities based on observable demand and transparent pricing discovery.
  • The delegate path should update the delegation UX to support a far more active delegator base under MFS.
  • And the validate path should establish the public goods testing, data, and observability infrastructure such that validators have the data they need to weigh in on critical decisions to prevent rewards leaching and attacks.

I know some of these things are loosely referenced, but I wanted to highlight that if the link and commitment is strong, then we’re all rowing in one direction and moving quickly towards the future of Livepeer together.

3 Likes

Supportive of this. I think the four tracks are the right way to divide the work, and the right people are on them. Looking forward to seeing the milestones once they’re published.

1 Like

Supportive. Making the network easier for operators, delegators, validators and most importantly builders seems to be right way to have an easier onboarding and to gain some traction. I haven’t followed every details closely, so I’ll leave the deeper technical feedback to those more involved.

Kind of thinking its a fairly substantial budget but I agree on the overall sentiment, that the change is needed and I hope that this SPE delivers up to its promise. Looking forward to seeing the progress.

1 Like

To me, Livepeer feels more split and disorganized now more than ever, with a lack of one identity and goal. If this SPE can help bring everything stated here together and keep scopes managed like it’s promising, sounds good to me.

1 Like

supportive of this proposal, with four track of clear ownership, accountablity, i can see livepeer 2.0 can make a leap forward to empower builders to thrive.

1 Like

Hi all, thanks for the comments and questions over the last few days. Lots of support in here which is great to see.

Responding to the main points below:


@kilout and @Titan-Node - the demand side:

when does the demand focused SPE land, and what does it cover?

During the last roadmap session on the treasury reward cut, it was pretty clear that the consensus was to to unlock that funding as fast as possible to fuel demand growth.

We therefore want to make sure that demand is the full focus of a separate, upcoming SPE. The exact shape and resources will be decided after a new roadmap session held later this month.

The sequencing is deliberate though. My view is we need the network engineering resourced before we start onboarding demand and loading the network. Bringing demand onto a network that isn’t ready - both technically and for it is a worse outcome than being a few weeks behind on GTM. Ive seen us do the former before with the Transformation SPE and it didn’t work.


@hthillman - failure and recourse:

If a 3hr task fails at the 2.5hr, I’m out of luck and out of money.

Agreed, and flagged to Mike for the Build track. It’s on the radar already, the open question is the exact implementation rather than whether we do it. Once we have a first draft of the milestones in place, I would request that you speak directly to Mike.


@brad-ad-astra-video - pricing:

I would like to see the live-runners export pricing in USD in addition to or rather than wei

Yes. Live Runner sits with Josh so Ill flag it to him to work into the final milestones. Please feel free to follow up with Josh directly on this too.


@dob - the 2.0 link:

the proposal actually understates the connection to Livepeer 2.0

Thanks Doug, appreciate you laying out the connection to 2.0. It is designed to be 100% aligned with this SPE driving the adoption of the new protocol upgrades at the network level. Many of the milestones wont be finalised until mid September, once the litepaper requirements are clear.


@Authority_Null - on organisation

Livepeer feels more split and disorganized now more than ever, with a lack of one identity and goal

At this stage of our developement (pre-PMF), I would argue we cannot afford to be fully decentralised. Without the firm foundations and a unified vision, a decentralised organisation can become fragmented and the network can easily become difficult to participate in.

As Livepeer Inc has become increasingly focused on demand bets (and rightly so!), I think the network stack has suffered a crisis of ownership / stewardship. This SPE is aiming to bring back the unity and organisation around the network, providing a Schelling point for all discussions on what should be included in the core network stack - and what shouldn’t.


@lpt.moudi.eth - on budget:

Kind of thinking its a fairly substantial budget

Yes this is a significant step up from the previous budget for the pilot SPE. This is intended, as this SPE aims to take on a broader amount with a higher degree of accountability for some of the key engineering leaders within the ecosystem. Per track: one owner, one outcome, one budget is a direct attempt at fixing it.

The SPE also aims to fund much of the core contributor community to ensure that we can both: (a) retain key long-term engineers for the project; and (b) attract new talent wherever possible.

A final note: any funds which are not used from the SPE will either be carried over to the future SPEs or delivered back to the treasury / other public goods initiatives.


Where this goes next

The thing I care most about at this stage is getting this right directionally. Over the coming weeks, the track owners will then firm up and publish the key milestones based on the requirements that come out of the Livepeer 2.0 Litepaper.

Ill be moving ahead with the formal proposal in the coming days. A first draft of milestones will go with. Those milestones will then be finalised over the coming weeks as the Livepeer 2.0 is published. This SPE has to adapt to it, and the litepaper requirements will change what some of these tracks deliver.

The most important thing right now is having the funds available so the work can start. Scope and milestones will keep moving. Capital thats not there when the tracks are ready to spend it is the harder problem to fix.

Thanks again, and happy to answer any more questions at the Water Cooler this eveing :fire:

3 Likes

@honestly_rich — on the demand-side sequencing question, I want to add a concrete case rather than another vote.

I build SkateHive with sktbrd (twitter: sk8ordao): a skateboarding video platform where skaters upload phone footage of sessions. It’s live. Our entire transcoding capacity is two simultaneous slots — both workers report max: 1 — and the primary is a Mac Mini M4 in a living room, reached over Tailscale. We have 205 GiB pinned on IPFS across 23,565 files, and a 100 MB per-upload ceiling enforced on the client. Video quality is low because that’s what fits, not because we chose it.

I mention it because you wrote that you want network engineering resourced before onboarding demand, and I think that’s right — but the ordering only works if the demand you’re sequencing toward is identified while the engineering is being scoped. Right now the thread has several people asking for the demand SPE and no actual app in the room.

So, offering ours. I’m not asking this SPE for anything — I’ve read that it isn’t a demand or credits fund. Two things I’d flag for whenever the demand SPE takes shape:

We’re a usable test case for the Build track. Mike’s outcome is a developer going from a clean machine to a working paid call using only the published docs. We’re exactly that developer, we haven’t done it yet, and we’d document the attempt honestly — including where it breaks.

There’s a reusable artifact here. We already run a multi-backend transcode router with priority, health checks and fallback. Adding Livepeer as one backend among several is small work. Open-sourced with a measured before/after, it’s a path for any existing app to adopt Livepeer incrementally rather than migrating wholesale — which seems closer to how adoption will actually happen than a greenfield integration.

One caveat I’d rather state than have found: I have capacity, storage and latency measured, but not usage volume — uploads per day, minutes of video, cost per video. Not measured yet, so I’m not claiming it.

When’s the roadmap session where the demand SPE gets shaped? I’d like to be there.

— r4to (twitter: r4topunk)