Abstract
All network value depends on protocol security.
This proposal renews the Protocol R&D SPE for an additional six-month term at up to $390,000 to maintain a dedicated security function for Livepeer across the protocol and the software, building on the operational foundation established in the first two terms. The request covers $300,000 ($50,000/month) for the Protocol Engineering & Security Partner (Sidestream) and up to $90,000 (up to $15,000/month) for a security officer, contracted by the Foundation.
It continues continuous Immunefi first-response coverage, proactive security (self-audits, AI-assisted scanning and bug bounty scope improvements) and the monthly release cadence that Livepeer 2.0 will ship through, strengthens protocol monitoring, and adds a dedicated security officer as the day-to-day point person for security across the protocol and the software, so the two are handled together as AI raises the pressure on both. Immunefi bounty payouts are funded separately and are not included in this request.
Mission
The mission of the Protocol R&D SPE is to maintain a dedicated, continuously staffed security and maintenance function for Livepeer that keeps the protocol, and the software around it, safe, upgradeable, and continuously improving in a cost-effective way.
Without dedicated capacity, security response becomes less predictable, proactive work gets crowded out by report volume, and protocol releases slip as the network scales. AI has also raised the importance of security across the board: AI-assisted discovery now reaches both the protocol and the software around it. Both need more attention than before, and they are best handled together.
This SPE continues the protocol security function: Immunefi first-response coverage, proactive security (self-audits and AI-assisted scanning), and a strong monthly release cadence, supported by protocol testnet validation, that upcoming protocol changes can rely on. It adds a security officer who runs security operations day to day across the protocol and software, with shared practices and one documented, auditable view of exposure, while the Security Committee remains the final review and execution authority.
Rationale
In two terms the Protocol R&D SPE turned protocol security into a working function: Immunefi triage with dedicated first response, known-issues guidance and a tighter scope that cut duplicate reports, and a regular release cycle validated on a protocol testnet. It closed a critical vulnerability before any known exploitation, with no funds lost, and moved protocol updates from one in 2025 to five between February and July. Proactive work is also under way, but not yet complete: a self-audit about 70% done, an initial AI scanning pipeline and the re-scoped testnet tooling due by year-end. LPT price changes left the second proposal’s funding 18% below its budget, so finishing depends on this proposal.
The security function it runs is under more pressure now, not less. AI has made vulnerabilities cheaper to find and faster to exploit: report volume has risen sharply, exploitation now happens about a week before a fix is public (Google M-Trends 2026), and the software is exposed as well as the protocol (Protocol security in 2026 lists five software incidents between June and August). Without continued funding, first response, the release window and the proactive work that finds issues before outsiders do would stop at the moment they matter most.
Livepeer 2.0 raises the stakes further. It proposes substantial protocol changes that have to ship securely, through the release window and protocol testnet tooling this SPE set up. Without this SPE there is no dependable path for them.
Security now spans the protocol and the software, including the nodes that run it (Protocol security in 2026), and it has outgrown being coordinated alongside other responsibilities. A dedicated security officer provides one day-to-day point person and one auditable view across the protocol and the software, while the Foundation stays accountable and the Security Committee and Sidestream keep their authority.
This term the SPE will:
- Continue Immunefi first-response coverage and the monthly release cadence.
- Finish the proactive work: the self-audit, extending the AI scanning pipeline, and delivering the protocol testnet tooling by the end of the year.
- Strengthen the existing protocol monitoring, with Sidestream taking on more of it.
- Support Livepeer 2.0 releases.
- Add a security officer.
Most of the SPE’s spend went to security-related work (87% in the first term, per the retrospective), so capacity is the constraint. Sidestream’s budget stays at $50,000 a month, and the security officer is the only addition.
SPE Governance Structure
The Protocol R&D SPE continues to operate under the governance framework established during the initial term. The only change is the addition of the security officer, described below.
Management and oversight:
- The SPE is managed and governed by the Livepeer Foundation and the Livepeer Security Committee.
- Through their collaboration, they enable the work of the Protocol Engineering & Security Partner (Sidestream) and the security officer.
- The Security Committee retains final review and execution authority for mainnet upgrades and emergency patches.
- The security officer reports to the Foundation Technical Lead and works part-time to start, ramping up as needed within the budget ceiling.
Roles and responsibilities:
| Body / Role | Responsibilities | Scope | Funding Source |
|---|---|---|---|
| Security Committee | Review and execute upgrades and emergency patches as final security checkpoint | Security oversight; upgrade authorisation and execution | Livepeer Inc. |
| Foundation | Remains accountable for security operations and direction, through the Foundation Technical Lead; coordinate roadmap, operations, reporting, ecosystem communication, SPE administration, Immunefi bounty payouts and disclosure decisions | Program management, coordination, treasury/ops, ecosystem communication, bounty administration | Foundation |
| Protocol Engineering & Security Partner (Sidestream) | First responder for vulnerability reports; protocol maintenance; deployment coordination; proactive security scanning; release preparation; protocol monitoring | On-chain development, security response, deployment operations, proactive auditing | SPE |
| Security officer (new) | Day-to-day point person for security, reporting to the Foundation Technical Lead; regular security contact for Sidestream on Immunefi triage; coordinate the groups shipping changes and responding to incidents; documented, auditable security processes | Security operations across protocol and software: triage, coordination, documentation | SPE |
Fund custody and reporting:
- All SPE funds are held in a secure multisig SAFE with trusted signers from the Foundation and the Security Committee.
- The Foundation continues to fund Immunefi bounty payouts separately. Reimbursement for this is not part of this proposal.
- The SPE reports the funds received and used against budget each month, as described in Transparency and Accountability (non-sensitive work only).
Milestones and Timeline
The SPE’s capacity is fixed and Immunefi response takes priority, so unpredictable report spikes can move planned work. The timeline is therefore structured around stable, high-level outcomes, and each monthly update states what moved, why, and the new expected timing.
| Milestone | Target | Description |
|---|---|---|
| Continuous Immunefi vulnerability response | Entire term (Month 1 to 6) | Continuous first-response coverage and mitigation coordination with the Security Committee. |
| Monthly operational reporting | Monthly | Status, milestone progress, funds received and used, and what is on track or at risk (non-sensitive work only). |
| Monthly release cadence | Throughout term | Maintenance releases and backlog improvements, and security review and release preparation for Livepeer 2.0 changes as they are ready. |
| Carried-over work delivered | By end of December 2026 | Protocol testnet tooling (public repositories for protocol testnets and local forks, with documentation), the self-audit (about 70% done) and the initial AI scanning pipeline. |
| Proactive security and monitoring | Throughout term | The AI scanning pipeline is extended and run regularly, scope and known-issues updates continue, and Sidestream strengthens protocol monitoring. |
| Security officer in place | January 2027 (estimate) | Up to $15k a month, subject to hiring. Shadows the Foundation Technical Lead for the first two months. |
| End-of-term retrospective | Month 6 | Budget spent vs approved, outcomes, lessons and recommendations. |
Budget Breakdown
The Protocol R&D SPE requests [N] LPT (equivalent to $390,000 USD) from the Livepeer Treasury, based on the 30-day SMA of the LPT price at submission. This funds a six-month term and pays for Sidestream’s security and maintenance work and for the security officer.
The officer figure is a ceiling for six months from the officer’s start. With a January start, part of it runs beyond this term, which allows a full ramp-up. The role starts part-time and ramps up as needed, and the SPE will report what is actually spent.
This request includes ongoing capacity for smaller protocol maintenance patches and backlog items that fit within normal monthly capacity. Larger protocol upgrades, unexpected work beyond that capacity, Livepeer 2.0 implementation and external audits for large changes would require a separate proposal or other approved funding.
| Category | Monthly (USD) | 6-Month Total (USD) | Description |
|---|---|---|---|
| Protocol Engineering & Security Partner (Sidestream) | $50,000 | $300,000 | Immunefi coverage, proactive security, protocol monitoring, testnet tooling, monthly releases and Livepeer 2.0 security review. |
| Security officer | Up to $15,000 | Up to $90,000 | Part-time to start. Software security, incident response and coordination. |
| Total SPE Request | Up to $65,000 | Up to $390,000 |
Funded separately (not included in this request): Immunefi bounty payouts, Foundation coordination and Security Committee costs. Bounty payouts are fronted by the Foundation, with reimbursement handled through a separate process.
Deliverables
The Protocol R&D SPE delivers across four integrated workstreams:
(1) Reactive Security Operations: Immunefi Coverage
Goal: Maintain continuous protocol security coverage and rapid incident response through the Immunefi bounty program, with stronger monitoring.
Outputs:
- Operate as first responder for all Immunefi vulnerability reports: validation, reproduction, mitigation coordination and patch preparation.
- Maintain established SLA response targets and escalation procedures with the Security Committee.
- Coordinate emergency response procedures for critical and high-severity reports.
- New: strengthen the existing protocol monitoring, with Sidestream taking on more of it.
Success indicators:
- Continuous Immunefi coverage maintained throughout the term.
- Critical issues resolved or escalated within agreed operational timelines.
- New: the protocol actions that matter most covered and feeding the response process.
- Status and non-sensitive updates shared through monthly forum updates.
(2) Proactive Security: Getting Ahead of the Curve
Proactive work is under way but not finished: Immunefi response took priority during report spikes, and LPT price changes left the SPE with less funding than budgeted. This proposal funds finishing it. Known-issues guidance and a tighter scope have already cut duplicate reports (monthly updates).
Goal: Reduce future reactive workload by identifying vulnerabilities before external researchers, and optimising the Immunefi program to reduce noise.
Outputs:
- Complete the self-audit of all in-scope protocol contracts (about 70% done).
- AI-assisted scanning pipeline: extend the initial pipeline into a repeatable, extensible one, run it regularly, and keep it current as tools and models change.
- Immunefi program optimisation: continue tightening scope, publishing known issues and adjusting policies to reduce duplicate and invalid report volume.
Success indicators:
- Self-audit of all in-scope contracts completed.
- Scanning pipeline extended and run regularly, with findings triaged.
- Scope, known-issues and policy updates completed to reduce duplicate and invalid reports where practical.
(3) Protocol Releases: Monthly Cadence, Testnet and Livepeer 2.0
Goal: Maintain a consistent monthly release cadence for protocol patches, upgrades and selected community-driven improvements.
Outputs:
- Ship protocol maintenance releases and backlog improvements through monthly release windows, validated on a protocol testnet and using the release tooling.
- Complete the carried-over protocol testnet tooling, as re-scoped in the testnet implementation proposal, by the end of the year, with documentation.
- Coordinate release candidates from the protocol team and community contributors through the Foundation Technical Lead, with the security officer on the security side.
- New: security review and release preparation for Livepeer 2.0 changes as they are ready.
- Publish community-visible release notes for each completed release.
Success indicators:
- Monthly release cadence maintained, with deviations explained when security response takes priority.
- Protocol testnet tooling published and documented by the end of the year.
(4) Security Officer (new)
The officer is expected to start in January, so this term is the start-up phase.
Goal: A dedicated point person for security across the protocol and software, taking on day-to-day security work under the direction of the Foundation Technical Lead.
Outputs:
- Software security: start bringing AI-assisted scanning and a release security checklist to software releases, and propose a software bounty program, working alongside the Network Engineering SPE’s Operate track.
- Incident response: start bringing the software’s incident response to the same level as the protocol’s, and build one auditable security view across the areas, for internal use.
- Coordination: be Sidestream’s regular security contact, and link the teams shipping protocol changes with Sidestream and the Security Committee.
Success indicators:
- By the end of the term, AI-assisted scanning is set up for software releases.
- A documented software incident process is in use, and the auditable security view is under way, with non-sensitive summaries in the monthly updates.
Transparency and Accountability
The SPE will operate transparently through public reporting and open access to non-sensitive work. Security-sensitive work, including Immunefi reports and vulnerability details, will only be reported at a non-sensitive aggregate level.
- Monthly updates (forum): status, milestone progress, shipped work, funds received and used against budget, planned next steps, and risks or deviations. The officer’s work is included in the same update.
- Open development: non-sensitive code, documentation and release notes published in public repositories. Security-critical work is disclosed after mitigation.
- End-of-term retrospective: budget spent vs approved, milestone outcomes, shipped work, lessons learned and recommendations for continuing the protocol security function.
KPIs / success metrics (tracked and reported at a high level):
- Coverage: continuous Immunefi first-response coverage maintained, with protocol monitoring running alongside it.
- Release cadence: monthly release windows maintained (or deviations explained).
- Proactive security: self-audit progress and scanning pipeline milestones completed.
- Officer: AI-assisted scanning set up for software releases, a documented software incident process in use, and the auditable security view under way by the end of the term.
Key Terms
| Term | Definition |
|---|---|
| Protocol R&D SPE | A Special Purpose Entity funded by the Livepeer Treasury to manage protocol security operations, maintenance and development, including the security officer. |
| Protocol Engineering & Security Partner | The contracted team (Sidestream) responsible for hands-on security response, proactive auditing and protocol maintenance under the SPE framework. |
| Security officer | A contractor funded by the SPE and managed by the Foundation, who runs security operations day to day across protocol and software, under the Foundation’s direction. |
| Security Committee | Oversight body responsible for reviewing protocol upgrades, executing mainnet deployments and guiding security practices. |
| Immunefi Program | Livepeer’s bug bounty initiative that incentivises whitehat researchers to identify and responsibly disclose protocol vulnerabilities. |
| Proactive Security Scanning | Systematic vulnerability discovery using internal researchers and AI-assisted tools, conducted ahead of external bounty hunters. |
| Monthly Release Cadence | A structured monthly deployment schedule for protocol fixes and improvements. |