Abstract
All network value depends on protocol security.
Protocol security requires dedicated capacity to detect issues early, resolve them quickly and deploy upgrades with confidence. The current model depends on limited, distributed resources that cannot consistently support these demands. The Protocol R&D Special Purpose Entity (SPE) resolves this by establishing a professional, continuously staffed function responsible for vulnerability triage, safe upgrade preparation, and shipping additional protocol features like a reliable testnet for rigorous validation and development.
This proposal funds the SPE for an initial six-month term. It brings together a contracted security and engineering partner, under the governance of Livepeer Foundation and Livepeer Inc. The SPE creates a single, accountable structure that protects the protocol, reduces operational risk and enables faster, safer delivery of protocol improvements as the network continues to scale.
Mision
The mission of the Protocol R&D SPE is to provide the most secure, resilient and continuously improving protocol foundations possible for Livepeer, at the best possible price-to-value ratio.
Rationale
The protocol supports significant on-chain value which continues to grow through the expansion of services to real-time video AI inference. Protecting this requires consistent access to security and engineering expertise. The current model, while effective at securing the protocol since inception, relies on Livepeer Inc and places a significant load on the security committee. This constrains core feature development and protocol progress. Having a dedicated security partner reduces the load on the security committee and frees them for other obligations, while increasing the speed at which we can improve network security.
Core to this SPE is the engagement of a Protocol Engineering & Security Partner (Sidestream) to provide a dedicated, multi-disciplinary team. They provide first‑response to Immunefi-identified vulnerabilities and implement audited on‑chain patches and upgrades. Immunefi has been a massive success in terms of the mission, keeping the protocol safe at modest cost—historically about $75–100k per year in bounty payouts—while helping protect tens of millions in protocol value. The Partner works in close coordination with the Security Committee, which retains review and execution authority for upgrades and emergency patches.
The steps reduce our reliance on more constrained support, and moves toward a stable, accountable model for protocol security. The SPE creates a durable, well defined structure for protocol stewardship as the network decentralizes. It gives the community a clear point of accountability for security and core maintenance, which reduces operational risk and supports the reliable functioning of the protocol over the long term.
Deliverables
The Protocol R&D SPE improves operational responsibilities, fast and continuous response, ships already‑built but not‑yet‑deployed features in the protocol R&D pipeline, and launches and maintains a public testnet and DevEx toolkit to speed up future development.
(1) Core Protocol Security Operations
Goal: Maintain continuous protocol security coverage and rapid incident response through the Immunefi bounty program and close coordination with the Security Committee.
Outputs: The SPE will manage the Immunefi process as first responder for vulnerability reports. The Partner will reproduce, validate, and propose patches within defined response windows, in coordination with the Foundation Technical Lead and the Security Committee for review and deployment. Quarterly readiness reviews will strengthen detection, response time, and coordination.
Success Indicators: Continuous Immunefi coverage with valid reports acknowledged within 24 hours and triaged within one week. Critical issues are resolved or escalated for deployment within agreed timelines. The SPE operates the response process independently while the Security Committee maintains oversight.
(2) Ship Backlog Features and Build the R&D Pipeline
Goal: Deliver the high-priority protocol upgrades from the existing backlog while building the foundation for a sustainable and iterative R&D process.
Outputs: The SPE will complete and deploy existing features nearing readiness for mainnet release—such as the Reward Call Delegate, Ticket Distinction, and stability patches. The specific upgrades shipped each release cycle will be selected through a lightweight triage process established by the SPE, supported by the Foundation protocol engineer as the role comes online.
Success Indicators: At least one backlog feature or patch deployed to mainnet per release cycle. Lightweight triage and delivery process is established and used to prioritize and ship work. The Foundation protocol engineer is hired and supporting development and coordination by the end of Q1 2026.
(3) Public Testnet and Developer Infrastructure
Goal: Deliver and maintain the testnet and tooling needed for reliable validation, audits, and developer experimentation, supporting both protocol and client development.
Outputs: The SPE will operate a continuously available public testnet with faucet access, CI integration, and simulation tooling. Clear developer documentation and workflows will make it easier to run local or private devnets and test upgrades or integrations before mainnet deployment.
Success Indicators: Public testnet operational with ≥99% uptime and integrated into CI and simulation workflows. Developer and client teams actively use the infrastructure for validation and testing.
Key Milestones
| Milestone | Target Completion | Description |
|---|---|---|
| Partner Onboarding Completed | Q4 2025 | Protocol Engineering & Security Partner contracted and operational, and security and triage procedures aligned with the Security Committee. |
| Continuous Immunefi Vulnerability Response | All of H1 2026 | Maintain full first-response capability for Immunefi reports: reproduce issues, propose fixes, coordinate Security Committee review, and ensure continuous coverage. |
| Public Testnet Live | Q1 2026 | Launch a stable, persistent public testnet with faucet, CI integration, and reproducible deployment tooling. |
| Triage Pipeline Established & First Upgrade Shipped | Q1 2026 | Lightweight triage process established and validated through at least one feature or protocol upgrade shipped to mainnet. |
| Triage Pipeline Updated & Additional Upgrade Shipped | Q2 2026 | Triage pipeline updated, with at least one additional upgrade triaged and deployed to mainnet. |
| Six-Month Review & Renewal Assessment | Q2 2026 | Performance and financial review concluded by the SPE Board,; results shared publicly and renewal proposal prepared. |
SPE Governance Structure
The Protocol R&D SPE is managed and governed by the Livepeer Foundation and Livepeer Security Committee. Through their collaboration, they enable the work of the Protocol Engineering & Security Partner.
The exact operations of security practices are not shared here.
SPE funds are held in a secure multisig SAFE with a threshold of known, trusted signers from the Foundation and the Security Committee, following standard security practices.
The SPE will operate transparently through quarterly public reporting, open development and open access to non-sensitive work.
Roles & Responsibilities
| Body / Role | Responsibilities | Scope | Funding Source |
|---|---|---|---|
| Security Committee | Review and execute upgrades and patches a final security checkpoint | Security oversight; upgrade authorization & execution. | Livepeer Inc. |
| Foundation | Coordinate roadmap and delivery, manage funds and payouts for Immunefi, audits and security partner milestones | Program and roadmap management, coordination and treasury/ops. | Foundation |
| Protocol Engineering & Security Partner | First responder for patches, implementator of new protocol features, audited upgrades, and patches, and build/maintenance of testnet and tooling components | On-chain development, security response, contract CI/tooling, on-chain testnet components. | SPE |
Budget
The Protocol R&D SPE seeks $360,000 equivalent amount. This ensures 24/7 responsiveness from the team in addition to their core security deveopment work.
The budget includes a line item for audits to ensure that significant protocol changes and new implementations receive appropriate security review before deployment. Other necessary costs for executing this SPE, such as the Foundation’s protocol engineer, infrastructure, and operations, are covered separately by the Foundation.
A core responsibility of the SPE is managing the Immunefi bounty program. The Livepeer Foundation will cover Immunefi payouts in the short term to avoid withdrawing capital from the treasury until necessary. This approach allows treasury capital to continue supporting other strategic initiatives across the ecosystem. As part of the Foundation, I can share that we are glad to support this active capital management to advance Livepeer’s collective goals.
Projected Spending:
| Category | LPT | USD | Description |
|---|---|---|---|
| Protocol Engineering & Security Partner (team) | N | $300,000 | Six-month engagement focused on security response, prioritized backlog features, and on-chain testnet ops. |
| Audits & External Reviews | N | $60,000 | Third-party security reviews (reserve-based) |
| Total Initial Request | N | $360,000 |
Key Terms
| Term | Definition |
|---|---|
| Protocol R&D SPE | A Special Purpose Entity funded by the Livepeer Treasury to manage protocol research, development, and security operations. |
| Protocol Engineering & Security Partner | The contracted team responsible for hands-on protocol development, audits, and vulnerability response under the SPE framework. |
| Security Committee | Oversight body responsible for reviewing protocol upgrades, validating critical patches, and guiding decentralization of security responsibilities. |
| Immunefi Program | Livepeer’s bug-bounty initiative that incentivizes whitehat researchers to identify and responsibly disclose vulnerabilities in the protocol. Managed under the SPE to ensure continuous coverage and rapid triage. |
| Triage Pipeline | The structured process for evaluating, prioritizing, and implementing protocol work, including community proposals (LIPs) and vulnerability reports, through coordinated specification, review, and deployment stages. |
| Public Testnet | A continuously maintained network environment mirroring mainnet, used for protocol validation, client testing, and developer experimentation before production deployments. |
| DevEx Tooling | Developer-experience infrastructure, including CI pipelines, simulations, and documentation, enabling contributors to test and validate protocol upgrades efficiently and safely. |
| SPE Board | The governance body composed of representatives from the Foundation, Security Committee, and Livepeer Inc., responsible for approvals, budget oversight, and performance reviews. |
| Audits | Independent security reviews performed by external experts to assess the safety, correctness, and performance of protocol changes before deployment. |
| Multisig SAFE | A secure multi-signature wallet used for custody and management of SPE funds, requiring approval from designated Foundation and Security Committee signers. |