In this paper, we propose a new multicast tree framework to be used in peer-to-peer (P2P) live video streaming systems. The proposed system, adapts the tree links under high peer churn and runs in a totally distributed manner. In order to provide this dynamism and seamless streaming at the same time, we propose a cross layer design involving scalable video codec, backup parents and hierarchical clusters. The performance of the system is measured in real world environment PlanetLab that has nodes distributed all over the world. The experiments show that the proposed system provides high quality of experience (QoE) in terms of Peak Signal to Noise Ratio (PSNR), playback delay and duration of pauses. The proposed system also provides incentive mechanism to its users.