Replace badge flair with alternate badges for different tier subs.
Badge flairs are extremely difficult to implement in a way that fits aesthetically with different sub-length badges and thus many people opt to not use them. This loses a really effective way to incentivise and reward higher tier subs, meaning making a change that allows streamers more customisation of these badges is beneficial to the creator, their community and even Twitch's revenue as a whole. In place of flair, creators should be able to upload different badges for each tier at each month interval. This would, undoubtedly, increase the amount of T2 and T3 subs by making them more worthwhile.

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melonax commented
In its basis I like the idea of special badges to reward higher tier subs, but I'm a bit hesitant. Lots of thoughts here:
1. Adding t2 and t3 to every month interval is.. a lot. I already have difficulty coming up with a proper progression for my regular sub badges: mine go up to 7 years now, which means I already have 18 slots for badges... this plan would give me 36 more on top of those, 54 total! I know I'm an older streamer in that sense, but still... seems like a lot, and a lot of empty bulk on the badges page if one opts not to use the extra slots.
2. Honestly, I like the flairs. I understand the difficulty to make them work with everything, but they allows you to add a nice border or glow around the regular badges, or even show it as an entirely different badge by covering the regular one completely (in that regard you CAN have t2/t3 badges already, just not at intervals). Having flairs also means a lot less work than creating individual badges for everything if you WOULD want it to be the same for all t2/t3's. Either way, I definitely feel like the options are there, but there is of course room for improvement. One idea would be to allow people to switch the layers so the flair can also be put behind the regular badge, not just on top of it. Another could be to allow automatic hue changes to existing badges. Maybe add a few more standard flairs. Allow people to add a border. Etc..
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Perhaps the best thing would be to allow creators to choose, so the page doesn't look as overwhelming as 54 options (in my case) would. Give them a few options in the badge menu:
- interval badges with the option for tier flairs (current system)
- tier badges with the option for interval flairs (opposite system)
- tier+interval badges (OP's idea)Or, of course, overhaul the entire system and make it custom (which should allow all options, e.g. let creators set requirements for each individual badge from two dropdowns for minimum tier & interval, with flairs being optional). Like that one could, for example, have regular badges with flairs up to 1 year, and from that point separate t1/t2/t3 with their own badge each.