diff --git a/av1/av1_cx_iface.c b/av1/av1_cx_iface.c
index fd56eba..9c3c69f 100644
--- a/av1/av1_cx_iface.c
+++ b/av1/av1_cx_iface.c
@@ -650,7 +650,11 @@
   }
 
   if (cfg->rc_end_usage == AOM_Q) {
+#if CONFIG_QBASED_QP_OFFSET
+    RANGE_CHECK_HI(cfg, use_fixed_qp_offsets, 2);
+#else
     RANGE_CHECK_HI(cfg, use_fixed_qp_offsets, 1);
+#endif  // CONFIG_QBASED_QP_OFFSET
     for (int i = 0; i < FIXED_QP_OFFSET_COUNT; ++i) {
       RANGE_CHECK_HI(cfg, fixed_qp_offsets[i], 255);
     }
@@ -946,13 +950,49 @@
   return (base_q_val - new_q_val);
 }
 
+#if CONFIG_QBASED_QP_OFFSET
+static double get_modeled_qp_offset(int qp, int level, int bit_depth,
+                                    int q_based_qp_offsets) {
+#else
 static double get_modeled_qp_offset(int qp, int level, int bit_depth) {
+#endif  // CONFIG_QBASED_QP_OFFSET
   // 76% for keyframe was derived empirically.
   // 60% similar to rc_pick_q_and_bounds_one_pass_vbr() for Q mode ARF.
   // Rest derived similar to rc_pick_q_and_bounds_two_pass()
   static const int percents[FIXED_QP_OFFSET_COUNT] = { 76, 60, 30, 15, 8, 4 };
   const double q_val = av1_convert_qindex_to_q(qp, bit_depth);
+
+#if CONFIG_QBASED_QP_OFFSET
+  double factor = percents[level];
+  if (q_based_qp_offsets) {
+    // At higher end of QP the slope of quant step-size grows exponentially,
+    // captured by qp_threshold.
+#if CONFIG_EXTQUANT
+    const int max_q = (bit_depth == AOM_BITS_8)
+                          ? MAXQ_8_BITS
+                          : (bit_depth == AOM_BITS_10) ? MAXQ_10_BITS : MAXQ;
+#else
+    const int max_q = MAXQ;
+#endif  // CONFIG_EXTQUANT
+
+    const int qp_threshold = (max_q * 7) / 10;
+    if (qp < qp_threshold) {
+      factor = AOMMIN((cbrt(q_val * 4) / 8) * 100, 76);
+      if (level == 1) {
+        factor = (factor * 7) / 8;
+      } else if (level == 2) {
+        factor = factor / 2;
+      } else if (level == 3) {
+        factor = factor / 4;
+      } else if (level == 4) {
+        factor = factor / 8;
+      }
+    }
+  }
+  return q_val * factor / 100;
+#else
   return q_val * percents[level] / 100;
+#endif  // CONFIG_QBASED_QP_OFFSET
 }
 
 // update_config parameter is used to indicate whether extra command line
@@ -1141,14 +1181,23 @@
   q_cfg->deltaq_mode = extra_cfg->deltaq_mode;
   q_cfg->use_fixed_qp_offsets =
       cfg->use_fixed_qp_offsets && (rc_cfg->mode == AOM_Q);
+#if CONFIG_QBASED_QP_OFFSET
+  q_cfg->q_based_qp_offsets = (q_cfg->use_fixed_qp_offsets == 2) ? 1 : 0;
+#endif  // CONFIG_QBASED_QP_OFFSET
+
   for (int i = 0; i < FIXED_QP_OFFSET_COUNT; ++i) {
     if (q_cfg->use_fixed_qp_offsets) {
       if (cfg->fixed_qp_offsets[i] >= 0) {  // user-provided qp offset
         q_cfg->fixed_qp_offsets[i] = convert_qp_offset(
             rc_cfg->qp, cfg->fixed_qp_offsets[i], tool_cfg->bit_depth);
       } else {  // auto-selected qp offset
+#if CONFIG_QBASED_QP_OFFSET
+        q_cfg->fixed_qp_offsets[i] = get_modeled_qp_offset(
+            rc_cfg->qp, i, tool_cfg->bit_depth, q_cfg->q_based_qp_offsets);
+#else
         q_cfg->fixed_qp_offsets[i] =
             get_modeled_qp_offset(rc_cfg->qp, i, tool_cfg->bit_depth);
+#endif  // CONFIG_QBASED_QP_OFFSET
       }
     } else {
       q_cfg->fixed_qp_offsets[i] = -1.0;
diff --git a/av1/encoder/encoder.h b/av1/encoder/encoder.h
index 2ae07ea..903c8d7 100644
--- a/av1/encoder/encoder.h
+++ b/av1/encoder/encoder.h
@@ -695,10 +695,22 @@
   // List of QP offsets for: keyframe, ALTREF, and 3 levels of internal ARFs.
   // If any of these values are negative, fixed offsets are disabled.
   double fixed_qp_offsets[FIXED_QP_OFFSET_COUNT];
-  // If true, encoder will use fixed QP offsets, that are either:
+  // If the value is 0 (default), encoder may not use fixed QP offsets.
+  // If the value is 1, encoder will use fixed QP offsets, that are
+  // either:
   // - Given by the user, and stored in 'fixed_qp_offsets' array, OR
-  // - Picked automatically from qp.
+  // - Picked automatically from qp using a fixed factor.
+  // If the value is 2, encoder will use fixed QP offsets that are :
+  // - Derived from qp and has variable factors across Temporal levels as a fn.
+  // of q-step.
+  // TODO(krapaka): extend the derivation of factors also based on operating
+  // configuration such as random access and low-delay.
   int use_fixed_qp_offsets;
+#if CONFIG_QBASED_QP_OFFSET
+  // It true, the offset factor depends on the QP value
+  // else fixed value is used.
+  int q_based_qp_offsets;
+#endif  // CONFIG_QBASED_QP_OFFSET
   // Indicates the minimum flatness of the quantization matrix.
   int qm_minlevel;
   // Indicates the maximum flatness of the quantization matrix.
diff --git a/av1/encoder/ratectrl.c b/av1/encoder/ratectrl.c
index eb95ae2..e3d5fe6 100644
--- a/av1/encoder/ratectrl.c
+++ b/av1/encoder/ratectrl.c
@@ -1069,7 +1069,12 @@
                                      const RATE_CONTROL *const rc,
                                      const GF_GROUP *const gf_group,
                                      int gf_index, int qp, int bit_depth) {
+#if CONFIG_QBASED_QP_OFFSET
+  assert(oxcf->q_cfg.use_fixed_qp_offsets == 1 ||
+         oxcf->q_cfg.use_fixed_qp_offsets == 2);
+#else
   assert(oxcf->q_cfg.use_fixed_qp_offsets);
+#endif  // CONFIG_QBASED_QP_OFFSET
   assert(oxcf->rc_cfg.mode == AOM_Q);
   const FRAME_UPDATE_TYPE update_type = gf_group->update_type[gf_index];
 
diff --git a/build/cmake/aom_config_defaults.cmake b/build/cmake/aom_config_defaults.cmake
index c7a149b..0336cf7 100644
--- a/build/cmake/aom_config_defaults.cmake
+++ b/build/cmake/aom_config_defaults.cmake
@@ -160,6 +160,8 @@
 set_aom_config_var(CONFIG_TMVP_IMPROVEMENT 1 "Enable TMVP improvement")
 set_aom_config_var(
   CONFIG_CCSO 1 "AV2 experiment flag to enable cross component sample offset.")
+set_aom_config_var(CONFIG_QBASED_QP_OFFSET 0
+                   "AV2 experiment flag to adjust q_offset based on QP.")
 #
 # Variables in this section control optional features of the build system.
 #