Li-rich layered oxide (LRLO) cathodes have been regarded as promising candidates for next-generation Li-ion batteries due to their exceptionally high energy density, which combines cationic and anionic redox activities. However, continuous voltage decay during cycling remains the primary obstacle for practical applications, which has yet to be fundamentally addressed. It is widely acknowledged that voltage decay originates from the irreversible migration of transition metal ions, which usually further exacerbates structural evolution and aggravates the irreversible oxygen redox reactions. Recently, constructing O2-type structure has been considered one of the most promising approaches for inhibiting voltage decay. In this review, the relationship between voltage decay and structural evolution is systematically elucidated. Strategies to suppress voltage decay are systematically summarized. Additionally, the design of O2-type structure and the corresponding mechanism of suppressing voltage decay are comprehensively discussed. Unfortunately, the reported O2-type LRLO cathodes still exhibit partially disordered structure with extended cycles. Herein, the factors that may cause the irreversible transition metal migrations in O2-type LRLO materials are also explored, while the perspectives and challenges for designing high-performance O2-type LRLO cathodes without voltage decay are proposed.