Livepeer is an Ethereum-based decentralised video transcoding protocol on Ethereum. It has been developed by Livepeer, Inc. (the Team) in an effort to minimise transcoding costs for streaming or on-demand video apps.
Livepeer allows developers to build video streaming apps via its open market for video transcoding. It does this by distributing resource-hungry computing tasks known as ‘transcoding’ to users (Orchestrators) who lend their computer’s processing power to the network in return for LPT, Livepeer’s native token.
They use a delegated proof-of-stake (DPoS) consensus model to provide an economically efficient alternative to centralised broadcasting solutions through the use of economic incentives.
LPT Token Utility
The Livepeer Token (LPT) is the protocol token of the Livepeer network. As of this writing, the total supply of 24.9M LPT is in circulation.
LPT has a current rate of inflation of 0.019%, meaning a total of 4,496.8 newly minted LPT will be rewarded to all participants during the next round. The inflation rate adjusts automatically depending on the proportion of the total circulating supply staked.
LPT has 4 main uses:
- Token holders stake LPT to delegate towards transcoding nodes. Stakers are responsible for monitoring network stats on Livepeer Explorer and choosing the node to which they want to stake.
- LPT is required to perform the work of transcoding and distributing video on the network.
- Coordination mechanism and rewards: LPT is awarded to high-performing node operators as part of the bonus LPT rewards program.
- Unit of account specific to the Livepeer ecosystem.
LPT distribution: founders and early team (12.4%); pre-sale purchasers (19%); crowd/community (63.4%); grant (0.2%); and long-term project endowment (5%).
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