LPT: The Decentralized Streaming Network Livepeer's Token
Livepeer, an Ethereum-based protocol, provides the infrastructure for decentralized real-time streaming. This network empowers developers to create distributed applications specializing in video and audio broadcasts.
A vital component of the Livepeer protocol is its native LPT token. Over 5,000 token holders serve as delegates, participating in Livepeer's staking process to secure the network through the Delegate Proof-of-Stake (DPoS) consensus mechanism. In return, they receive rewards in both ETH and LPT.
The staking process coordinates the entire ecosystem based on the number of tokens locked in support of a specific transcoder (either an individual or company operating a computer node within the Livepeer network for processing, transcoding, and distributing broadcasts). Transcoder actions involve employing GPUs and computational power to ensure network bandwidth. Users are keen to contribute to the protocol's functionality as they earn ETH and LPT for their efforts.
The validator responsibilities are managed by the Truebit extension, which encourages nodes to follow the rules in order to receive their rewards and maintain their orchestrator (transcoder) status. Besides the DPoS algorithm, the Ethereum blockchain and its PoS consensus mechanism secure the protocol and its transactions.
LPT token holders also have the opportunity to vote on proposed enhancements and updates to the protocol.
Livepeer was established in 2017 by Livepeer Inc, with Doug Petkanics and Eric Tang as its founders.
Livepeer Main Website
LPT Tokenomics
At the time of writing, according to CoinMarketCap data, Livepeer's market capitalization stands at $190.4 million. With 27.5 million LPT in circulation, the maximum supply remains undisclosed.
Prior to the protocol's launch, tokens were distributed exclusively within the community. Contributors included transcoders, delegates, investors, and a portion of the funds went to Livepeer.
- 12% of the circulating supply is allocated to the protocol's founders and team members.
- 19% of tokens are distributed among stakers and transcoders.
- 64% is designated for presale crowd sales to investors.
5% is retained as the company's reserve.
Tokens will continue to be introduced to the market according to algorithmically programmed issuance.
What applications have been built upon Livepeer?
Since Livepeer is an open-source protocol, developers can explore its codebase on GitHub. Then, they can create decentralized streaming platforms and services using the network's API and other tools.
Applications launched on the Livepeer platform include:
- The Lot Radio: An independent radio station that offers 24/7 live broadcasts from various musicians;
- LiveSpace: A streaming platform designed for bloggers, gamers, and other content creators;
- Kavarii: A video broadcasting platform emphasizing freedom of expression and an extensive monetization toolkit;
- Lenstube: A decentralized video-sharing application for social networks;
- Xeenon: A video platform where power belongs to artists.
Livepeer is considered one of the few protocols that utilize blockchain technology to advance the decentralized streaming industry. A primary goal of the project is to provide a more free alternative to centralized streaming platforms.
