Livepeer is a crypto-incentivized protocol that provides a decentralized and highly scalable live video broadcasting platform. LPT is the name and ticker symbol for the native ERC-20 token of the project.
On 1 May 2018, Livepeer released the alpha version of their platform on the Ethereum mainnet. The project was created to find an economically efficient alternative for centralized broadcasting media. Users can upload videos to the Livepeer Network, where the nodes encode them into compatible formats for different devices. The broadcasters pay those who run the nodes via ETH.
The live stream is distributed in real-time to those who request views. Users can utilize Livepeer's services for pay-as-you-go consumption, uncensored live journalism, highly scalable video service infrastructure and DApps that support video. Inside the ecosystem, LPT is a staking token primarily used to pay essential players of the system.
The platform uses the open-source Livepeer Media Server or LPMS, enabling DApp developers and broadcasters to build every necessary live stream functionality. Secondly, to ensure the network's decentralization, Livepeer runs each node through LMPS and provides developers with economic incentives.
Livepeer's consensus system has two different layers. The first is a proof-of-work mechanism that ensures the security of various financial transactions inside the ecosystem. Additionally, the platform defines an eligibility criterion for participation in governance performed through Livepeer Smart Contract.
This second layer of consensus is based on Delegated Proof of Stake (DPOS) and is responsible for determining the distribution of newly generated LPT tokens.
The key players in the ecosystem of Livepeer Network are broadcasters, transcoders and consumers. The decentralized governance structure of Livepeer takes budgetary decisions, maintains network parameters and executes required project updates.
LPT price and tokenomics
There is an estimated total supply of 24 million of LPT tokens. The token is inflationary, meaning new LPT tokens will be generated and distributed over time, affecting their price. LPT, being a staking token, is used by ecosystem participants to coordinate the distribution of different roles and workloads.
To tackle inflation, new tokens are allocated to holders in proportion to their bonded stake. The LPT price thus depends on the platform's performance and the new tokens generated.
In October 2018, 63% of the then total LPT supply was distributed based on the algorithm of Merklemine via a public sale. Being a pre-mined token, 19% of the supply was allocated to pre-sale buyers. The rest of the tokens were allocated to the core team, grants and future reserves.
About the founders
Livepeer was founded by Doug Petkanics and Eric Tang. Petkanics, an alumnus of the University of Pennsylvania, has extensive experience in technical roles in companies like Accenture and AT&T Labs Research. Tang has an educational background in engineering and business and years of technical expertise. Before founding Livepeer, Petkanics and Tang worked at Groupon and Wildcard Inc.
On 3 August 2021, Livepeer raised $20 million for the project's future development. The fundraising was led by old supporters like Digital Currency Group and Coinfund and investors like Coinbase Ventures, Warburg Serres and Mike Dudas's Six Man Ventures.