Livepeer (LPT)

Tokenomics & Utility

What LPT does

LPT has three main protocol roles. Operators bond it to compete for places in the active set. Holders can delegate their tokens to an operator, adding to that operator’s stake and sharing in its rewards. Bonded tokens also carry voting power over protocol changes and spending from the community treasury. Delegated LPT is held by a protocol contract; the chosen orchestrator cannot simply move or spend a delegator’s tokens. (docs.livepeer.org)

Livepeer has two different reward streams. Gateways pay ETH service fees for computing jobs. The protocol also issues new LPT to eligible, active operators that make their reward calls. Each operator sets how much of its ETH fees it shares with delegators and how much of its LPT rewards it keeps. As a result, the fee split and the token-reward split can differ. (docs.livepeer.org)

Issuance and governance

LPT issuance adjusts rather than following one fixed annual rate. The protocol aims for about half of the token supply to be bonded: issuance rises when participation is below its target and falls when it is above it. Livepeer has no fixed maximum token supply under this model. Governance can also direct part of issuance to a community treasury, which funds approved ecosystem work. These rules make staking participation and community decisions important parts of the token’s economic model. (docs.livepeer.org)