Livepeer $LPT

Livepeer is an innovative blockchain-based project that seeks to revolutionize the live video streaming industry. It aims to create a decentralized, scalable, and incentivized network protocol that acts as the live media layer in the decentralized development (web3) stack. With an emphasis on providing an economically efficient alternative to centralized broadcasting solutions, Livepeer presents a new approach to live video broadcasting.

Livepeer Protocol and Token (LPT)

The Livepeer project operates on the Livepeer Protocol - a delegated stake based protocol that incentivizes participants in a live video broadcast network. This protocol offers solutions for scalable verification of decentralized work and prevention of useless work in an attempt to game the token allocations in an inflationary system.

Driving the Livepeer network is the Livepeer Token (LPT). While not acting as the medium of exchange (a role filled by Ethereum's Ether), LPT serves multiple crucial functions within the Livepeer ecosystem.

Functions of Livepeer Token (LPT)

The main roles of the LPT are as follows:

• It works as a bonding mechanism in a delegated proof of stake system, allowing transcoders (or validators) to participate in the protocol to transcode video and validate work. The token, coupled with potential slashing due to protocol violation, ensures the network is secured against various attacks.

• LPT facilitates work distribution across the network, proportional to the amount of staked and delegated tokens. This makes it a crucial coordination mechanism within the network.

• LPT also acts as a unit of account specific to the Livepeer ecosystem. This plays a significant role in the conception of a 'SectorCoin' concept, which can be applied to additional functionality in the future, such as DVR, closed captioning, ad insertion/monetization, and analytics.

Allocation and Issuance of Livepeer Token (LPT)

Livepeer Token will be initially allocated so that stakeholders can fulfill different roles in the network, and then additional tokens will be issued algorithmically over time. In line with Ethereum and popular ERC20 tokens, LPT will be divisible by 10 ^ 18, with the LPT itself intended for user-level transactions like staking, and smaller denominations for protocol accounting.