Project sharing｜Livepeer @Livepeer (This project has been launched on BN) $LPT



This article is not about investment research and has no vested interests. It will introduce the fundamentals of the project from four aspects to help you make investment decisions:

-1/ Basic Introduction

-2/ Token Details

-3/ Transcoding fee income
-4/ Turning to AI video computing

In short, this project belongs to the DEPIN track with positive cash flow. The infrastructure of cloud computing network has stable cash flow and plans to turn to AI concept, which will bring strong investment attributes.


1/Basic Introduction/Market Opportunities

The Livepeer network provides an open, KYC-free video infrastructure marketplace for live and on-demand streaming.

Streaming Building a decentralized video application like Twitch or TikTok requires a large infrastructure to support live and on-demand video streaming.

Video content needs to be transcoded into a viewable format. Although cloud services such as AWS, Google or Microsoft can provide this service, it is expensive. The project is committed to creating a low-cost, transparent and open market.

Basic Introduction/Solution

Livepeer's transcoding marketplace allows anyone to contribute computing resources (such as GPUs) and compete on price. The network aims to reduce transcoding costs for end users by up to 10x.

Beyond transcoding, Livepeer aims to be the decentralized technology stack of choice for developers integrating video streaming.

Most importantly, in the near future, the Livepeer community plans to introduce AI video computing capabilities into the Livepeer network.


2/ Token Details

The project was created in 2018, with a peak price of 46 and a current price of 10.98. The project is listed on Dex binance. The current market value is close to 400 million.



I believe in the logic of re-hyping old coins. There are two reasons why I bring up this project again:

"Transcoding Fee Income" and "Integrating AI Concepts: Introducing AI Video Computing Capabilities into Livepee"


3/ Transcoding fee income

DPIN and AI will run through this round of market cycle. We have been looking for projects with positive cash flow, and Livepeer already has this possibility.

At the same time, based on this model, the value of LPT will have a real "support"

ETH is Livepeer's external source of income. In this model, there are three types of people:

1️⃣Node operator: responsible for routing transcoding tasks and obtaining LPT and ETH.

2️⃣ Service Nodes: Provide computing resources to node operators and perform video transcoding. They earn ETH fees.

3️⃣ Delegates pledge LPT to valid node operators to help secure the Livepeer network. Staking is rewarded with a portion of ETH fees and LPT rewards.

The amount of work that node operators can perform depends on the amount of staked LPT, which means that when ETH income reaches a balance, a large amount of LPT will be out of circulation.

So far, there are approximately 70-80k network protocol revenues each quarter. The usage of the Livepeer transcoding network has increased by 31% month-on-month, and the price per minute of transcoding has continued to decline over the past year, from an average of $0.0028/minute in the first quarter of 2023 to an average of $0.0019/minute in the first quarter of 2024.

This will enable Livepeer to continue to expand its price advantage. After the operators pledge the LPT they obtain, they will have more rights to accept more transcoding work and thus earn more transcoding fees.

In the past, LPT staking rewards increased by 123% month-on-month. LPT increased by 18% month-on-month, and LPT issuance reached its highest level since the Arbitrum migration in the first quarter of 2022.

The increase in LPT issuance corresponds to a drop in the staking participation rate to 43%, which is below the equilibrium threshold of 50%.

As the network is adopted, a portion of LPT will continue to be locked. As the current protocol revenue continues to grow, LPT will maintain a trend.

4/ Turning to AI video computing

Livepeer founder Doug Petkanics shares detailed plans to bring AI video computing capabilities to the Livepeer network

In January 2024, Livepeer founder Doug Petkanics shared a detailed plan to introduce AI video computing capabilities to the Livepeer network.

The plan explains that Livepeer is cost-competitively well suited to perform reasoning tasks on user input.

Petkanics detailed a plan to bring AI video computing to the Livepeer network beyond transcoding.

The project was built in 2018, when the market demand for GPUs and computing power was far less than it is now.

GPUs are the lifeblood of the AI ​​boom. NVidia’s data center business, which is based on demand for GPUs, has grown exponentially over the past year.

DePIN networks like Livepeer have shown that through their mechanisms, they can attract global GPU supply before demand arises, thereby elastically supporting the growth of computing power supply and demand, providing nearly unlimited pay-as-you-go capacity.

Developers do not need to prepare hardware in advance, which would cause waste, but pay at the lowest possible price. This is definitely a huge opportunity for decentralized networks to promote the prosperity of artificial intelligence. The concept of DPIN+AI has created external cash flow, so LPT is optimistic.