Livepeer (LPT) is the native token of the Livepeer network, a “Platform as a Service” blockchain for serving live and on-demand video streaming content. The platform was created in 2017 as a decentralized streaming platform set out to disrupt tech infrastructure giants like Amazon and Google.

The livepeer token (LPT) was created as an incentive system for participants using the open-source, Livepeer protocol to distribute video content and provide security on the network. In the Livepeer ecosystem, new LPT tokens are minted in cycles known as “Rounds.” One Round is the equivalent of 5760 Ethereum blocks. With one block mined on the Ethereum blockchain around every 11.15 seconds, Livepeer Rounds typically last around 18 hours.

Livepeer is an inflationary asset with an inflation rate adjusted automatically for tokens staking out of the total circulating supply. Inflation rates are adjusted around the target of 50% in order to secure the network while maintaining liquidity in the LPT supply. For every round where the participation rate is below 50%, the Livepeer protocol will increase the inflation rate by 0.00005% and vice versa.

Livepeer broke to a new high in March 2021 following an announcement from Grayscale Investments that LPT would be added as a new Grayscale Trust. (Grayscale, like CoinDesk, is owned by Digital Currency Group.) Prior to the announcement, the token was already seeing an impressive rally and the announcement spiked the token from $6 to nearly $30 in less than a week. In November 2021, LPT broke past its previous high to set a new all-time high of $100.24 during a 300% rally that followed Livepeer’s acquisition of MistServer. During the time after that announcement, Livepeer saw single-day jumps of over 100% and had gained 4800% in a single year.

Livepeer’s all-time low of $0.4206 was in March 2020 during a broader market sell-off as a result of the World Health Organization declaring the COVID-19 virus a pandemic.

Livepeer offers a peer-to-peer (P2P), service-based system for video content streaming. Users who are looking to broadcast video on the Livepeer network are required to pay fees to two other types of users: orchestrators and delegators.

Orchestrators are users that run Livepeer’s software in exchange for LPT. The software will utilize the orchestrator’s CPU, GPI and bandwidth to transcode (the process of taking a raw video file and reformatting it so it can be viewed on a device) and distribute video content for paying users known as broadcasters. In order to become an orchestrator, users are required to stake LPT tokens.

Delegators are LPT holders who stake their tokens with orchestrators to keep the network secure. In return for staking, delegators are rewarded alongside orchestrators through the fees paid by broadcasters. Because Livepeer is a proof-of-stake blockchain network, both delegators and orchestrators additionally receive staking rewards for confirming blocks on the network.

According to the project’s white paper, fees received by both orchestrators and delegators are typically received in ethereum (ETH), while LPT tokens are reserved for staking and staking rewards. The LPT staking model is similar to other cryptocurrencies that follow a delegated proof-of-stake (DPoS) consensus protocol.

Livepeer was launched in 2017 by co-founders Doug Petkanics and Eric Tang as a decentralized streaming platform to disrupt tech infrastructure giants like Amazon and Google. Both Petkanics and Tang continue to be a part of Livepeer as the CEO and chief technology officer, respectively.

In 2019, Livepeer received $8 million in a Series A funding round to expand the network and its functionalities. The funding round was participated in by a variety of venture firms including CoinFund, Digital Currency Group, Livertus Capital, North Island Ventures and others. The developers stated the funds would be specifically used for accelerating growth of minutes streamed on the network and strengthening Livepeer’s relationship with other web3 projects.

Three months after the Series A funding round, Livepeer announced its acquisition of MistServer. MistServer was an open-source media streaming server that was optimized for developers to customize their streaming preference. The acquisition enabled Livepeer to expand its video capabilities and offerings.

In 2021, Livepeer held another funding round for $20 million, raising funds from returning investors including Digital Currency Group and CoinFund, but also new investors including Coinbase Ventures. Following the funding round, community-led decentralized content delivery network Media Network announced that it would integrate Livepeer for its users.