Video miners (a.k.a orchestrators) perform transcoding work through the protocol and receive fees from users (a.k.a broadcasters) who assign tasks to them in return for an agreed upon fee (supply-side fees).

Livepeer is a video infrastructure protocol built on Ethereum. Livepeer was founded by Doug Petkanics & Eric Tangand and launched in 2017.

LPT holders own and govern the protocol. They do not currently take a cut of the total fees paid by broadcasters (revenue). Livepeer’s investors include Northzone, Digital Currency Group, Collaborative Fund, etc.

governance

github

twitter

discord

etherscan

website

DePIN

Livepeer

# Livepeer Expenses Methodology

## 1. Overview

Livepeer expenses represent the daily USD value of LPT token incentives paid by the protocol to network participants, primarily transcoders who perform video transcoding work. This metric captures the protocol's operational expenses in the form of token rewards distributed to maintain network operations. The calculation aggregates `BondingManager_Reward` events from both Ethereum and Arbitrum chains, converts LPT token amounts to USD, and presents the total as daily expenses.

## 2. Data sources

- **Blockchain events**: Parsed `BondingManager_Reward` events from Livepeer smart contracts on Ethereum and Arbitrum networks
- **Token incentive data**: LPT token reward amounts distributed to network participants 
- **External data**: End-of-day price feeds for LPT token USD conversion
- **Token metadata**: Decimal precision information for proper LPT token amount formatting

## 3. Step-by-step calculation

### Component A: Raw incentive payment extraction
- **Purpose**: Extract all LPT token reward payments from Livepeer protocol contracts
- **Logic**: The system identifies `BondingManager_Reward` events from two specific Livepeer contracts - one on Ethereum (`0x58b6a8a3302369daec383334672404ee733ab239`) and one on Arbitrum (`0x289ba1701c2f088cf0faf8b3705246331cb8a839`). Only non-removed events are included to ensure data accuracy. Each event contains the recipient address, the LPT token amount rewarded, and transaction metadata.
- **Key fields**: `block_timestamp` for timing, `address` for recipient identification, `amount` for LPT token quantity, `token_address` for the LPT contract reference

### Component B: Daily aggregation and USD conversion  
- **Purpose**: Convert raw token events into daily USD expense totals
- **Logic**: Raw incentive payment events are grouped by day using timestamp truncation. The system applies decimal correction to convert raw LPT token amounts into properly formatted token units, then uses end-of-day price feeds to convert LPT amounts to USD values. Additional metadata is preserved including chain identification, business categorization as 'Transcoding' infrastructure services, and version tracking.
- **Key fields**: `timestamp` for daily boundaries, `token_incentives` for USD-converted reward amounts, `chain_id` for blockchain identification

### Final aggregation
- **Combining components**: The daily USD token incentive amounts are directly used as the expense values with no additional aggregation needed
- **Currency conversion**: LPT token amounts are converted to USD using end-of-day price feeds, with proper decimal adjustment applied first
- **Time aggregation**: All calculations use daily time boundaries, truncating timestamps to day level for consistent reporting
- **Final calculation**: The final expenses metric equals the sum of all USD-converted LPT token incentives paid to network participants on each day, representing the protocol's total operational expenses in token rewards

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total project operating and incentive expenses.

LivepeerLPT

Expenses

Expenses

Competitive landscape

Chain breakdown