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

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Livepeer

# Livepeer Token incentives Methodology

## 1. Overview

The Livepeer token incentives metric measures the daily USD value of LPT tokens distributed as rewards to participants in the Livepeer transcoding network. This metric tracks incentive payments made through the protocol's BondingManager contracts on Ethereum and Arbitrum, providing insight into the economic incentives flowing to network participants. The calculation aggregates all reward distributions on a daily basis and converts them to USD values using end-of-day price feeds.

## 2. Data sources

The calculation uses the following raw data sources:

- **Blockchain events**: Parsed `BondingManager_Reward_event` logs from Livepeer v1 protocol contracts on Ethereum and Arbitrum networks
- **Transaction data**: Event log metadata including transaction hashes, block timestamps, and log indices for reward distribution events  
- **External data**: End-of-day price feeds for LPT token conversion to USD values
- **Token metadata**: LPT token decimal precision information (18 decimals) for accurate amount calculations

## 3. Step-by-step calculation

### Component A: Raw incentive data extraction
- **Purpose**: Extract and standardize reward payment events from Livepeer BondingManager contracts
- **Logic**: The system processes `BondingManager_Reward_event` logs from two sources: Ethereum mainnet contract `0x58b6a8a3302369daec383334672404ee733ab239` and Arbitrum contract `0x289ba1701c2f088cf0faf8b3705246331cb8a839`. Events are filtered to exclude removed transactions (where `removed = false`). Each event is enriched with metadata including chain identification extracted from the data source schema, version information (v1), and business categorization
- **Key fields**: Critical fields include `block_timestamp` for timing, `address` as the recipient account, `amount` containing the raw LPT reward value, `transaction_hash` and `log_index` for event identification, and `removed` flag for filtering valid events

### Component B: Business categorization and standardization  
- **Purpose**: Apply consistent business categorization and prepare data for aggregation
- **Logic**: All reward events are categorized under the 'Transcoding' business line within the 'infrastructure' market sector and 'other' business segment, reflecting Livepeer's role as a decentralized video transcoding network. Token addresses are mapped to their respective chains, and the account name is standardized as 'LPT'. The `amount` field is converted from integer to big numeric format for precise calculations
- **Key fields**: Standardized fields include `chain` identifier, `business_line` as 'Transcoding', `market_sector_id` as 'infrastructure', `account_name` as 'LPT', and `token_address` containing the chain-specific LPT contract address

### Component C: Daily aggregation and timestamp processing
- **Purpose**: Aggregate reward amounts by day and prepare for USD conversion  
- **Logic**: Block timestamps are truncated to daily boundaries using day-level precision. The system groups events by date, recipient address, and other dimensional attributes while summing the `amount` values. This creates daily snapshots of token incentives distributed to each participant
- **Key fields**: The aggregated data includes `timestamp` truncated to day grain, `timestamp_grain` set to 'day', and `token_incentives` containing the sum of daily reward amounts per recipient

### Final aggregation
- **Combining components**: Daily aggregated LPT amounts are processed through USD conversion using end-of-day price feeds matched to each day's timestamp
- **Currency conversion**: LPT token amounts are converted to USD using end-of-day price feeds, with decimal correction applied based on the token's 18-decimal precision to ensure accurate value calculations
- **Time aggregation**: The system applies a fill_zeros strategy to create a continuous daily time series, inserting zero values for days when no rewards were distributed to maintain consistent temporal coverage
- **Final calculation**: The final metric represents the total USD value of LPT token incentives distributed daily across all participants in the Livepeer transcoding network, filtered by chain availability to include only actively supported networks

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

Value of native tokens distributed as incentives.

LivepeerLPT

Token incentives

Token incentives

Competitive landscape

Chain breakdown