Livepeer (LPT)

Initially, the LPT is being staked to earn new issuance (“inflationary”) subsidies. That means that the LPT supply will increase and stakers will capture the newly issued LPT. Generally, you will earn around 20% annually on your staked LPT, but that can change. Since staking rewards are tied to inflation, read about how inflation and rewards are related here.

Stakers will also capture fees from network transactions, so as Livepeer transaction volume increases, LPT stakers will earn more than new issuance subsidies.

The LPT also gives stakers the right to vote on policy decisions for how the Liverpeer will operate and distribute treasury funds.

From the moment you initiate the unbonding process, it takes 7 days to unstake. During this time you will not earn rewards.

You can self-custody your Livepeer LPT tokens, ideally using a Ledger hardware wallet.

Figment has partnerships with a number of top-in-class custodians: support@figment.io.

The Livepeer protocol takes control of your LPT tokens while you are staking.

While your LPT are staked, you may participate in on-chain governance by voting on different proposals.

Transcoders can be slashed (loss of LPT) for failed verification, failing to initiate a verification when required, or not contributing a proportional share of transcoding work based on amount delegated to their service.

Missed Verification Slash Amount = 0.5%.

Double Claim Segment Slash Amount = 3%.

Rewards on Liverpeer are distributed automatically every epoch (~ once every day).

Rewards are staked automatically, which means you will need to unstake to withdraw them.

Your potential rewards depend upon validator performance. When your validator is down, you will not be earning staking rewards.

Right now, the inflation rate is decreasing by 0.00005%/round of the total supply. To read why this is and get into Livepeer’s monetary policy, check out this governance proposal on the inflation change.

Livepeer uses token voting for on-chain governance. Governance proposals are discussed on the forum.

Staking rewards and transfers are currently enabled.