What is Livepeer? A Complete Guide to LPT Crypto Assets (2025)

Video already accounts for more than 80% of the world's internet bandwidth, but traditional streaming giants are still expensive and centralized. Livepeer attacks and a bottleneck in an Ethereum-based decentralized live transcoding market. Anyone can become a coordinator by contributing GPU/CPU hash power, while anyone who holds LPT tokens earns a share of the fees by staking to these nodes. LPT price is currently hovering around $12.40 and daily on-chain fees are trending upwards quarterly, Livepeer has graduated from "experimental" Web3 turns "ideas" into real revenue machines – making LPT a no-brainer for hunters, crypto traders, and Gate users looking for yields looking for airdrops.

How Livepeer Works

Livepeer is not a single video host, but rather separates the process:

1. The broadcaster sends the original video stream to the network.
2. Coordinators use idle GPUs to transcode streams into multiple bitrates.
3. The client stakes LPT behind the coordinator to share rewards in ETH or stablecoins.

The protocol uses a "slashing" mechanism: if a coordinator provides incorrect transcoding or misses a validation round, a portion of their bonded LPT will be destroyed—aligning economic incentives without a central overseer. As a result: costs were reduced by up to 80% compared to Amazon IVS, a statistic that drives long-tail searches such as "livepeer vs AWS transcoding" and "LPT staking annual yield."

##LPT Token Economics and Supply Plan LPT has three roles - binding, governance, and fee capture - so it is crucial to understand the issuance before speculating on the value of LPT. The table below summarizes allocation and inflation. Please note that Livepeer's adaptive inflation redistributes more LPT when the overall staking decreases to balance supply with security.

| Category | Share | Unlock & Notes | | --- | --- | --- | | First Sale (2018) | 63% | Fully Circulated | | Team and Advisors | 19% | Four-year vesting period completed in Q1 2022 | | Early Supporters | 10% | After unlocking, many people are now running coordinators | | Community Treasury | 8% | Managed by LPT DAO, funding grants and bug bounties | | Inflation Rate in 2025 | - | ≈ 4.8 %/year — automatically adjusted based on staking participation |

Currently, 52% of the total supply is staked, which maintains moderate inflationary pressure and supports most LPT price prediction models.

##Core Metrics Every Investor Should Track

• Transcoding minutes/day: Increased from 3 million in 2023 to 28 million in May 2025.
• Active Orchestrators: Limit of 100; highly competitive slots that promote higher online time.
• Fees sharing for the entrustor: An average annual yield of 7-12% after inflation, paid daily.

The continuously increasing trading volume combined with strong annual yields places Livepeer among the top "real yield" decentralized physical infrastructure projects.

Roadmap and Catalysts to 2026

• AI Video Plugin (Q3 2025): Coordinators can upsell on-chain object detection and subtitles, adding new fee layers.
• Layer-2 Migration (Q1 2026): Transaction settlement moves to Base roll-up, reducing gas fees for small broadcasters.
• Cross-chain payments (Second half of 2026): USDC and SOL payments natively routed to the LPT staking pool, expanding demand.

Any of these milestones could potentially redefine the lpt price today, so traders should bookmark the development updates on the Livepeer forum.

##Ways to Earn LPT on Gate As a content creator for Gate, I see three low-friction paths:

1. Spot accumulation: Buy LPT/USDT when the perpetual market's fund flow shows a negative value; Gate's trading fee is reduced to 0.1%, applicable to VIP 1 and above.
2. Gate Earn's flexible staking: The current pool pays a 6.5% annual interest rate in LPT, with automatic weekly compounding.
3. Participate in Gate CandyDrop: Past events airdropped 15,000 LPT to users who traded over 10,000 USDT in eligible trading pairs—great for active day traders.

##Risks to Note

• GPU centralization: 12 coordinators still handle over 55% of the work; if several of them go offline, delays could spike.
• Ethereum gas surge: Before the rollup migration, rising costs may hinder smaller streaming.
• Competitive pressure: Helium and Theta Network target similar real-world bandwidth niche markets.

Before investing funds, it is crucial to balance these risks with Livepeer's growing fee revenues.

##Conclusion Livepeer transforms idle global GPUs into a decentralized video backbone, while the LPT cryptocurrency provides holders with a true share of this bandwidth economy. With adaptive inflation, staker cuts, and upcoming AI plugin revenue, Livepeer is more than just another governance token – it's Web3's answer to the $125 billion online video infrastructure market. Gate already offers deep liquidity and attractive staking yields, so if you're looking for the next DePIN standout project, adding the right amount of LPT to your watchlist or wallet could be a source of constant yield. Always do your own research, diversify your investments, and have fun staking!

Author: Blog Team *This content does not constitute any offer, solicitation, or recommendation. You should always seek independent professional advice before making any investment decisions. *Please note that Gate may restrict or prohibit the use of all or part of its services in restricted areas. For more information, please refer to the user agreement.