Bonus LPT Rewards Program Beginning For High Performing Node Operators
Livepeer’s video streaming infrastructure requires a global network of node operators contributing their compute and bandwidth to video encoding tasks. A grant proposal was recently approved to run an experimental bonus LPT incentive program that rewards node operators who perform well on the performance leaderboard. It’s targeting node operators running setups that can transcode video faster than realtime on the Livepeer network, which likely means those with GPUs. This program will reward 21,000 LPT over the next three weeks to node operators.
What do you need to know to participate?
- Run an orchestrator/transcoder node on the Livepeer network.
- Score at least 3.0 on the performance leaderboard over a 7 day period in any one region (US, EU, Asia).
- There are three different 7 day reward rounds, ending on 12/21, 12/28, and 1/3.
- At the end of each round, 4000 LPT will be distributed evenly amongst all nodes that have a score greater than 3.0 in any specific region on the leaderboard, and 200 LPT will be distributed to each node in the top 5 in each region-specific leaderboard (US, EU, Asia).
- Read the full proposal with the initial program details for more specifics.
MVP Incentive Program Background
The proposal makes clear a couple key points:
Motivation — the Livepeer network can only succeed if the video transcoding capacity is scaleable, performant, and geographically distributed. The current inflationary LPT rewards that are in protocol can help bootstrap a network of node operators, but until fee volumes are higher, additional off-chain incentives may be necessary to ensure the performance of node operators. This is an attempt at experimenting with a first pass of off chain incentives that reward performance.
Experimentation — the community will have to work together to ensure that the incentives in Livepeer (both in protocol and out of protocol) ensure a high functioning and useful network for the long term, and with the proper balance of value between fees and LPT. This intentionally short lived program, which is only three weeks initially, is a first experiment which will help observe whether these LPT amounts are enough to draw new participants into the network, encourage existing operators to improve their setups and connectivity, and create further geographic coverage.
Value — the initial threshold for being eligible for rewards through this program is a 7-day score of at least 3.0. What does this represent? A latency score on the leaderboard of > 6.3 roughly means that a node is encoding video faster than realtime, which is important to keep up with live streaming. A >50% success rate score means that they have returned over half the video segments to broadcasters without error. The total score simply multiplies these two scores, so a resulting value of greater than 3.0 seems to be the initial minimum bar for usefulness on the network. Currently very few nodes in each region are surpassing this score, so this program is an attempt to validate that additional LPT incentives can increase this performance.
Opportunities for GPU Miners and Livepeer
The following are some of the exciting opportunities for both Livepeer, and those who mine cryptocurrencies with GPUs during this three week incentive program:
Break into the leaderboard and earn rewards + fees. Prior to the performance leaderboard launching, the explorer was ranked only by total delegated stake. This made it difficult for any new node operator to get visibility, to attract stake, and to make it profitable to run a node by keeping LPT token from the reward cut. Now however, nodes with little to no stake can join the network and immediately be shot to the top of the leaderboard while earning fees for transcoding. This should attract a lot of delegated stake quickly, and through the reward cut mechanic which lets node operators keep a portion of the new LPT generated through inflation, the operators should quickly go from zero to having a nice daily income of LPT + ETH fees.
Increase global coverage. As it stands right now, there are zero nodes in the Asia region (Singapore broadcasting), that surpass the 3.0 performance threshold. This would be easy for a local GPU operator to take some of the top spots on the leaderboard, and earn the 200 LPT bonus for each spot in addition to the LPT which will be earned for passing the 3.0 threshold. An eager actor could earn hundreds or even thousands of LPT/week during the program, while also increasing the transcoding capacity on the network and earning all the ETH fees originating from the region.
Consider longer term incentives. This is just a short lived experiment, but it can inform the network on what longer changes may look like. Node operators and aspiring node operators should share feedback in the Discord chat and on the Github issue for the program. Should the network consider extending these incentives through in-protocol allocated rewards, and if so who should govern the distribution? Should the community run a much longer incentivized reward program for a much larger stake in the network, much like other networks have run incentivized testnets pre-launch distributing up to 5% of the network stake? Are other incentive models needed? The community can determine and propose such mechanics through the LIP process and decentralized governance mechanisms.
Get those GPU-powered nodes ready. This is an informal program, where all node operators are eligible and can join any time simply by running a node on the network. The grant proposal claims rewards will be sent directly to node addresses following each round. So get started running a node today using the following resources:
- Read the docs for transcoding on the livepeer network
- Check out the video miner FAQ
- Read the full grant proposal with the initial program details
- Reach out to the Livepeer team and community in the Discord chat room, #transcoding channel. Initial testing and setup can require some DevOps, so we are happy to help.