Research Summary
The report provides an in-depth analysis of Livepeer’s performance in Q4 2023. It covers the growth in the usage of Livepeer’s transcoding network, the decrease in demand-side revenue, the increase in staking rewards, and the introduction of a community-governed onchain treasury. The report also discusses Livepeer’s aim to become the go-to decentralized technology stack for developers integrating video streaming into their apps.
Key Takeaways
Network Usage and Revenue
- Increased Network Usage: The usage of Livepeer’s transcoding network grew by 13% QoQ in Q4 2023, driven by a series of live-streaming video events powered by Livepeer.
- Decreased Demand-Side Revenue: Livepeer’s demand-side revenue decreased by 30% QoQ in USD terms and 38% QoQ in ETH terms. This decrease is potentially due to competitive pricing considerations.
- Increased Staking Rewards: Revenue from staking rewards grew by 33% QoQ in USD terms and 9% QoQ in LPT terms, as LPT issuance reached its highest level since the Arbitrum migration in Q1 2022.
Community Governance and Technical Upgrades
- Community-Governed Onchain Treasury: The Livepeer community approved a governance proposal to introduce a community-governed onchain treasury for public goods funding. As of December 31, 2023, over 95,000 LPT were held in the onchain treasury.
- AI-Powered Upgrades: Livepeer introduced an AI-powered upgrade to Livepeer docs and developer tools, featuring new development tooling and features within Livepeer Studio’s hosted gateway to the Livepeer network.
Actionable Insights
- Monitor the Impact of Competitive Pricing: The decrease in Livepeer’s demand-side revenue suggests that competitive pricing considerations may be impacting revenue. Stakeholders should monitor this trend and assess its implications for Livepeer’s financial health.
- Assess the Sustainability of Staking Rewards: The increase in staking rewards indicates that Livepeer network participants are heavily reliant on these rewards for their operations. Stakeholders should evaluate the sustainability of this reliance and its potential impact on the network’s stability.
- Understand the Implications of Community Governance: The introduction of a community-governed onchain treasury represents a significant shift in Livepeer’s governance structure. Stakeholders should understand the implications of this change for the network’s decision-making processes and overall governance.
