New here? Start here for the mechanics. For what those mechanics mean in practice for your specific hardware and situation, see Feasibility and Economics. For the step-by-step operations of reward calling and commission setting, continue to Rewards and Fees.
The two revenue streams
ETH Service Fees
Gateways pay you in ETH for every transcoding or AI inference job you complete. Demand-driven: you only earn when you win jobs.
LPT Inflationary Rewards
The protocol mints new LPT every round and distributes it to active staked orchestrators. You must call
Reward() each round to claim your share.Reward() every round without missing one. Both matter for total income.
ETH service fees
Every time a gateway routes a job to your orchestrator and you complete it successfully, you earn ETH. The gateway sends payment via Livepeer’s probabilistic micropayment system — a series of signed tickets that represent ETH obligations. When you receive a winning ticket, you submit it on-chain to redeem the ETH. Fees exist for two workload types: AI inference commands higher fees per job because the work is more GPU-intensive. An orchestrator running popular AI models warm on a high-VRAM GPU is positioned very differently in the fee market than one doing transcoding alone.What determines how much work you win
Gateways route jobs through a competitive filter across multiple factors at once:LPT inflationary rewards
Each round (approximately every 22 hours on Arbitrum), the Livepeer protocol mints new LPT and distributes it to active orchestrators proportional to their total stake — that is, their own self-bonded LPT plus all delegated stake from third parties. Three things must be true for you to receive that round’s rewards:- You are in the active set (top orchestrators by stake weight)
- You successfully call
Reward()on-chain that round - Your node has LPT bonded (self-stake)
Commission parameters
When you register as an orchestrator, you set two commission parameters that determine how you split earnings with delegators. Both update on-chain immediately, and frequent changes damage delegator trust.Reward cut
The percentage of LPT inflationary rewards you keep as the operator. Delegators receive the rest, split proportionally by their stake.rewardCut is 20%.
- You keep: 20 LPT
- Delegators split: 80 LPT (in proportion to their individual stakes)
Fee share
The percentage of ETH job fee revenue that is shared with your delegators. The remainder you keep.feeShare is 50%.
- You keep: 0.05 ETH
- Delegators split: 0.05 ETH
Commission rates directly affect delegator yield calculations on the Livepeer Explorer. Delegators compare orchestrators by ROI. Setting competitive rates attracts more stake, which increases your inflation share and job routing weight — a compounding dynamic. See Getting Delegates for the full strategy.
Transcoding vs AI fees in practice
The fee landscape is shifting. AI inference jobs now represent a growing share of total network fee revenue. A key distinction: for video transcoding, stake weight directly determines your position in the routing queue. For AI inference, the gateway first filters by capability and price — your stake matters less than having the right pipeline running at a competitive price. This supports two parallel strategies on a single node:- Transcoding income: grow stake to capture more segments
- AI inference income: run popular models warm at competitive prices
Payment flow summary
Monitoring your earnings
Check your reward call history on Explorer regularly. A gap in the reward history means missed rounds and lost LPT. For monitoring setup, see Metrics and Monitoring.Watch: Orchestrator economics overview
Continue in this section
Rewards and Fees
Reward call mechanics, automation, gas thresholds, and fee redemption operations.
Getting Delegates
How to attract delegators, what the Explorer ROI calculation shows them, and how to build reputation.
Payments
How ETH moves from gateway to your wallet — probabilistic micropayments, ticket redemption, and the Redeemer.
Governance and Voting
Voting on Livepeer Improvement Proposals using livepeer_cli.