Orchestrators are compensated for video transcoding services with rewards denominated in LPT and fees denominated in ETH.
Note that transcoders participating in pools are compensated based on the rules of the particular pool.
An orchestrator earns rewards based on its total stake (includes its own self-delegated stake and the stake of its delegators) which accrue every day. These rewards are analogous to the block reward in PoW blockchains such as Bitcoin.
Ways to earn more rewards include:
- Staking more LPT
- Attracting stake delegation from delegators by:
- Performing well on the leaderboard at https://explorer.livepeer.org/
- Performing well in the network and earning fees from broadcasters
- Setting commission rates to share rewards and fees with delegators
An orchestrator earns fees based on the video transcoding service it provides to broadcasters. The more transcoding that an orchestrator performs, the more fees it will earn. These fees are analogous to the transaction fees in PoW blockchains such as Bitcoin.
Ways to earn more fees include:
- Staking more LPT or attracting stake delegation in order to provide more economic security to broadcasters
- Minimizing latency by ensuring access to hardware and bandwidth resources, and expanding geographic coverage
Costs incurred while operating on the network include:
- Arbitrum transaction fees
- Hardware costs
- Bandwidth costs
- Electricity costs