Livepeer Orchestrator Business Model - Updates and Grant Progress

Dear Livepeer community,

As mentioned in our grant application, we would like to further improve on the Livepeer Orchestrator business model which we open-sourced.

To make the model as useful to the community as possible, we’d like to ask you to vote for the features you think are the most useful to you and also suggest any features we haven’t considered. We’d be glad to consider those as well!

In order to vote, please add a comment below that includes the feature numbers (1-7) from the following list. When suggesting a new feature please describe the feature and its value to you.

The model will be further developed in two phases. The total scope of this phase, Phase I, is 5 pts and Phase II – 7 pts.

Here is the list of proposed features and their relative effort estimates.

General Model usability improvements:

  1. Model dashboard summarizing the key data interpretation (e.g. is this pixel price competitive, should be changed, at which point an orchestrator should or needs to scale up its operation, etc.) (2pt)

Demand Side and Network Assumptions:

  1. Modeling of total network yield (LPT+ETH) accounting for staking and DeFi opportunity cost and how it can impact network stake ratio/participation (not regarding LPT as an isolated network) (2pt)

  2. Suggestion for a demand function (e.g. being able to model the impact of the pixel price change on the transcoding revenue) (3pt)

  3. Demand-side scenarios based on real-world benchmarks (e.g. onboarding X users, generating Y% of streaming, onboarding a partner, etc.) (2pt)

  4. $LPT usage-driven price valuation based on demand scenarios (requires demand scenarios to be completed) (2pt)

Orchestrator Cost modelling:

  1. Additional cost models based on variable input costs, e.g. electricity, bandwidth, demand-side, etc.) (3pt)

  2. Additional parameters and orchestrator business-related considerations (e.g. marketing expenses, taxes, SEO, etc.) (1pt)

Other features:

  • Any suggestions from the community are welcome

Thanks for your participation!

Best,

Gleb, Chris (Chainflow)

Are you working on anything to do with paying Transcoders directly?

I know @livepool is tackling this, but for me, it’s the biggest missing part to the Orchestrator business model: to make it much easier for an O to outsource work to a T and pay in real time.

We’re not at the moment. While I could see this as a natural future extension of this project, it’s not in our current scope.

Regarding #7, which jurisdictions will this focus on for tax purposes?

As its going to be interactive, there will be a box to put in individual tax rate.

We can add a selection of various tax rates as well (so instead of putting 21%, one can select “US”), in such case, smth like a selection between US/EU/Russia/China might make sense. We would however like to avoid this, as having 21% associated with US is sort of a statement which we should not be making as tax rate is very individual and we are not tax advisors.

So the solution outlined the first is the most preferrable.

Phase 1 - Scope Update

Hi Everyone,

We’re proceeding with the business case updates and will be implementing -

General Model usability improvements:

  1. Model dashboard summarizing the key data interpretation (e.g. is this pixel price competitive, should be changed, at which point an orchestrator should or needs to scale up its operation, etc.) (2pt)

Orchestrator Cost modelling:

  1. Additional cost models based on variable input costs, e.g. electricity, bandwidth, demand-side, etc.) (3pt)

These update represent the project’s scope and mark the completion of the Scope milestone.

We look forward to your feedback on the updated model.

Chris and Gleb

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Phase 1 - Completion Update

Dear Livepeer community,

We’re feelings excited to release the Phase 1 feature scope update of the Livepeer Network and Orchestrator Model we recently received a grant for.

Find the updated model here.

The following features were added to the model as per Phase 1 scope:

  • Model dashboard summarizing the key data interpretation (e.g. is this pixel price competitive, should it be changed, at which point should an orchestrator scale up its operation, etc.)
  • Additional cost models based on variable input costs, e.g. electricity, bandwidth, demand-side, etc.)

See the full set of updates on the “Grant Scope and Changelog” tab of the model.

The next step is to complete another set of updates for Phase 2. Community feedback and votes for the Phase 2 feature set are always welcome! We’ll be requesting your input to vote on the features you’d like to see included.

Best regards,

Chris / Chainflow x Gleb

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Livepeer Network and Orchestrator Model: Phase 2 Release

Dear Livepeer community,

We’re excited to release the final Phase 2 feature scope of our Livepeer Network and Orchestrator Model we received the grant to develop.

Find the updated model here.

The following features were added to the model as per Phase II scope:

  • Demand-side scenarios based on real-world benchmarks (e.g. onboarding X users, generating Y% of streaming, onboarding a partner, etc.)
  • Suggestion for a demand function (e.g. being able to model the impact of the pixel price change on the transcoding revenue)

Here’s the full changelog, taken from the Grant Scope and Changelog tab -

  1. Changelog of Phase 2
  • Added the tab “Streaming Bechmarks”, with research and video streaming industry benchmarks. (feature #4)
  • Added Benchmark cell to the “Orchestrator Dashboard” tab, allowing to see how the Livepeer network load compares to the other streaming and video platforms. (feature #4)
  • Added the tab “Demand Modeling”, a basic model of a transcoding service demand function. This shows demand, as well as the supply corridor of an individual O based on historic transcoding data. (feature #3)
  • Added transcoding revenue changed based on pixel price changes to the “Orchestrator Dashboard” tab. (feature #3)
  • Added Phase II tabs to the Model Guide
  • Certain visuals were reworked
  • Added new cell comments and explanations

Stay tuned for a separate community call and model walk-through!

We’re happy to receive feedback and questions in the comments of this forum post in the meantime.

Best regards,

Chris of Chainflow & Gleb of T-Systems and StakingRewards

An additional data point that I don’t think I saw in the total cost sheet that I think could be helpful is an monthly transaction (Ethereum transactions for calling reward, redeeming winning tickets, etc.) cost estimate. This data point would not only give orchestrators a more complete picture of their monthly costs, but it also could eventually be compared to the transaction costs that might be incurred in other types of marketplace structures (i.e. consider the transaction costs involved in a marketplace operated by a central intermediary that would be associated with the margin the intermediary takes on each transaction).

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