The following proposal was submitted to the Change Proposal Form:
Please propose which Livepeer Protocol Parameter to change? (current values of these parameters are shown in brackets)
Max # Active Transcoders (25)
Please propose what value the parameter should change to?
If you like, you can give your reasons why you think this change should happen.
The barrier to entry for a new Transcoder is currently very high. The 25th Transcoder has a total amount of delegated stake of 47,000 LPT, which is equivalent to ~$284,000 at current market prices.
This means that it is almost impossible to launch a new Transcoder, unless you already have the support of a Livepeer Whale.
This high barrier to entry, and requirement to secure an “inside deal” in order to participate as a Transcoder, represents a risk to the decentralisation and participation of this project.
If you like, you can give any reasons why you think this change should NOT happen.
Increase cost to initialize a round: as I understand it, the cost of initialising a new round is proportional to the number of Transcoders in the active set. Increasing the number would therefore increase the cost of initialising a new round.
The average cost of initialising the last 10 rounds was approximately $8.
However, given that approximately 21,000 LPT (~$126,000 at current prices) are minted each new round and distributed to active participants, increasing the cost to initialise a new round seems to be a reasonable suggestion.
We could also wait for Streamflow - but that isn’t likely to ship until the end of 2019 at the earliest, by which time, 25th place will be a long way out of sight for new joiners, and likely to therefore be an even higher barrier to entry.