The inflation rate in the Livepeer protocol fluctuates depending on how many tokens are staked out of the total supply in circulation. Livepeer refers to this ratio as its participation rate.
The protocol aims for a 50% participation rate as a benchmark for balancing network security and token liquidity. The protocol incentivizes participation by increasing or decreasing the inflation rate by 0.0003% for every round that the participation rate dips below or above 50%, respectively. One round is equal to 5,760 Ethereum blocks, lasting about 22.5 hours, which is roughly how often rewards are claimed.
View Scout for the latest inflation numbers.
We maximize reward generation through reward call tracking, monitoring, and alerts, as well as optimized auto-unbonding and rebonding processes.
Unbonding and Rebonding Rewards
There is a seven day unbonding period in Livepeer. After the unbonding period is complete and rewards are redistributed, Bison Trails notifies customers that rewards are available to be rebonded so that they can continue to compound.