Thread by @danzuller

1/ Took a deep dive analysis (been a while since I've done one) into @LivepeerOrg today in an attempt to model #generalizedmining economics.

Source: explorer.livepeer.org/transcoders

2/ Interesting takeaway from the above: the transcoder market appears very choppy (to delegators).

Some quick stats on block rewards:

- Only 3 of the 15 active transcoders (20%) desired block rewards >=25%

- 4 of the 15 active transcoders (~27%) desired block rewards >=10%

3/ With respect to fee share:

- 8 of the 15 active transcoders (~53%) desired fee share >=25%
-9 & 11 active transcoders desired fee share >=60% & >=~73%, respectively

4/ Seems majority of active transcoders value $ETH more than the $LPT network in which they are actively participating, which I found surprising. If you are participating in a network with a LT view, it would make sense for you to want to accrue as large a stake LT as possible.

5/ Looking closer, it seems larger stakers value fee share more than block rewards, whereas the opposite is true for smaller stakers. This can be seen in the above image by observing how reward cuts don't go above 10% until we get to active transcoders that have <5% stake.

6/ The fee share is less surprising, as the Livepeer protocol enables a routing procedure that randomly routes jobs to transcoders in a distribution relative to delegated stake.

7/ As #generalizedmining continues to develop, so too will active network participation strategies as ecosystem participants look to develop competitive edges relative to their peers that can be sustained over the long-term.

Should clarify, this is of course not a statistically significant conclusion as some transcoders with <5% stake also have low block reward preferences, invalidating the thesis that all smaller transcoders will prefer higher block rewards. The above was more an observation.

This was supposed to read “-9 & 11 active transcoders desired fee share >=10% & >=5%, respectively” - sorry!