The approach to the distribution of tokens has increased the use of Ethereum gas in the last two months, but in most cases the gas tariffs have remained reasonable.
Livepeer, the video transcoding service based on the Ethereum network, has completed the "Merkle mining" process of the LPT digital resource. The creation and distribution of tokens occupy the bandwidth on the Ethereum network, burning up to 30% of gas.
However, in most cases, the distribution of LPT did not create a gas supply war and the prices for Ethereum transactions remained reasonable. A gas deals war occurs when users aim to pass their transaction before everyone else and are ready to pay higher commissions.
Livepeer announced the results of its token distribution, which included the requirement for network participants to feed it using the Ethereum network:
The Livepeer network uses a participation model in which a selected group of 15 transcodifiers can provide video services and receive LPT awards. In this regard, it has a form of "delegated delegation testing", but distributed computing has only one specific objective. The network uses inflation to incentivize the use of tokens, as explained in a blog post:
"Participants who passively hold LPT tokens and do not connect to transcoders are economically incentivized to do so or suffer a dilution, and from a dilution perspective, participants who can maximize their LPT liquid assets may be able to accumulate holdings in the network comparable to those of the first investors, who are acquiring and delegating LPT slowly over time. "
LPT is a token to be used within a distributed computing ecosystem for video transcoding. The asset is not yet traded on the stock exchange and now the tokens will have to prove their usefulness in the Livepeer ecosystem.
The incidents of congestion on the Ethereum network cause skepticism about the ability of technology to carry distributed apps. For now, most apps do not create an increase in gas prices due to the use of low quality. The exception was a FOMO lottery game, which included the potential for a gas tax bidding war.
In addition, it is extremely difficult for users to synchronize the entire Ethereum blockchain, which is now larger than one terabyte. At the same time, the Ethereum hashrate it is falling again, towards the lows of three months. Ethereum's mining economy is becoming less interesting, especially as there may be another cut in the block's reward.
ETH market prices remain relatively stagnant at around $ 224 as a result of lower sales and dropout pressures. However, ETH behaves like a utility currency, in the absence of a bullish case in the past few weeks.