The purpose of the Livepeer token (LPT) is to coordinate, bootstrap, and incentivize participants to make sure the Livepeer network is as cheap, effective, secure, reliable and useful as possible. In the Livepeer protocol, LPT is required to perform the work of transcoding and distributing video on the network. The more LPT you own, the more work you're able to perform on the network in exchange for fees. As the network's usage grows, so does the demand for orchestrators and thus LPT.

Of course, not everyone has the expertise required to perform the job of an Orchestrator. It requires serious technical knowledge and can be a full-time job. What if you're a Livepeer tokenholder but don't have the time or expertise to run the necessary infrastructure 24x7?

There's another set of actors in the Livepeer protocol who play a less active albeit equally important role within the protocol — Livepeer Delegators.