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P2P streaming today uses constant bitrate video, primarily because it is easier to cut such video into fixed-throughput substreams and deliver it via multiple peers. This approach suffers from low reliability of end-to-end throughput which can cause playback freezes. It also suffers from extreme variation in throughput across peers. This paper proposes a variable-bitrate method for P2P streaming which solves these problems. The proposed method is designed for scalability as well as spontaneous network organization because of its low demand on resources.