This enzyme belongs to the family of oxidoreductases, specifically those acting on a peroxide as acceptor (peroxidases) and can be included in the broad category of ligninases.
Lignin is highly resistant to biodegradation and only higher fungi and some bacteria are capable of degrading the polymer via an oxidative process.
This process has been studied extensively in the past twenty years, but the mechanism has not yet been fully elucidated.
The mechanism by which lignin peroxidase (LiP) interacts with the lignin polymer involves veratrole alcohol, which is a secondary metabolite of white rot fungi that acts as a cofactor for the enzyme.
As of late 2007, 3 structures have been solved for this class of enzymes, with PDB accession codes 1B80, 1B82, and 1B85.