Crypto wallet firm MetaMask has launched a staking service, enabling users to pool funds and stake assets with enterprise-grade validators run by blockchain software company Consensys.
With this service, MetaMask users can stake their Ether without needing to meet Ethereum’s high minimum requirement of 32 ETH, approximately $112,000 at the current rate.
MetaMask’s staking pool allows users to contribute less than the required ETH and still earn rewards for securing the network.
Since Ethereum upgraded to a proof-of-stake (PoS) consensus mechanism, it transitioned from mining to staking.
This shift requires validators to process transactions, store data, and add blocks to the Beacon Chain, thus maintaining network security and decentralization.
Consensys senior product manager Matthieu Saint Olive emphasized that MetaMask’s pooled staking enhances Ethereum’s security. He told Cointelegraph:
“Having more users staking and more ETH staked is beneficial for Ethereum security […] Also, the underlying validator infrastructure is distributed across multiple cloud providers, multiple regions across the globe, multiple consensus clients and multiple execution clients.”
Validators earn interest on their staked coins for their active participation in Ethereum.
READ MORE: Crypto.com Receives VASP Approval from Central Bank of Ireland, Expanding Its Crypto Services
However, staked ETH can be lost if a validator fails in its duties or engages in collusion, a scenario known as “slashing.”
Saint Olive noted, “If a validator is slashed, this would lead to users’ fund loss, which is the main risk around staking.” He assured that since 2020, their validators have operated smoothly “without any slashing incidents.”
Despite the advantages, not everyone can meet the 32 ETH requirement.
As ETH’s price climbed to over $3,000, the cost to become a validator increased significantly.
Currently, Ether is around $3,500, making the requirement about $112,000.
The MetaMask team pointed out that “99% of ETH holders have less than 32 ETH” and 74% of ETH is not staked, with much of the staked ETH in a few large pools.
MetaMask’s new service aims to bridge this gap, allowing users with less than 32 ETH to stake through Consensys validators.
Users can “unstake at any time,” depending on the validators’ exit queue protocols. Consensys CEO and Ethereum co-founder Joseph Lubin described the service as potentially more convenient than liquid staking, saying:
“You can kind of flip a switch and you are able to, in a pretty liquid way, allocate small amounts or large amounts of Ether and pull them back really quickly.”
However, the service is not yet available in the U.S. or U.K. MetaMask is working to launch the service in these regions soon.
Saint Olive noted that the U.S. regulatory landscape is “experiencing meaningful evolution” in its Ethereum staking policy, and additional regulatory guidance is expected in the U.K. soon.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
