MetaMask has announced the launch of a new staking service that would allow users to run their validator node for a fee.
MetaMask noted that it would run validator nodes on behalf of users who deposit 32 Ethereum tokens. In addition, these users will retain control of their funds and accounts at all times. Let’s explore more about this important feature.
MetaMask Rolls Out Validator Staking: A New Era Begins
The goal of this new service is to give users access to Ethereum’s proof-of-stake network more conveniently and safely. In addition, the new MetaMask service will make things easier for users who do not have the technical know-how to set up and maintain their validator nodes, as it eliminates pooling and maintaining hardware.
Additionally, the service seeks to lower the risks of operating a validator node, including potential fines for outages or other problems.
Introducing Validator Staking on MetaMask Portfolio.🦊
With a 32 ETH deposit, we run your very own validator node where you're always in control.
No pooling. No hardware. Just rewards.✔️
🔗 https://t.co/rmCtgs86WO pic.twitter.com/R8VRttP2XX
— MetaMask 🦊🫰 (@MetaMask) January 18, 2024
MetaMask wrote: “We run your node securely, streamlining your staking rewards while reducing the risks of slashing and downtime.”
What are the Benefits of MetaMask’s Service?
Most decentralists or beginners could find the new service appealing as staking through MetaMask addresses the centralization concerns raised about liquid staking providers like Lido.
It also removes the risk of being slashed due to internet failures. Consensys, the company behind MetaMask, claimed that it has “never received any slashing penalties in more than two years of operation, despite managing over $2 billion worth of ETH across more than 33,000 validators.”
We run your node securely, streamlining your staking rewards while reducing risks of slashing and downtime.🌐
Powered by @Consensys Staking, setting up your very own Ethereum validator is now easier via MetaMask Portfolio. https://t.co/i3lpoCVgfn
— MetaMask 🦊🫰 (@MetaMask) January 18, 2024
Currently, staking via MetaMask provides 3.8% yearly. But the company charges a 10% commission on validator rewards. And many believe this could be a challenge to its adoption. The crypto community wasted no time in reacting to the new service.
Interesting idea but a 10% fee makes it a completely unattractive option for any user who bothers to compare with the other available options out there. https://t.co/vSzBQwPL8f pic.twitter.com/GeuaYUm2RL
— Lefteris Karapetsas | Hiring for @rotkiapp (@LefterisJP) January 18, 2024
Services like MetaMask’s validator staking option will be essential in ensuring Ethereum remains secure and decentralized as the network grows and evolves. However, time will tell if the huge fee poses a threat to its adoption.
