MetaMask Launches a Validator Staking Service

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.

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.”

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. 

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.

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.


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