MetaMask, the popular crypto wallet, has rolled out a new “pooled staking” service, allowing users to participate in securing the Ethereum network and earn rewards regardless of how much Ether (ETH) they hold. This is a significant move, as previously, staking on Ethereum required a minimum of 32 ETH, a hefty sum currently sitting around $113,000.
Lowering the Barrier to Entry
Prior to this launch, only those with substantial holdings could contribute to Ethereum’s security by staking. MetaMask’s pooled staking service aggregates funds from multiple users, enabling anyone to participate with any amount of ETH. This broader access is expected to further decentralize and strengthen the Ethereum network.
Phased Rollout and Regulatory Hurdles
The new feature is being released gradually, with a portion of eligible users gaining access initially, followed by wider availability in the coming days. It’s important to note that, due to regulatory uncertainties, MetaMask staking is currently unavailable in the United States and the United Kingdom. However, Consensys, the developer behind MetaMask, has expressed plans to expand access to these regions in the future.
Security and Transparency
Consensys emphasizes the robust security infrastructure underpinning MetaMask’s pooled staking. They claim to utilize a multi-cloud, multi-region, and multi-client architecture with over 33,000 hosted validators and a zero-slashing rate, demonstrating a commitment to validator uptime and user security.
Also Read: Robinhood Opens Up Ethereum World with MetaMask Integration: Easier Crypto Buys, Seamless Access
Competition in the Staking Space
MetaMask’s pooled staking joins existing solutions offered by Lido and Rocket Pool, which also allow users to participate with smaller ETH holdings. These platforms often provide users with a liquid staking token representing their underlying ETH, which can be used in other DeFi applications while still accruing staking rewards. While MetaMask doesn’t currently offer a similar liquid token, it does allow users to retain full control over their ETH, albeit with a potentially longer unstaking wait time.
MetaMask’s Expanding Ecosystem
The launch of pooled staking aligns with MetaMask’s recent efforts to expand its service offerings. Last month, they announced upcoming support for Bitcoin, and in April, they integrated with Daylight to help users track potential airdrops and NFT claims. These developments position MetaMask as a comprehensive platform for interacting with the ever-evolving world of decentralized finance (DeFi).
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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