MetaMask, a cryptocurrency wallet company, has introduced a new staking service that allows users to combine their funds and stake their assets with enterprise-grade validators operated by Consensys, a blockchain software company.
This new service from MetaMask enables users to stake their Ether (ETH) without needing to meet Ethereum’s high minimum requirement of 32 ETH, which is valued at around $112,000 currently. By utilizing MetaMask’s staking pool, users can contribute less than the required amount of ETH and still qualify for staking rewards to help secure the network.
ETH staking is a crucial component of Ethereum’s transition to a proof-of-stake consensus mechanism, which requires validators to process transactions, store data, and add blocks to the Beacon Chain. These validators play a key role in maintaining the security and decentralization of the network. According to Consensys senior product manager Matthieu Saint Olive, MetaMask’s staking service contributes significantly to Ethereum’s decentralization and security.
Validators receive interest on their staked coins as a reward for actively participating in Ethereum. However, there is a risk of losing staked ETH if a validator fails to fulfill its duties or engages in collusion, resulting in a process known as “slashing.” Saint Olive reassured that Consensys’ validators have operated smoothly without any slashing incidents since 2020.
Despite the potential benefits of staking, many ETH holders are unable to meet the 32 ETH minimum requirement due to the rising price of Ether, which currently sits around $3,500. MetaMask revealed that 99% of ETH holders possess less than 32 ETH, and a significant portion of staked ETH is concentrated in larger pools.
To address this issue, MetaMask’s new service allows users with assets below the minimum requirement to participate in network staking through Consensys validators. Users can stake their assets and withdraw them at any time based on the validators’ exit queue protocols.
While the service offers convenience for ETH holders, it is not yet available in the U.S. or U.K. MetaMask is actively working to make the service accessible in these regions as regulatory landscapes evolve. Saint Olive noted that regulatory progress in the U.S. is crucial for the product’s rollout in the country, and similar expectations exist for regulatory guidance in the U.K. The goal is to provide greater clarity and modernize the current staking market regulations in these jurisdictions.