MetaMask’s Pooled Staking: Lowering the Barrier for Ethereum Staking
TLDR
MetaMask has launched a new “pooled staking” feature that allows users to stake Ethereum (ETH) without meeting the minimum requirement of 32 ETH. A unified staking service allows users to contribute their ETH to consensus-driven enterprise-level validators, making it more accessible to more users. According to MetaMask, 99% of ETH holders have less than 32 ETH and 74% of ETH currently have no stake. The new feature aims to contribute to the decentralization and security of the Ethereum network by encouraging more users to participate in the stake. MetaMask's integrated staking service is not yet available in the United States and the United Kingdom due to regulatory issues, but the company is working to make it available in these jurisdictions.
MetaMask, the popular Ethereum wallet and browser extension, has introduced a new “combined staking” feature that allows users to share their Ethereum (ETH) without meeting the minimum requirement of 32 ETH.
The move aims to make the stock accessible to more users and to decentralize and secure the Ethereum network.
MetaMask's integrated staking service allows users to contribute their funds to enterprise-level validators managed by Consensys, the blockchain software company behind MetaMask.
This means that users with less than 32 ETH, currently worth around $112,000, can still participate in the stake and earn rewards for maintaining the network.
According to MetaMask, 99% of ETH holders have less than 32 ETH and 74% of ETH currently have no stake.
By providing an accessible and efficient staking solution, MetaMask aims to enable more users to participate in staking and contribute to the decentralization and security of the Ethereum network.
Matteo Saint-Olive, senior product manager at Consensus, believes that Metamask's unified staking service will benefit Ethereum's security.
“Having more users and having more ETH shares is important for the security of Ethereum,” he told Cointelegraph.
“Also, the underlying authentication infrastructure is distributed across multiple cloud providers, multiple regions around the world, multiple consensus clients, and multiple implementation clients.”
While rewarding offers opportunities for rewards, it also carries risks. If a validator fails to perform its duties or is compromised, it may be “cut off”, resulting in the loss of held ETH.
However, St. Olive stressed that Consensys certifications have been running smoothly since 2020 without any triggering issues.
MetaMask's integrated staking service provides flexibility, allowing users to withdraw their ETH at any time, according to Ethereum's validator exit queue protocol. Users can easily track their balances and rewards in the MetaMask portfolio interface.
While the new service is convenient, it is not yet available to users in the United States and the United Kingdom due to restrictions. MetaMask is working to provide its services in these regions as the regulatory landscape becomes clearer.
In a previous interview with Cointelegraph, Consensus CEO and Ethereum founder Joseph Lubin suggested that the new service could be more convenient compared to liquid staking.
“With the flip of a switch, you can pretty much allocate a small or large amount of ether and get it back quickly,” Lubin said.
As the Ethereum network continues to evolve and grow, Metamask's unified staking service represents a significant step toward making the stock more accessible and inclusive. By encouraging more users to participate in the security of the network, MetaMask is contributing to the decentralized and long-term sustainability of the Ethereum ecosystem.
