MetaMask Introduces Ethereum Validator Staking Feature, Powered By Consensys

MetaMask Introduces Ethereum Validator Staking Feature, Powered By Consensys

MetaMask, the popular crypto wallet application, has collaborated with Consensys Staking to run Ethereum validator nodes on behalf of users willing to stake at least 32 ETH, at a current value of about $80,000.

MetaMask currently promises an annual return rate of about 4%, then charges a 10% fee, although the company points out that this return rate may increase or decrease due to the inherent randomness of adding any given validator’s block into the network.

Additionally, MetaMask also offers pooled staking services through popular providers Lido and Rocket Pool. However, the rewards currently advertised are lower, at 3.5% and 3.14% respectively.

This recent development has been made possible following Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS) in September 2022, dubbed as ‘The Merge’.

The Merge changed how the Ethereum network is secured, and now relies on validators instead of miners.

No Need to Pool After The Development

Many staking providers allow users to pool smaller amounts of funds together to hit the 32 ETH requirement to run a single validator, after which they share the rewards.

However, MetaMask’s new offering comes with a rather specialized approach, where no pooling or particular hardware or software requirement is needed. You only need to stake your 32 ETH which will then be used by Consensys Staking service to run a validator node on their behalf.

It is important to note that Consensys already operates validators accounting for about 4% of all currently staked ETH.

It is, however, important to note that while MetaMask is coming through by offering a simplified process of becoming an Ethereum validator, it does not eliminate the inherent risks associated with cryptocurrency investments. As always, potential investors should be conscious of risk tolerance and investment objectives before entering into the crypto world.

The partnership between the two provides a massive opportunity for those interested in taking part in securing the Ethereum network as validators without the need of having to meet some requirements or even from pooling arrangements.

Leave a Comment

Comments

No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *