MetaMask Introduces Pooled Staking to Lower the Barrier for Ethereum Staking
MetaMask, the popular Ethereum wallet and browser extension, has rolled out an innovative “pooled staking” feature. This feature allows users to stake their Ethereum (ETH) without having to meet the hefty 32 ETH minimum requirement. The aim is to make staking more accessible to a wider range of users and to contribute to the decentralization and security of the Ethereum network.
With MetaMask’s pooled staking service, users can now stake any amount of ETH by contributing their funds to enterprise-grade validators operated by Consensys, the blockchain software company behind MetaMask. This means that users with less than 32 ETH, which is currently worth around $112,000, can still participate in staking and earn rewards for securing the network.
According to MetaMask, 99% of ETH holders have less than 32 ETH, and 74% of ETH is currently not staked. The new feature aims to encourage more users to participate in staking and contribute to the decentralization and security of the Ethereum network.
Matthieu Saint Olive, senior product manager at Consensys, believes that MetaMask’s pooled staking service will benefit Ethereum’s security. While staking offers the potential for rewards, it also carries risks. If a validator fails to perform its duties or engages in collusion, it can be “slashed,” resulting in a loss of staked ETH. However, Saint Olive emphasized that Consensys’ validators have been operating smoothly since 2020 without any slashing incidents.
The pooled staking service offers flexibility, allowing users to unstake their ETH at any time, subject to the Ethereum validator exit queue protocol. Users can also easily monitor their balances and rewards within the MetaMask Portfolio interface.
Despite the convenience of the new service, it is not yet available for users in the United States and the United Kingdom due to regulatory considerations. MetaMask is working to make the service available in these jurisdictions as soon as the regulatory landscape becomes clearer.
In a previous interview with Cointelegraph, Consensys CEO and Ethereum co-founder Joseph Lubin compared the new service to liquid staking, suggesting that it may be more convenient.
As the Ethereum network continues to evolve and grow, MetaMask’s pooled staking service represents a significant step towards making staking more accessible and inclusive. By encouraging more users to participate in securing the network, MetaMask is contributing to the decentralization and long-term sustainability of the Ethereum ecosystem.
