MetaMask, a leading crypto wallet provider, has recently introduced a new staking service that allows users to combine their funds and stake their assets with enterprise-grade validators managed by Consensys, a blockchain software company.
This service enables MetaMask wallet users to stake their Ether (ETH) without having to meet Ethereum’s high minimum requirement of 32 ETH, which is currently valued at around $112,000. By utilizing MetaMask’s staking pool, users can contribute less than the required amount of ETH and still be eligible for staking rewards that help secure the network.
ETH staking has become essential since Ethereum transitioned to a proof-of-stake (PoS) consensus mechanism, replacing its previous mining model. Validators are now needed to process transactions, store data, and add blocks to the Beacon Chain, ensuring the network’s security and decentralization. Consensys senior product manager Matthieu Saint Olive believes that MetaMask’s staking service enhances Ethereum’s decentralization and security.
Validators receive interest on their staked coins for actively participating in Ethereum, but there is a risk of losing staked ETH if a validator fails to fulfill its duties or engages in collusion, known as “slashing.” Saint Olive reassured that Consensys validators have operated smoothly without any slashing incidents since 2020.
Despite the significant benefits of staking, many individuals are unable to meet the 32 ETH minimum requirement due to the high cost associated with Ethereum’s price surge. MetaMask reported that 99% of ETH holders possess less than 32 ETH, and a large portion of staked ETH is concentrated in a few major 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, with the flexibility to unstake their assets at any time.
Consensys CEO and Ethereum co-founder Joseph Lubin described the new service as similar to liquid staking, offering users the convenience of easily allocating and withdrawing their Ether. While the service is not yet available in the US and UK, MetaMask is actively working to make it accessible in these regions once regulatory policies evolve.
According to Saint Olive, the US regulatory landscape for Ethereum staking is evolving rapidly, and MetaMask aims to introduce the service in the US as soon as regulatory clarity is established. Similarly, the UK is expected to update its regulatory framework to provide greater clarity for the staking market, with MetaMask planning to make the service available in the UK once regulatory guidance is finalized.