MetaMask announces Ethereum staking feature focused on accessibility
MetaMask announced today the launch of a feature that will allow users to stake Ether directly to leading providers, reducing much of the cost and technical complexity of the new Ethereum mechanism.
Following Ethereum’s shift to proof of stake in September, a process known as the Merge, staking became a key part of the Ethereum ecosystem.
As opposed to proof of work, where blockchain transactions are validated through an energy-intensive process called mining, proof of stake instead relies on trusted entities known as validators who deposit, or “stake,” a large amount of Ether, receiving tokens in return.
There are a few main drawbacks for normal users: The process is expensive, requiring 32 Ether (about $45,000 at today’s price) to be a validator, and it requires a deal of technical expertise to run the proper software and review transactions. Finally, that Ether is locked into the ecosystem, meaning users can’t access their assets being used for staking until further updates.
As a result, many of the people entering the staking ecosystem are institutional investors, with the number of wallets staking $1 million or more worth of Ether steadily climbing.
Solutions have emerged, such as staking providers like Lido and Rocket Pool that reward users with a liquid token for staking Ether that can be swapped for other cryptocurrencies and lower the financial barrier for entry.
The new MetaMask feature, called MetaMask Staking, still represents a major advancement in accessibility for people looking to enter the world of staking.
With 30 million active users, MetaMask is the leading noncustodial wallet in the Ethereum ecosystem, meaning it allows users to control their private keys. ConsenSys, a top crypto company led by Ethereum cofounder Joseph Lubin, owns and manages MetaMask, along with other software that works in conjunction with the wallet.
Through the new staking feature, users can visit their MetaMask portfolio and choose a staking provider—either Lido or Rocket Pool—as well as the amount they want to stake.
Abad Mian, lead product manager at MetaMask, said that the ease of the new feature will help users intimidated by the key update to the Ethereum ecosystem.
“It’s complex, it’s hard to understand, and there’s a lot of jargon,” he told Fortune. “What we’re trying to do is reduce that complexity.”
MetaMask has come under recent fire for privacy concerns after it was revealed that the wallet collects user data, in contrast to its ethos of decentralization.
In response, ConsenSys announced it would work to narrow data retention and introduce advanced settings for users who want more control.
The new staking feature represents another step forward for the Ethereum-focused software giant as the ecosystem looks to build on its shift to a proof-of-stake model.
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