MetaMask, the crypto wallet firm, has launched a staking service that enables users to pool their funds and stake their assets with enterprise-grade validators run by blockchain software company Consensys.
This service allows MetaMask wallet users to stake their Ether (ETH) without having to meet Ethereum’s substantial minimum requirement of 32 ETH, which is roughly $112,000 at the current price of around $3,500 per ETH.
With MetaMask’s staking pool, users can contribute less than the required ETH and still earn staking rewards for securing the network.
While staking offers significant benefits, the high minimum requirement of 32 ETH makes it inaccessible for many. As the price of ETH has surged to over $3,000, becoming a validator has become costly. MetaMask noted that “99% of ETH holders have less than 32 ETH.”
Additionally, the wallet service provider pointed out that 74% of ETH is currently not staked, and most staked ETH is concentrated in a few large pools.
To address this, MetaMask's new service allows users with less than 32 ETH to participate in network staking through Consensys validators. Users can also "unstake at any time," subject to the validators' exit queue protocols.
However, the service doesn't came into effect on the U.S. or the U.K. MetaMask is working to make it accessible in these regions soon.
Saint Olive explained that the regulatory landscape in the U.S. is still evolving regarding Ethereum staking policy. They expect to launch the product in the U.S. once the policy becomes clearer. Similarly, in the U.K., regulators are anticipated to provide additional guidance, and MetaMask expects the U.K. to modernize the current system and offer greater clarity to the staking market.
