
Ethereum staking, a key Proof of Stake mechanism, provides an opportunity for ETH holders to actively participate in the security and governance of the network while earning rewards. It is in this context that MetaMask, the well-known crypto wallet provider, recently launched its own staking service. An interesting offer, but which nevertheless arouses mixed reactions due to the pricing structure of the service considered excessive.
MetaMask offers crypto staking for 10% commission
Crypto wallet provider MetaMask recently launched its stake validation service. It aims to simplify staking for Ethereum users while addressing concerns about centralization in the staking ecosystem.
The staking service in question is part of the MetaMask wallet. It allows Ethereum users to engage in the network’s proof-of-stake consensus mechanism, in return for a 10% fee. This, even without in-depth technical expertise.
Introduced Thursday January 18, MetaMask’s staking service requires users to deposit a substantial amount of 32 Ether (ETH). This represents an approximate value of $78,752 at current market prices.
With this initial investment, participants are exempt from the responsibilities of operating and maintaining their validator nodes. These are managed by MetaMask on behalf of the stackers. A way to promote safe and efficient operation and minimize the common challenges they often face.
A not-so-attractive offer?
One of the main advantages of MetaMask’s staking approach is that it helps counter centralization issues within the staking ecosystem. Many users are hesitant to rely on liquid staking providers like Lido. They fear that such a concentration of power could compromise the decentralization of the network.
However, even if the staking offer seems interesting, some consider it unprofitable due to the proposed pricing structure. MetaMask charges a 10% commission on staking rewards. For Lefteris Karapetsas, founder of Rotkiapp, this is unattractive compared to other options available.
The expert is thinking in particular of Lido which stands out as a dominant player in the staking market with 9.3 million ETH staked on its platform. This represents approximately 40% of the 28.8 million ETH staked on the Ethereum network. This indicates significant interest in participating in the network consensus mechanism.
Although centralized exchanges like Coinbase also offer the possibility of staking on Ethereum, they impose a substantial fee of 25% on staking rewards. This deters users looking for more profitable and decentralized alternatives. In fact, MetaMask ultimately presents itself as a viable option. Especially for users who prioritize accessibility, decentralization and proven experience in staking on Ethereum.
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