Ethereum Staking: MetaMask offers an innovative service with 10% commission

MetaMask platform now offers a staking service for Ethereum users who are interested. An appealing offer, but it has received mixed reactions due to the perceived excessive fee structure of the service.

MetaMask offers crypto staking for a 10 % commission

The crypto wallet provider MetaMask has recently launched its stake validation service. It aims to simplify staking for Ethereum users while addressing concerns about centralization within the staking ecosystem.

The staking service in question is part of the MetaMask wallet. It allows Ethereum users to participate in the network’s proof of stake consensus mechanism, in exchange for a 10 % fee. This is even without requiring deep technical expertise.

Introduced on 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 dollars according to the current market price.

With this initial investment, participants are freed from the responsibilities associated with the operation and maintenance of their validation nodes. These are managed by MetaMask on behalf of the stakers. A way to promote a secure and efficient operation of the service and to minimize the common challenges they often face.

MetaMask launches Ethereum validator staking service😎#Metamask #EthereumDistribution pic.twitter.com/LvPzXOdTwu

— finance ideas (@financeideas89) January 19, 2024

An offer not so interesting after all?

One of the main benefits of MetaMask’s staking approach is that it counters centralization issues within the staking ecosystem. Many users hesitate to rely on liquid staking providers like Lido, fearing that such a concentration of power might compromise the network’s decentralization.

Yet, even though the staking offer seems appealing, some consider it unprofitable due to the proposed pricing structure. MetaMask takes a 10 % fee on staking rewards. For Lefteris Karapetsas, founder of Rotkiapp, this is unattractive compared to other available options.

The expert particularly thinks of Lido, which stands out as a dominant player in the staking market with 9.3 million ETH staked on its platform. This represents about 40 % of the 28.8 million ETH staked on the Ethereum network. Indicating significant interest in participating in the network’s consensus mechanism.

Although centralized exchanges like Coinbase also offer the option to stake on Ethereum, they charge significant fees of 25 % on staking rewards. This can deter users seeking more profitable and decentralized alternatives. In fact, MetaMask presents itself as a viable option, especially for users who prioritize accessibility, decentralization, and a proven experience in Ethereum staking.