MetaMask launches new staking service: users can run their own verification nodes

Author: Martin Young, Cointelegraph; Compiler: Songxue, Golden Finance

Crypto wallet provider MetaMask has launched a new staking service that enables Ethereum users to run their own verification nodes However, a fee is required.

On January 18, the crypto wallet provider introduced staking functionality for validator nodes through MetaMask Portfolio.

MetaMask will run validating nodes on behalf of those stakers who have deposited 32 Ethereum. Based on current Ethereum prices, this equates to approximately $78,752 — not a small amount.

MetaMask notes that the service requires no consolidation or hardware, saying: “We run your node securely, simplifying your staking rewards while reducing the risk of slashing and downtime.”

This new service may appeal to beginners and/or decentralization proponents asstaking via MetaMask may solve the problem of large liquidity staking like Lido Centralization concerns raised by providers.

This also eliminates the need to purchase hardware to run a personal Ethereum node, as well as the possibility of being curtailed due to internet outages.

ConsenSys, which manages the service, said: "In more than two years of operation, despite managing more than 33,000 validator nodes worth more than $2 billion in ETH, we have never been subject to any cutback penalties."

The current annual return for staking through MetaMask is 3.8%. However, the platform will also extract 10% of the verification node reward as a handling fee.

Lefteris Karapetsas, founder of crypto portfolio tracking app Rotkiapp, said the new service is an “interesting idea, but the 10% fee makes it difficult for anyone willing to compare it to other available options.” is a completely unattractive option for all users.”

The return on staking with MetaMask minus its fees is similar to the 3.4% offered by Lido.

Lido is the dominant liquidity staking platform in the industry, with 9.3 million ETH worth $22.9 billion currently locked. According to data from Ultrasound.Money, this equates to approximately 40% of the total 28.8 million ETH staked. Approximately a quarter of Ethereum’s total circulating supply is locked in staking.

In addition to decentralized staking providers, Ethereum holders can also use centralized exchanges such as Coinbase, which takes 25% of staking rewards.