MetaMask’s new solution eliminates the need for pooling or complicated hardware to host an Ethereum validator node, but it also charges a 10% fee.MetaMask, a cryptocurrency wallet provider, has launched a new staking service that allows Ethereum customers to run their own validator node—for a fee. On January 18, the cryptocurrency wallet service provided validator staking via MetaMask Portfolio.
MetaMask will run the validator node on behalf of stakeholders that invest 32 Ether (ETH $2,467). At current Ethereum pricing, this corresponds to approximately $78,752 – a sizable fortune. There is no need for pooling or hardware, it stated, “We run your node securely, streamlining your staking rewards while reducing the risks of slashing and downtime.” Validator Staking is now available on MetaMask Portfolio. With a 32 ETH payment, we’ll host your own validator node, giving you complete control. The new service may appeal to newcomers and/or decentralists, as staking with MetaMask could alleviate centralization issues raised by major liquid staking providers such as Lido. It also avoids the need to purchase hardware to run a personal Ethereum node and the possibility of being sliced due to internet failures.
Consensys, which operates the service, maintained that it has not received any cutting penalties in more than two years of existence, despite managing over $2 billion in ETH among more than 33,000 validators. Staking with MetaMask now yields 3.8% per year; however, the site charges a 10% commission on validator awards. Lefteris Karapetsas, founder of cryptocurrency portfolio tracker Rotkiapp, said the new service is a “interesting idea, but a 10% fee makes it a completely unattractive option for any user who bothers to compare with the other available options out there.”
The yields from staking using MetaMask minus fees are comparable to Lido’s 3.4%. Lido is the industry’s leading liquid staking platform, with 9.3 million ETH worth $22.9 billion currently staked. This accounts for around 40% of the total 28.8 million ETH invested, according to Ultrasound.Money. Staking accounts for around 25% of Ethereum’s total circulating supply. Aside from decentralised staking companies, Ethereum holders can use centralised exchanges like Coinbase, which takes a hefty 25% share of staking rewar