New feature allows users to stake any amount of ETH, earn rewards, and secure the Ethereum network, with plans for future expansion.
MetaMask, a popular Ethereum wallet, has introduced a new feature called Pooled Staking. This innovation allows users to stake any amount of ETH (Ethereum) to earn rewards and help secure the Ethereum network. The feature is currently available in select regions, with plans for future expansion.
What is Pooled Staking?
Pooled Staking is a method that allows multiple users to combine their ETH into a single pool. This pool is then used to participate in Ethereum’s security mechanisms, such as validating transactions. Traditionally, staking on Ethereum required a minimum of 32 ETH, which can be a significant barrier for many users. With Pooled Staking, even those with smaller amounts of ETH can contribute and earn rewards.
How Does It Work?
MetaMask’s Pooled Staking is powered by Consensys Staking, a reliable infrastructure that has had zero slashing incidents since 2020. Users can stake their ETH through the MetaMask Portfolio, monitor their rewards, and unstake at any time. MetaMask takes a 15% fee from the rewards earned. The platform uses StakeWise’s architecture to ensure added security and flexibility.
Benefits of Pooled Staking
One of the main advantages of Pooled Staking is that it makes Ethereum staking more accessible. Users no longer need to have 32 ETH to participate; they can stake any amount. This lowers the barrier to entry and allows more people to contribute to the network’s security.
Additionally, users retain control of their assets while staking in enterprise-grade validators. This means they can earn rewards without the need to run a full validator node, which can be complex and resource-intensive.
Limitations and Future Plans
Currently, MetaMask’s Pooled Staking feature is not available in the U.S. and the UK. However, there are plans to expand the service to these regions in the future. Another limitation is that MetaMask will not offer liquid staking tokens (LSTs) with this service, unlike some competitors. LSTs are tokens that represent staked assets and can be traded or used in other DeFi (Decentralized Finance) applications.
Practical Takeaways
For users interested in staking ETH but lacking the required 32 ETH, MetaMask’s Pooled Staking offers a practical solution. It provides a way to earn rewards and support the Ethereum network without the need for significant resources. Users can easily stake, monitor, and unstake their ETH through the MetaMask Portfolio, making the process straightforward and accessible.
