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MetaMask, the non-custodial wallet developed by Consensys, launched Validator Staking on MetaMask Portfolio, allowing users to run their own ethereum validator nodes but with a 10% fee.
According to the January 18 announcement, the feature will allow users to operate their ethereum validator node without the complexities of bundling or the need for specialized hardware.
MetaMask will operate validator nodes for interested parties who deposit 32 Ether (eth), a commitment valued at approximately $78,752 based on current ethereum market prices.
The crypto wallet provider will ensure the security and efficient management of these nodes, promising to optimize staking rewards while mitigating the risks associated with drawdown and downtime.
Slashing, a penalty mechanism on the ethereum network, causes validators to lose a portion of their stakes due to misconduct such as incorrect block certification or inactivity.
Consensys, which runs the new service, has a commendable track record, having operated penalty-free for over two years and managing over $2 billion in eth across over 33,000 validators.
The service may be especially attractive to beginners or decentralization advocates, as it addresses concerns about centralization linked to large liquid betting providers like Lido.
However, the service is not free of costs. Staking through MetaMask offers an annual return of 3.8%, from which the platform deducts a 10% commission on validator rewards.
The fee structure has drawn criticism from some industry experts, such as Lefteris Karapetsas, founder of Rotkiapp, who noted the relatively unattractiveness of the service compared to other options on the market.
The net returns from betting through MetaMask, after taking into account their fees, are comparable to the 3.4% offered by Lido.
In the broader context of ethereum staking, Lido currently stands as the predominant liquid staking platform, with around 40% of the total. 28.8 million eth at stake, which translates to around $22.9 billion.
ethereum holders also have the option of using centralized exchanges for staking, such as Coinbase, although they charge a significantly larger 25% cut on staking rewards.
This latest development follows MetaMask's recent expansion of its global presence. In December, the company announced new partnerships in several countries, including Vietnam, the Philippines, Indonesia, Thailand, Egypt and Chile, with the goal of offering users more localized options.
Through collaborations with various payment solutions, such as VietQR, GCash and QRIS, MetaMask is advancing the integration of its services into the financial ecosystems of these regions.
Metamask also expanded its reach to Malaysia, Japan and South Korea, offering additional support for local transfers through strategic partnerships with Unlimit, a borderless payment solution, and TransFi.
