MetaMask Adds 'Pooled Staking' for Cheaper Ethereum Validation

The new feature aims to expand the accessibility of staking, which previously required an investment north of $100,000. But the project is still missing features offered by other staking platforms.

MetaMask, the leading cryptocurrency wallet for Ethereum, is set to roll out a "pooled staking" feature, making it more accessible for users to contribute to the blockchain's security without the need for a full validator node, which typically requires an investment of over $100,000. However, the project still lacks some features offered by other staking platforms.

According to a Consensys statement, MetaMask users will now be able to participate in Ethereum staking, a popular crypto investment strategy where users park their tokens in an address on the blockchain to earn rewards in return. For "proof-of-work" blockchains like Ethereum, staking serves as the primary mechanism for securing the network.

“With Pooled Staking, MetaMask users now have an easy way to stake ETH in enterprise-grade validators while maintaining full control of their ETH, earning rewards and making Ethereum more secure,” said Matthieu Saint Olive, senior product manager at MetaMask developer Consensys.

Traditionally, staking on Ethereum requires users to tie up 32 ETH with the network, which currently amounts to approximately $112,000 at market prices. "Pooled" services like Lido, Rocket Pool and now MetaMask enable more users to participate in staking by bundling together assets from multiple individuals, allowing anyone to stake even if they don't have 32 ETH.

Read more: Crypto Staking 101: What Is Staking?

MetaMask's staking feature could be a welcome addition for some retail traders who prefer to stake, trade and monitor their staking investment within a single interface.

Consensys, however, is playing catch-up with industry counterparts as MetaMask is not the first crypto wallet to introduce staking, and it lacks some of the functionality that has helped to differentiate incumbent pooled staking platforms.

notably, Lido and Rocket Pool provide users with receipts on their deposits called "liquid staking tokens" that can be borrowed, loaned or re-invested into decentralized finance protocols. LSTs like Lido staked ETH (stETH) are among the more heavily traded assets in crypto markets.

MetaMask will not be offering its own LST as part of its pooled staking service.

According to Consensys, the new staking feature will not be available in the U.S. or UK.

"The team aims to bring it to market in these regions as well," the company said in its statement.

Sam is CoinDesk's deputy managing editor for tech and protocols. He covers decentralized technology, infrastructure and governance. He owns ETH and BTC, which are two of the dozens of cryptocurrencies covered by CoinDesk's journalistic policy.