MetaMask has introduced a brand new reward initiative value over $30 million in LINEA tokens to incentivize exercise forward of its long-awaited token launch.
This system introduces a structured factors system for members. It determines customers’ eligibility for rewards primarily based on their buying and selling conduct and general engagement throughout the MetaMask ecosystem.
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In response to a current GitHub commit, MetaMask has quietly built-in a “Methods to Earn Rewards” characteristic into its platform, although it’s but to go reside.
The documentation reveals that customers will earn 80 factors per $100 in spot trades, 10 factors per $100 in perpetual trades, and 250 factors per $1,250 in historic quantity.
As well as, actions carried out on the LINEA community will earn double factors. This alerts that MetaMask intends to drive extra cross-chain interplay towards LINEA, the Consensys-backed layer-2 protocol.
This method, nonetheless, has divided the crypto group. Some customers argue that MetaMask is prioritizing payment technology over equity.
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One person on X, Taco, remarked that MetaMask “may have made everybody proud of a easy airdrop,” calling the factors program a “silly system” that pushes folks to pay increased charges.
One other influencer complained that platforms rolling out reward methods after years of operation danger alienating loyal customers who supported them lengthy earlier than farming incentives grew to become frequent.
Nevertheless, MetaMask emphasised that this system isn’t meant as a yield-farming mechanism. The corporate described it as a long-term group rewards system that may ultimately tie into the launch of its native token.
It additionally assured long-time customers that they’ll obtain particular advantages as a part of the rollout.
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Safety Issues Emerge
The reward program launch coincided with a wave of safety considerations about MetaMask’s new Google account login characteristic.
On October 3, Yu Xiang, co-founder of blockchain safety agency SlowMist, raised alarms after discovering the difficulty.
He discovered that mnemonic phrases and personal keys imported into MetaMask might be encrypted and routinely backed as much as the pockets service supplier’s servers.
In response to him, this poses important dangers as a compromised Google account may expose customers and probably wipe their wallets.
“In case you log in to MetaMask utilizing Google/Apple strategies, then the mnemonic phrase/personal key inside it, together with these imported later, will by default be encrypted and uploaded to the web3auth[.]io server beneath MetaMask, and decryption requires Google/Apple authentication to go and the right pockets unlock password to be entered,” he said.
MetaMask safety lead Taylor Monahan acknowledged the group’s unease however defended the system’s structure.
She stated the encryption and authentication course of presents stronger safety than it appears and helps simplify onboarding for brand new customers.
“I regarded onerous at first [because] it appeared like a horrible concept however the mechanism is extra sturdy than the present state and crew was properly conscious of the potential pitfalls. That stated, it’s not essentially for everybody. Superior customers and energy customers are superb to not use it,” Monahan defined.