MetaMask LINEA Rewards Plan Triggers Backlash From Long-Time Users
MetaMask has introduced a brand new reward initiative price over $30 million in LINEA tokens to incentivize exercise forward of its long-awaited token launch.
The program introduces a structured factors system for individuals. It determines customers’ eligibility for rewards primarily based on their buying and selling habits and general engagement throughout the MetaMask ecosystem.
MetaMask’s Planned Reward Program
According to a latest GitHub commit, MetaMask has quietly built-in a “Ways to Earn Rewards” characteristic into its platform, although it’s but to go dwell.
The documentation exhibits 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.
In addition, 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 strategy, nonetheless, has divided the crypto neighborhood. Some customers argue that MetaMask is prioritizing price technology over equity.
One consumer on X, Taco, remarked that MetaMask “might have made everybody proud of a easy airdrop,” calling the factors program a “silly system” that pushes individuals to pay larger charges.
Another influencer complained that platforms rolling out reward techniques after years of operation threat alienating loyal customers who supported them lengthy earlier than farming incentives turned widespread.
However, MetaMask emphasised that this system will not be supposed as a yield-farming mechanism. The firm described it as a long-term neighborhood rewards system that may ultimately tie into the launch of its native token.
It additionally assured long-time customers that they may obtain particular advantages as a part of the rollout.
Security Concerns Emerge
The reward program launch coincided with a wave of safety issues about MetaMask’s new Google account login characteristic.
On October 3, Yu Xiang, co-founder of blockchain security firm SlowMist, raised alarms after discovering the problem.
He discovered that mnemonic phrases and personal keys imported into MetaMask may very well be encrypted and robotically backed as much as the pockets service supplier’s servers.
According to him, this poses important dangers as a compromised Google account could expose users and doubtlessly wipe their wallets.
“If 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 cross and the proper pockets unlock password to be entered,” he said.
MetaMask safety lead Taylor Monahan acknowledged the neighborhood’s unease however defended the system’s structure.
She stated the encryption and authentication course of affords stronger safety than it appears and helps simplify onboarding for brand spanking new customers.
“I seemed arduous at first [because] it appeared like a horrible thought however the mechanism is extra strong than the present state and group was nicely conscious of the potential pitfalls. That stated, it’s not essentially for everybody. Advanced customers and energy customers are advantageous to not use it,” Monahan explained.
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