MetaMask LINEA Rewards Plan Triggers Backlash From Long-Time Users

MetaMask has announced a new reward initiative worth over $30 million in LINEA tokens to incentivize activity ahead of its long-awaited token launch.

The program introduces a structured points system for participants. It determines users’ eligibility for rewards based on their trading behavior and overall engagement across the MetaMask ecosystem.

MetaMask’s Planned Reward Program

According to a recent GitHub commit, MetaMask has quietly integrated a “Ways to Earn Rewards” feature into its platform, though it is yet to go live.

The documentation shows that users will earn 80 points per $100 in spot trades, 10 points per $100 in perpetual trades, and 250 points per $1,250 in historical volume.

In addition, activities conducted on the LINEA network will earn double points. This signals that MetaMask intends to drive more cross-chain interaction toward LINEA, the Consensys-backed layer-2 protocol.

This approach, however, has divided the crypto community. Some users argue that MetaMask is prioritizing fee generation over fairness.

One user on X, Taco, remarked that MetaMask “could have made everyone happy with a simple airdrop,” calling the points program a “stupid system” that pushes people to pay higher fees.

Another influencer complained that platforms rolling out reward systems after years of operation risk alienating loyal users who supported them long before farming incentives became common.

However, MetaMask emphasized that the program is not intended as a yield-farming mechanism. The company described it as a long-term community rewards system that will eventually tie into the launch of its native token.

It also assured long-time users that they will receive special benefits as part of the rollout.

Security Concerns Emerge

The reward program launch coincided with a wave of security concerns about MetaMask’s new Google account login feature.

On October 3, Yu Xiang, co-founder of blockchain security firm SlowMist, raised alarms after discovering the issue.

He found that mnemonic phrases and private keys imported into MetaMask could be encrypted and automatically backed up to the wallet service provider’s servers.

According to him, this poses significant risks as a compromised Google account could expose users and potentially wipe their wallets.

“If you log in to MetaMask using Google/Apple methods, then the mnemonic phrase/private key within it, including those imported later, will by default be encrypted and uploaded to the web3auth[.]io server under MetaMask, and decryption requires Google/Apple authentication to pass and the correct wallet unlock password to be entered,” he stated.

MetaMask security lead Taylor Monahan acknowledged the community’s unease but defended the system’s architecture.

She said the encryption and authentication process offers stronger security than it seems and helps simplify onboarding for new users.

“I looked hard at first [because] it seemed like a terrible idea but the mechanism is more robust than the current state and team was well aware of the potential pitfalls. That said, it’s not necessarily for everyone. Advanced users and power users are fine to not use it,” Monahan explained.

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