MakerDAO voters, or better yet stablecoin holders, are about to decide whether to increase the stability fee of the Maker’s ethereum based decentralized stablecoin-DAI. In the latest cryptocurrency news, the voters decide whether to accept the 3 percent increase that started on the Decentralized Autonomous Organization (DAO) governance portal.
The autonomous organization with is behind the issuance of the USD-pegged DAI decentralized stablecoin, aims to improve the peg of the token by increasing the stability fee yearly. This fee is basically a charge proposed by the MakerDAO voters (participants) when the DAI is used to get a loan.
Back in March as reported in the headlines of the best cryptocurrency news sites, MakerDAO voters decided to raise the stability fee twice. It was first increased up to 3.5 percent and later to 7.5 percent a year. Also, the previous week, the fee was increased even more by more than 4 percent in the fifth vote this year. This means that there is an increase of 11.5 percent where it is standing still. If the increase goes on again, the fee will be increased yet again by up to 15.5 percent.
The proposal for the fee increase outlines that there is a need for this increase at least according to some of the MakerDAO voters. The decision has been long discussed during the governance call back on April 18th. There has been a video uploaded since to YouTube. The community answered with a really mixed response in the comment section of the YouTube video but also to the announcement of the vote published on Reddit.
Some of the MakerDAO voters expressed concerns that this kind of frequent change of the stability fee will turn the system in a short-term leverage system. The dangers also mean that the decision-making process will become unpredictable. Other users also believe that the increase in the stability fee won’t improve the peg and that the system is not really working.
As previously reported by DC Forecasts, MakeDAO voters voted ‘Yes’ on the proposal which asks them to increase the stability fee by 4%. When it comes to the actual reasons for this increase, the main ones as seen in the post are that the DAI exchange persists under one dollar, that there are high inventory levels among market makers and prop desk, as well as the insufficient impact from the previous fee increase.
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