MakerDAO Token Holders Vote About Whether to Raise DAI Stability Fee by 3%

Another vote about whether to raise the so-called stability fee for Makerโ€™s ethereum (ETH)-based DAI decentralized stablecoin by 3% has started on the governance portal of the Decentralized Autonomous Organization (DAO) on April 19.

MakerDAO, which issues the USD-peggedย aforementioned algorithmic decentralized stablecoin, is seeking to improve the tokenโ€™s peg by increasing the yearly stability fee. The stability fee is a charge levied by Maker participants when Dai is used for loans.

In March, the DAO already raised the stability fee twice, first to 3.5%, and then to 7.5% per year. Also last week, the fee was further increased by another 4% in the fifth such vote this year, bringing it to 11.5%, where it currently stands. If the increase will be accepted again, the fee will reach 15.5%.

The proposal points out that the need for the increase has been discussed in the governance call on April 18, of which a video has been uploaded to YouTube. The community expressed a mixed response in the comments to the announcement of the vote on Reddit.

One user expressed concern, stating that the frequent changes to the stability fee, according to him, turns the system into an unpredictably short term leverage system. Other users noted that raising the fee to improve the peg apparently isnโ€™t working.

As Cointelegraph reported in mid-March, senior advisor for digital assets at theย United States Securities and Exchanges Commission Valerie Szczepanik reportedly noted that algorithmic stablecoins could experience issues under currentย securities laws.



Original

Spread the love

Related posts

2 Thoughts to “MakerDAO Token Holders Vote About Whether to Raise DAI Stability Fee by 3%”

  1. K

    Hi, since last week on BitBay exchange there is available trading on BTC/LINK market ๐Ÿ™‚

    1. K

      Hi, since last week on BitBay exchange there is available trading on BTC/MKR market ๐Ÿ™‚

Leave a Comment