Voting has commenced on whether the stability fee for MakerDAO’s DAI stablecoin should be decreased.
The decision to put the fate of the blockchain-centered decentralized token in the hands of the stablecoin’s holders was announced on May 17 in a blog post.
Decrease in Stability Fee if Approved
If DAI token owners approve of the proposal, the currency’s stability fee will decrease by 2 percent, bringing it down to 17.5 percent annually. The blog post also revealed that the need to lower the fee was deliberated on during the MakerDAO governance meeting that was held on May 16.
Revisions in Annual Stability Fee
MakerDAO is considering a revision in its annual stability fee in a bid to boost the DAI’s peg to the dollar since its exchange amount has been floating above $1. The said stability fee is a payment collected by MakerDAO participants when the DAI is utilized for loans.
MakerDAO already increased their fee twice in March. The first increase was to 3.5 percent, followed by an agreed fee of 7.5 percent a year. Token holders voted for another stability fee increase in April. It was the fifth vote in 2019 and saw another 4 percent increase, bring the fee up to 11.5 percent. Additional voting held at the start of May saw the rate up to 19.5 percent.
It was previously reported that the DAI had been striving to retain its peg. But the company’s president and COO stated that the DAI’s value has already leveled and stabilized since the start of May.
However, MakerDAO’s former chief technology officer, Andy Milenius, expressed concerns about the project’s domestic discord in an open letter published on April 3.