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In MakerDAO’s poll, majority vote in favor of a hike in stability fee for DAI

DAI

Well, it seems that the stability fee for Maker’s stablecoin Dai [Dai] is all set for an increase by further 4 percent in fifth such vote this year, according to a report by Cointelegraph. The report adds that the voting that is supposed to end by 5 PM UTC today shows that 50,579.23 MKR have been staked in favor of raising the stability fee by 4%, bringing it to 11.5% per year. The main aim behind this increase in fee is to stabilize DAI against the dollar.

Other options in the poll included raising the fee by 1, 2 and 3 percent or not raising the stability fee at all. While the majority has chosen to increase the fee by 4 percent, the second position with 1,165.47 MKR has chosen an increment of 2 percent.

While the majority has voted to increase the stability fee, 278.52 MKR have been staked in favor of not raising the fee and keeping it at its current level of 7.5 percent.

According to the statement accompanying the governance poll which started at 5 PM UTC on 8 April, the main reason for the hike in the stability fee is to keep the stablecoin DAI pegged to the US dollar at 1:1, as the stablecoin keeps falling when compared to the USD.

Another factor of importance as stated in the accompanying document goes as follows:

“In February, the Stability Fee was increased twice, each time by 0.5 percent. In March the fee was raised by an additional 2 percent and then by 4 percent two weeks later. The impact of these combined increases was negligible, indicating that neither the target stability fee nor the incremental changes were appropriate.”

According to the head of community development, Richard Brown, these hikes will continue to take place till the stablecoin recovers its peg against the dollar.

“Tensions are high and this is an important subject. Arguably […] literally the most important thing we do at MakerDAO is the stability of the peg. Everything else follows from that,” he said.

Image: Shutterstock 

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