MakerDAO Investors to Vote on Whether To Lower Stability Fee 2 Percentual Points
MakerDAO token holders have to vote on whether to decrease the stability fee for the network and its decentralized stablecoin called DAI. The information was released by Maker on its blog post on May 17.
MakerDAO Could Reduce Its Stability Fee
MakerDAO token holders will be voting on whether to reduce the stability fee to 17.5%. The Executive Vote will continue until the number of votes surpasses the total in favour of the previous Executive Vote. The DAI digital currency was traded close to $1 during the last few days after the network voted to increase the fees to new record highs.
The blockchain network and its community discuss the change in the stability fee in order to improve the token’s peg to the U.S. dollar. The DAI digital asset is currently used for loans that users take with crypto as collateral.
Due to the fact that DAI was traded under the reference price of $1, the community decided to increase the fees that users pay for loans. This would have a restrictive effect on DAI’s supply, allowing it to be traded close to $1 once again.
Back in March, the community voted to increase the stability fee to 3.5% and then to 7.5%. At the same time, in April, the fee was increased by another four percentual points. Nonetheless, the fee reached 19.5% at the beginning of May.
DAI has been struggling to maintain its peg to the U.S. dollar, which pushed the community to increase the stability fee.
Currently, DAI is the 73rd largest digital asset in the market. As reported by CoinMarketCap, the digital currency has a market valuation of $81 million.