MakerDAO Moves Forward on Lowering DAI Fees Despite a Week and Half Delay for Latest Voting
After a 11-Day StandOff, MakerDAO Approves of a Small DAI Fee Decrease
- The most recent executive voting phase saw a two percent decrease in the ‘Stability Fee’ associated with the DAI ecosystem.
- As per data available online, the fee decrease was activated only after a total of 89,926.75 MKR was staked successfully by the project’s backers.
For those of our readers who may not be aware of what DAI is, it is essentially an Ethereum-based token that has its value pegged to the US dollar. Over the course of the past 3-4 months, in order for DAI owners to loan out their holdings from the MakerDAO system, they had to pay a heavy fee — primarily because DAIs value had been fluctuating below the $1 mark since the start of the year.
Since then, the valuation of DAI has stabilized to a large degree, with the digital asset now trading around the $1 region on a number of major cryptocurrency exchanges.
A Closer Look at the Situation
At press time, it is estimated that nearly $400 million worth of Ether tokens are being used to back a supply of approximately 80 million DAI. As a result of this, MakerDAO remains one of the most popular “decentralized financial applications” available for use within today’s crypto ecosystem.
With all of this information out there, it should be pointed out that over the course of the past 11 days, MakerDAO token holders have been deliberating whether or not to decrease DAIs current lending fee rates (which is also referred to as the token’s ‘Stability Fee’). In this regard, “two of the key token holders dominated an initial governance vote collectively staking 54,000 MKR in favor of a 2 percent Stability Fee decrease”. The decision was then re-validated a few days later by an additional 9 other token holders who too voted in favor of a 2% decrease.
However, both of the above stated decisions could not be ratified via a second round of voting — which is also referred to as an “executive vote”.
In closing out this piece, we need to mention that this latest move has been welcomed by the crypto community at large. It now remains to be seen how the financial future of DAI plays out from here on end.