MakerDAO Ponders A Fourth Fee Hike As The Ecosystem’s DAI Stablecoin’s Value Is Below $1 USD
During the bear market, all companies have to manage their business very well or they might end up closing their doors. Now, the MakerDAO ecosystem is pondering about a fourth fee hike in order to keep business afloat as the price of its DAI stablecoin has been below $1 USD recently and it is hitting lows of $0.96 USD on platforms like Coinbase.
Both investors and developers are participating in the debate of the Ethereum-based programmatic lending platform and whether a fee hike is a good idea or not. Since February, the prices of the DAI token are dipping below their average $1 USD mark and this has been causing problems.
DAI tokens are issued by the system, and they use a system of stability fees, which are charged in a proportional way to the amount of DAI tokens that you return. The fees can generally be paid either MKR or DAI tokens.
The difference between the MKR tokens and the DAI ones is that the MKR token holders are the ones actually get to vote on decisions for the future of the protocol when they stake their assets.
At the moment, three proposals to increase fees were approved in the last few weeks. The last one was the major increase so far and it rose the fees to 3.5%, which caused some concerns about the future of the ecosystem. Now, a fourth one is being discussed.
During the weekly governance meeting, which happens since the foundation of the ecosystem, Cyrus Younessi, the MakerDAO Foundation risk management lead, has affirmed that the prices of DAI tokens as a result of the last hike were trending in the general right direction among different crypto exchange platforms.
Not everything was ok, though, as he noted that trades of DAI tokens in over the counter markets remained unaffected by the last fee hike. According to Joseph Quintillan, from the Distributed Capital Partners VC fund, they are hot even close to the price of $1 and that they go as low as $0.95 USD.
Will Higher Fees Solve The Issue?
Rune Christensen, the founder of the MakerDAO Foundation, suggested that the token holders had to be more active. According to the founder, they should increase the fees to 4% in order to see any real effect and solve the low prices.
His argument is that the increases so far were not very big and that they only had the most superficial effects in the market so far. This way, by increasing the fees from 3.5% to 4%, they would be able to solve the problem. In order to do it, he wanted to vote as soon as possible.
Some members of the MakerDAO community, however, deemed that the founder was being too hasty. According to them, trying to get to arbitrary numeric values would not help the currency nor the ecosystem and they had to debate the issues seriously before doing things like this.
At the moment, the debate is ongoing and the community has not yet reached a consensus.