MakerDAO Voters are Currently Divided on How Much to Hike Fees for DAI Stablecoin
The token holders of the MakerDAO loan system are facing difficult times right now. The stability of their stablecoin is not going great as it is being sold by less than $1 USD in secondary markets. Because of this, the local community has signaled to support the company in order to raise the fees again once more.
Tomorrow, the members of the community will reunite once more in order to take the current winning propositions from the current pool and to vote it again. This is called the executive vote and it will be used to ratify the fees that will be used on the system.
Fees are highly divisive because they make it more expensive for users of the MakerDAO ecosystem to basically pay their loans. In order to use the program, they have to pay some fees and they can get the money lent to them.
However, recently there is just too much DAI around, which has weakened its value, which is around 96 and 98 cents on over the counter (OTC) desks. The fees are burned, which diminished the number of tokens in the market and allegedly makes the economy work better.
Fee hikes have become increasingly common since then. Now, however, the latest pools simply cannot seem to agree. Some voters want a new hike of 2%, others want 3% and there are some people who want 4%, the largest possible fee hike.
There is some sort of consensus that the fees should be hiked but there is simply no consensus whatsoever about how much they should be and what happens then. Now, the head of community, Richard Brown, has affirmed that, for the first time, the pool is really ambiguous.
The executive vote has a different voting system, though. Instead of just using the MKR tokens to vote on proposals by staking them and the one with more votes wins, the number of staked tokens has to be larger than the last executive vote, which had 120,177 MRK tokens. If the number is not reached, the proposal is considered too weak to pass.
The Future of MakerDAO
MakerDAO MKR holders are already looking at the future of the network since the beginning of the year was very troublesome for them. Because of this, the community has started to look at important data in order to determine the future of the network.
Primoz Kordez, the founder of a blockchain analytics company Block Analitica, has recently shared some new figures about how the loaning system is actually working. Over 2,000 active loans are being made on the platform. However, 90% of all debt is concentrated in around 250 contracts, which have taken far more money than the others.
The most worrisome aspect of the situation is that most of the large spike in the quantity of DAI tokens in the market are related to two recent loans.
This has made the opinions very divided right now as to how the last five hikes were actually effective at all. Because of this, several discussions of other ways to make the prices go down are being made but no consensus has been found at the moment.
Another important idea is to restrict the number of DAI tokens that a single person can emit with one contract, basically to create a debt ceiling that should be leveraged in order to restore the balance of the ecosystem.
The executive vote will start tomorrow but it seems that fee hikes are simply not enough in order to tame the prices of the token and to keep the stability of the network. The MakerDAO community is facing a crisis and they will have to be very careful if they wish to keep the network being relevant in the market and operating in a healthy way.