Token holders behind the programmatic loan system MakerDAO have voted to decrease fees on all DAI loans, for the first time in five months.
Operating on the ethereum blockchain, DAI is a dollar-pegged stablecoin that is currently backed in value by nearly 2 million ether tokens. Since the beginning of this year, the value of DAI has had suffered a steep fall, falling below $1 due to a market supply and demand imbalances.
The MakerDAO token holders have incrementally increased fees on the MakerDAO system in an effort to contract the DAI supply and a goal of raising its trading price. Dubbed as Stability Fee, interest is accrued over time on all DAI loans taken out from the MakerDAO system.
The Stability Fee has increased 39 fold from 0.5 percent to 19.5 percent over the course of five months, which has subsequently received outrage from some early borrowers in the MakerDAO system.
After the most recent increase of 3 percent that was executed two weeks ago, the DAI prices across most major cryptocurrency exchanges and over-the-counter trading desks pushed past dollar valuation trading as high as $1.06. Marking the second time in MakerDAO’s history, wherein the token holders have voted for a two percent decrease to the Stability Fee in order to address high DAI demand.
The voters will again stake their tokens tomorrow, in order to execute the decrease into the MakerDAO system in a continuous polling round where a minimum of 35,221 MKR tokens must be staked in support of this proposal.
Concerns about the turnout
As off, Today’s preliminary round of voting, Richard Brown the head of community development at MakerDAO expressed discomfort during a governance risk call, about the lack of voter turnout.
As per Brown, the only two MakerDAO token holders voted for the 2 percent decrease collectively staking 54,000 MKR tokens. Moreover, one of the MakerDAO token holders appeared to “troll” the system by staking 17,000 MKR in favor of further increasing the Stability Fee by another 4 percent despite the clear overvaluation of DAI in the markets. Brown insisted on the call today:
“We desperately need people to lock up their Maker [tokens]. It doesn’t take a lot for another voter to come out and outweighs the on 17K Maker troll that was trying to raise the Stability Fee by 4 percent. If you’re a person who think your vote doesn’t matter in the system that’s a self-fulfilling prophecy…If community members believe the system should head in direction ‘x’ then the community needs to self-organize for ‘x’.”