Users of Decentralized Autonomous Organization MakerDAO have voted to raise the so-called stability fee for Maker's DAI stablecoin by 4 percent, according to the results of a recent poll completed on March 21.
The firm announced on Thursday that users had voted yes to the proposal to increase the stability fee by 4 percent, from 3.5 percent to 7.5 percent.
The reasons provided by the post are that the DAI's exchange persists under one dollar, high inventory levels among market makers and prop desks, and insufficient impact from the previous fee increase.
The MKR token holder could choose whether to raise the fee by zero, two or four percent.
Still, the vote page explains that "The absence of any significant volume clearing near $1 indicates that there needs to be stronger incentives in place" than a 2 percent increase.
Lastly, the post admits that a 4 percent increase is "The largest one-time raise, and runs the risk of overshooting our estimate. Of course, the correct Stability Fee could still be 7.5% or higher." The MakerDAO token MKR, which grants voting rights, is currently ranked the 16th largest cryptocurrency on CoinMarketCap and is up 1.12 percent at press time.
As Cointelegraph recently reported, MKR token holders already voted to raise the DAI stability fee to 3.5 percent this month.
Senior advisor for digital assets at the United States Securities and Exchanges Commission Valerie Szczepanik reportedly noted last week that stablecoins could experience issues under current securities laws.
Accepted: MakerDAO Vote to Raise DAI Stablecoin Stability Fee by 4% to 7.5% per Year
Published on Mar 23, 2019
by Cointele | Published on Coinage
Coinage
Mentioned in this article
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.