MakerDAO Fee Decrease Stalls Amid Decline in Token Holder Voting Turnout

After an initial round of polling last Thursday, MakerDAO token holders have failed to finalize a decision to decrease fees for users on DAI stablecoin loans taken out through MakerDAO's programmatic lending protocol.

On Friday, a secondary round of polling was launched in order to execute a 2 percent decrease to MakerDAO fees in the system.

MakerDAO has issued over 81 million DAI tokens backed by the world's second largest cryptocurrency in the world, ether.

For the first time in 5 months, MakerDAO token holders agreed to reduce accumulating interest - called the Stability Fee - on all MakerDAO DAI loans from 19.5 percent to 17.5 percent.

The majority vote threshold itself was actually reached by a total of two large token holders who collectively staked 54,000 MKR tokens and outweighed other polling options which had a higher number of individual voters but a lower number of tokens staked overall.

Brown added in the same post that there is absolutely no MakerDAO token holder large enough to overpower 5 or 6 MakerDAO token holders staking in favor of a competing proposal.

"Rich, one of the reason people were panicking is [the] last voting contract had [a] 'bug' and they are not prepared [to] risk large chunk of money until they are 100 percent confidentthat new contract is safe," wrote "Forextraderaus." "[The] new contract has half MKR then the last one, that's why turnout was smaller [than] before.

Due to the lack of MKR tokens staked in favor of a 2 percent decrease to the Stability Fee, Brown issued an additional Reddit post Sunday questioning whether the token holders should be given more time to stake their tokens or the executive vote should be abandoned all together.

For now, the executive vote to decrease the Stability Fee is ongoing.

A new governance poll has been entered in to the system posing to MakerDAO token holders an new series of proposals ranging from a Stability Fee of 13.5 percent to 23.5 percent.