MakerDAO Voters Divided on How Much to Hike Fee for DAI Stablecoin

Published on by Coindesk | Published on

Token holders for the programmatic loan system MakerDAO have once again signaled support for raising fees through a now-weekly online poll.

Starting tomorrow, the winning proposal from this poll will enter into a secondary round of voting call the "Executive vote" whereby MKR token holders ratify the fee increase and formally activate it within the system.

In an effort to restrict supply and raise the value of DAI, MKR token holders have steadily been increasing what is known as the Stability Fee in larger and larger increments.

Last week, the Stability Fee was raised 4 percent and the proposal was supported with over 50,000 MKR staked in favor - the highest number of MKR staked for one proposal in a governance vote.

In essence, for an executive vote to be approved, the total number of MKR tokens staked needs to exceed the total number of MKR tokens staked in the previous executive vote.

Opinions do seem to be divided over how effective the last five consecutive boosts to Stability Fee over the past three months have been.

Last week's governance and risk meeting featured renewed discussion over other possible measures token holders could take outside of Stability Fee increases such as a reduction to the debt ceiling of DAI tokens.

Originally put in place to restrict the total number of DAI that can be minted off of a singular type of collateral - in this case ether - some token holders think the debt ceiling should also be leveraged to restore balance to the weakened DAI peg.

Tomorrow, an executive vote will be activated in which MKR token holders approve the winning governance proposal - in this case the 3 percent Stability Fee increase.

Once approved, the increase will be automatically deployed into the MakerDAO system and all users that have taken out DAI loans will begin to accrue fees at the new rate.

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