A recent vote by MakerDao resulted in a 2% increase in the DAI stability fee to 3.5%. The Maker Dao’s team this week announced an amendment to the project’s stability fee system. The new adjustment is intended to reduce churn in the stablecoin ecosystem and incentivize CDP holders to close their positions.
According to the results of a recent poll, done on March 7, MakerDao (Maker) users voted to raise Maker’s Dai (DAI) stability fee to 3.5 percent.
MakerDao, a Decentralized Autonomous Organization (DAO) based on the Ethereum (ETH) blockchain, first opened voting on the matter to users on March. 4.
In response, Dai announced on Thursday that users had approved an increase of 2 percent for the stability fee — from 1.5 percent to 3.5 percent — “until the trend in the [Dai’s] peg is corrected.” According to Maker, one of the key reasons for the proposal was that Dai had slipped below the $1 peg on exchanges.
This stablecoin is based on the ERC-20 standard and is pegged 1:1 to the dollar. A Maker-managed collateralized debt position (CDP) is part of the way Dai is used for loans.
Specifically, MakerDao proposes to increase the Stability Fee in order to motivate CDP closures (thereby reducing outstanding Dai).
As noted in the proposal, the stability fee was already raised twice in February, each time by 0.5 percent. Nevertheless, the combined increase of 1 percent was negligible, according to the proposal.
On CoinMarketCap, Maker’s governance utility token MKR is the 16th largest cryptocurrency. At press time, the token is trading around $675, down around 1 percent.
A fraction of a percent has been lost in DAI’s price over the past 24 hours, as of press time.
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