After days of voting for MakerDAO’s token holders decided to increase the costs associated with programmatic lending. The voting round ended on March 7 and it will allow an increase in the Dai Stability Fee from 1.5 percent to 3.5 percent.
MakerDAO Token Holders Vote on Dai Stability Fee Increase
Token holders have voted for increasing the fee increase which has been a proposal made by the project leaders. The main intention is to fix a liquidity issue that has been affecting the protocol due to new borrowers using the protocol.
MakerDAO allows individuals to take out loans with its stablecoin called DAI and with the blockchain working as a lender and counterparty to the deal.
More than 42,000 MKR tokens were in favour of increasing the fee scheme. There were just 9 MKR tokens voting against this proposal. 42,000 MKR is equivalent to more than 4 percent of the total MKR circulating supply. Users can hold MKR tokens to cast votes and pay for fees that help collateralize the whole system.
Richard Brown, the head of community development at the MakerDAO Foundation, commented:
“These seemed to be a tremendous support for that decision. Within 24 hours, we saw over 40,000 MKR in support… We saw 9MKR staked in opposition. With any kind of voting system - similar to stakeholder votes - signalling disagreement even in the face of overwhelming opposition is important.”
The decision to increase the fees is related to the fact that DAI’s price has been traded under $1 for long periods of time. Additionally, there are high inventory levels among market makers. Cyrus Younessi, the risk management lead at the MakerDAO Foundation, explained that the goal is to generate a quick impact in stabilizing DAI’s dollar peg.
Atthe time of writing this article, Maker is the 16th largest cryptocurrency in the market. It is even larger than NEO, Ethereum Classic (ETC), NEM (XEM) or ZCash (ZEC). It has a market capitalization of $674 million and each coin can be purchased for $674.