MakerDao Users Vote to Raise Stablecoin DAI’s ‘Stability Fee’ by 2%

Users of blockchain organization MakerDao (Maker) have voted to raise the so-called stability fee for Maker’s Dai (DAI) stablecoin to 3.5 percent, according to the results of a recent poll, completed on March 7.

MakerDao, a Decentralized Autonomous Organization (DAO) based on the Ethereum (ETH) blockchain, first opened voting on the matter to users on March. 4.

Accordingly, the firm announced on Thursday that users had voted yes to the proposal to increase the stability fee by 2 percent — from 1.5 percent to 3.5 percent — “ until the trend in the [Dai’s] peg has been corrected.” According to Maker, one of the key factors behind proposing the increase was that Dai’s $1 peg had been slipping, with the coin’s price trading below the price mark on exchanges.

DAI is a ERC-20-based stablecoin that is designed to maintain 1:1 peg with the U.S. dollar. Dai is partly used for loans through a Maker-managed structure collateralized debt position (CDP).

In the proposal, MakerDao stated that “incentivizing CDP closures through a Stability Fee increase (thereby reducing outstanding Dai) is strongly viewed as the appropriate action.”

The proposal also notes that the stability fee was already increased twice in February, each time by 0.5 percent. However, according to the proposal, the effect of the combined increase of 1 percent was negligible.

Maker’s governance utility token MKR is currently ranked 16th largest cryptocurrency on CoinMarketCap. The token is down around 1 percent over the day, trading at around $675 at press time.

For its part, DAI is trading at $0.991 at press time, down a fraction of a percent over the past 24 hours.