The Maker Foundation Interim Risk Team has placed an Executive Vote proposal into the voting system to enact a new Dai Stability Fee of 7.5%. The Executive Vote is now live at https://t.co/g9vSgxm089.
More info below: https://t.co/UDtjQK9hy2
— Maker (@MakerDAO) March 22, 2019
According to the voting announcement, the Maker Foundation decided to host the vote to increase the stability fee, which is generated over the lifetime of CDPs, for the following reasons:
- Exchange price persists below $1
- High inventory levels among market makers and prop desks
- No attributable impact from the previous Stability Fee increases
“An examination of the available data strongly suggests a Stability Fee increase is warranted,” said the Maker Foundation. “The exchange price of Dai across several major exchanges has been consistently hovering in the $0.96 to $0.99 range for two months. Decentralized exchanges with sufficient volume/liquidity also confirm the same discrepancy.”
The Maker Foundation ultimately hopes the higher fees will help reduce the inventory of DAI, helping stabilize the price closer to its intended price pegged value.
DAI’s current $89.79 million market cap makes it the 64th-largest cryptocurrency and the 5th-largest stablecoin.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.