Binance

Maker (MKR), the creator of stablecoin Dai (DAI), is now planning to raise the annual stability fee for Dai by 4% to 7.5%, based on the results of an executive vote last week.


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.”

DAI/USD (CoinCodex)

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.

More: Executive Vote to Raise the Stability Fee to 7.5%
Similar: Here’s How Maker (MKR) Plans to Become the First Killer Dapp

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.

Voyager

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