MakerDAO (MKR) token holders have voted to increase the “stability fees” charged on the Decentralized Autonomous Organization’s (DAO) Ethereum-based U.S. dollar-backed DAI (DAI) stablecoin, the results of a recently concluded poll show.
The fee increment is the fourth, and currently the largest undertaken by the MakerDAO (MKR) community.
The poll had asked the token holders to vote for a new rate increasing the stability fee by 4 percent, taking it from a low of 3.5 percent to 7.5 percent.
Announced on March 21, the new fee means that those taking out loans to spawn new DAI will now pay a 7.5 percent fee at the time of closing out their loans.
According to the firm’s Thursday announcement, the reasons that informed the move to raise the fee include DAI’s exchange having persisted under its dollar peg, with over-the-counter trading ranging between $0.95 and $0.99.
There have also been complaints that inventories among market makers were saturated as well as an insufficient impact observed from the last increment.
The poll saw MKR token holders have the choice of raising the fee by one of zero, two or 4 percent. However, the firm had noted on its vote page that without “any significant volume clearing near $1,” the best outcome would be to have a higher incentive, meaning an increase of more than 2 percent.
According to a blog post that MakerDAO published regarding the increase, the firm noted that as “the largest one-time raise,” the new rate means the team was in danger of overshooting its estimate. Nonetheless, the best outcome remained a stability fee of 7.5 percent or higher, they noted.
The Maker (MKR) token gives its holders voting rights, 73 percent of whom voted to raise the fee by 4 percent.
With this vote, MKR token holders expect that DAI supply in relation to the growing demand will contract, pushing the stablecoin’s dollar peg to stay at a valuation of $1.
Earlier this month, MakerDAO token holders voted to raise the stability fee by 2 percent, taking it to 3.5 percent.
The vote to insulate the DAI dollar peg comes in the aftermath of caution by Valerie Szczepanik, a senior advisor for the U.S. Securities and Exchanges Commission’s (SEC) digital assets section. Szczepanik noted that some stablecoins could run into trouble under existing securities laws.
The Maker (MKR) currently trades at $728.74 against the U.S. dollar and is ranked 16th on CoinMarketCap with a market cap of $728 million. The token has surged by about 1.10 percent on the day.
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