For the first time in five months, token holders behind the programmatic loan system MakerDAO have voted to decrease fees on all DAI loans.
DAI is a dollar-pegged stablecoin operating on the ethereum blockchain that is currently backed in value by nearly 2 million ether tokens. Since the beginning of this year, the value of DAI has fallen below $1 as a result of market supply and demand imbalances. In an effort to contract the DAI supply with the goal of raising its trading price, MakerDAO token holders have incrementally increased fees on the MakerDAO system issuing new DAI tokens.
Called the Stability Fee, interest accrues over time on all DAI loans taken out from the MakerDAO system. Over the course of five months, the Stability Fee has increased 39 fold from 0.5 percent to 19.5 percent, sparking outrage from some early borrowers in the MakerDAO system.
Since the most recent increase of 3 percent executed two weeks ago, DAI prices across major cryptocurrency exchanges and over-the-counter trading desks now looks to have pushed past dollar valuation trading as high as $1.06.
Today’s vote marks the second time in MakerDAO’s history where token holders have voted for a two percent decrease to the Stability Fee in order to address high DAI demand.
Tomorrow, voters will again stake their tokens to execute the decrease into the MakerDAO system in a continuous polling round where a minimum of 35,221 MKR tokens must be staked in support of this proposal.
Regarding today’s preliminary round of voting,