- MakerDAO has put up a poll for the possible increase of 4 percent to their stability fee
- This is in an effort to drive up the dai token price
- This comes after four previous price increases this year
There might be some big changes coming to MakerDAO in the next few weeks. Just a few months after a six percent stake was purchased in the firm by Andreessen Horowitz, the project has put out a vote to its user base asking if the stability fees for their dai stablecoin should be increased by four percent.
Should this vote go through, the stability fee will then become 11.5 percent in total after a previous Increase of four percent went through. The first poll that suggested a fee increase went live on April 8 in a bid to boost the value of the dai token.
Stablecoin trading far too low
The governance poll for the fee increase was created on April 8, 2019, and will be used to inform an executive poll that will go live today, April 12th.
This comes after a previous discussion throughout March in which an increase was discussed and a four percent one was eventually agreed upon.
Some factors that are being taken into consideration for the increase of the fees are first, the fact that the dai price has stayed below $1 per token. An increase in the stability fee is expected to reduce the amount of dai in the market and push up this price.
The high inventory levels among market makers and prop desks were also cited. Perhaps the most controversial reason given is the fact that the previous stability fee increases did not have a sufficient impact on market price and so another one is being considered.
Even if this vote goes through, it will not be the first time. In February 2019, two increases took place with the stability fee going up 0.5 percent twice. March 2019 saw two more increase of 2 percent and 4 percent respectively. However, management is not satisfied:
“The impact of these combined increases was negligible, indicating that neither the target Stability Fee nor the incremental changes were appropriate.”
Now the Interim Foundation Risk Team at MakerDAO has put together a proposal that gives several increase options such as an increase of 0%, +1%, +2%, +3%, or +4%.