Low Turnout Hinders MakerDAO Vote to Decrease Stablecoin Stability Fee by 2%
The vote about whether to decrease the fee by 2% to 17.5% per year started yesterday, May 19. MakerDAO is looking to change the yearly stability fee in an attempt to improve the token’s peg to the U.S. dollar after its exchange price has been hovering above $1. The stability fee is a charge levied by Maker participants when DAI is used for loans.Voters failed to stake the minimum 117,631.90 MKR tokens necessary to vote and as such, the proposal is unfulfilled at press time. In March, Maker increased the stability fee twice — first to 3.5% and then to 7.5% per year. MakerDao stated then that “incentivizing CDP [collateralized debt position] closures through a Stability Fee increase (thereby reducing outstanding Dai) is strongly viewed as the appropriate action.”In April, the fee was further raised by another four percent in the fifth such vote this year, bringing it to 11.5%. Subsequent votes brought the rate up to 19.5% at the beginning of May.