MakerDAO token holders will give a common vote that will have the DAI Stability Fee decreased by 2% to 17.5% per year. The token holders have since Monday learnt about the five different options that will possibly increase the stability fee on the platform.
The preliminary polling round has already ended and token holders look forward to ratify their desirable change in tier final executive vote. This 2% percent fee will make it easy for users to obtain the programmatic loans of DAI.
There is a deliberate plan to bring down the amount of DAI in the markets and also scale higher the stablecoin’s value. At the moment, it hovers at around $0.96, which is below the stable $1 price that both users and developers anticipate to work with.
One analyst says that the DAI peg has over the past one week weakened significantly to eventually stand at 96 cents. He adds that the DAI supply at some point started trending back up as the ETH price moved upwards.
Last month was the time a 4 percent fee hike was witnessed and the current news is puzzling at the very least. In several instances, other smaller increases were approved and implemented to the code.
Cutting down on the DAI supply
Many users hoped to see the DAI peg stabilize. However, great deals of the increases were futile towards achieving the stability.
The founder of crypto asset investment company MythosCapital Ryan Sean Adams opines, “At some point soon, it may make sense to lay off the [stability fee] hikes and rely on the 100 million supply cap to restore order”.
Today’s MakerDAO governance and risk call saw suggestions regarding changing the hard supply cap of 100 million DAI raised by members.
Hopefully, by next week we might be witnessing an improvement in the DAI price. In case that doesn’t happen, then the debt ceiling may be reduced.
As per this moment, only about 100 million DAI can be given as loans to users in exchange for ETH.