For almost two weeks now, MakerDAO token holders have been debating whether or not a decrease to DAI lending fees (dubbed as the Stability Fee) should be issued into the system given a steady dollar valuation.
After 11 days of continuous voting, MakerDAO has finally approved DAI fee decrease. Apparently, the last successful valuation took place towards the end of December last year.
MakerDAO holders dominated an initial governance vote collectively staking 54,000MKR in favour of a 2% Stability Fee decrease. A week later, more than 9 token holders voted for the same 2% decrease and the decision got re-affirmed.
The vote was however not ratified in a secondary round of voting, also known as the executive vote. The last successful executive vote initiating a 2%increase to the Stability Fee was ratified into the system with a total of 35,221.95 MKR staked in favour. Yesterday’s executive vote initiating a two percent decrease was activated with a total of 89,926.75 MKR staked.
The executive vote requires token holders to reach a minimum threshold of votes greater than the amount staked in the previous round.
What is Dai (DAI)?
Dai is a decentralized stablecoin pegged to the U.S. dollar. Created via the Makers (MKR) Dai Stablecoin System, it uses margin trading to respond to changing market conditions and preserve its value against the major world currencies. Also, DAI is backed by crypto collaterals that can be viewed publicly on the Ethereum blockchain.
- One Dai is worth $1.
- No government or other centralized authority can shut it down.
- No individual can control it.
- Dai can be exchanged directly bypassing all middlemen just like other crypto coins.
- It can be traded freely as any other ERC-20 token.
- It brings transparency to the volatile crypto ecosystem.
- Users from all over the world can receive and send it just by having an Ethereum wallet.
Following the DAI dollar valuation that had consistently fluctuated below the targeted $1 mark, fees charged for users to loan out DAI from the MakerDAO system have highly escalated over the past few months. This month however, the DAI dollar valuation has greatly stabilized and is now trading at $1 on major crypto exchange platforms.