MakerDAO approves new fee increase to 7.5% in an effort to stabilize DAI

19 Mar, 2019
by Richard Allen
MakerDAO approves new fee increase to 7.5% in an effort to stabilize DAI

The MakerDAO team has announced an increase to its Stability Fee, this time by 7.5%, the company confirmed in a blog post.

Maker, which issued stablecoin Dai (DAI) held a vote on March 14 to decide whether a Stability Fee increase would be necessary. Ultimately, it was decided that a fee increase to 7.5% will be needed in an attempt to provide further stability to DAI.

The Stability Fee is a charge Maker participants must pay when using Dai for loans on its network.

Chepicap reported recently that Maker holders approved a fee increase of 3.5%, which also served to resolve liquidity issues with DAI after an influx with of borrowers took loans out in the stablecoin. This number will be increased further.

“Based on last week’s governance call, the MakerDAO community is moving forward with a Governance Poll to gauge sentiment for an additional Stability Fee increase,” the firm said in its blog post. Developers have added that previous fee increases have had no negative impacts on the maker ecosystem.

CEO Rune Christensen spoke to BreakerMag and explained that Dai will likely never be 1$, stating “It’s never exactly at $1. You can always buy it for slightly above $1 and sell it for slightly below. But it’s much closer to $1 now.”  

At the time of writing, Dai was just below $1, trading at $0.989.

Read more: Maker (MKR) now holds over 2% of total Ethereum supply in Dai Credit System

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