After nearly two weeks of continuous voting, MakerDAO token holders have officially activated a decrease to DAI stablecoin fees.
DAI is an ethereum-based token which presently maintains a soft peg to the U.S. dollar. In recent months, fees have increased dramatically for users to loan out DAI from the MakerDAO system. This was because since as early as February DAI dollar valuation had consistently fluctuated below the targeted $1.00 mark.
This month DAI dollar valuation has stabilized considerably and is now trading on major cryptocurrency exchanges at or around $1.00.
At present, there is over $400 million worth of ether backing a supply of roughly 80 million DAI. This makes MakerDAO by far the most popular decentralized financial application in the crypto space at present, according to DeFi Pulse.
For the past two weeks, MakerDAO token holders have been debating whether or not a decrease to DAI lending fees – called the Stability Fee – should be issued into the system given a steady dollar valuation. The last successful effort to decrease the fee took place in late December of last year.
At first, two token holders dominated an initial governance vote collectively staking 54,000 MKR in favor of a 2 percent Stability Fee decrease. This decision was reaffirmed the next week when more than 9 token holders again voted for the same 2 percent decrease.
However, both times the vote was not ratified in a secondary round of voting – called the executive vote – which requires token holders to reach a minimum threshold of votes greater than the amount staked in the previous round of executive voting.
The last successful executive vote initiating a two percent increase to the Stability Fee was ratified into the system with a total of 35,221.95 MKR staked in favor. Today’s executive vote initiating a two percent decrease was activated with a total of 89,926.75 MKR staked.
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