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Low Voter Turnout Holds up MakerDAO’s Move to Enforce 2% Reduction in DAI Stability Fee

MakerDAO’s bid to have the stability fee of its Ethereum blockchain-powered decentralized stablecoin has been hindered by a low turnout of votes.  The fate of the DAI stablecoin was clear if the recently published voting results were any indication.

The vote that would determine whether the stability fee will be decreased by two percent to 17.5% annually began on May 19. MakerDAO was hoping to revamp the annual fee in order to boost the DAI’s peg to the dollar after its exchange rate started fluttering above $1. The company levies a stability fee whenever the token is utilized for loans.

Unsuccessful Voters

Participating voters was unsuccessful in staking the 117,631.90 MKR minimum tokens needed to vote. Due to this, the proposed fee reduction remains unfulfilled as of press time.

Based on the vote results, more than half of the vote threshold embodied two main token owners who have 54,000 MKR tokens a share. The number defeated the other choices at the poll, which recorded more distinct voters, but lesser in number to overall staked tokens.

Reducing DAI

MakerDAO had raised the stability fee two times in March. It was initially increased to 3.5% and was later raised to 7.5% a year. At the time, the company claimed that “incentivizing CDP (collateralized debt position) closures through a Stability Fee increase” was the appropriate step to take and would reduce the outstanding DAI.

The stability fee was again raised by four percent in April. This brought the rate up to 11.5%. Succeeding votes further boosted the fee to 19.5% at the start of May.

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