• Latest
MakerDAO Votes to Increase Fees 4% on Ethereum Stablecoin DAI

MakerDAO Votes to Increase Fees 4% on Ethereum Stablecoin DAI

March 21, 2019
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Tech

MakerDAO Votes to Increase Fees 4% on Ethereum Stablecoin DAI

coinnewsdaily by coinnewsdaily
March 21, 2019
in Tech
0
MakerDAO Votes to Increase Fees 4% on Ethereum Stablecoin DAI
190
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022

MakerDAO token holders have again voted to increase fees charged to those taking out programmatic loans on the blockchain through its U.S. dollar-backed ethereum stablecoin DAI.

The fourth and largest fee hike to the DAI “Stability Fee,” users who take out loans with MakerDAO to generate new DAI will soon be required to pay a 7.5 percent fee when closing out the loan.

As explained in the MakerDAO white paper, the Stability Fee “is an annual percentage yield that is calculated on top of the existing debt” and funneled into a smart contract called the “Burner.”

No funds can be moved from the Burner contract and all MakerDAO tokens (MKR) held within it are destroyed. The purpose of the fee is strictly to address imbalances in supply and demand of the DAI token that cause its valuation to stray away from the dollar.

Yet, since February, DAI’s valuation has persistently fallen short of $1, and as MakerDAO’s head of trading Joseph Quintilian noted during a governance call last Thursday, over-the-counter trading for the DAI persists between the $0.95 and $0.99 range.

During Thursday’s scientific risk and governance call, risk management lead at the MakerDAO Foundation Cyrus Younessi highlighted that last week there was an initial boost to DAI market price – likely as an outcome of the 2 percent increase to the Stability Fee – but prices again have retracted to below the targeted $1 valuation.

Source: https://dai.stablecoin.science/

By raising fees, MakerDAO token holders hope to cause a contraction to the DAI supply relative to the continued demand and thereby push the dollar peg up to a steady $1 valuation.

Quintilian explained during today’s call:

”A lot of the [trade] inventories are saturated right now. All of the inventories are complaining we have way too much DAI [in circulation].”

Looking ahead, MakerDAO token holders will vote to ratify the decision and execute the 4 percent Stability Fee hike into the protocol. During last week’s executive vote to implement a 2 percent fee raise, MKR holders were able to ratify the increase in roughly 10 hours with a total of 37 votes.

Having concluded the first round of voting with roughly 40,700 MKR tokens staked in support of the proposal today, the executive vote will be launched tomorrow at 17:00 (UTC).

About this initial round of polling, Richard Brown – head of core community at the MakerDAO Foundation – noted today that “more active voters [participated] than the previous executive vote we had.”

In addition, he highlighted that a total of 73 percent of voters who staked MKR tokens voted in favor of the 4 percent raise. Of the total MKR tokens staked, 75.6 percent were staked in favor of the 4 percent raise.

“There’s this interesting alignment of Maker tokens staked and number of people involved…We’ve seen a good distribution of people signaling regardless of whether they are a whale or not, which implies we have a healthy [voting] system,” said Brown before the governance poll officially closed.

Looking ahead to the executive polling, Younessi said:

“We did see a slight drop off in the DAI supply [as of late] which is a positive sign. One of the few positive signs we’ve seen … It will be interesting to see if that trend continues when the executive polling runs.”

Pennies via Shutterstock 

Credit: Source link

Tags: Crypto Tech
Share76Tweet48
Previous Post

Bitmain Set to Deploy $80 Million Worth of Bitcoin Mining Equipment, Sources Say

Next Post

Alleged BTC-e Operator Alexander Vinnik Seeks Extradition to Russia

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

ygg sea surpasses 10,000 scholarships in just six months of launch
Alt Coin

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin
Alt Coin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building
Bitcoin

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications
Alt Coin

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
green gaming
Business

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
axie infinity: what are the minimum android phone requirements to play on mobile
Alt Coin

Axie Infinity: What Are the Minimum Android Phone Requirements to Play on Mobile

April 21, 2022
Load More
Next Post
Alleged BTC-e Operator Alexander Vinnik Seeks Extradition to Russia

Alleged BTC-e Operator Alexander Vinnik Seeks Extradition to Russia

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin

Subscribe to Get More!

Loading
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$29,662.001.56%
  • ethereumEthereum(ETH)$1,976.03-0.33%
  • tetherTether(USDT)$1.00-0.05%
  • binancecoinBNB(BNB)$331.172.65%
  • rippleXRP(XRP)$0.407948-0.64%
  • cardanoCardano(ADA)$0.520.47%
  • SolanaSolana(SOL)$49.33-0.38%
  • polkadotPolkadot(DOT)$10.050.60%
  • dogecoinDogecoin(DOGE)$0.083810-0.09%
  • tronTRON(TRX)$0.0819937.23%
  • Shiba InuShiba Inu(SHIB)$0.000012-0.64%
  • daiDai(DAI)$1.00-0.07%
  • litecoinLitecoin(LTC)$69.890.18%
  • CronosCronos(CRO)$0.1898221.60%
  • leo-tokenLEO Token(LEO)$4.940.22%
  • matic-networkPolygon(MATIC)$0.651.65%
  • FTX TokenFTX Token(FTT)$29.79-0.23%
  • bitcoin-cashBitcoin Cash(BCH)$194.131.65%
  • moneroMonero(XMR)$194.653.25%
  • chainlinkChainlink(LINK)$7.151.48%
  • OKBOKB(OKB)$12.68-0.16%
  • ethereum-classicEthereum Classic(ETC)$24.339.25%
  • stellarStellar(XLM)$0.1321832.56%
  • cosmosCosmos Hub(ATOM)$10.95-2.59%
  • algorandAlgorand(ALGO)$0.411106-1.55%
  • vechainVeChain(VET)$0.031449-0.35%
  • ElrondElrond(EGLD)$89.25-2.03%
  • tezosTezos(XTZ)$2.077.28%
  • Internet ComputerInternet Computer(ICP)$7.830.55%
  • filecoinFilecoin(FIL)$8.31-0.43%
  • AaveAave(AAVE)$104.524.83%
  • eosEOS(EOS)$1.342.08%
  • theta-tokenTheta Network(THETA)$1.251.58%
  • zcashZcash(ZEC)$98.59-1.95%
  • makerMaker(MKR)$1,279.96-1.97%
  • huobi-tokenHuobi Token(HT)$7.000.79%
  • bitcoin-cash-svBitcoin SV(BSV)$52.894.48%
  • paxos-standardPax Dollar(USDP)$1.000.00%
  • iotaIOTA(MIOTA)$0.3356820.01%
  • PancakeSwapPancakeSwap(CAKE)$4.900.16%
  • neoNEO(NEO)$11.521.49%
  • zilliqaZilliqa(ZIL)$0.051486-2.19%
  • KusamaKusama(KSM)$81.11-1.87%
  • dashDash(DASH)$62.262.84%
  • basic-attention-tokenBasic Attention Token(BAT)$0.3905140.71%
  • havvenSynthetix Network Token(SNX)$2.62-1.52%
  • wavesWaves(WAVES)$5.68-0.62%
  • nemNEM(XEM)$0.053658-2.56%
  • CompoundCompound(COMP)$69.50-0.35%
  • bitcoin-goldBitcoin Gold(BTG)$24.901.46%
  • qtumQtum(QTUM)$4.141.14%
  • omisegoOMG Network(OMG)$2.580.21%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • ethlendAave [OLD](LEND)$4.103.48%
  • SushiSushi(SUSHI)$1.635.81%
  • yearn-financeyearn.finance(YFI)$9,003.55-0.34%
  • golemGolem(GLM)$0.2557840.03%
  • ontologyOntology(ONT)$0.2877452.41%
  • umaUMA(UMA)$3.44-1.59%
  • digibyteDigiByte(DGB)$0.012116-2.78%
  • UniswapUniswap(UNI)$2.4438.80%
Posting....