An ongoing governance poll, due to close within 8 hours today, April 11 (5 PM UTC), indicates that 50,579.23 MKR have been staked in favor of raising the stability fee by 4%, bringing it to 11.5% per year.
Other options on the poll included votes in favor of an increase of 1, 2 and 3% — or else not to raise the current fee at all. The second-largest majority, with 1,165.47 MKR staked to press time, has chosen a 2% increase — while the least popular option is for a 1% raise, with just 1.00 MKR staked so far.
278.52 MKR have been staked to press time in favor of not raising the fee and keeping it at its current 7.5% per year level.
A statement accompanying the governance poll — which opened on April 8 at 5 PM UTC — outlines that the need to increase the stability fee is driven by the fact that the DAI stablecoin is persistently failing to keep its 1:1 USD peg.
As previously reported, DAI is an ERC-20-based stablecoin ostensibly designed to maintain a 1:1 USD peg via the issuance of Maker-administered collateralized debt positions.
The two other factors proposed in the statement are identical to the rationale that was given in the preceding (fourth) stability fee increase governance poll: high inventory levels among market makers and prop desks, and insufficient impact from the preceding fee increase. As the statement outlines:
“In February, the Stability Fee was increased twice, each time by 0.5%. In March, the Fee was raised by an additional 2%, and then by 4% two weeks later. The impact of these combined increases was negligible, indicating that neither the target Stability Fee nor the incremental changes were appropriate.”
During a MakerDAO community call on April 9, head of community development Richard Brown said he was reasonably sure such increase votes would repeat until the DAI recovers its peg:
“Tensions are high and this is an important subject. Arguably […] literally the most important thing we do at MakerDAO is the stability of the peg. Everything else flows from that.”