The Maker Foundation Interim Risk Team has placed an Executive Vote into the voting system, which will enable the community to enact a new Dai Stability Fee of 11.5%.

The Executive Vote (FAQ) will continue until the number of votes surpasses the total in favor of the previous Executive Vote. This is a continuous approval vote.

Review

The need to increase the Stability Fee was discussed in the Governance call on Thursday, April 11th. Please review the Video, Audio, Transcript (delayed by 24 to 48 hours), and the online discussion to inform your position before voting.

Key factors under consideration for increasing the Stability Fee are:

• Exchange price persists below $1
• High inventory levels among market makers and prop desks
• Little attributable impact from the previous Stability Fee increases

Analysis

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 insufficient to restore the peg, indicating that the appropriate rate is still higher.

In light of this, the MakerDAO community is moving forward with an Executive Vote to enact the rate determined by the previous Governance Poll.

Action

Voting for this proposal will place your MKR in support of increasing the Stability Fee by 4% to a new total of 11.5% per year.

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Resources

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

Demos, help and instructional material for the Governance Dashboard can be found at Awesome MakerDAO.

To participate in future Governance calls, please join us every Thursday at 17:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.