The Maker Foundation Interim Risk Team has placed a Governance Poll into the voting system which presents a number of possible Dai Stability Fee increase options. Voters are now able to signal their support for one of the following Stability Fee increases: 0%, +1%, +2%, +3%, or +4%.

This Governance Poll (FAQ) will be active for three days beginning on Monday, April 8th at 5 PM UTC, the results of which will inform an Executive Vote (FAQ) which will go live on Friday, April 12th, at 5 PM UTC.

Review

The need to increase the Stability Fee was discussed in the Governance call on Thursday, March 14th. Please review the Video, Audio, Transcript 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 a Governance Poll to gauge sentiment for an additional Stability Fee increase. The Interim Foundation Risk Team has put together a proposal that includes a range of options. Voters may signal their support for a Stability Fee increase of: 0%, +1%, +2%, +3%, or +4%.

Next Steps

• On the Friday following the conclusion of the poll, there will be an Executive Vote asking MKR token holders if they support or reject the change proposed by this Governance Poll.
• This weekly cycle of Polling and Voting will continue until the community believes that stability has returned to the peg.

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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.