With Multi-Collateral Dai, the Dai price balancing mechanism will utilize oracles and algorithms chosen by Maker governance to adjust the Stability Fee and Dai Savings Rate for balancing supply and demand around the $1 USD Target Price on a semi-automatic basis.
Until Multi-Collateral Dai goes live on the mainnet, however, the Maker Foundation’s temporary Risk Team is tasked with monitoring the Supply and Demand balance of Dai and emulating the role of the Oracle, making recommendations on Stability Fee adjustments when necessary.
Demand for Dai has increased dramatically in this market and general inventory levels are low, so a decrease in the Dai Stability Fee is proposed. Similar to the Stability Fee adjustment we made earlier this year, this post serves as an official proposal to be reviewed and voted on by the community.
Details of the Stability Fee adjustment
On December 17 there will be an Executive Vote to decrease the stability fee for Dai from 2.5% to 0.5%. If approved by the community of MKR holders, the new rate will go into effect immediately. Because this is a decrease, rather than an increase, there is no need for a 1 month warning period.
The voting application is at https://vote.makerdao.com and voting starts on December 17, 2018 at 16:00 UTC.
Making your vote count
To be sure you’re ready to vote on December 17, we support a number of wallet types including Ledger, Trezor and Metamask.
Below you will find a links showing how to use each wallet to setup your voting contract:
- Maker Governance voting setup for Ledger Nano S
- Maker Governance voting setup for Trezor
- Maker Governance voting setup for MetaMask
To learn more about the broader governance framework, along with Risk Parameter considerations and calculations, please check out the Scientific Governance and Risk Framework series: Part 1, Part 2, Part 3 and catch up on past governance discussions had through our Governance and Risk community calls: Video, Audio.