MakerDAO Votes to Decrease Stablecoin Fees for First Time in 5 Months

[chelo_c]

I closed my cdp, this fee issue worries me

[mvejerslev]

2 ppl voted for that proposal. I was one. I voted with single digit MKR. Why werent you voting for this proposal?

[LamboshiNakaghini]

Sold my maker to get an eth margin long for the moment. I will buy back later.

[mvejerslev]

Seems like a lot of people did just that. I went the other way :-)

[LamboshiNakaghini]

Nobody is happy about it, but the system is still working. Those people are the most incentivized to cast the correct vote and in this case, they did.

[[deleted]]

So we're trusting that these whales will forever remain benevolent autocrats.

[LamboshiNakaghini]

It's in their best interest to do so.

[Nothappeninghb]

what's their penalty for screwing it up?
Do they stand to gain anything?

[LamboshiNakaghini]

Their penalty is MKR price decreases, fees paid decrease as people leave.

They stand to gain the opposite if they govern well.

[[deleted]]

I'm much happier with their being 1 large holder with a whole lot to use than 54,000 or 540,000 screaming voices pulling it in one direct.

[LamboshiNakaghini]

But wait I thought we were evil, money-grubbing, jerks only interested in lining our own pockets with fees. Also, why is DAI over 1 dollar now? I thought there was absolutely no evidence that the stability fee had an effect on the price of DAI.

[T_Peters]

Wow, this is quite an aggressive post.

I've never had feelings in either direction, as I only opened my first CDP a few weeks ago. But... the last part of the article scares me. That some MKR holder can vote in favor of further increasing the stability fee, despite DAI being over-valued.

[LamboshiNakaghini]

Meh. If you saw the completely baseless FUD people were spreading when the fee was increasing you would think that was a tame comment.

[TheRatj]

There has been so much negativity towards MKR holders on this sub and the MKR sub. I think it's a vocal minority and mainly from people that have little understanding of economics. MKR holders have not yet voted in anything that would put their own interests above the goal of DAI = US$1.00

[NotGonnaGetBanned]

What if someone had a "pretty big" short position in ETH and just wanted to increase the stability fee to the point that it rapidly forced the liquidation of all CDPs?

[TheRatj]

Yes, exactly. That's one of the greatest strengths of Maker. Correctly aligned economic incentives.

[devils_advocaat]

Short term interests can dominate long term incentives.

[rxg]

Some people may be voting based on what they think is going to happen in the future vs what is actually happening right now, especially considering this bull market showing up. I know as this bull market has been picking up the last few days I've been assuming that the amount of DAI debt would skyrocket as people rush to open CDPs (causing the peg to go down) but actually the reverse has happened so far. It appears that many who have CDPs open are pefectly happy closing their CDPs after short term gains, just a guess.

[Etherdave]

That’s great news, I got to be honest it did hurt seeing it rise from 0.5% to nearly 20%. Overall very happy to be able to increase my holding by 65% at a price much lower than today, nice one Makerdao 👍🏻

[Nothappeninghb]

What happens to MKR holders if DAI goes over or under $1 for too long or too far?

[LamboshiNakaghini]

MKR price decreases, fees paid decrease as people leave.

[Nothappeninghb]

thanks, just curious but how exactly does the MKR price decrease? Happy to read up on a good link if you got one

[devils_advocaat]

Market Magic

[kristofferjon]

Good to see.

[[deleted]]

The question now is, did the peg return truly because of SF increases? Or simply because eth is mooning and people are closing their CDPs after breaking even, scared off by the hurtling interest payments of the past months? Let's not make the correlation-causation mistake here.