DeFi

MakerDAO Governance & Risk Call: Signs of participation exhaustion as Dai continues to hold peg

Quick Take

  • Call and voter turnout continues to decline week on week as MKR stakeholders incorrectly consider mission complete after sustained Dai stability
  • Data presented suggests maintaining Stability Fee at status quo is most sensible course of action, with any reduction to or below DIPOR likely to once again break target peg

Governance

There seems to be a degree of exhaustion setting in to the MakerDAO governance process, with turnout on the governance & risk calls and value staked in the polling and executive votes both continuing to decline week on week. This week’s poll and executive votes concluded with a further 1% reduction to the Stability Fee, bringing it down to 16.5% APR, with the threshold required to pass proposals falling almost 50% from previous weeks.