Fee Has Successfully Stabilized DAI, MakerDAO President Says

DAI stablecoin, which is pegged to the United States dollar, is now in a relatively stable position, according to the president and COO of MakerDAO, Steven Becker, in an Q&A session on May 2.

Becker discussed the efficacy of the stability fee alongside MakerDAO's head of community development Richard Brown and Vishesh Choudhry of the company's Foundation Risk Team.

According to Becker, DAI is now stable thanks to the community's implementation of the stability fee.

If it passes, the stability fee will land at 19.5%. Foundation Risk Team's Choudhry noted that the fee is not especially burdensome.

As the stability fee changes, the fulcrum point of bull/bear equilibrium shifts, making it a critical decision.

MakerDAO launched DAI in December 2017 as an ERC-20 token pegged at 1:1 with the U.S. dollar.

For much of 2019 DAI has been below $1 and has even dropped below $0.95 periodically, according to CoinMarketCap.

As Cointelegraph previously reported, MakerDAO users have voted to increase the stability fee on several occasions this year.

Still, the community is not fully convinced that the value of DAI has stopped fluctuating.

If MakerDAO implements more substantive solutions, DAI could become crypto's 'default' stablecoin.