First they messed up the peg totally. Really screwed it up to the sense that it became an investment.

Then they had this huge design error in the liquidation process, it's like the designer were clowns that were overseen by monkeys. The design was that bad.

Next they oversaw a huge flaw that nearly brought down the whole maker system, in that they simply ignored the risks of flashloans and the ability to overtake the whole maker system and drain all the eth.

What I hate is that they are so much focused to pocket more money, to make money for themselves that they neglect the users. They always say this isn't a charity. But we the users are not a charity either. Our money is not up for stealing. It is said that the 0 bids were made by top officials at maker who knew the system. That's what people are saying in the darknet communities. They are mostly very well informed and have all the insider informations.

With the Shutdown vote proposal passed, I see they set a tentative date of April 25, 2020 to shut down SCD. That is only 2 weeks from now. How many financial services announce a shutdown/termination of a service and then give people only two weeks???

I am very happy with just using SCD. I dislike MCD because it contains USDC which is a centralized stablecoin that can be seized. Also my metamask keys for my CDP are at my parents and brother's house (split into two pieces) so I can't even get access to it during quarantine. How about giving people more than two weeks before you terminate a major financial service after a vote of 'yes'? This is so much BS.

Lets burn this project down and keep increasing the SF until all CDP owners get rekt.

Is anyone advocating to stick with DAI as is? No MCD. Just doing what MKR has done well. Help integration, collaborate, increase security. Increase ease of use. Publicize. Decentralize oracles. collaborate with a side chain to make dai transfers free, etc??? Why would we want to jeopardize what is working so well already? This is a system based in trust/reputation, why should we risk reputation with new risky contracts?

The problem

You are not only incentivising people from closing their CDPs.

More signficantly, you are stopping people from opening a CDP and are killing off DAI growth.

When I first heard about the MakerDAO, CDPs, and DAI, I was genuinely excited. Finally a system that's fairer than banks.

But now you are asking 16.5 %, way more than banks.

The community voting for 16.5 % aren't doing this because they would believe it would stabilize the DAI price. No.

The "stabilization" of DAI this would supposedly (unproven) lead to is just the easiest excuse for MKR voters to increase personal profits.

This greed is killing DAI's growth. What could've become a nice story making it into mainstream media and mainstream adoption, is now turning in nothing more than an experiment on the brink of failure.

Stop the greed and stop killing DAI's growth.

I don't believe an increased stability fee leads to a more stable DAI. Instead, it leads to a lowered attention, a lower user base. A general distrust of the community toward MakerDAO.

I mean, people opened a CDP for various personal reasons. People had a financial plan, assuming the stability fee would cost them a yearly 2.5 %.

And now you are forcing them to change, ditch, their financial plans, trying to "force" them to close their position. Forcing them to stop using MakerDAO, CDPs, DAI.

It's definitely the fastest way to losing customers, that's for sure.

It's just another failure of community governance and it proves, as before, that shareholders are only thinking shortterm and voting toward their own wallets rather than playing the long game.

Solutions

Now that the problem has been established, let's talk about solutions.

The key to reaching a stable DAI would be liquidity. The more liquidity, the more efficient market forces will stabilize DAI's value. And the only way to increase liquidity is.... user growth.

Imagine for a second that the stability fee stayed at 2.5 % for this entire time, and you didn't force people to close their CDPs. It would've increased its popularity and the enthusiasm among the CDP pioneers. And new users wouldn't have been scared away with these ridiculously high interest rates.

And growth in these kind of ecosystems that we are working in, is of an exponential nature.

That's what's being missed out on right now. We would've had 2, 5, maybe 10 times as much collateral, DAI if it weren't for this stability fee fiasco. It would've lead to way more financial transactions in both directions, increasing liquidity,.... all working together for a more stabilized DAI value.

We have arbitrage for that. Does the majority of the MakerDAO voters actually even know the term "arbitrage"? That's your incentive to close CDPs. Arbitrage. It's a market force. And it's way more effficient at it.

Please stop these random experimentations and random changes of the parameters. Start actually thinking and analyzing this stuff mathemetically.

I know that democratizing stuff, governance polls, are ideologically positive and encouraged. But we aren't living in a perfect world.

And the reality is that persons who got an F on match class or economics, are now having the same voting power as their professor.

And since we have more people not understanding economics, than there are economic professors, democratizing these parameters is effectively weakening the system right now.

If you want to turn DAI into a true success, something fundamental has to change.

My recommendation would be to change the fees back to 2.5 % or perhaps even 2% or 1 % (whatever you wish, at least make it competitive enough with the banking system) and keep it like that for 2 years. Watch user growth. And watch market forces to increasingly stabilize the DAI as the result.

tl;dr

DAI stability is created by arbitrage. Arbitrage is created through market liquidity. Market liquidity is created through user growth.

High stability fees kill user growth, kill market liquidity, kill arbitrage, kill DAI stability, kill DAI. Stop killing DAI.

Has this been washed under the rug or was anything ever done?

I just found out my best friend lost 3000+ Ethereum and I’m dying on his behalf.

Please someone tell me something has been done. This was not within their disclosed tolerances.

This consistent rate hike is a crazy idea. Instead of always increasing the rate every 2 weeks, why not try to get dai on Good Exchanges to boost usage!

Head over to r/cryptocurrency or r/ethfinance or eth trader. They are rediculing makerdao and Dai. You fucked up big time. I can't defend it anymore.

I think the big whales who profited of the initial distribution and are still holding tremendous amounts, need to step forward and cover the loss from their own stash.

Makerdao is an embarrassment right now, a train wreck. Instead of focusing on a crypto backed stablecoin they started this whole nonsense of multi collateral Dai. They become insane in their greed for power and money. Now Dai is such a shitcoin that it needs to be backed by usdc.

... fully collateralized stablecoin.

DAI needs to add about $300M to its MCap as soon as it can to make the most of this situation and achieve the network effect. MKR holders can vote to lower the SF and DSR to about 3%. The peg will stay around $1 as it is today - it will even be more stable.

The newly minted DAI won't be all dumped on the market and the market could absorb much more DAI than we think. There are occasionally buy orders of $100k+ on Kraken and other exchanges and there will be more of those if there are large sellers.

I'm working on an app that provides insights into over 5000 different coins including MKR. Its aim is to alert users when certain coins are on the rise. We're currently in the BETA phase of our validation tests. I'm looking for users I can showcase the app to and get their feedback.   

Here's some snapshot of the apps functionality: https://imgur.com/a/1CTgcqx

If you'd like to be involved, please see mailing list link below: https://docs.google.com/forms/d/e/1FAIpQLSda_1uieqE4XKS75gHwy0TjkTaslmtDNvWeAu0msc-NfJw-tg/viewform?usp=sf_link

Also, feel free to share any feedback you currently may have :) 

MakerDAO is a great product. It actually works and it has a revenue model. For each DAI coin issued an interest fee of 0.5% is charged. This makes it simple to calculate a fair value for MKR.

Owning MKR carries a risk and you have to do some work. So let us assume that a prudent investor wants to make a 5% return for each MKR he owns. This implies a price to earnings ratio of 20.

Coinmarketcap tells us that there are 30M DAI in circulation, earning a total of $150k, giving an earnings per MKR coin of 15 cents. Therefore the expected price of a MKR is $3.

Can anyone explain why the price of MKR won't fall catastrophically? Unfortunately I bought a lot of MKR at $1k before working this out so I eager to be told I am wrong!

ETH is climbing a lot and huge market swings are in it's future. What has MakerDAO done to prevent another Black Thursday?

Cant find the tweet now but he joked about the "decentralized" makerdao system with its "voting" The whale holds 75k MKR but used only 41k to vote down the stability fee.

CDP owners are in panic: SF is VERY high! And keeps growing! Why?

Because (if history repeats) crypto may grow 100% within a year and 1000% within two. So a lot of crypto owners are prepared to pay 100% now or 1000% later for a loan, to be able to invest/leverage. They invested all in crypto and now looking for a loan, at any interest.

At the same time the rest of the world has the exactly opposite problem: nowhere to invest. Bank's interests, adjusted for inflation fluctuate around zero, stock are not much better and risky. Millions of millionaires are looking for investment opportunity and cannot find any. That's why housing bubble, that's why ghost cities in China...

If those two worlds with such difference in interest rates get connected, a huge flow of money will go to crypto. Why it haven't happened before? Two years ago - no good stablecoins. One year ago - no good interest rate on this stablecoin. But now we have both. And we have variable collaterisation ratio to reduce lender's risk as low as he is comfortable with. So the first DeFi platform that will manage to use this potential, will make billions, along with it's first customers.

tl;dr; High SF will trigger mainstream adoption.

due to the change in the stability fees over the stable coins, the collected fees are reduced to the half. and so the burning rate.

i dont know how it would impact in the mid term, i am trying to know better and lear, buy until i can understand better, i decided to sell all.

https://makerburn.com/#/

Given the relatively high gas fees for using maker on Eth, has anyone considered copying the contract to etc? Maybe there should be etcdai?

Are you for or against? What do you think the appropriate collateral requirement is - 120%, 150%, ... ?

Would it be possible to generate another type of coin instead of an Ether token? I am thinking of something faster and feeless and preferably private. I think using Ether tokens could be a weakness of Dai but if there is the possibility of generating another coin, then this would work much better in the future. So can it be done?