DAO Governance
Decentralized protocol management — token holders vote on changes.
DAO governance is a decision-making system in decentralized organizations where token holders vote on proposals through on-chain mechanisms.
How it works: 1. Token holder writes governance proposal 2. Proposal published on governance forum (Discourse, Snapshot) 3. Voting period held (typically 3–7 days) 4. Token holders vote proportionally to their holding 5. Proposal passes if it reaches quorum and majority 6. Smart contract automatically implements decision (or multisig team executes)
Platforms:
•Snapshot.org — off-chain voting (no gas)
•Tally.xyz — on-chain voting
•Compound Governor — model many copy
•Gnosis Safe — execution multisig
DAO examples:
•MakerDAO — manages DAI stablecoin and MCD protocol
•Uniswap DAO — ~$1+ billion treasury
•Aave DAO — lending protocol parameters
•Arbitrum DAO — treasury >$3 billion ARB tokens
Governance problems:
•Voter apathy — 99% of token holders don't vote
•Plutocracy — whales dominate voting
•Governance attack — buying enough tokens for control
•Spam proposals