Decentralized Autonomous Organizations (DAOs) are transforming the way organizations are managed by offering a decentralized and democratic framework for decision-making. Central to a DAO's functionality is the process of governance proposals, which allow members to collectively shape the organization's direction and operations. Let's explore how governance proposals work in DAOs, focusing on VeBetterDAO, to understand this process in detail. 

The Scope of Governance Proposals

Governance proposals in a DAO cover a wide range of activities, including:

• Initiating specific actions or changes: These proposals, executed through smart contracts, involve concrete modifications such as altering operational protocols or upgrading software. 

• Proposing general ideas or improvements: For outcomes that cannot be directly implemented via smart contracts, members can propose general ideas, describing the desired changes. 

• Setting policies: Establishing rules and guidelines for the organization’s operations.

• Allocating funds: Deciding on the distribution of the DAO’s financial resources.

• Making strategic decisions: Guiding the long-term direction and goals of the organization. 

• Defining operational procedures: Outlining the day-to-day operations and processes. 

These proposals ensure that the DAO operates in a decentralized and democratic manner, with members having a direct say in its management.

The Proposal Process in VeBetterDAO

In VeBetterDAO, any proposal to modify governance or perform a specific action must be raised by users and voted on to be executed. Here’s a detailed look at how this process works:

Proposal Creation

Anyone can create a proposal by starting from a dedicated flow. There are 2 types of proposals:

1. Actions or changes: These involve specific changes upon successful voting and are executed by calling smart contracts.

2. General proposals: Used when the desired outcome cannot be achieved through smart contracts. The proposer describes the change idea in detail.

To create a proposal, follow these steps:

• Type Selection

  • Choose between an action/change proposal or a general proposal.

• Title and Description

  • Provide a clear title and detailed description of the proposal.

• Idea Sharing

  • Share more about the idea to inform and engage the community.

• Round Selection

  • Select the round in which you want your proposal to start.

• Support Your Proposal

  • Optionally allocate your own VOT3 tokens to support the proposal.

• Preview and Publish

  • Review the proposal and publish it.

Proposal Support 

For a proposal to be eligible for voting, it must be supported by VeBetterDAO’s users. Support is given by allocating VOT3 tokens to the proposal. A specific amount of VOT3 tokens is required for a proposal to be published, and creators can also contribute their own VOT3 tokens. This amount must be collected during the specified round. 

During this phase, discussions around the proposal are encouraged. Creators and supporters can start conversations on blogs, forums, or social networks to discuss the proposal's key goals and gather support.

Once the proposal support period is over and the minimum number of VOT3 tokens has been deposited, the proposal moves to the voting round. Supporters can then reclaim their VOT3 tokens at this stage, regardless of the support period’s outcome. 

Voting on Proposals

After gaining the necessary support, a proposal becomes active and ready for voting. Users can vote "for," "against," or "abstain" on the proposal. When casting their vote, users can leave comments visible on the proposal’s detail page. For the proposal to pass, it must reach a minimum engagement threshold, a concept known as the ‘quorum’.

At the end of the voting period, users are rewarded for their votes, regardless of the vote’s direction. These rewards can be claimed during the next allocation round.

Overall Objective

The scope of governance proposals in a DAO is broad and encompasses various aspects of organizational management. In VeBetterDAO, the proposal process is designed to be inclusive and democratic, ensuring that all members have a say in the organization’s direction. By understanding and participating in this process, users can contribute to the growth and success of the DAO, fostering a truly decentralized and democratic governance model.