Introduction to DAOstack Governance
DAOstack is an open-source framework for decentralized autonomous organizations (DAOs), designed to enable large-scale coordination on blockchain. By leveraging Holographic Consensus and a reputation-based voting mechanism, DAOstack allows stakeholders to propose, debate, and implement changes to on-chain protocols in a trustless, transparent manner.
In this article, we explore in depth how to create proposals and cast votes within DAOstack’s flagship user interface, Arc, guiding you through each step from wallet integration to final execution.
Key Concepts
- Reputation: Non-transferable score representing your historical contributions and voting power.
- GEN Token: Utility token that funds the ecosystem, used for staking and incentive rewards.
- Holographic Consensus: Dual-layer voting where a small number of staked voters can push proposals that reach a conviction threshold into on‐chain execution.
- Conviction Voting: Continuous staking model: the longer tokens are staked on a proposal, the higher its conviction.
1. Getting Started: Wallet Connection
Before engaging in governance, you must connect a web3 wallet (such as MetaMask or WalletConnect) to Arc:
- Install MetaMask: Get it from https://metamask.io and set up your Ethereum account.
- Select Network: Switch to the network on which your DAO exists (e.g., Ethereum Mainnet, xDai, Polygon).
- Connect to Arc: Visit Arc and click ‘Connect Wallet’. Approve the connection in MetaMask.
- Verify Reputation: Arc will display your reputation balance and GEN token holdings in the sidebar.
2. Creating a Proposal
Proposals are the core of DAO governance. They can range from parameter changes in smart contracts to funding requests or policy updates.
2.1 Proposal Types
- Generic: Arbitrary calls to smart contracts.
- Parameter Change: Adjust DAO parameters (e.g., vote duration, quorum).
- Funding Request: Allocate GEN tokens from the treasury.
2.2 Step-by-Step Workflow
| Step | Action | Description |
|---|---|---|
| 1 | Navigate to ‘New Proposal’ | Click the button in the top navbar of Arc. |
| 2 | Fill in Title Summary | Provide a concise title and detailed description, linking to off-chain docs if needed. |
| 3 | Define Execution Calls | Specify contract address, function signature, and parameters. |
| 4 | Set Metadata | Add tags, resource links, or urgency status. |
| 5 | Review Submit | Confirm the transaction in your wallet to publish the proposal on-chain. |
3. Understanding Voting Mechanisms
DAOstack’s novel voting system blends reputation with continuous staking, rewarding both early participation and sustained support.
3.1 Conviction Voting
- Participants stake reputation to signal support.
- Conviction accumulates over time: Conviction ∝ Stake × Time.
- When conviction exceeds a threshold, the proposal enters the “Queue” for execution.
- Staked reputation can be withdrawn anytime, reducing conviction accordingly.
3.2 Holographic Consensus
This dual-layer approach ensures that low-attention proposals can still pass if a small group of “boosters” stakes GEN tokens to elevate them, counterbalancing voter apathy in large DAOs.
4. Casting Your Vote
- Select the Proposal: In Arc’s dashboard, find ‘Active Proposals’ and click the one you support.
- Stake Reputation: Enter the amount of reputation to allocate higher stakes increase conviction growth rate.
- Confirm Transaction: Sign the vote transaction in MetaMask. A small gas fee applies.
- Monitor Conviction: Revisit the proposal page to see conviction bars and time remaining.
- Withdraw or Re-stake: You can modify your stake anytime before execution.
5. Managing Quorum Execution
Each DAO sets a minimum conviction threshold. Once a proposal’s conviction surpasses this level, an on-chain execution transaction is automatically triggered.
- Quorum: Minimum reputation participation required.
- Threshold: Conviction value determined by DAO parameters (proposal type, urgency).
- Execution Window: Timeframe in which the proposal can be executed.
6. Best Practices for Effective Proposals
- Clear Objectives: State the problem you address and the expected impact.
- Concise Budgeting: For funding requests, break down costs and deliverables.
- Community Engagement: Share drafts in community forums (e.g., DAOstack Forum) for feedback.
- Transparency: Attach off-chain references (GitHub issues, documentation) for credibility.
- Timely Updates: Respond to questions, adjust the proposal metadata as needed.
7. Further Resources
By following this guide, you’ll be well-equipped to participate in DAOstack governance—shaping decentralized communities with transparent, on-chain decision-making powered by Holographic Consensus.
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