# 2. Create DAO. Governance options

On the Governance tab, you'll configure the governance token that controls voting rights and governance in your DAO.

### Step 1: Enable/Disable BAB Token (Optional) <a href="#docs-internal-guid-d3794466-7fff-b0a6-8d2e-a4e524cad779" id="docs-internal-guid-d3794466-7fff-b0a6-8d2e-a4e524cad779"></a>

<figure><img src="/files/e2o7ZctY9rZtksHS8OzP" alt=""><figcaption></figcaption></figure>

You can opt to require the Binance Account Bound (BAB) token in addition to your governance token. This helps prevent sybil attacks from users with multiple accounts.

A Soulbound token is a non-transferable digital token that represents your personal achievements, affiliations, and experiences. Unlike regular NFTs, SBTs cannot be sold or traded, serving as verifiable proof of your skills, education, or community memberships in the emerging "Decentralized Society".

We recommend leaving this disabled if you are unfamiliar with it. No worries - you can always enable it later through a proposal if your DAO decides it is needed.

### Step 2: Select a Governance Token <a href="#docs-internal-guid-2d9cf456-7fff-34f1-f527-6f10b3c524fe" id="docs-internal-guid-2d9cf456-7fff-34f1-f527-6f10b3c524fe"></a>

<figure><img src="/files/5PiBTkxjvLWYJApf6zvv" alt=""><figcaption></figcaption></figure>

{% hint style="warning" %}
Please note - the governance token cannot be changed after your DAO is created. So choose wisely.&#x20;
{% endhint %}

A governance token represents voting power in your DAO. Members must hold your governance token to create proposals and vote on issues.

You can either choose an existing ERC-20 token as your governance token, or create a new one. The options are:

* Use an existing ERC-20 token: Enter the contract address of any ERC-20 token you want to use for governance.
* Create new ERC-20 token: Click "Create" to generate a new ERC-20 token contract that will serve as your governance token.

Creating a new Token will open a separate page, but your DAO setup progress will be saved.

{% hint style="info" %}
Creating a new Token will open a separate page, but your DAO setup progress will be saved.
{% endhint %}

### Step 3: Add an NFT as a Governance Token (Optional) <a href="#docs-internal-guid-b491e5e8-7fff-350f-0030-5d79a4d5de3b" id="docs-internal-guid-b491e5e8-7fff-350f-0030-5d79a4d5de3b"></a>

<figure><img src="/files/DZ7qja0d3BN0jVqO9x0k" alt=""><figcaption></figcaption></figure>

Your DAO can also use NFTs (non-fungible tokens) for governance.

Toggle the switch to "On" and enter the contract address of an ERC-721 NFT Collection you want to use. You can decide how much influence this NFT has in votes.

Using NFTs enables creative governance mechanisms like allowing token holders to vote on behalf of the DAO.

{% hint style="info" %}
You can always add an NFT as a Governance Token later.
{% endhint %}

With your governance tokens configured, your DAO's voting rights are now established.


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