4. Create DAO. Voting Parameters
Last updated
Last updated
On this page, you can configure your DAO's voting system and governance model. The voting setup determines how decisions are made in your organization.
First, select a governance model:
Linear - Simple 1 token = 1 vote system. Best for smaller DAOs without complex needs.
Meritocratic - Weighted voting that considers expertise. Counters consolidation of power and enhances community governance. This is a unique system made by DeXe DAO and is only used by them. You'll understand exactly how it works by reading the whitepaper.
Custom - Integrate a custom contract for advanced customized voting logic.
You can learn more about them through the link.
Next, decide if members can delegate their votes to others.
Enabling delegation allows members to assign their voting power to trusted experts or advisors in the community, facilitating better decision-making by leveraging their expertise. This also saves time and gas fees, while members retain the ability to withdraw delegated votes anytime.
We recommend enabling delegation for more decentralized and efficient governance.
You have the option to enable early completion of votes once quorum is reached.
If enabled, voting will end immediately when the minimum quorum threshold is hit, without waiting for the full duration.
For example, if your quorum is 50% and duration is 7 days:
Without early completion: Voting continues for the full 7 days even if quorum is reached on day 2.
With early completion: Voting ends as soon as ≥50% participate, like on day 3.
Enabling early completion can accelerate decision-making since votes finish faster when quorum is achieved ahead of schedule.
However, there are some tradeoffs:
Members have less time to change their minds or switch votes.
Discussions may be cut short before everyone has fully debated.
When voting rewards are enabled, it will not burn extra tokens.
Ultimately, it depends on your DAO's needs. Faster-moving organizations may benefit from ending votes early when possible. But other DAOs may prefer giving the full pre-defined duration for decisions.
We recommend enabling early completion for flexibility. But you can always disable it later through governance proposals if your DAO decides it needs more discussion time.
This section allows you to define key parameters of your DAO's voting process:
Quorum – The quorum is the minimum percentage of voting power needed to accept or reject a proposal. For example, setting a 50% quorum means at least 50% of voting power must participate for the vote to count. Aim for a quorum that's high enough to represent the community, but not so high it's difficult to achieve. Between 30-50% is a good starting point for most DAOs. You can adjust the quorum later through governance if needed. Higher quorums enhance decentralization but may stall proposals.
Duration – The duration sets how long the voting period will last for regular proposals. Choose a duration that gives members reasonable time to review proposals, discuss, and vote. Common ranges are 3-7 days. Shorter durations accelerate decision-making, while longer ones allow more discussion. Consider your community's needs. Like quorum, you can modify the duration through governance after launch.
Execution Delay – The execution delay sets a buffer between the end of voting and proposal execution. For example, a 1-day delay means the proposal can't be executed until 1 day after voting concludes. The delay provides a grace period for members to exit the DAO if they disagree with the outcome.
Set this just long enough for members to react but not so long it stalls execution.
Secure enough votes for a quorum in your DAO to enable customization and governance. Start with smaller values and increase gradually over time.
This section allows you to define the minimum number of votes members must hold to:
Create proposals
Participate in votes
View and comment on proposals
Setting minimums helps prevent spam and ensure meaningful engagement.
This sets how many votes a member needs to be able to create a proposal.
Requiring even just 1 or 2 votes ensures members have skin in the game before proposing changes.
You want active participation, but avoid setting this so high it limits community voices.
This defines the minimum votes required to actually cast a vote on proposals.
Again, even a 1 vote minimum helps prevent bots/spam votes while still allowing broad participation.
Balance keeping voting accessible with making sure voters are real stakeholders.
Finally, the discussion minimum sets how many votes are needed to view and comment on proposals.
This minimum can be set lower than voting, since you want wide discussion even from members with fewer votes.
Setting some minimum helps limit spam comments from members with zero stake.
Tune these thoughtfully to foster an informed, earnest dialogue in your DAO. The minimums add guardrails but can be adjusted later through governance if needed.
You can always set up rewards later by proposals and voting. If you do not wish to add rewards or plan to add them later, enter "0" in all fields on the form.
Enabling community rewards allows your DAO to incentivize participation through token distributions. You can establish rewards for:
Voting Rewards – These incentives are awarded to members who vote on accepted proposals. The reward amount is proportional to the member's voting power used. Voting rewards encourage turnout for important decisions.
Proposal Creation Rewards – These rewards compensate members who author proposals that get accepted. They incentivize members to contribute ideas and take initiative. You set a fixed token amount per accepted proposal.
Transaction Execution Rewards – These offsets the gas costs of executing transactions related to accepted proposals. They ensure active members aren't losing money governing your DAO. You again set a fixed token reward amount per transaction.
Consider enabling all three types to engage your community. However, be thoughtful - excessive rewards could incentivize low-value proposals and votes, depleting your DAO's treasury.
Make sure to balance the reward amounts to achieve your goals, and leave room to adjust through governance later.
Enabling community rewards is powerful, but requires diligence to maximize community benefit sustainably.
