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dao-governance-lessons-from-the-frontlines
Blog

The Future of Proposal Templates: Smarter, Not Longer

Why static governance documents are failing DAOs. We analyze the shift to intelligent, context-aware templates with embedded simulations and automated compliance, using platforms like Tally and OpenZeppelin Governor as a blueprint for the future.

introduction
THE PROBLEM

Introduction

Current governance proposal templates are bloated documents that obscure critical risks and decision points.

Proposal templates are broken. They prioritize narrative length over decision clarity, forcing voters to parse thousands of words to find the single binding on-chain action.

Governance is a coordination game, not a literature review. The current format creates information asymmetry, benefiting whales with dedicated analysts over the average token holder.

Smart contracts execute code, not prose. A proposal's core is its calldata. Templates must elevate this, mirroring the precision of EIP-712 for signatures or Snapshot's structured voting.

Evidence: The average DAO proposal exceeds 2,000 words, yet voter turnout often falls below 5% of circulating supply, indicating systemic failure.

market-context
THE DATA

The Static Template Bottleneck

Current proposal templates are rigid, data-poor documents that fail to capture the dynamic state of a protocol.

Templates are static snapshots. They capture a single moment, ignoring the live on-chain data and user behavior that defines a protocol's health. This forces voters to manually research metrics on Dune Analytics or Flipside, creating a massive information gap.

The future is parameterized templates. Proposals will embed live queries that pull real-time data (e.g., TVL, fee accrual) directly from the chain or subgraphs. This turns a static PDF into a dynamic dashboard, as seen in early experiments by Tally and Boardroom.

Context is the new quorum. A proposal to adjust Uniswap v3 fees on Polygon must automatically surface competing data from Aave and Balancer on the same chain. Static templates lack this competitive intelligence, leading to suboptimal, isolated decisions.

Evidence: The average DAO proposal contains fewer than three data points. Contrast this with the 50+ real-time metrics available for a protocol like Aave or Compound, which remain unused in the governance process.

TEMPLATE EVOLUTION

The Cost of Bad Proposals: A Snapshot

Comparing the operational and financial impact of different governance proposal formats, from raw text to structured, intent-based systems.

Metric / FeatureRaw Text Proposal (Status Quo)Basic Template (Snapshot)Intent-Based Template (Future)

Avg. Time to Review

4 hours

1-2 hours

< 30 minutes

Avg. Voting Participation

15-25%

30-45%

55-75%

Failed Proposal Rate

60%

~40%

< 20%

Gas Cost per Vote (Est.)

$10-50

$5-20

$0.10-2 (Sponsored)

Requires Technical Audit

Enforces Parameter Ranges

Simulates State Changes

Integration with Execution Layer (e.g., Safe, Zodiac)

thesis-statement
THE EXECUTION LAYER

Thesis: From Document to Execution Engine

Proposal templates are evolving from static documents into executable programs that directly orchestrate on-chain actions.

Templates become smart contracts. The next generation of governance templates are not PDFs but executable code. They define a state machine where votes trigger automatic, multi-step execution across protocols like Uniswap or Aave, eliminating manual implementation risk.

Intents replace rigid transactions. Instead of specifying exact transaction calldata, future templates will declare user intents. This allows intent-solvers like UniswapX or CowSwap to compete for optimal fulfillment, reducing costs and improving outcomes for the DAO treasury.

Cross-chain execution is native. A single vote will authorize actions across Ethereum, Arbitrum, and Base via secure messaging layers like LayerZero or Axelar. The template itself manages the atomicity and failure states of the entire cross-chain operation.

Evidence: Snapshot's integration with Safe{Wallet} and Zodiac modules demonstrates the demand for this pattern, moving votes from signaling to direct state changes.

protocol-spotlight
THE FUTURE OF PROPOSAL TEMPLATES

Blueprint for the Future: Emerging Architectures

Governance is shifting from static documents to executable, data-driven systems that automate consensus.

01

The Problem: Static Documents, Dynamic Systems

DAOs waste weeks debating implementation details in text proposals for systems that can be simulated. Manual review is a bottleneck, and final votes lack context on real-world impact.

  • Time to Execution stretches to 4-8 weeks for complex upgrades.
  • Voter Abstention exceeds 90% due to information overload.
  • Post-Implementation Bugs cause $100M+ in preventable losses.
90%+
Abstention
4-8 wks
Delay
02

The Solution: Executable Proposal Standards (EPS)

Embed simulation engines and formal verification directly into the proposal interface. Think Tenderly or Foundry scripts as a voting primitive. Voters trigger a dry-run and see the simulated state diff before casting a vote.

  • Automated Impact Analysis shows TVL, fee, and slippage changes.
  • Formal Verification proofs can be attached, reducing audit surface.
  • Fork-Based Voting as pioneered by Compound and Uniswap becomes the default.
~5 min
Simulation Time
-80%
Review Friction
03

The Problem: One-Size-Fits-All Voting

Quadratic voting, token-weighted, and NFT-based systems are rigidly baked into governance contracts. Changing the mechanism requires a meta-governance vote, creating a political deadlock.

  • Vote Buying/Sybil Attacks plague naive token-weighted systems.
  • Low-Participation Crises render quorums unachievable.
  • Adaptation Lag prevents protocols from responding to new research like Holographic Consensus.
<5%
Quorum Met
High
Sybil Risk
04

The Solution: Modular Governance Primitives

Separate the voting mechanism (consensus layer) from the proposal logic (application layer). Use a standard like EIP-5792 to make voting power portable. DAOs can plug-and-play mechanisms from a marketplace (e.g., OpenZeppelin Governor modules).

  • Runtime-Upgradable voting without contract migration.
  • Mechanism Experimentation with conviction voting or futarchy in sandboxed environments.
  • Delegation Markets become liquid, akin to EigenLayer restaking.
Plug-n-Play
Modules
Liquid
Delegation
05

The Problem: Opaque Delegator Accountability

Delegates amass millions in voting power with no enforceable platform or performance metrics. Voters delegate and forget, creating a cartel of passive capital. There is no slashing for bad votes.

  • Top 10 Delegates often control >60% of voting power.
  • Delegate Diligence is manual and retrospective.
  • Misaligned Voting has no direct financial consequence.
>60%
Power Concentration
Zero
Slashing
06

The Solution: Programmable Delegation with Staked Reputation

Merge liquid delegation with staked reputation systems. Delegates post bond (e.g., in protocol tokens) that can be slashed for voting against a verifiably harmful outcome. Platforms like Boardroom or Tally evolve into delegate performance dashboards.

  • Bonded Delegates align incentives, similar to PoS validators.
  • Transparent Track Records with on-chain attestations.
  • Automated Delegation based on policy preferences ("vote for all security upgrades").
Staked
Reputation
Auto-Slash
Misalignment
deep-dive
THE EXECUTION LAYER

Anatomy of a Smart Template

Future governance proposals are executable code, not just descriptive text.

Smart templates are executable programs. They define governance actions as on-chain transactions, moving from a descriptive 'what' to a prescriptive 'how'. This eliminates manual implementation risk and post-vote delays.

The core is a state machine. The template logic checks pre-conditions, executes the approved transaction sequence, and verifies post-conditions. This creates a deterministic execution path that mirrors smart contract logic.

This shifts power to the proposer. Unlike a static Snapshot vote, the proposer defines the exact execution flow. This requires higher technical rigor but prevents malicious or erroneous implementation by other parties.

Evidence: Platforms like Tally and Governor Bravo already embed basic execution logic. The next evolution is Aragon OSx-style upgradeable contracts, where the proposal is the contract deployment or configuration change.

risk-analysis
THE FUTURE OF PROPOSAL TEMPLATES

What Could Go Wrong? The Bear Case

Automating governance introduces systemic risks that could ossify protocols or lead to catastrophic failure.

01

The Over-Optimization Trap

AI-driven templates optimize for historical engagement metrics, creating a feedback loop that favors popular, low-impact proposals over critical, complex upgrades. This leads to protocol stagnation.

  • Risk: Governance becomes a popularity contest, sidelining essential but contentious technical debates.
  • Outcome: Protocol roadmaps stall as high-signal, low-engagement proposals (e.g., security overhauls) fail to pass.
-70%
Controversial Proposals
10x
Memecoin Votes
02

Sybil-Resistance Becomes a Centralized Gate

To combat AI-generated spam, DAOs implement stricter on-chain identity checks (e.g., Worldcoin, Gitcoin Passport). This creates a permissioned layer that contradicts decentralization ideals.

  • Risk: Governance capture by the few entities controlling identity oracles.
  • Outcome: A two-tier system emerges where only 'verified' actors can propose, mirroring traditional corporate structures.
3-5
Oracle Providers
>90%
Proposal Control
03

The Automated Governance Attack Vector

Malicious actors exploit template logic to craft proposals that appear benign but contain hidden execution paths, leveraging smart contract composability for exploits.

  • Risk: A single passed proposal could drain treasury or change protocol ownership via a cleverly obfuscated payload.
  • Outcome: $100M+ exploits shift from DeFi pools to governance contracts, as seen in attacks on Compound and MakerDAO.
$100M+
Attack Surface
<24h
Exploit Timeline
04

The Death of Deliberation

Speed-optimized templates reduce proposal cycles from weeks to hours, eliminating the time needed for community deliberation, security audits, and counter-proposal development.

  • Risk: Rushed upgrades deploy with critical bugs, as seen in early Uniswap and Aave governance.
  • Outcome: Protocol forking accelerates as disenfranchised factions split off, fragmenting liquidity and developer mindshare.
24h
Vote Cycle
5x
Fork Rate
05

Regulatory Capture via Compliance Bots

Templates auto-inject regulatory clauses (e.g., OFAC checks, KYC modules) to pre-empt legal risk. This bakes surveillance into the protocol's immutable core.

  • Risk: Censorship resistance is sacrificed for perceived compliance, creating blacklistable DeFi.
  • Outcome: Protocols become legally compliant entities, losing their core value proposition and facing existential competition from truly permissionless forks.
100%
OFAC Proposals
-50%
Anon Devs
06

The Template Monopoly

A single platform (e.g., Tally, Snapshot with advanced AI) becomes the de facto standard. Its template logic and default settings become the de facto constitution for hundreds of DAOs, creating a single point of failure.

  • Risk: A bug or malicious update in the template engine compromises every integrated DAO simultaneously.
  • Outcome: Governance diversity collapses, replicating the centralization risks of web2 SaaS platforms.
1
Dominant Platform
80%+
DAO Market Share
future-outlook
THE TEMPLATE

The 24-Month Outlook: Integration and Specialization

Proposal templates will evolve into dynamic, context-aware interfaces that generate executable governance actions.

Templates become execution interfaces. Static forms are replaced by dynamic modules that query on-chain data and generate executable calldata. A proposal to adjust a Uniswap fee tier will auto-populate with current liquidity and simulate impact using Tenderly.

Specialization fragments the market. Vertical-specific platforms like Jokerace for retro funding or Governor for DAO tooling will dominate. General-purpose platforms like Snapshot become aggregators for these specialized primitives.

AI reduces proposal spam. Systems will score proposal quality using metrics from OpenZeppelin Defender and Safe{Wallet} transaction histories, auto-flagging malicious or poorly constructed governance actions before they reach a vote.

takeaways
THE FUTURE OF PROPOSAL TEMPLATES

TL;DR for Protocol Architects

Governance is a coordination bottleneck. The next generation of templates will be executable frameworks, not static documents.

01

The Problem: Static Docs, Dynamic Systems

Today's proposals are PDFs describing code changes. This creates a massive trust and execution gap between approval and deployment, leading to delays and multisig bottlenecks.

  • Audit Lag: Security review happens after the vote, stalling launches.
  • Manual Execution: Relies on a trusted operator, a centralization vector.
  • Context Loss: Voters approve intent, but implementation details can diverge.
2-4 weeks
Deploy Lag
1-of-N
Trust Assumption
02

The Solution: Executable Governance (Aragon OSx, DAOstar)

Proposals become on-chain transactions bundled with upgrade logic. The vote is the execution call, removing human intermediaries.

  • Atomic Execution: Vote success triggers immediate, permissionless code deployment.
  • Formal Verification: Template enforces pre-defined constraints (e.g., totalSupply cannot change).
  • Composability: Proposals can call other protocols (e.g., a treasury rebalance via Uniswap and Aave).
~1 block
Execution Time
Trustless
Post-Vote
03

The Problem: One-Size-Fits-All Templates

Generic templates force every change—from a parameter tweak to a full V3 migration—into the same heavyweight process. This wastes time and voter attention.

  • Voter Fatigue: Major upgrades and minor tweaks require equal scrutiny.
  • Inefficient Security: Full audit for a fee=0.05% change is overkill.
  • Slow Iteration: Inhibits agile development and rapid protocol optimization.
-80%
Voter Engagement
High
Process Friction
04

The Solution: Risk-Weighted Permission Tiers

Templates are categorized by risk and pre-audited. A ParameterChange template has lower quorum & faster voting than a CoreUpgrade template.

  • Continuous Audits: Pre-approved template logic (like OpenZeppelin contracts) reduces per-proposal overhead.
  • Gasless Voting: For low-risk tiers, use snapshot-style signing to maximize participation.
  • Automated Checks: Templates integrate with Slither or Certora for pre-execution validation.
10x
Faster Tweaks
Targeted
Security Budget
05

The Problem: Opaque Dependency Graphs

Proposals rarely exist in a vacuum. Changing a core contract can silently break integrations with Chainlink oracles, LayerZero messengers, or staking modules.

  • Systemic Risk: Unforeseen downstream effects cause post-upgrade crises.
  • Manual Analysis: Teams must manually map dependencies, an error-prone process.
  • Integration Churn: Third-party devs are blindsided by breaking changes.
High
Integration Risk
Manual
Impact Analysis
06

The Solution: On-Chain Dependency Registry (Inspired by Etherscan)

A standardized registry where protocols declare integration points. Proposal templates automatically analyze and surface impacted dependencies before a vote.

  • Automated Impact Report: Voters see a list of affected contracts (e.g., The Graph subgraphs, Gelato automation).
  • Integration Notifications: Dependent protocols get automated alerts via Push Protocol.
  • Sandbox Simulation: Template runs a state diff on a forked network (using Tenderly or Foundry) to preview effects.
Auditable
Change Impact
Proactive
Ecosystem Care
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DAO Proposal Templates: From Static Docs to Dynamic Engines | ChainScore Blog