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the-state-of-web3-education-and-onboarding
Blog

The Coming Standardization of DAO Proposal Frameworks

The chaotic early days of DAO governance are ending. Frameworks from Aragon and Compound are becoming de facto standards, dramatically lowering onboarding costs but introducing new risks of systemic rigidity and stifled innovation.

introduction
THE GOVERNANCE BOTTLENECK

Introduction

DAO governance is paralyzed by fragmented tooling, creating a market opportunity for standardized proposal frameworks.

Proposal frameworks are fragmented. Every DAO reinvents its own governance process using incompatible tools like Snapshot, Tally, and Discourse, creating a coordination tax that slows protocol evolution.

Standardization drives composability. Just as ERC-20 standardized tokens, a universal proposal standard will enable cross-DAO voting, shared security models, and automated treasury management across ecosystems like Arbitrum and Optimism.

The market demands efficiency. Leading DAOs like Uniswap and Aave spend over 40% of core contributor time on governance overhead, a cost that standardized frameworks like Governor Bravo derivatives will eliminate.

thesis-statement
THE INEVITABLE TREND

The Core Thesis: Standardization is Inevitable and a Double-Edged Sword

DAO governance is converging on a small set of standard proposal frameworks, creating efficiency at the cost of innovation and sovereignty.

Standardization is a market force. DAOs are not designing governance from scratch; they are adopting battle-tested templates from Snapshot, Tally, and Compound's Governor. This reduces attack surfaces and developer onboarding time, creating a de facto standard akin to ERC-20 for tokens.

The efficiency trap emerges. Standardized frameworks like OpenZeppelin's Governor optimize for security and composability but enforce rigid voting logic. This stifles experimentation with novel mechanisms like conviction voting or futarchy, cementing a one-size-fits-all governance model.

Sovereignty is the casualty. DAOs outsourcing to Snapshot and Tally cede control over their core decision-making infrastructure. This creates systemic risk and platform dependency, mirroring the centralization risks seen in AWS or Infura for web2 and web3 infrastructure.

Evidence: The Snapshot monoculture. Over 4,000 DAOs use Snapshot for off-chain signaling. This creates network effects but also a single point of failure; innovation in proposal types becomes bottlenecked by the platform's roadmap, not community needs.

DAO PROPOSAL FRAMEWORKS

The De Facto Standard Framework Matrix

Comparison of leading on-chain governance frameworks by core architectural decisions and operational specs.

Feature / MetricCompound GovernorOpenZeppelin GovernorAave Governance V3

Core Contract Architecture

Monolithic Governor

Modular Governor (with Timelock)

Multi-Chain Governor (with Executor)

Default Voting Token Standard

ERC-20 (COMP)

ERC-20 or ERC-721

ERC-20 (AAVE) with Staked AAVE

Proposal Lifecycle States

4 (Pending, Active, Canceled, Defeated, Succeeded, Queued, Expired, Executed)

5 (Pending, Active, Canceled, Defeated, Succeeded, Queued, Expired, Executed)

6 (Created, Active, Canceled, Failed, Succeeded, Queued, Expired, Executed)

Gas Cost for Proposal Creation

~1.2M - 1.8M gas

~1.5M - 2.2M gas (with Timelock)

~2.0M - 3.0M gas (cross-chain)

Voting Delay (blocks)

~65,000 blocks (~1 week)

Configurable, typically 1 block

Configurable, typically 1 block

Voting Period (blocks)

~195,000 blocks (~3 weeks)

Configurable, typically 40,000 blocks (~1 week)

Configurable, typically 40,000 blocks (~1 week)

Built-in Timelock Execution

Native Cross-Chain Execution

Vote Delegation Standard

ERC-20 based

ERC-20 or ERC-721 based

ERC-20 with Staked Token Wrapper

deep-dive
THE INNOVATION TAX

The Rigidity Trade-Off: What We Lose With Standards

Standardizing DAO proposal frameworks like OpenZeppelin Governor and Tally creates a predictable process at the cost of experimental governance models.

Standardization enforces a monoculture. Dominant frameworks like OpenZeppelin Governor and the tooling from Tally establish a de facto governance stack. This creates network effects for security and composability but makes alternative voting mechanisms, like conviction voting or holographic consensus, structurally difficult to implement.

The proposal lifecycle becomes ossified. The standard sequence of Snapshot signal, on-chain vote, and Timelock execution is now a rigid pipeline. This eliminates the possibility for more fluid, real-time governance models seen in experimental DAOs like FWB or the multi-body systems of MakerDAO.

Forking becomes a governance weapon. With standardized, forkable code from Aragon and Governor, protocol politics shift from building consensus to capturing treasury assets. The barrier to a contentious fork lowers, making governance attacks a predictable endpoint for all major disputes, as seen in early Compound and Sushi forks.

Evidence: The top 10 DAOs by treasury size all use a variant of the Governor framework, creating a ~90% market share for a single governance architecture. This concentration risks systemic failure if a novel attack vector is discovered in the standard contract library.

risk-analysis
SYSTEMIC VULNERABILITIES

The Bear Case: Risks of a Standardized Governance Stack

Standardization creates efficiency but also introduces systemic fragility, turning governance into a monoculture ripe for exploitation.

01

The Single Point of Failure

A dominant framework like Tally or Snapshot becomes a critical dependency for $30B+ in protocol treasuries. A zero-day exploit or a legal takedown of the frontend could paralyze hundreds of DAOs simultaneously, creating a systemic governance blackout.\n- Cascading Failure: One hack can propagate across the entire ecosystem.\n- Legal Attack Vector: Centralized frontends are vulnerable to regulatory pressure.

30B+
TVL at Risk
100s
DAOs Impacted
02

The Innovation Stagnation Trap

Standardized tooling enforces a lowest-common-denominator approach, stifling novel governance models. DAOs default to simple token voting, killing experiments in conviction voting, futarchy, or skin-in-the-game mechanisms. The ecosystem converges on a single, potentially suboptimal, governance primitive.\n- Path Dependence: Hard to migrate away from entrenched standards.\n- Homogenization: Reduces competitive pressure to improve governance design.

1
Dominant Model
0
Novel Experiments
03

The Plutocracy-as-a-Service Problem

Standardized frameworks bake in and automate token-weighted voting, codifying plutocracy as the default. This ignores context-specific needs for reputation, expertise, or privacy, making it harder for DAOs like Maker or Compound to implement more sophisticated governance legos. The stack dictates the politics.\n- Default Bias: The easiest path reinforces wealth-based power.\n- Legibility Gap: Complex delegation or identity systems are sidelined.

>90%
Token Voting DAOs
0
Real Sybil Resistance
04

The Oracle Manipulation Vector

Standardized frameworks rely on shared price oracles and data providers (e.g., Chainlink) for proposal execution. This creates a systemic oracle risk where manipulating a single data feed can trigger malicious governance outcomes across multiple protocols that use the same execution stack, like OpenZeppelin Governor.\n- Cross-Protocol Attack: One corrupted feed, many exploited contracts.\n- Amplified MEV: Flash loan attacks on governance become standardized and scalable.

1 Feed
To Cripple Many
$B+
Potential Extractable Value
future-outlook
THE GOVERNANCE STACK

Future Outlook: The Next Layer of Abstraction

DAO governance is evolving from bespoke, fragile systems toward a standardized, composable stack of proposal frameworks and execution engines.

Standardization is inevitable. The current landscape of custom-built DAO tooling like Snapshot and Tally creates integration debt and security vulnerabilities. The next phase introduces interoperable proposal standards that separate intent from execution, similar to the ERC-20/ERC-721 evolution for tokens.

Composable execution will dominate. Frameworks like OpenZeppelin's Governor and Aragon OSx are becoming the base layer. This allows DAOs to plug in specialized modules for treasury management (e.g., Llama), cross-chain execution (e.g., Hyperlane), and automated enforcement, moving beyond simple yes/no votes.

The proposal lifecycle fragments. A single governance action will trigger a multi-step flow: off-chain signaling via Snapshot, on-chain approval via a Safe{Wallet}, and automated execution via a Gelato keeper. This specialization increases security and reduces voter fatigue.

Evidence: The rise of ERC-7504 for Dynamic Parameters and ERC-7512 for Security Standards demonstrates the push for on-chain governance primitives that are auditable, reusable, and secure by design.

takeaways
DAO GOVERNANCE INFRASTRUCTURE

Key Takeaways for Builders and Investors

The current chaos of bespoke governance systems is a scaling bottleneck. Standardization is inevitable and will unlock the next wave of DAO adoption.

01

The Problem: Governance is a UX Nightmare

Every DAO reinvents the wheel, creating voter fatigue and security risks. The average voter must manage dozens of unique interfaces, token locks, and voting mechanisms. This fragmentation kills participation and creates attack vectors.

  • ~10% average voter turnout across major DAOs
  • $1B+ lost to governance exploits since 2020
  • Weeks of dev time wasted per DAO on custom tooling
~10%
Voter Turnout
$1B+
Exploit Losses
02

The Solution: Standardized Proposal Frameworks (e.g., Governor, Tally)

Open-source, audited frameworks like OpenZeppelin Governor and frontends like Tally are becoming the de facto standard. They provide a secure, composable base layer, letting DAOs focus on politics, not plumbing.

  • 90%+ reduction in smart contract audit costs
  • Interoperable analytics and voter dashboards
  • Plug-in modules for veto councils, timelocks, and quorum
90%+
Audit Cost Cut
1-Click
DAO Launch
03

The Investment Thesis: Infrastructure for the Political Layer

The real value accrues to the standardized middleware, not individual DAOs. This mirrors the AWS model: profit from the tools everyone uses. Look for protocols monetizing proposal creation, delegation markets, and cross-chain governance.

  • TAM: Governance of $50B+ in on-chain treasuries
  • Key verticals: Safe{Wallet}, Snapshot, Aragon are converging
  • Moats: Network effects of voter data and delegate reputations
$50B+
Addressable Treasury
Winner-Take-Most
Market Structure
04

The Endgame: Cross-Chain Governance as a Service

DAOs won't live on one chain. Standardization enables sovereign governance across L2s and appchains. Solutions like Hyperlane's Interchain Security Modules and Axelar's GMP will let a DAO on Arbitrum securely manage funds on Solana.

  • Necessary for L2/L3 fragmentation
  • Turns governance into a portable identity
  • Major contracts for protocols like LayerZero, Wormhole
Multi-Chain
DAO Reality
New Primitive
Governance SDK
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