Sequential execution is a bottleneck. DAOs like Uniswap and Compound require separate proposals for each discrete action, turning multi-step strategies into month-long ordeals of voting and manual execution.
The Future of DAO Governance: Bundled Proposal Execution
Token voting is dead. The next evolution of DAO governance is atomic, multi-step execution bundles triggered directly by votes, turning governance into an on-chain operations engine. This is the convergence of smart accounts, intent-based architectures, and protocol-owned liquidity.
Introduction
DAO governance is broken by a sequential, single-action proposal model that creates operational paralysis.
Bundled execution is the fix. This paradigm, inspired by Ethereum's transaction batching, allows a single proposal to atomically execute a complex, conditional workflow across multiple protocols like Aave, Lido, and Gnosis Safe.
The standard is emerging. Frameworks like Zodiac's Reality Modules and tools like Tally's delegate functions demonstrate the technical path, but lack a universal standard for secure, composable bundles.
Evidence: A simple treasury rebalancing across Curve, Convex, and Aura currently requires 3+ separate proposals and votes, a process that takes weeks and exposes DAOs to significant execution lag risk.
The Core Thesis
DAO governance is shifting from simple voting to a new execution layer that bundles and automates complex, multi-step proposals.
Bundled execution is the new governance primitive. DAOs currently vote on single, atomic actions, creating operational paralysis. The future is proposals that bundle interdependent on-chain calls, like a treasury rebalance across Uniswap, Aave, and Compound, into a single, executable transaction.
This separates intent from implementation. Voters approve a desired outcome, not the mechanics. Execution is delegated to specialized keepers or Safe{Wallet} modules, enabling complex strategies without exposing signer keys. This mirrors the intent-based architecture of UniswapX and CowSwap.
The bottleneck shifts from voting to execution security. The critical challenge is ensuring the bundled transaction faithfully represents voter intent. This requires robust transaction simulation and fraud-proof systems, akin to those being built for optimistic rollups.
Evidence: The proliferation of Snapshot's Zodiac module and Gnosis Safe's transaction builder shows clear demand. DAOs like Aave and Lido already use multi-sig modules for complex treasury management, proving the model works at scale.
The Current State: Governance is Broken
DAO governance is paralyzed by high coordination costs and low voter engagement, making protocol evolution slow and brittle.
Governance is a coordination tax. Every parameter tweak, treasury allocation, or upgrade requires a full community vote, creating crippling overhead for core teams at Compound or Uniswap.
Voter apathy is structural. The principal-agent problem is terminal; token holders lack time to evaluate technical proposals, leading to low turnout or blind delegation to whales.
Execution is sequential and fragile. Passing a multi-step proposal (e.g., fund a grant, deploy a contract, update an oracle) requires separate votes, introducing execution risk and timeline bloat.
Evidence: The average Snapshot voter turnout for top-20 DAOs is below 10%, and multi-step treasury deployments often take 3+ months to execute.
Key Trends Enabling the Shift
DAO governance is evolving from simple signaling to automated, multi-step execution. These are the foundational trends making bundled proposals viable.
The Problem: Governance Paralysis
DAOs vote on isolated actions, creating execution lag and coordination failure. A treasury rebalance requires separate votes for approvals, swaps, and transfers.
- Sequential Voting causes >7-day delays for complex operations.
- Failed Execution risk if one step's market conditions change.
- Voter Fatigue from micromanaging routine treasury ops.
The Solution: Composable Transaction Bundles
Smart contract wallets and account abstraction enable atomic multi-step proposals. Projects like Safe{Wallet} and EIP-4337 allow a single vote to trigger a bundled transaction.
- Atomic Execution: Approve, swap, and stake in one go, or the entire bundle fails.
- Conditional Logic: Integrate Gelato Network or OpenZeppelin Defender for time-locks or price triggers.
- Gas Abstraction: Proposal executor pays gas, simplifying voter experience.
The Enabler: Cross-Chain Intent Standards
Frameworks like UniswapX and CowSwap's solver networks abstract away complexity. A DAO can express an intent ("Diversify 1000 ETH across L2s") without specifying every bridge and DEX.
- Solver Competition: Networks like Across and Socket compete to fulfill the intent optimally.
- Cost Efficiency: Achieves ~10-15% better rates vs. manual routing.
- Future-Proofing: Decouples proposal logic from underlying infrastructure changes.
The Catalyst: On-Chain Data & Automation
Oracles and keepers transform governance from reactive to proactive. Chainlink Functions fetches real-world data to trigger execution, while Keep3r Network automates upkeep.
- Data-Driven Triggers: Auto-execute a buyback if the native token falls 20% below book value.
- Trustless Automation: Remove reliance on a centralized multisig signer for routine tasks.
- Real-Time Adaptation: Proposals can react to market conditions post-vote, within defined guardrails.
The Risk: Attack Surface Expansion
Bundled execution concentrates power and complexity, creating new vulnerabilities. A malicious or buggy proposal bundle can drain a treasury in one transaction.
- Single Point of Failure: A compromised Safe{Wallet} module is catastrophic.
- Opaque Logic: Voters may not audit complex conditional bundles thoroughly.
- Solver Risk: Intent-based systems rely on the economic security of solver networks like CowSwap.
The Future: Programmable Treasury Primitives
The end-state is a DAO treasury as a programmable asset manager. Platforms like Charmverse and Llama are building no-code interfaces for crafting bundled proposals.
- Template Libraries: Reusable strategies for liquidity provisioning, hedging, or grants.
- Simulation & Forking: Test proposals on a Tenderly fork before a live vote.
- Institutional Onboarding: Abstracts crypto complexity, appealing to >$1T in traditional fund management.
The Anatomy of a Bundled Proposal
A bundled proposal is an atomic execution unit that packages multiple governance actions into a single, state-transitioning transaction.
Atomic Multi-Action Execution is the core innovation. It replaces sequential, manual execution with a single transaction that either succeeds completely or fails entirely, eliminating execution risk and partial failures. This is implemented via Soulbound transaction bundles or specialized smart contracts like those from OpenZeppelin Governor.
The Proposal Manifest is the bundled payload. It contains a list of target contracts, calldata, and value transfers, often encoded using standards like EIP-712 for off-chain signing. This structure enables complex operations like simultaneous treasury management via Gnosis Safe and parameter updates.
Counter-intuitively, bundling reduces gas costs. Executing ten actions in one proposal saves the overhead of ten separate proposal transactions and their associated voting periods. Snapshot's gasless voting and Tally's execution engine demonstrate this efficiency by separating signaling from on-chain execution.
Evidence: The Compound Governor Alpha upgrade to Bravo required a bundled proposal to update multiple core contracts atomically, a process now standard for Aave and Uniswap governance to manage protocol risk.
The Cost of Inefficiency: A Governance Gas Audit
Gas cost and execution analysis for single vs. multi-action DAO proposals across major EVM chains.
| Governance Action | Sequential Execution (Status Quo) | Bundled Execution (Optimized) | Gas Savings (ETH Mainnet) |
|---|---|---|---|
Update Treasury Parameter (e.g., fee) | $45 | $12 | 73% |
Add New Collateral + Update Oracle | $210 | $68 | 68% |
Grant Role + Fund Multisig + Update ACL | $185 | $59 | 68% |
Execute 5x Small Parameter Updates | $225 | $75 | 67% |
Proposal Overhead (Submission + Voting) | $120 | $120 | 0% |
Requires Custom Execution Contract | |||
Atomicity Guarantee (All-or-Nothing) | |||
Compatible with Snapshot + Safe |
Protocol Spotlight: Who's Building This?
A new stack is emerging to make DAO governance executable, moving beyond signaling to automated, multi-step action.
Tally: The On-Chain Governance Client
Tally transforms governance from a signaling mechanism into an execution engine. It provides the front-end and infrastructure for creating, bundling, and executing complex proposals directly on-chain.\n- Automated Execution Paths: Proposals can define conditional logic and multi-step transactions.\n- Gasless Voting: Delegates vote without paying gas, increasing participation.\n- On-Chain Transparency: Full proposal history and delegate activity are immutably recorded.
Safe{Wallet}: The Programmable Treasury
Safe is the foundational smart account standard for DAO treasuries, enabling modular, secure execution of bundled transactions. It's the execution substrate for governance decisions.\n- Multi-Sig + Modules: Core security with programmable extensions via Zodiac.\n- Transaction Chaining: Bundle arbitrary calls into a single, atomic execution.\n- De Facto Standard: Secures ~$100B+ in assets across DAOs like ENS, Aave, and Gnosis.
Zodiac & DAOstack: The Composable Modules
These frameworks provide the 'Lego bricks' for building custom governance execution flows. Zodiac (by Gnosis) enables Safe modules; DAOstack powers prediction markets and reputation-based systems.\n- Reality.eth Oracle: Resolves real-world conditions for conditional execution.\n- Delay & Exit Modules: Add security timelocks and emergency exits.\n- Composability: Modules can be mixed to create bespoke governance machines.
The Problem: Governance Paralysis
DAOs are stuck in signaling hell. A passed proposal often requires manual, multi-step execution by a few trusted operators, creating bottlenecks and centralization risks.\n- Slow Execution: Days/weeks between vote and action.\n- Operator Risk: Reliance on a small multisig for final execution.\n- Fragmented Actions: Complex proposals require multiple, unlinked transactions.
The Solution: Bundled Execution Pipelines
Define the entire action sequence in the proposal itself. Once voted on, the bundle executes atomically via smart contracts, with no human intermediary.\n- Atomicity: All steps succeed or fail together.\n- Automation: Removes manual operator steps post-vote.\n- Auditability: Full execution path is transparent and verifiable on-chain.
The Future: Autonomous Organizations
The endgame is DAOs that act like autonomous agents. Bundled proposals evolve into continuous, parameterized execution driven by on- and off-chain data oracles.\n- Conditional Logic: "If metric X, then execute bundle Y."\n- Cross-Chain Execution: Native governance actions across Ethereum L2s, Solana, etc.\n- Reduced Overhead: Focus shifts from micromanaging transactions to setting high-level goals and constraints.
The New Attack Surface
Bundling multiple governance actions into a single transaction creates powerful efficiency but introduces novel systemic vulnerabilities.
The Atomicity Trap
A single failed or malicious sub-proposal can brick the entire execution bundle, halting critical protocol upgrades or treasury movements. This creates a denial-of-service vector where a minor, intentionally flawed proposal can hold the entire governance payload hostage.
- Risk: One bad proposal can block $100M+ in intended actions.
- Attack Vector: Malicious actors can propose bundles with hidden, failing logic.
Opaque Dependency Hell
Bundles obscure complex, hidden dependencies between proposals, making it impossible for average voters to assess risk. A seemingly benign treasury allocation could have a silent dependency that changes a critical security parameter, as seen in early Compound and Aave governance.
- Issue: Voters approve bundles, not individual, auditable actions.
- Result: Governance becomes a black box of interconnected state changes.
The MEV-Governance Nexus
Knowing the precise order and content of a multi-action bundle creates a massive MEV opportunity. Block builders can front-run, sandwich, or censor the execution transaction, extracting value from protocol treasury swaps or parameter adjustments. This mirrors risks in UniswapX and CowSwap solver markets.
- Threat: Execution becomes a public, predictable profit target.
- Scale: Potential for $M+ in extracted value per major bundle.
Upgrade Escalation Privilege
A bundle granting a temporary upgrade key or admin role, even for seconds, can be chained with a second proposal to make the change permanent—a governance spear-phishing attack. This exploits the time-bound nature of authority within a single transaction, a flaw theoretical in OpenZeppelin's early proxy patterns.
- Mechanism: Privilege granted → Privilege abused in same atomic block.
- Defense: Requires strict runtime checks on inter-proposal calls.
Future Outlook: The Autonomous DAO Stack
DAO governance will shift from voting on intents to authorizing autonomous, multi-step execution bundles.
Bundled Proposal Execution is the next evolution. DAOs currently vote on intents, then rely on human multisig signers for manual, error-prone execution. The future stack uses Sovereign Execution Environments like Aragon OSx's Forwarder or Zodiac's Roles to encode approved intents into executable, conditional transaction bundles.
Composability defeats fragmentation. This turns DAOs into programmable principals, enabling single proposals that atomically execute across DeFi (Uniswap, Aave), treasury management (Gnosis Safe), and infrastructure upgrades (Arbitrum, Optimism governance). The counter-intuitive insight is that increased autonomy reduces risk by eliminating manual intervention points.
Evidence: The demand is proven by the $1.2B+ in value secured by Safe{Core} Protocol modules and the rise of DAO-specific keepers like Gelato Network, which automate approved transactions. The standard will be ERC-7504 for Dynamic Contracts, making these execution bundles portable across DAO frameworks.
Executive Summary
DAO governance is broken by sequential, single-issue voting, creating execution lag and strategic inefficiency. Bundled proposal execution is the atomic unit for scalable, composable on-chain coordination.
The Problem: Serialized Voting Paralysis
DAOs vote on proposals in isolation, creating a coordination bottleneck for multi-step initiatives. This leads to voter fatigue, failed arbitrage between dependent proposals, and weeks of execution delay for complex upgrades.
- ~90% voter drop-off on subsequent proposals in a series.
- $100M+ in opportunity cost from delayed treasury deployments annually.
The Solution: Atomic Multi-Action Bundles
Package interdependent actions—like a grant payment, token swap, and protocol parameter update—into a single, atomic vote. Inspired by UniswapX and CowSwap for intents, this treats governance as a batch settlement layer.
- Guaranteed atomic execution: All pass or all fail, eliminating partial failure risk.
- Enables complex strategies: Vote on a full Curve gauge strategy or Aave v3 migration in one go.
The Mechanism: Conditional Execution & Safe{Core}
Bundles require robust conditional logic and secure execution. This is achieved through pre-signed transactions, time-locks, and modular smart accounts like those enabled by Safe{Core} and ERC-4337 account abstraction.
- Conditional paths: "If grant passes, then swap 50% to ETH."
- Executor role separation: Delegates vote on intent, a secure module executes the bundle.
The Impact: From DAOs to Hyperstructures
Bundled execution transforms DAOs into coordination hyperstructures. It enables on-chain RFPs, composable treasury management, and seamless integration with LayerZero for cross-chain governance, moving beyond simple yes/no votes.
- Unlocks DeFi-native governance: Direct, complex interactions with Compound, Aave, Maker.
- Foundation for DAO-to-DAO (D2D) commerce: Atomic swaps of tokens, NFTs, and liquidity positions.
Get In Touch
today.
Our experts will offer a free quote and a 30min call to discuss your project.