What is an Improvement Proposal?

definition

BLOCKCHAIN GOVERNANCE

A formal document proposing a change to a blockchain's protocol, ecosystem, or standards, serving as the primary mechanism for decentralized governance and community-driven evolution.

An Improvement Proposal is a formal, structured document that outlines a change, addition, or deprecation for a blockchain network or its associated standards. It is the foundational mechanism for decentralized governance, providing a transparent process for developers, users, and stakeholders to debate, refine, and ultimately decide on the future of a protocol. The most famous implementation is the Ethereum Improvement Proposal (EIP) system, which governs changes to the Ethereum network, including major upgrades like the Merge. Other networks have analogous systems, such as Bitcoin Improvement Proposals (BIPs) and Solana Improvement Documents (SIMDs).

The lifecycle of an Improvement Proposal typically follows a strict, multi-stage process. It begins with an idea or draft, which is then shared with the community for initial feedback. If it gains traction, it enters a formal draft status and is assigned a unique number. The proposal then undergoes rigorous technical review, discussion, and potential revisions. For core protocol changes, the final stage is implementation, where the proposal's specifications are coded, tested, and, pending community consensus, activated on the network. This process ensures changes are vetted for security, feasibility, and alignment with the network's long-term vision.

Improvement Proposals are categorized by their scope and impact. Core EIPs or BIPs require a network-wide consensus upgrade and change core protocol rules, such as a new transaction format or a shift in consensus mechanism. Networking EIPs propose changes to the devp2p networking layer. Interface EIPs define application-level standards, like the ubiquitous ERC-20 token standard, which originated as EIP-20. Meta EIPs and Informational EIPs describe processes or provide guidelines to the community without introducing new features.

The proposal system is more than a technical specification; it is a social contract and a record of a blockchain's history. It creates an immutable, public ledger of decision-making, where every argument for and against a change is preserved. This transparency is critical for trust in decentralized systems, as it prevents unilateral control by any single entity. Successful proposals demonstrate how decentralized communities can coordinate to solve complex technical challenges, from scaling solutions to security enhancements, shaping the protocol's evolution in an open and collaborative manner.

etymology

IMPROVEMENT PROPOSAL

Etymology & Origin

The term 'Improvement Proposal' is a formalized process for suggesting and standardizing changes to a blockchain protocol or decentralized system, with its most famous lineage tracing directly to Bitcoin and Ethereum.

The concept of an Improvement Proposal (IP) as a formal governance mechanism originates from the Bitcoin Improvement Proposal (BIP) system, established in 2011 by early Bitcoin developer Amir Taaki. Modeled after the Python Enhancement Proposal (PEP) process, BIPs provided a structured framework for documenting, discussing, and implementing changes to the Bitcoin protocol. This formalization was a critical step in moving from ad-hoc development to a more transparent and collaborative process, setting a precedent for decentralized project governance.

The model was famously adopted and expanded by Ethereum with the Ethereum Improvement Proposal (EIP) system, most notably through EIP-1, which explicitly defined the process. The term 'Improvement Proposal' has since become a generic descriptor for similar processes across the blockchain ecosystem, including Solana Improvement Documents (SIMDs), Cardano Improvement Proposals (CIPs), and Polkadot Improvement Proposals (PIPs). The core etymology ties 'improvement' to protocol upgrades and 'proposal' to its status as a community-reviewed document, not an immediate directive.

The structure of a typical proposal includes a Preamble with metadata (number, title, author), an Abstract, a Motivation section explaining the problem, a Specification detailing the technical changes, and a Rationale discussing alternatives and impacts. This standardized format ensures that proposals are technically sound, backward-compatible where necessary, and vetted for security implications before network adoption via consensus mechanisms like miner signaling or stakeholder voting.

The evolution of Improvement Proposals reflects the maturation of blockchain governance. From simple text files on mailing lists, they have grown into complex, integrated systems tracked on platforms like GitHub, often with dedicated websites (e.g., eips.ethereum.org). They serve not only as a change log but as the canonical technical specification for the protocol itself, with some, like EIP-20 (the ERC-20 token standard) or BIP-39 (mnemonic phrases), becoming foundational standards that define entire sectors of the industry.

key-features

BLOCKCHAIN GOVERNANCE

Key Features of an Improvement Proposal

Improvement Proposals are formal, structured documents that define new features, processes, or standards for a blockchain ecosystem. They are the primary mechanism for decentralized governance and protocol evolution.

01

Formal Specification

An Improvement Proposal must provide a complete technical specification for the proposed change. This includes:

Precise syntax and semantics for new functions or rules.
Detailed rationale explaining the problem statement and motivation.
Backwards compatibility analysis and migration paths for existing systems.
Comprehensive test cases and reference implementations where applicable.

02

Community-Driven Process

The lifecycle of a proposal is governed by transparent, on-chain or off-chain community processes. Key stages include:

Drafting and Discussion: Initial idea is socialized in forums (e.g., governance forums, Discord).
Formal Submission: The proposal is assigned a unique number (e.g., EIP-1559, BIP-141).
Review & Feedback: Community and core developers scrutinize the technical merits and security implications.
Finalization & Activation: After consensus is reached, the proposal is scheduled for network activation via a hard fork or soft fork.

03

Standardized Categories

Proposals are categorized by their scope and impact to streamline evaluation. Common categories include:

Standards Track: Core protocol changes, networking updates, or application-level standards (like token standards ERC-20).
Informational: Provides guidelines or information to the community without proposing a new feature.
Meta: Describes a process surrounding the proposal system itself or proposes a change to a process.
Core: A sub-category for consensus-breaking changes that require a network upgrade.

04

Exemplar: Ethereum's EIP Process

The Ethereum Improvement Proposal (EIP) repository is the canonical example. Notable EIPs demonstrate the system's impact:

EIP-1559: Redesigned transaction fee market, introducing a base fee that is burned.
EIP-20: The standard interface for fungible tokens, enabling the ERC-20 ecosystem.
EIP-721: The standard for non-fungible tokens (NFTs), defining the ERC-721 interface. The process is managed on GitHub, with final authority for Core EIPs resting with Ethereum core developers and client teams.

EXPLORE

05

Consensus & Activation Mechanisms

The ultimate adoption of a proposal depends on achieving social consensus and executing a technical upgrade. Mechanisms include:

On-Chain Governance: Token holders vote directly on proposals (e.g., Compound, Uniswap).
Off-Chain Consensus: Core developer teams and community signals coordinate activation (e.g., Bitcoin BIPs, Ethereum EIPs).
Soft Fork: A backwards-compatible upgrade where non-upgraded nodes still follow the new rules.
Hard Fork: A non-backwards-compatible upgrade requiring all nodes to update to the new protocol rules.

06

Related Concepts

Understanding Improvement Proposals requires familiarity with adjacent governance concepts:

BIP (Bitcoin Improvement Proposal): The formal proposal process for the Bitcoin protocol.
RFC (Request for Comments): The inspiration for EIPs/BIPs, originating from internet engineering task forces.
Snapshot Voting: A common off-chain signaling tool used to gauge sentiment before an on-chain vote.
Governance Token: A token that confers voting rights on protocol changes, often used in DAO-based governance models.

how-it-works

GOVERNANCE MECHANISM

How an Improvement Proposal Process Works

A structured, community-driven process for proposing, discussing, and implementing changes to a blockchain protocol or decentralized application.

An Improvement Proposal Process is a formal governance framework that allows participants in a decentralized network to submit, debate, and ratify changes to the system's core rules or features. It transforms informal ideas into concrete, executable specifications. The most famous model is the Ethereum Improvement Proposal (EIP) process, which has been adopted and adapted by numerous other projects like Bitcoin BIPs and Polygon PIPs. This process is critical for decentralized, permissionless systems where no single entity has the authority to mandate upgrades, ensuring changes reflect broad community consensus.

The lifecycle of a proposal typically follows several key stages. It begins with an Ideation or Draft phase, where a proposal is written according to a standard template and shared for initial feedback. This is followed by a Review period, where the technical merits are scrutinized by developers and stakeholders in public forums like GitHub or governance calls. For major changes, a formal Audit of the proposed code may be required. Finally, the proposal moves to a Decision phase, which may involve an on-chain vote by token holders, a vote by delegated validators, or consensus among core developers, depending on the project's governance model.

Successful implementation relies on precise specification and clear communication. Proposals are categorized by their scope and impact; for example, Core EIPs require a network-wide consensus upgrade (a hard fork), while ERC standards define application-level interfaces. The process mandates rigorous documentation, including the proposal's motivation, technical specification, rationale, and backward compatibility analysis. This formalization prevents ambiguity, reduces the risk of network splits, and creates a permanent, transparent record of the project's evolution, serving as a foundational element of on-chain governance.

PROTOCOL GOVERNANCE

Major Improvement Proposal Standards Compared

A comparison of the dominant standards for proposing and implementing changes to blockchain protocols.

Feature	EIP (Ethereum)	BIP (Bitcoin)	CIP (Cardano)
Governance Body	Ethereum Core Developers	Bitcoin Core Developers	Cardano Foundation, IOG, Emurgo
Formal Voting
On-Chain Signaling	Via Snapshot/DAO tools	Via miner signaling	Via on-chain governance (Voltaire)
Final Authority	Client implementer adoption	Miner adoption (economic majority)	Stake pool operator vote
Core Focus	EVM & application layer	Consensus & monetary policy	Protocol & treasury system
Typical Scope	Smart contract standards, core upgrades	Consensus rules, network parameters	Protocol parameters, treasury fund allocation
Implementation Timeline	Scheduled network upgrades (hard forks)	Conservative, user-activated soft forks	Regular hard fork combinator (HFC) events

examples

IMPROVEMENT PROPOSAL

Famous Examples & Impact

Improvement Proposals are the primary mechanism for formalizing changes to blockchain protocols and applications. These documents have shaped the evolution of major networks and ecosystems.

01

EIP-1559: Ethereum's Fee Market Overhaul

Ethereum Improvement Proposal 1559 fundamentally restructured Ethereum's transaction fee mechanism. It introduced a base fee that is burned, making ETH a deflationary asset, and a priority fee for miners/validators. This replaced the first-price auction model, leading to more predictable gas prices and significant ETH supply reduction, with over 4 million ETH burned since implementation.

EXPLORE

02

BIPs: The Blueprint for Bitcoin

Bitcoin Improvement Proposals (BIPs) are the formal design documents for the Bitcoin protocol. Key examples include:

BIP-32: Introduced Hierarchical Deterministic (HD) Wallets, enabling a single seed phrase to generate all keys.
BIP-39: Standardized mnemonic seed phrases for human-readable wallet backups.
BIP-141: Defined the Segregated Witness (SegWit) upgrade, which increased block capacity and enabled Layer 2 solutions like the Lightning Network.

EXPLORE

03

ERC Standards: Fueling Ethereum's Ecosystem

Ethereum Request for Comments (ERC) standards are application-level proposals that have become the foundation of the ecosystem.

ERC-20: The token standard for fungible assets, powering thousands of cryptocurrencies.
ERC-721: The standard for non-fungible tokens (NFTs), enabling unique digital assets and collectibles.
ERC-1155: A multi-token standard allowing for both fungible and non-fungible assets within a single contract, optimizing gas efficiency.

EXPLORE

04

Governance Proposals in DAOs

Improvement proposals are the core governance mechanism for Decentralized Autonomous Organizations (DAOs). Members submit, debate, and vote on proposals to allocate treasury funds, upgrade protocol parameters, or change governance rules. This process, executed via on-chain voting, demonstrates how IPs enable decentralized coordination and collective decision-making at scale.

>$10B

DAO Treasury Assets

05

Cosmos & Polkadot: Cross-Chain Governance

Networks like Cosmos and Polkadot formalize upgrade processes through on-chain governance proposals. In Cosmos, Parameter Change Proposals and Software Upgrade Proposals are voted on by stakers. Polkadot uses referenda, where DOT holders vote on upgrades that are executed automatically upon passage. This creates a streamlined, binding process for forkless runtime upgrades.

06

The Process: From Idea to Implementation

A successful improvement proposal follows a formal lifecycle:

Idea & Drafting: A problem is identified and a solution is documented.
Discussion & Feedback: The community reviews the proposal on forums and in calls.
Formal Submission & Numbering: The proposal is assigned a formal identifier (e.g., EIP-XXXX).
Review & Finalization: Core developers and auditors perform technical review.
Acceptance & Deployment: Upon consensus, the change is scheduled for a network upgrade or implementation.

IMPROVEMENT PROPOSALS

Technical Details & Proposal Types

A deep dive into the formal processes for proposing, discussing, and implementing changes to blockchain protocols and decentralized applications.

An Improvement Proposal is a formal, documented design document for introducing new features, processes, or standards to a blockchain ecosystem. It works through a structured governance process: a community member drafts a proposal detailing the technical specifications and rationale, submits it for peer review and discussion, and the proposal is either accepted for implementation or rejected based on community consensus or a formal vote. This process, exemplified by Ethereum's EIPs and Bitcoin's BIPs, provides a transparent and collaborative framework for protocol evolution, ensuring changes are vetted and standardized before deployment.

ecosystem-usage

IMPROVEMENT PROPOSAL

Ecosystem Usage & Governance Models

An Improvement Proposal is a formal, structured document that proposes a change to a blockchain protocol, standard, or ecosystem. It is the primary mechanism for decentralized governance, allowing community members to suggest, debate, and ratify upgrades.

01

Core Definition & Purpose

An Improvement Proposal (IP) is a formal, structured document that proposes a change to a blockchain protocol, standard, or ecosystem. Its primary purpose is to provide a clear and detailed technical specification for a new feature, process, or environment, serving as the foundational document for community consensus. It standardizes the governance process, ensuring all changes are transparent, documented, and open for peer review before implementation.

02

Standardized Formats: BIPs & EIPs

Major ecosystems have established specific proposal standards to ensure consistency and rigor.

Bitcoin Improvement Proposals (BIPs): Govern changes to the Bitcoin protocol, such as BIP 32 (Hierarchical Deterministic Wallets) and BIP 141 (Segregated Witness).
Ethereum Improvement Proposals (EIPs): Cover core protocol changes (e.g., EIP-1559 for fee market reform), application standards (ERC-20, ERC-721), and informational updates. These frameworks define the proposal lifecycle from Draft to Final.

03

The Governance Lifecycle

A proposal typically progresses through a formal, multi-stage process:

Idea & Draft: Informal discussion precedes a formal draft written to a specific template.
Review & Feedback: The draft is scrutinized by developers and the community on forums and pull requests.
Last Call & Final: After addressing feedback, a "Last Call" period is declared before final acceptance.
Implementation & Activation: Once accepted, client teams implement the change, which is activated via a network upgrade or hard fork.

04

On-Chain vs. Off-Chain Governance

Improvement proposals are ratified through different governance models:

Off-Chain Governance (Ethereum, Bitcoin): Consensus is reached through social consensus among developers, miners/validators, and users. Voting is informal; implementation signals acceptance.
On-Chain Governance (e.g., Tezos, Compound): Token holders vote directly on proposals using their native tokens. Approved changes are automatically deployed by the protocol, creating a self-amending blockchain.

05

Key Components of a Proposal

A well-structured proposal includes specific sections to ensure clarity:

Abstract: A concise summary of the proposal.
Motivation: The problem statement and rationale for the change.
Specification: The detailed technical specification of the change.
Rationale: Discussion of design decisions and considered alternatives.
Backwards Compatibility: Analysis of impact on existing systems.
Test Cases & Security Considerations: Critical for assessing robustness.

06

Related Concepts

Hard Fork: A backwards-incompatible protocol upgrade, often the result of an implemented improvement proposal.
Soft Fork: A backwards-compatible upgrade that tightens rules.
Request for Comments (RFC): The inspiration for IPs, originating from internet engineering standards.
Governance Token: A token that confers voting rights on proposals in on-chain governance systems.
Snapshot: A platform often used for off-chain, token-weighted signaling votes on proposals.

IMPROVEMENT PROPOSALS

Common Misconceptions

Clarifying the purpose, process, and impact of formal proposals that guide blockchain protocol evolution.

An Improvement Proposal (IP) is a formal, structured document that proposes a new feature, process, or standard for a decentralized network. It functions as the primary governance mechanism for protocol upgrades, providing a transparent forum for technical specification, community discussion, and consensus-building. The typical workflow involves a draft, community review, revision, and a final decision, often implemented through on-chain or off-chain voting by token holders or delegates. Prominent examples include Ethereum's Ethereum Improvement Proposals (EIPs) and Bitcoin's Bitcoin Improvement Proposals (BIPs).

IMPROVEMENT PROPOSAL

Frequently Asked Questions (FAQ)

Common questions about the process for proposing, discussing, and implementing changes to blockchain protocols and decentralized applications.

An Improvement Proposal (IP) is a formal, documented design document submitted to propose a new feature, process, or standard for a blockchain ecosystem. It serves as the primary mechanism for community-driven governance and technical evolution. The process typically involves submitting a draft, gathering community feedback, undergoing formal review, and, if accepted, being scheduled for implementation. Well-known frameworks include Ethereum Improvement Proposals (EIPs), Bitcoin Improvement Proposals (BIPs), and Solana Improvement Documents (SIMDs). Each proposal must clearly articulate the problem, proposed solution, technical specifications, rationale, and potential backward compatibility issues to facilitate informed discussion among developers, node operators, and stakeholders.

Improvement Proposal