Quick answer:
A proposal in DAO governance is a formal written suggestion that enables decentralized communities to make decisions together. To create a DAO proposal, you (1) draft a clear suggestion, (2) submit it through your DAO’s platform, (3) participate in the voting process, and (4) oversee its execution if approved. Proposals are the backbone of collective action in DAOs, shaping everything from budget allocations to protocol upgrades. Most DAOs require no coding to submit proposals—visual tools and other no-code platforms make proposal creation accessible to all members.

What Is a Proposal in DAO Governance?

Definition and Purpose

A proposal in the context of a Decentralized Autonomous Organization (DAO) is a structured request or plan submitted by a member or group of members for the community to review, discuss, and vote on. Unlike traditional organizations where decisions are made by a board or executives, DAOs use proposals to enable any stakeholder to suggest changes or allocate resources.

The core purpose of a DAO proposal is to provide a transparent and democratic way for communities to make decisions. This process is fundamental to a DAO’s decentralized ethos: anyone with the right to participate can help steer the project’s direction. Proposals can shape technical upgrades, treasury spending, governance rules, partnerships, and even social initiatives within the DAO.

To put it simply: if you want your DAO to take any collective action, you’ll likely start by writing and submitting a proposal.

Types of Proposals in DAOs

DAO proposals come in many forms, reflecting the diversity of DAO missions and structures. Here are the most common types:

Protocol Upgrades: Changes to the underlying smart contracts or software that power the DAO. For example, adjusting staking rewards or voting logic.
Treasury Allocations: Requests to spend or move funds held by the DAO. This might include funding community events, paying contributors, or investing in partnerships.
Governance Changes: Modifying how the DAO operates, such as changing quorum requirements, voting periods, or membership criteria.
Operational Proposals: Day-to-day decisions like appointing moderators, creating working groups, or launching marketing campaigns.
Social or Community Initiatives: Non-technical suggestions, such as organizing a DAO meetup or adopting a code of conduct.

Some DAOs even allow completely open-ended proposals, trusting the wisdom of the crowd to surface valuable ideas. Others restrict proposal types to maintain focus and avoid spam or off-topic suggestions.

How Proposals Shape DAO Decision-Making

Proposal Lifecycle: From Draft to Execution

Every DAO proposal follows a lifecycle—moving from idea to actionable outcome. While details vary by DAO, most follow these common stages:

Drafting: A member identifies a need or opportunity and creates a detailed proposal. This may include objectives, rationale, expected impact, and technical details.
Submission: The proposal is formally submitted via the DAO’s governance platform. This could be a custom interface, a forum, or a no-code tool.
Discussion: Members discuss, debate, and sometimes amend the proposal. This phase is crucial for surfacing concerns, clarifying intent, and building consensus.
Voting: Eligible members cast their votes, often weighted by the number of tokens they hold or on a one-member-one-vote basis.
Execution: If the proposal passes (meeting quorum and majority requirements), it moves to execution. For on-chain DAOs, this might trigger smart contracts to enact changes automatically; for off-chain proposals, execution may be manual.

For example, a DAO founder might use a no-code proposal builder to quickly draft and launch a treasury fund allocation proposal, specifying token gating (restricting voting to certain token holders) and multi-chain voting (allowing participation from members on different blockchains).

The lifecycle ensures that proposals are not only democratic but also transparent and auditable, with every step visible to the community.

Voting Mechanisms and Quorum Requirements

How DAOs vote on proposals varies widely, but a few patterns are common:

Token-Weighted Voting: Members vote in proportion to their token holdings. This system rewards those with more at stake but can lead to centralization if a few members hold most tokens.
One-Member-One-Vote: Every member gets an equal vote, regardless of holdings. This is more democratic but may not reflect the risk or investment of larger stakeholders.
Quadratic Voting: A system that makes it increasingly expensive (in tokens) to cast multiple votes, reducing the influence of large holders.
Delegated Voting: Members can delegate their voting power to others, concentrating expertise or trust in key individuals.

Quorum requirements—minimum participation thresholds—are critical to prevent decisions being made by a tiny minority. For example, a DAO might require at least 20% of all tokens or members to participate for a vote to be valid.

The choice of voting mechanism and quorum shapes the DAO’s culture and resilience. Too high a quorum can stall decisions; too low opens the door to manipulation.

Best Practices for Creating Effective DAO Proposals

Clarity, Transparency, and Inclusivity

Effective proposals aren’t just about good ideas—they’re about clear communication and open participation.

Clarity means using plain language, avoiding jargon when possible, and outlining exactly what will happen if the proposal passes. Spell out the goals, steps, required resources, and expected outcomes. Include supporting data when relevant.

Transparency means making the process visible. Share drafts publicly, invite feedback, and disclose any potential conflicts of interest.

Inclusivity is about lowering barriers so all members—regardless of technical skill—can participate. This includes providing translations, offering explainer resources, and ensuring the proposal process is accessible on mobile devices.

A trade-off: more detail can aid understanding but risks overwhelming readers. Aim for concise, organized proposals with summaries up top and deeper details available for those who want them.

Using No-Code Tools to Simplify Proposal Creation

One of the biggest shifts in DAO governance is the rise of no-code and low-code tools. These platforms allow anyone to draft, submit, and manage proposals without writing a line of code.

No-code proposal builders (such as Tally, or custom DAO dashboards) offer visual interfaces for:

Drafting proposals with templates
Setting voting parameters (duration, quorum, eligible voters)
Integrating with treasury management and on-chain execution
Automating notifications and status updates

For example, a community manager without technical training could use a no-code builder to launch a proposal allocating funds for a hackathon, set eligibility rules (like owning a specific NFT), and notify all members via email or Discord.

The main benefit: broader participation and fewer technical bottlenecks. The main limitation: highly custom or protocol-level proposals may still require developer input.

No-code tools are not a silver bullet, but they dramatically lower the learning curve for DAO contributors.

Common Challenges and How to Overcome Them

Engagement and Voter Apathy

Low participation is one of the most persistent issues in DAO governance. Many proposals fail not because of bad ideas, but because too few members vote.

Why does this happen?

Members may not feel informed enough to vote confidently.
Voting processes can be time-consuming or poorly advertised.
“Whale” holders (large token owners) may dominate, discouraging smaller holders.

How to address it:

Use clear, concise proposals to reduce cognitive load.
Automate notifications and reminders.
Experiment with incentives for participation (like reputation points or small rewards).
Consider quadratic voting or delegation to reduce concentration of power.

DAOs that foster a sense of ownership and community—through regular updates, open forums, and recognition for contributors—see higher engagement.

Technical Barriers and Workflow Integration

Technical complexity is another common stumbling block. Not all members are comfortable with blockchain transactions, wallet connections, or understanding smart contract risks.

Challenges include:

Confusing interfaces
Gas fees or complex signing requirements
Integrating proposals with other DAO tools (treasury, analytics, dashboards)

Solutions:

Adopt user-friendly, no-code governance platforms
Offer step-by-step guides and support channels
Integrate proposals into broader DAO dashboards for a unified view

For DAOs with diverse or global membership, accessibility—across devices, languages, and platforms—is non-negotiable.

DAO Pages and Governance UIs

Checklist: Key Elements for a Successful DAO Proposal

Clear Summary: Start with a one-paragraph overview of the proposal’s intent and expected outcome.
Problem Statement: Define the challenge or opportunity driving the proposal.
Proposed Solution: Describe in detail what you want the DAO to do, including steps and responsible parties.
Resource Requirements: Specify any funds, time, or tools needed.
Timeline: Outline key milestones and when actions will occur.
Voting Parameters: State voting duration, quorum, and eligibility.
Risks and Alternatives: Acknowledge possible downsides and other options considered.
Contact/Discussion Channel: Provide a way for members to ask questions or offer feedback.

Following this checklist increases the likelihood your proposal will be understood, discussed, and acted upon.

FAQ

What is a proposal in a DAO?

A proposal is a formal suggestion submitted to a DAO (Decentralized Autonomous Organization) for consideration. It outlines a specific action, change, or allocation of resources that the community can discuss and vote on. Proposals are the primary way DAOs make collective decisions.

How do DAO members vote on proposals?

DAO members vote according to the rules set by their organization. The most common systems are token-weighted voting (one vote per token held) and one-member-one-vote. Voting is typically conducted through a governance portal or dashboard—sometimes with added features like delegation or quadratic voting to balance influence.

Can I create a DAO proposal without coding skills?

Yes. Many DAOs now use no-code or low-code platforms, such as visual proposal builders, to make proposal creation accessible to all members. Tools like Tally or custom DAO dashboards allow you to draft, submit, and monitor proposals without programming knowledge.

Páginas DAO y UIs de Gobernanza con DexAppBuilder: Construye Interfaces Web3 sin Código

What are common challenges in DAO proposal processes?

The most frequent challenges include low voter turnout (apathy), unclear or overly technical proposal language, and difficulties integrating proposals with other DAO workflows (like execution or treasury management). Addressing these with better UX, education, and automation can improve outcomes.

How long does a typical DAO proposal take to pass?

Timelines vary by DAO and proposal type, but most follow these stages: drafting and discussion (a few days to a week), voting period (often 3–7 days), and execution (immediate to several days after approval). Complex proposals or those requiring extensive debate may take longer.

Where can I manage and track multiple proposals for my DAO?

Many DAOs use dashboards or governance interfaces that centralize proposal tracking, voting, and discussion. These platforms help members stay informed about active and past proposals, voting results, and execution status.

What tools can help me create and manage DAO proposals more easily?

If you’re looking for a visual, no-code solution, consider platforms that integrate proposal creation, voting, and execution. For developer-centric DAOs, tools like Thirdweb or custom scripts may offer more flexibility at the cost of higher complexity.