Governance is the process through which Builder DAOs make decisions, allocate funds, and evolve over time. The Builder Protocol enables fully onchain, transparent governance where token holders can create, vote on, and execute proposals. This section explains how proposals work, how voting power is calculated, and the tools and practices that support effective DAO governance.

🗳️ Proposal Lifecycle

Creating, Voting On, and Executing Proposals

Governance proposals allow DAO members to make decisions about how the DAO operates or spends treasury funds.

The standard lifecycle:

1. Proposal Creation
   • A member with the required number of tokens (proposal threshold) submits a proposal.
   • Proposals include a title, description, and one or more onchain actions (e.g., sending ETH, calling a contract).
   • After creation, the proposal enters the voting delay period.
2. Voting Period
   • Once active, DAO members can vote FOR, AGAINST, or ABSTAIN using their tokens.
   • Voting is open for a set period (e.g., 2–5 days), as configured during DAO setup.
3. Execution
   • If the proposal reaches quorum and has a majority of FOR votes, it becomes queueable.
   • Any user can then trigger the execution after a 48 hour delay, which carries out the proposed onchain actions.

[INSERT IMAGE: Visual timeline showing the stages from proposal creation to execution]

🧮 Voting Power

How Voting is Calculated

Voting power in Builder DAOs is typically based on the number of governance tokens a member holds at the time a proposal is created.

• Snapshot Voting

  The system takes a snapshot of token balances at proposal start to determine eligible voters and their weight.

• One Token = One Vote

  Each token counts as one vote. In DAOs using NFTs, this might mean 1 NFT = 1 vote. In DAOs using ERC-20s, the weight is proportional to your token balance.

This prevents manipulation by acquiring tokens after a proposal has already begun.

[INSERT IMAGE: Example of vote tally with token-weighted results]

Delegation