Proposal Best Practices for DAOs
Last Updated: June 20, 2023
This document serves as suggested guidelines to help your DAO members have enough information and context on proposals to make an educated decision.
Descriptive Title
A brief but descriptive title that summarizes the heart of the proposal.
Summary
What are the key asks of the proposal? What do you intend to build? This should be brief - 1-2 sentences.
Issue/Context (Optional but helpful)
The context in which you are asking for the funding. Is there a problem you are solving or a specific reason for the ask? If the proposal is a follow-up to a prior proposal or DAO action, please include that history.
Proposal (The Ask)
What are you asking for and how will you tackle the execution? This ought to be sufficiently detailed so voters understand what specifically is being requested, for what purpose, and what actions will be taken to achieve the stated purpose.
North Star Check
How does your proposal further the mission/vision of the DAO or the call for proposals?
How will DAO resources being requested be utilized in furtherance of the DAO’s mission? There should be clear alignment between the resources being requested/actions being taken and the DAO’s mission/vision.
Accountability
- If funds are being requested, how is the funding going to be spent? Provide a somewhat detailed budget.
- How long do you estimate it will take to complete the proposal: Provide a timeline.
- What does success look like? What are the goals or end result of the proposal? This should include specific, quantifiable metrics where possible so, in review, the DAO can judge whether objectives were met, especially where further funding or support is requested.
- Are you willing to provide ongoing status updates or spend time with members that ask questions? Such commitments are strongly encouraged to demonstrate respect and good faith to your fellow members.
Treasury Impact
The treasury impact should summarize the total amount being requested as well as provide DAO members the total percentage of funds being requested from the treasury providing the funding. The impact should be denominated in ETH so the proposer does not need to account for ETH/USD price adjustments.
Transparency
Include any potential conflicts of interest or other disclosures.
- Example: I am requesting funding for the company I founded to do X, I may be personally enriched by receiving funds.
- Example: I have a personal relationship (we’re married) with the Community Lead of the DAO.
Include any prior funding given to the team or entity by the DAO (link out to proposals) and summarize the outcome. Was it successful? Did it take longer than anticipated?
Author
Who are the authors of the proposal?
Tax Information
Who will be the responsible party for tax reporting?
Optional (but helpful)
Are you an accomplished builder in the web3 ecosystem? Sharing bio blurbs and other successfully executed projects can help let members know that you have the talent and ability to execute your vision.