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Proposal

Governance Layer, Validators, Protocol Control

Proposal refers to a formal suggestion or drafted plan submitted for review within a decentralized governance system. In blockchain protocols and DAOs, proposals are a core mechanism for initiating upgrades, allocating funds, modifying smart contracts, or changing governance structures. They must typically follow a structured format and are subject to review, discussion, and voting by validators, token holders, or DAO members, depending on the systemÔÇÖs rules.

Use Case: A DAO member submits a proposal requesting funding to build an analytics dashboard for the community. Once submitted, it enters a voting period where token holders decide whether to approve or reject the initiative.

Key Concepts:

  • On-Chain Governance ÔÇö A voting mechanism to approve protocol-level changes.
  • Validator Node ÔÇö Network actors who approve and secure protocol upgrades via consensus.
  • Governance ÔÇö The decision-making framework within decentralized systems.
  • DAO ÔÇö A decentralized autonomous organization governed by code and token-weighted voting.

Summary: A proposal is the starting point for enacting change within decentralized systems. It formalizes community input and provides a pathway for protocol evolution, funding allocation, or rule modifications.

Feature Traditional Web3 Who Can Propose Board members or executives Any wallet-holder or DAO participant Approval Method Internal committee or corporate vote Token-weighted or validator-based voting Transparency Private/internal Public and on-chain Automation Manual execution Smart contract enforcement

 
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