Governance smart contracts

DAO's provides the holders of the tokens, the right to propose and vote on changes to the Protocol, which are often based on governance contracts and the voting eligibility often is allowed based on the number of tokens held by the user. All proposals must pass a given threshold and percent of "yes" votes based on the type of proposal for approval.

Smart Contracts

There are various smart contracts at the core of a DAO Governance. Some of the common ones are mentioned below. A detailed definition fo each type is also provided at the end of the Gitbook under "Glossary" chapter.

• DAO Token contract: A token contract has snapshots of each address’ voting power at different blocks in time.

• Governance Strategy contract : Governance strategy contract contains logic to measure users' relative power to propose and vote.

• Governor contract : tracks proposals and can execute proposals via the Timelock smart contract.

• Priority Timelock contract : The same as the timelock contract, but allows a priority controller to execute transactions within the Priority Period (for example 7 days) before the end of the timelock delay.

• Safety Module contract : safety module contract contains the logic to stake DAO tokens, tokenize the position and get rewards. Token staked the safety module retain full governance rights.

• Timelock contract : can queue, cancel, or execute transactions voted by Governance. The functions in a proposal are initiated by the Timelock contract. Queued transactions can be executed after a delay and before the expiration of the grace period.

Good to know: Important to note is that DAO's will also have their own custom contract such as "vesting", staking", "bribes", 'delegation", to name a few.