On-chain voting

On-chain proposals refer to a voting mechanism where the results are recorded on the blockchain and trigger the execution of a transaction performing the function specified by the type of proposal. This could involve various actions such as assigning roles within the DAO, transferring funds from the treasury, executing custom contracts, etc. This ensures that decisions made through voting are executed transparently and securely, following the predetermined rules of the DAO.

In on-chain voting, users always have the option to vote either "for" or "against" a given proposal. To acknowledge a proposal, the total "for" or "against" votes must meet a predetermined quorum. Once the quorum is reached, the majority of votes either "for" or "against" decides if the proposal is accepted or rejected. The required % of DAO’s governance token total supply needed for a quorum can vary for different types of proposals.

Some proposals may have parameters that allow for early completion; if the voting reaches the required quorum either "for" or "against", the voting process can be closed prematurely. Users only see the voting results once the proposal has been completed, reducing the chance for speculative voting or herd behaviour motivated by rewards and statistics.