Building a DAO from Scratch: Governance, Tokens, and Tooling

The Ultimate Guide to Launching a Production-Grade DAO in 2025

Excited to jump into the world of DAOs? Here’s a handy roadmap to help you set up a solid, production-ready DAO that’ll be ready to roll in 2025! We're going to dive into a bunch of topics, including how governance structures work and what token designs look like. Plus, we’ve got a handy toolkit to make sure you’re covered when it comes to security and legal stuff!

Governance Architectures

When you're thinking about governance, it's really important to find something that works well but is also straightforward. Here are a few structures you might want to think about:

Liquid Democracy: It’s a cool system that combines direct voting with representative voting. Basically, if you don’t want to vote on every issue yourself, you can hand over your vote to someone you trust. It’s a flexible way to have your say!
Multi-Signature Voting: This method needs several signatures to give the green light, which really boosts security.
Quadratic Voting: This is a cool approach that lets people express how strongly they feel about an issue by weighing their votes. Instead of just one vote per person, you can cast multiple votes on things you care about more deeply. It really helps highlight the passion behind different opinions!

Token Mechanics

Tokens are really what keep your DAO running smoothly. Alright, so here’s what you should keep in mind:

Utility Tokens: These are super handy for making transactions or unlocking specific features in your ecosystem.
Governance Tokens: These tokens let users have a voice in important decisions. Just be sure to design them in a way that keeps things decentralized.
Rewards Structure: Encourage people to get involved and contribute by offering rewards that really resonate with your community.

Tooling Stack

It's super important to find the right tools. Here’s a solid stack you might want to check out, no matter if you’re leaning towards on-chain, off-chain, or maybe even a mix of both.

On-Chain Tools

Ethereum: It's the go-to pick for many folks--super reliable and really popular in the crypto world.
Polygon: It’s a solid choice if you’re looking to scale your projects without spending a fortune on gas fees.
Arbitrum: This platform provides layer-2 solutions that really boost speed and help cut down on costs.

Off-Chain Tools

Discourse: This is a great platform for community chats. It lets everyone have their say while keeping the conversations nice and tidy.
Discord: Awesome for chatting and connecting with folks in real-time!
Notion: This is an incredibly flexible tool that’s perfect for keeping your docs organized and managing projects effectively.

Hybrid Tools

Quick Overview: Snapshot lets you vote off-chain without any gas fees, but it still connects back to your on-chain governance. Pretty cool, right?
Gnosis Safe: This is a super secure multi-signature wallet that works wonders for handling your DAO’s funds. It’s like a fortress for your money!

Security and Legal Guardrails

When you're setting up a DAO, it's super important to prioritize security and legality right from the get-go. Here’s a quick checklist:.

Smart Contract Audits: It's super important to have your contracts reviewed by trusted firms. They'll help you catch any vulnerabilities you might have missed!
Legal Consultation: It's a good idea to chat with legal experts who really get how DAOs are changing and developing.
Risk Management Framework: It's important to put in place some strategies to spot and tackle potential risks.

If you follow this blueprint, you’ll be set to launch a DAO that works smoothly and lasts for the long haul.
Happy building!.

Who this is for

Hey there! If you're leading a startup or even a bigger company and are thinking about whether a DAO structure might work for your product, protocol, network, or ecosystem program, you'll definitely want to gather some solid info to pass along to your engineering, legal, and finance teams ASAP.

The 3 decisions you must lock first

What’s your responsibility?

Protocol settings and updates (you know, stuff like rollup setups, how emissions are handled, and the way fees are divided up).
Treasury and grants (keeping an eye on budgets and running program operations smoothly).
Brand and ecosystem (managing trademarks and partnerships).
Multi-chain deployments (think of it like the hub and spokes model).

Who Gets Power?

Token-holders: These people have a financial interest in the whole thing.
Contributors with reputation/roles: These folks have a vested interest in the project, and they’re here to share their know-how and build trust with their expertise.
Bicameral models: Think of them as a blend of the best of both worlds. A good example is what’s happening with Optimism’s Token House and Citizens’ House. Check it out here.

3) How “onchain” is the process?

So, we're looking at a combination of offchain voting and onchain execution. We’ll be utilizing tools like Snapshot for the voting part and the Safe module for executing those decisions.

Completely on-chain (like Governor running on an L2 or the mainnet).
Hybrid (like, think about cross-chain voting that gets all bundled up to a main hub chain where everything actually goes down on-chain).

Legal wrapper: what’s working in the U.S. (and offshore) in 2025

Wyoming’s DUNA (Decentralized Unincorporated Nonprofit Association) is really interesting! It provides DAOs with legal status, which means they can have limited liability. Plus, this setup allows them to own property, sign contracts, and even manage things through smart contracts. It’s a pretty exciting development for the decentralized community! For this to really take off, we need at least 100 members, and you’ve got to make a conscious choice to jump in and be a part of it. The law clearly states that you can use distributed ledger technology either fully or just in part for governance purposes. This setup is perfect for “protocol stewards” who are looking for that nonprofit vibe but still want the flexibility to pay people. (law.justia.com).

If you're leaning towards a for-profit setup or your group has less than 100 members, the earlier DAO LLC option in Wyoming is definitely a great pick.
Feel free to get creative with it! You can totally mix and match--like using a DAO LLC for your product and operations, and then going with a DUNA when it comes to keeping things neutral and managing the protocol. It's all about finding what works best for you! It's a clever way to keep everything in your ecosystem nice and tidy. (law.justia.com).

Hey there! So, if you’re considering taking your token-based DAO global, you might want to check out the Marshall Islands DAO LLC. It’s actually a pretty popular choice for going offshore! It's known all around the world and supports on-chain voting and tokenization. This makes it an awesome choice for anyone wanting to keep things compliant while also broadening their horizons. (theblock.co).

Practical Tip:

If your governance is looking to sign vendor contracts or bring in new team members, you might want to think about giving the DAO a bit of a protective layer--something like a DUNA or a DAO LLC could work well. This way, you can keep the Governor or Safe as the main player on the blockchain. You have the option to name the Governor or Safe as an “authorized signatory” in your board minutes or operating agreements.

Governance architecture: patterns that scale in 2025

Two-chamber governance or involving multiple stakeholders. So, here’s the deal: we’ve created a system that combines two cool components. On one side, we've got a token-weighted house, which works kinda like a treasury and takes care of protocol controls. On the other side, there's a personhood/reputation house. This part focuses on strategic goals and has the power to veto decisions. Pretty interesting blend, right? This combo is super helpful for getting everyone on the same page and making sure things are running smoothly. A fantastic example of this in action is Optimism's model, which has really been at the forefront of things. They really raised the bar in 2025 during Season 8 by diving deeper into stakeholder details. Take a look at this: community.optimism.io. You'll find some great info there!

2) Security Council as Circuit Breaker

Alright, so when you're diving into L2s and all that crucial infrastructure stuff, it might be a good idea to consider putting together a Security Council with something like a 9-out-of-12 voting system, or something along those lines. This group would have the ability to make emergency upgrades when needed, and they’d also be required to provide clear reports. Plus, they’d get some flexibility for handling non-emergency tasks. Be sure to lay out the thresholds, delays, and transparency rules clearly in your constitution. It’s super important that everyone knows where they stand! This is how Arbitrum manages to keep its users protected while also making sure that token holders have a voice in the process. Take a look at this: (docs.arbitrum.foundation). It's worth checking out!

3) Onchain vs. Offchain Voting

Offchain (Snapshot) + Execution Module: This combo really simplifies things, especially if you throw in a Safe module. It helps you handle approved votes in a way that minimizes trust issues, making everything run smoothly. The Zodiac Reality Module is here to help you double-check Snapshot results using Reality.eth. It's really popular and is compatible with just about any framework out there! Feel free to take a peek at it here. You might find it interesting!
Quick Reminder: Just a heads-up that UMA’s oSnap (you know, the optimistic Snapshot execution path) is going to be phased out. Mark your calendars because support will officially end on December 15, 2025. Hey there! If you're using oSnap, don’t forget to check out Snapshot’s migration guide. It'll really help you navigate the transition smoothly! Hey, have you thought about checking out Reality.eth? It could be worth your time! Also, switching to onchain voting might be a good idea to consider. If you want to dive deeper into this, you can find more info here.
Fully Onchain: If you’re all about that fully onchain vibe, you should definitely take a look at OpenZeppelin Governor v5. It's worth your time! x. Now, it features flexible counting and support for EIP-6372, also known as "Clock." Not only is it more affordable, but using L2 is also a lot safer. Plus, you still get all the on-chain auditability and composability you want. Dive deeper here.
Snapshot X: If you’re looking for a way to do on-chain, gasless voting while still enjoying that awesome user experience Snapshot is known for, then Snapshot X is definitely the solution you need. Plus, it lets you verify balances across different chains. How cool is that? It runs on Starknet and verifies L1/L2 holdings by using storage proofs. On top of that, it’s really budget-friendly--like 10 to 50 times cheaper than L1 voting. Plus, it even allows for gas sponsorship, which is a nice bonus! If you're looking for a reliable way to get on-chain votes without breaking the bank on Layer 1 fees, this option is definitely worth considering! Learn more here.

4) Multichain from Day One

If your protocol runs on different chains, you'll really want to avoid the hassle of dealing with fragmented governance. Have you heard about Tally MultiGov? It’s pretty cool! They’ve got this neat hub-and-spoke model working for them. Definitely worth a look! Here's the deal: people vote on each specific spoke chain, and then all those votes come together at a central hub called the Governor. You can think of it as a mix of the OZ Governor and Flexible Voting. Pretty cool, right? This setup is already in action with Wormhole DAO, and it's working really well for both EVM and Solana. If you're curious and want to explore more, check out the details right here: (docs.tally.xyz).

5) Private and Fair Voting

Turn on Snapshot’s Shielded Voting (Shutter) feature to keep your votes private. This way, you can dodge that herd mentality and prevent any last-minute surprises from the big players just as the voting is about to close. Oh, and there's something really cool coming up! They’re working on this upgrade called "permanent shielded voting." It's going to use homomorphic tallying with ZK proofs, which sounds pretty high-tech. You can expect to see a public proof of concept drop by October 2025. Exciting times ahead! Take a look at this: shutter.network. You won’t want to miss it!

Token engineering that resists attacks and invites participation

Your safest default in 2025:

Alright, so let’s talk about ERC20Votes and OpenZeppelin Governor v5. These tools are pretty cool if you're into Ethereum governance and want to take your projects to the next level! Hey there! Just a heads up--fractional and flexible counting is now live in OZ! Plus, we’ve got Timelock added to the mix. Exciting stuff!

Delegation is set up right from the minting process, and you’ll notice that self-delegations are automatically suggested through the user interface.
Quorum is established as a percentage of the total supply, and we’ve got some safeguards in place to make sure there aren't any sudden drops.
We've tweaked the delay and voting period to better align with your chain's block time and the vibe of your community.

What to implement:

ERC20Votes: This feature introduces checkpointed voting power, allowing votes to be determined by balances from the past. It's really crucial for keeping those annoying flash-loan vote attacks at bay. Make sure to link this up with GovernorVotes and GovernorVotesQuorumFraction so you can keep your token and Governor clocks in sync. It’ll help everything run smoothly! Take a look at the details here! You’ll find all the juicy info you need.
Fractional/Flexible Voting: With this cool feature, delegates can split their votes however they want--like 60% for and 40% against, for example. It also makes it possible to combine or connect votes without losing any of the important details. It's all wrapped up in OZ v5. 1, and it’s backed by ScopeLift. If you want to dig deeper, you can check out more details here. Happy reading!
Parameter ranges that tend to work (these are just starting points, so feel free to tweak them based on your own experiences):
Voting delay: We’re holding off for about 1-2 days on L2. This gives everyone a chance to either delegate their votes or rally some support.
Voting period: You'll have 5 to 7 days to cast your votes for protocol changes, while grants will have a shorter window of 3 to 5 days.
Quorum: Try to hit that sweet spot of 2-5% of the total supply (or the votable supply). Also, it’s a good idea to set up a dynamic system that adjusts based on the average participation rates over time.
Proposal threshold: Roughly zero. 05-0. That's about 25% of the supply or, if you're looking at it from a reputation standpoint, it amounts to roughly the same thing.
Shielded voting is a great way to keep things private for offchain proposals, like those on Snapshot. It makes sure that your vote stays private whenever it's feasible. When it comes to onchain voting, let's dive into the concept of flexible voting and consider how private tally add-ons could enhance the experience as they come out. It's an exciting direction that could really shake things up! If you want to dive deeper into this topic, you can find more info here. Happy exploring!

Sybil Resistance for Token-Light or Personhood-Heavy Systems

Hey there! Have you thought about using Gitcoin Passport stamp thresholds or some model-based scores to decide who gets to make proposals? It could also be a cool way to amp up voting power in quadratic or community votes. Just a little idea to toss around! It’s definitely a smart move to let people know which stamps and scores you're accepting. For instance, saying something like "score ≥20" is a pretty standard benchmark in funding programs. It helps folks understand what they need to aim for! If you want to dive deeper into the details, just head over to this link: (support.passport.xyz). Enjoy exploring!

Roles, accountability, and execution authority (beyond tokens)

Onchain roles through Hats Protocol: You can hand out specific permissions (kind of like these cool, non-transferable “hats” based on ERC-1155) to your teams, contributors, or even AI agents. Plus, you can take them back whenever you need to! Basically, this means you can connect permissions to stuff like Safe signing, Snapshot/Tally rights, term limits, or even eligibility rules. You can also set up automatic payment systems based on the role rather than the individual, thanks to tools like Sablier or Superfluid. It's a pretty neat way to make things smoother! Want to see some real-world examples? Check out SafeDAO and ecosystem DAOs like Purple--they’ve already jumped on it! If you’re curious, you can dive into more details here. It's pretty cool to see how these projects are putting it into action!
Executing treasury operations using Safe and Zodiac.
Reality Module: This nifty little tool lets you convert offchain votes into onchain actions. It sets up minimum bonds and cooldown periods, plus it lets you execute proposals without needing permission. But don’t worry--you still have the option to veto if needed! And guess what? The coolest thing is that it plays nicely with any governance frontend! (zodiac.wiki).
Moloch v3 (Baal) for membership DAOs and sub‑DAOs: So, this latest version is all about making things easier with shares and loot, plus it comes with ragequit guarantees. Oh, and it also hooks you up with Safe treasuries through Zodiac.
It allows you to set up simple contributor DAOs within a bigger protocol DAO, so you won’t have to worry about losing any of those ragequit protections. You can keep things simple while still boosting your security! Check it out here: docs.daohaus.club.

Tooling that’s shipping well in 2025

Smart contracts: Check out OpenZeppelin Contracts 5! Version 2 is finally here, and it comes loaded with awesome features! You’ll definitely want to check out the cross-chain and account-abstraction tools, especially the ERC-4337 and ERC-7579 modules. They’re game changers! These are great for setting up advanced governors and smart accounts, making them a really solid pick for long-term use. If you want all the details, just hop on over to this link to check it out!
Governance frontends:
Tally: This app is designed specifically for onchain voting and works really well with MultiGov cross-chain setups. If you're curious and want to dive deeper into it, check it out here.
Snapshot v2: This one’s for offchain voting! Oh, and don’t forget about Snapshot X--it lets you vote onchain without any gas fees, and it even comes with storage proofs. Super convenient! Get the details here.
Agora: This tool is all about helping you find delegates and getting more people involved. Think of it like the cool upgrades coming for ENS delegate user experience in 2025! Check it out here.
Karma: Looking to up your votable supply and keep everyone accountable? Karma’s got your back with cool dashboards that track delegate reputations and give you insights on contributor analytics. Dive into it here.
Simulation and ops:
Safe/Tenderly simulations: Before you go ahead and launch any proposals, make sure to use this tool to simulate the execTransaction payloads with your Safe. It’s a handy way to double-check everything! This is a fantastic addition to your proposal template! Get the scoop here.
OpenZeppelin Defender: Just a quick heads up--it's going to be sunsetting pretty soon! Just a heads up: there haven’t been any new sign-ups since June 30, 2025. The platform will be completely shutting down on July 1, 2026. So if you’ve been thinking about it, now’s the time! Make sure you switch over to OZ’s open-source Relayer/Monitor and any other CI/CD operations before that deadline sneaks up on you. It's best to get it done early! If you’re looking for more details, you can check it out here.

Treasury Management Reference

So, the ENS Endowment is really like your go-to playbook. It’s this non-custodial, on-chain strategy management system that combines Safe + Zodiac Roles. Plus, it teams up with an external manager, Karpatkey, to keep everything running smoothly and provide transparent reporting. Pretty cool, right? If you're thinking about starting an endowment, this might be a great starting point for you. Take a look at this link: basics.ensdao.org. You might find it interesting!

Chain selection in 2025: a crisp rule of thumb

Kick off your governance on an L2 platform where your users are already spending their time--think Optimism, Base, Arbitrum, or Polygon zkEVM. This way, you can keep those execution fees nice and low. And only bridge when you really have to, you know? If you're thinking about going multi-chain, you might want to check out a hub governor with spokes--Tally MultiGov is a great option to explore! It's a good idea to keep your treasury and governor on the same chain. That way, you steer clear of any cross-domain execution risks. Of course, if you absolutely need to work across chains, then go for it, but sticking to one chain can save you a lot of headaches! (docs.tally.xyz).

If you find yourself needing a solid backup for your security setup, consider taking a page from some classic Security Council strategies. You know, options like the 9-of-12 approach, along with distinguishing between emergency and non-emergency processes, and making sure your reporting is crystal clear. These tried-and-true methods can really help strengthen your security game! (docs.arbitrum.foundation).

A 30‑day launch plan (with concrete defaults)

Day 1-5: Get Started and Build Up

Pick Your Wrapper: So, you’ve got two options here. You can go with the Wyoming DUNA, but keep in mind that it requires at least 100 members and is set up as a nonprofit steward. On the flip side, if your goal is to make a profit, a DAO LLC could be the way to go. Next up, you'll want to put together a governance charter that ties the on-chain powers to the officers of your selected wrapper. This will help ensure everything is connected and runs smoothly! If you want to dive deeper into the details, check this out: law.justia.com. It's got all the info you need!
Get Your Safe Ready: Go ahead and set up a Safe on the Layer 2 network you’re targeting. Starting off with a 4/7 multisig is a smart move for a temporary guardian setup. It gives you some solid security while still keeping things manageable.

Day 6-12: Ship the Token and Governor

Make sure to roll out your ERC20Votes with checkpoints and permits. And don’t forget to set up that pre-programmed delegation--just self-delegate when you go for that first claim. It's a simple step that can save you time later on! Alright, let’s go ahead and launch OpenZeppelin Governor v5! 1+:.

Modules you should add: Don't forget to include GovernorSettings, GovernorVotes, GovernorVotesQuorumFraction, GovernorTimelockControl, and GovernorCountingFractional. Adding these will really help you get some flexible voting going!
Default settings (feel free to adjust these later):
The voting delay is set to one day.
The voting period is set for 5 days.
proposalThreshold = 0. 1% of supply.
So, the quorum is set at 3% of the total supply.
For all the details, you can take a look here. First off, get Tally all set up for your proposal flow. Don't forget to turn on Flexible Voting! This way, you’ll be able to use pooled or bridged tokens, which makes things a lot easier. Find more info here.

Day 13-18: Configure Voting UX and Execute Path

Offchain Track: Kick things off by creating a Snapshot space. Make sure to turn on Shielded Voting and link the Zodiac Reality Module to your Safe so you can carry out the votes that have been approved. Make sure you set your minimum bond, something in the ballpark of 1-5 ETH equivalent should do the trick. Also, don't forget to factor in a cooldown period of around 24 to 48 hours. Just a little heads up to help you out! Take a look at this: shutter.network. You'll find some pretty interesting stuff there!
Onchain Track: If you’re thinking about going for gasless, onchain voting, you might want to check out setting up Snapshot X on Starknet. It's a solid option! This will provide you with a storage-proof voting system that’s powered up and ready to go! If you need to, you can cover the gas fees with a relayer. If you want to dive deeper into this, check it out here: starknet.io. You'll find all the info you need!

Day 19-24: Roles, Delegates, and Security

First things first, let’s launch that delegate program! Once that's rolling, we can set up the Agora and Karma dashboards. After that, we’ll want to incorporate those delegation prompts right into your app. Exciting times ahead! Check it out here.

Let's get those Hats roles figured out for the Security Council, Grants Council, and Ops Admin! Make sure to link those role tokens to Safe signing or the rights for creating proposals. It’s also a good idea to set up some term limits and eligibility requirements, like looking at Passport scores, staking, and elections. Just something to keep in mind! If you’re looking for more details, you can check it out here.

Hey team,

Let's put together a charter for the Security Council. Here’s what I’m thinking: we should aim for a 9/12 emergency protocol to streamline our response during crises.

For any upgrades that aren’t related to emergencies, let’s set up an on-chain timelock. This way, everyone has a heads up before changes go live, and it keeps things in check.

Also, we need to prioritize transparency. I suggest we roll out an immediate public report whenever we take emergency actions. It’s important to keep everyone in the loop.

Let’s get to work on this! Get the details here.

Day 25-30: Dry Runs and Public Launch

Feel free to jump right in and try out all those initial ideas you had--like tweaking those parameters, installing modules, and kicking off your first grants. You can easily do all this using Tenderly with your Safe. Don’t forget to note down the specific calldata along with the state changes you think will happen in the forum thread. If you’re looking for more details, make sure to check out this guide: tenderly.co. It’s got all the info you need!

If you're currently using Defender, now's a great opportunity to start moving over to OZ's open-source tools. Oh, and make sure to set a reminder for Q1 2026 to start phasing out Defender. You don’t want to miss that! If you want to dive deeper into the details, check it out here: openzeppelin.com. Happy reading!

Configuration details most teams miss (and later regret)

EIP‑6372 Clock Alignment: Just a quick reminder to check that your token's clock and the Governor's clock are in sync. It’s important to make sure they match up, whether you’re checking block times or timestamps. Keeping them aligned helps everything run smoothly! If things don’t line up, you might find yourself dealing with some really confusing voting windows or even snapshots of quorum that just don’t seem possible. Make sure to give this a good run in staging. It’s important to check everything out thoroughly! (docs.openzeppelin.com).
Proposal templates: Setting up a regular JSON/ABI template can really streamline your process for those everyday actions you find yourself doing a lot. Just think about things like “transfer from Safe,” “upgrade proxy,” or “grant role.” It’ll save you time and keep everything organized!
"Make sure to use these templates in your CI process. They'll help you catch any poorly formatted proposals before they turn into bigger problems."
Shielded Voting Defaults: If you’re using Snapshot for your DAO, you might want to think about making Shielded Voting the default setting. It can really help enhance your voting process! This is super helpful for reducing bias! Oh, and don’t forget to have a straightforward process in place for those times when we need to have “public votes only.” This is super important, especially when there are audits or legal stuff that requires us to use open ballots. Don't forget to stay tuned for Snapshot's new permanent shielded voting feature! Make sure you've got a plan in place to cast your vote when it officially launches. (blog.shutter.network).
Offchain execution modules: With oSnap becoming a thing of the past, it's a good moment to start moving towards the Reality Module or consider making the shift to on-chain voting for any decisions involving funds. Hey, just a quick reminder to update those runbooks! Also, make sure your moderators are in the loop and trained up on the new processes. It's super important! (docs.snapshot.box).
Cross-chain votes: When you're diving into MultiGov, it’s super important to keep track of those hub/spoke bridges. Make sure to note any possible failure points and think about what fallback options you might have, like maybe a grace period if a spoke isn’t able to relay. It’s all about being prepared! Kick things off by making some small tweaks to the parameters. Once you've successfully got at least three cross-chain proposals under your belt, you can start feeling a bit more confident! (docs.tally.xyz).

Case-study snippets you can copy

ENS Endowment Alright, let me break it down for you: we kick things off with a DAO treasury, which then gets funneled into an Endowment Safe, and we’re using Zodiac Roles to make it all happen. After that, we jump into non-custodial DeFi strategies and make sure to keep everything transparent. We’re all about those monthly public reports (shoutout to Steakhouse for that!) and having forum oversight to keep it real. This whole system brought in millions in net revenue in 2024, and it had an impressive 3. You’ll earn a solid 7% net APY, all while making sure the DAO control remains in your hands. Hey, take a look at this link: Karpatkey 2024 Review for the ENS Endowment. It's definitely worth checking out!
Optimism Governance We're really focused on making sure that power is balanced among all the different players involved. It's kind of like distinguishing between token holders and actual citizens. We also make sure there are clear veto rights and that everyone gets a say in budget approvals. Instead of overhauling everything in one go, we're taking a more gradual approach with seasonal updates. This way, we can make focused changes, like involving new stakeholder groups starting in 2025. Dive deeper here: (community.optimism.io).
Arbitrum Security Council We've really established a strong system for dealing with all kinds of situations, whether they’re emergencies or just regular issues. We’ve got this voting threshold where 9 out of 12 members need to agree, and we’ve laid out some clear guidelines for elections, any delays that might come up, and how we keep everyone in the loop with transparency reporting. If your protocol is managing user funds, you might want to think about using this structure. If you’re looking for more info, just check it out here: docs.arbitrum.foundation.

Emerging practices to watch through 2026

We're excited to jump into permanent shielded voting using a homomorphic tally on Snapshot! This means you can enjoy your privacy when you vote--before, during, and after--without sacrificing the ability for the public to verify the process. Hey there! Just wanted to let you know that the proof of concept is officially up and running. Feel free to keep track of the rollout to the mainnet! Hey, take a look at this! You can find all the details right here: blog.shutter.network. Enjoy!

Hey there! So, it looks like multichain voting is really taking off and becoming the norm. A big part of that shift is thanks to Hub-and-spoke governance, like what we see with Tally MultiGov.
Thanks to Flexible Voting and Snapshot X storage proofs, you can now vote on-chain without worrying about gas fees. How cool is that? If you're looking for more info, just check out this link: docs.tally.xyz. It’s packed with insights!

Hey there! Get ready to meet the new wave of account-abstraction native DAOs, all thanks to OZ 5. With the 2’s AA utilities and ERC-7579 modules, you can take advantage of programmable signers and set up policy-based execution. It’s a pretty neat way to streamline processes and enhance flexibility! You’ll find some really awesome features here, like role-gated actions that are driven by Hats and AA modules. How neat is that? Check out all the details right here: (openzeppelin.com). You won’t want to miss this!

Security checklist (don’t skip)

Hey there! Just a quick heads-up: when you're handling non-emergency stuff, definitely use a Timelock. It's best to add a delay of around 48-96 hours for Layer 2 transactions. And if it’s got anything to do with user funds, you might want to stretch that delay out even longer. Better safe than sorry, right? (old-docs.openzeppelin.com).

It's a good idea to have an Emergency Council ready to go. You know, the folks who are really good at cybersecurity and have secure HSMs or passkeys. Just make sure they know exactly what their roles are and keep everything super transparent. Just a quick reminder to switch up those keys according to your policy! (docs.arbitrum.foundation). Be sure to try out all the proposals using Tenderly, or if you prefer, you can use a local anvil or Foundry fork instead. And don’t forget to share the diffs once you’re done! It’s super important! (blog.tenderly.co). Hey there! When you’re putting together those proposal descriptions, be sure to include the calldata and target addresses. And let’s make the intents easy to understand--no one wants to deal with those confusing multisend blobs! ”.
Think about adding “canary votes” that include actions with zero value during the staging phase. This way, you can really put those Reality or Snapshot X setups through their paces before dipping into any actual funds. It’s a smart way to make sure everything’s working smoothly! (zodiac.wiki).

The 7Block Labs recommended stack (Dec 2025)

Wrapper: We’ve decided to team up with the Wyoming DUNA to act as our protocol steward. Plus, we’ll have a DAO LLC in place for any operational needs that pop up. Feel free to take a look at the details here.
Chain: We're going with Optimism, Base, or Arbitrum L2 for our governor and treasury, and we're keeping everything on the same chain. MultiGov will step in only when it's really needed. If you're looking for more details, just check it out here. It's got everything you need!
Contracts: We're using OpenZeppelin Contracts version 5, and it's working great! We're talking about a setup that starts at 1 or higher, where you've got a Governor that uses Flexible/Fractional voting. Plus, there's an ERC20Votes token, a Timelock feature, and some cool Hats for different roles. Check it out here.
Voting Experience: For our voting process, we're going to go with Snapshot, and shielded voting will be our default option. Whenever we're looking for on-chain verifiability and want a gasless experience, we’ll just hop over to Snapshot X. Tally's going to take care of our on-chain Governor processes. Learn more here.
Execution: We're going to roll with Safe and the Zodiac Reality Module. Let’s make sure we avoid oSnap since it’s outdated. If anyone’s still using it, we should definitely migrate over to the new setup! More details here.
Analytics & Reputation: We’re rolling out the Agora and Karma dashboards, and we’re also bringing in Gitcoin Passport. This way, we can make sure that our community decisions are safe from sybil attacks. Check it out here!
Ops: When it comes to operations, we’re checking out Tenderly for simulations and are gearing up to migrate to OpenZeppelin’s open-source tools by mid-2026. Exciting times ahead! Take a look at their blog right here! It’s got some great info for running safe simulations on Tenderly. Enjoy!

Final word

By 2025, when you think about building a “DAO from scratch,” it’s really not about starting completely from square one. Instead, it's really about finding the right mix of trusted components--like legal frameworks, on-chain tools, and operational strategies--that match your risk tolerance and the needs of your user community.

Let’s keep it simple and to the point as we get started. Hey there! Have you thought about using a Governor on an L2? It could be a great way to manage things smoothly. You might also want to check out Shielded Voting on Snapshot - it adds an extra layer of privacy. Plus, combining Safe with Reality for execution could really streamline your processes. And don’t forget about Hats for handling roles; it keeps everything organized. Just a few ideas to help you out! As your project grows, consider bringing in MultiGov, Snapshot X, and a few advanced AA modules to really take things to the next level!

So, the stack we talked about earlier is what we’re currently working on and keeping up to date. It's built to guide you effortlessly from casting your very first vote all the way to managing your first hundred proposals without breaking a sweat.