What is Snapshot? An Easy-to-Use Governance Platform for DAOs

An Easy-to-Use Governance Platform for DAOs

The Launchy Team
September 02, 2024

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Decentralised Autonomous Organisations (DAOs) are increasingly becoming central to the crypto ecosystem, providing communities with a way to govern themselves without relying on centralised control.

However, creating a governance system from the ground up can be a daunting task, both in terms of complexity and resources.

This is where platforms like Snapshot come in, offering an accessible way to manage governance processes, and allowing developers and communities to focus on innovation.

What is Snapshot?

Snapshot is a decentralised governance platform that allows crypto communities to make collective decisions without the overhead of gas fees. It enables DAOs and other blockchain projects to create, manage, and vote on proposals in a way that is both straightforward and transparent.

Unlike traditional on-chain voting systems, which can be prohibitively expensive due to gas fees, Snapshot operates off-chain. This means that while the voting process itself takes place outside the blockchain, the results can still be enforced on-chain if necessary.

This hybrid approach offers the best of both worlds: cost-effective, accessible voting combined with the security and enforceability of on-chain decisions.

Snapshot has become a go-to solution for various types of projects, from large-scale DAOs to smaller NFT communities. Its ease of use and flexibility make it suitable for projects of any size, providing a scalable governance solution that meets the diverse needs of the crypto space.

How Does Snapshot Work?

Snapshot simplifies the governance process, making it accessible to all members of a community. Here’s how it works:

Creating Proposals

Page to Create a New Proposal

Members with the appropriate permissions can create proposals on the project’s dedicated Snapshot space.

These proposals can cover a wide range of topics, from protocol upgrades to community initiatives, ensuring that all important decisions are made collectively.

Voting

Governance Vote

Once a proposal is live, community members can vote. Voting power is typically based on the number of tokens held by each member, though this can be customised according to the project’s specific requirements. By operating off-chain, Snapshot ensures that everyone can participate without the burden of gas fees, making it easier for all members to have a say.

Executing Decisions

After the voting period concludes, Snapshot automatically tallies the results. If the proposal passes and the community’s governance structure requires it, the decision can be executed on-chain. This often involves integrations with tools like Gnosis Safe, ensuring that the execution process is secure and aligned with the community’s intentions.

Snapshot’s flexibility also extends to the types of proposals it supports. Whether the decision is as straightforward as a yes/no vote or involves multiple options, Snapshot can accommodate it.

This mechanism makes it a valuable tool for a wide range of governance decisions, from everyday operations to long-term strategy.

Setting Up Your Governance Platform on Snapshot

Getting started with Snapshot is a straightforward process, making it an appealing option for developers and project leaders looking to implement a governance system quickly.

Create a Space Button

Here’s how to set up your governance platform using Snapshot:

Create Your Space

Begin by creating a “space” on Snapshot, which will serve as the hub for all governance activities related to your project.

This space can be customised to reflect your project’s branding and governance needs, including setting rules for proposal creation and voting power distribution.

The button can be accessed on the three dots on the top right corner of the page, where users can click the three dots and get options to other pages, one of which is the “Create a Space” Button.

Steps of Setting Up a DAO in Snapshot

When creating a new space, remember that managers of the DAO need to have an ENS domain which can also be set up in Snapshot. This will cost a certain amount of fee that will be charged yearly using ETH.

Set Up Voting Parameters:

Next, define the profile of the DAO, which is its name, its logo, and other brandings that will differentiate the DAO from others.

After that, users will be prompted to add the voting parameters. Decide which tokens will represent voting power, set the duration of voting periods, and establish any quorum requirements.

These settings should be tailored to your project’s governance goals, ensuring fair and equitable participation from all members.

Launch Your First Proposal

Once done, the manager of the DAO can add members to test out the DAO. With the DAO space and parameters in place, the managers or members can create the DAO’s first proposal.

Be clear and concise in outlining what the proposal entails, why it’s important, and what the potential outcomes could be. This clarity helps community members make informed decisions when casting their votes.

Engage the Community

Foster participation by engaging with your community through social media, forums, and other channels. Inform members about the proposal and emphasise the importance of their vote.

Snapshot’s gasless voting mechanism makes it easier for everyone to participate, increasing the likelihood of broad community engagement.

Execute the Results

After the voting concludes, review the results and, if necessary, execute the decision on-chain. Snapshot’s integration with tools like Gnosis Safe makes this process secure and straightforward, helping to maintain the integrity of your project’s governance process.

Snapshot also offers additional features that can enhance your governance process, such as token delegation.

This allows community members to delegate their voting power to others, which can be particularly useful in larger communities where some members may prefer to entrust their voting power to more active participants.

Conclusion

Snapshot is a comprehensive platform for decentralised governance that is helping projects manage their governance process better.

By offering a gasless, off-chain voting mechanism, Snapshot makes it easier for projects to engage their members in key decisions without the financial barriers associated with on-chain voting.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.