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Originally created to fund Ethereum 2.0 development, MolochDAO allows token holders to vote on grant proposals, collectively funding projects that contribute to the Ethereum ecosystem (Ethereum, 2015). The Builders Grant Platform was created in partnership with Build Guild as a response to persistent challenges in grants funding within the web3 ecosystem. Rules are encoded in smart contracts on a blockchain, and decisions are made collectively through proposals and on-chain or off-chain votes. Some DAOs use a temperature check via off-chain voting (Snapshot) before moving to a binding on-chain vote, filtering out proposals that lack community support early in the process. Treasury management, proposal execution, and voting rules are all transparently enforced by smart contracts that anyone can audit.
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Aave’s governance features include a Guardian role for emergency actions and a two-phase voting process with temperature checks on Snapshot before binding on-chain votes. These DAOs have shaped the governance landscape and collectively manage tens of billions of dollars in protocol treasuries, user funds, and ecosystem grants. Grant DAOs distribute funding to builders, researchers, and projects that benefit their ecosystem.
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