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GovernanceProposal Lifecycle

Proposal Lifecycle

Every governance proposal in CipherDAO follows the same four stages. The process is designed to be transparent and predictable, contributors always know what’s happening and why.

Stage 1: Draft

Any eligible Cipher Owl holder can submit a proposal. A good proposal clearly explains:

  • What the change is
  • Why it’s needed
  • What risks it introduces (if any)

Proposals can cover anything from protocol parameter changes and fee config updates to treasury decisions and governance process changes.

Stage 2: Discussion

Once formally submitted, the proposal enters a public discussion period. The community reviews it, asks questions, and suggests refinements.

  • No votes are counted yet
  • The proposer can still revise the proposal based on feedback
  • Weaknesses surface early, before the vote

This phase is intentionally social. Its purpose is to improve proposals before they go to a vote, not to block them.

Stage 3: Voting

After discussion closes, the voting window opens. Eligible voters cast their votes using their governance power.

  • Votes are submitted as signed on-chain transactions
  • Each proposal has a fixed voting window
  • Voting power is locked to the snapshot taken at window open. NFT transfers mid-vote have no effect
  • Anyone can independently verify eligibility and vote totals on-chain

Stage 4: Finalization

When the voting window closes:

  • Accepted: if the proposal meets the required quorum and approval threshold, it passes
  • Rejected: if it doesn’t meet quorum or approval, it has no effect on the protocol

Failed proposals can be revised and resubmitted.

Execution

For accepted proposals, execution depends on the proposal type:

Proposal typeHow it executes
Protocol parameter changeOn-chain instruction, automatic
Program upgradeCarried out by Squads multisig following the approved proposal
Treasury actionMultisig executes transfer per the approved proposal
Sensitive config changeDesignated authorities act within the bounds approved by the vote

In all cases, execution is bound by the governance decision and cannot bypass it.

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