Crypto

Governance Proposal

Definition

A formal suggestion submitted to a decentralized autonomous organization (DAO) or protocol for community voting on parameter changes, upgrades, treasury spending, or strategic direction. Proposals are executed on-chain if they reach a quorum and pass a vote.

Example
Governance proposals determine protocol upgrades and treasury spending in major DeFi protocols like Uniswap and Compound.
Related Terms
DAO (Decentralized Autonomous Organization) Governance Token Web3
Frequently Asked Question
What is a Governance Proposal?
A Governance Proposal is a formal on-chain suggestion for changing a DAO or protocol's rules, fees, or direction. Token holders vote on proposals, and successful ones are automatically executed via smart contract.
APA Citation
Clark, R. (2025). Governance Proposal. VixShield Trading Glossary. Retrieved from https://www.vixshield.com/glossary/governance-proposal
RC
Russell Clark, FNP-C
Author of SPX Mastery series · Founder of VixShield
Last updated:  ·  Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.