DAO/Governance Best Practices

DAO Category and Contract Subcategories

DAOs are an essential part of web3 infrastructure. DAO governance contracts can range from simple standalone Governor/DAO contracts to complex multi-layered architectures like Lido's dual governance system or unique implementations like MakerDAO's governance module.

Most DAOs are built upon either OpenZeppelin's Governance framework or Aragon's DAO framework:

OpenZeppelin-based DAOs: Uniswap, ENS, The Graph, Gitcoin, Nouns, etc. Aragon-based DAOs: Lido, Polygon, Taiko, Puffer, Boundless, Curve Finance, etc.

The majority of DAOs follow a governance model similar to Uniswap's architecture (based on OpenZeppelin framework):

• Token - UNI Address
• Governor - GovernorBravo
• Timelock - Timelock Controller

DAO Contract Naming and ENS Onboarding Process

Step 1: Register new ENS Domain on ENS App

Choose one of these naming patterns:

• <org>.eth (if available)
• <org>dao.eth
• <org>-dao.eth

Example: uniswap.eth, ensdao.eth, nouns-dao.eth

Step 2: Create DAO Subdomain (if needed)

If "dao" is not included in your 2LD name, create a subdomain that will act as the parent domain for DAO contracts:

• dao.<org>.eth

Example: dao.uniswap.eth

Step 3: Add DAO Metadata

Add DAO metadata to your main DAO ENS name/subname according to EIP-4824 standard.

• If your DAO's ENS name is <org>dao.eth or <org>-dao.eth then directly store DAO metadata under the main name's text records. Example: ENS DAO metadata
• If your DAO's ENS name is <org>.eth and you created a subname dao.<org>.eth then store DAO metadata under subname's text records.

Step 4: Create Contract Subdomains

Name each contract under your DAO domain with descriptive subnames following the patterns below.

Wherever <yourdao> is mentioned, treat it as <org>dao, <org>-dao or dao.<org>

Please refer to the Appendix for additional information on these contracts.

Contract name	Description	Naming convention	Where to name
Governor (core)	Based on Openzepplin Governance framework or Aargon's DAO framework	governor.<yourdao>.eth	Enscribe / Raw Tx builder
Governance Token	Token for voting purpose	<token-symbol>.<youdao>.eth or token.<yourdao>.eth	Enscribe / Raw Tx builder
Timelock controller	Contract that may hold assets and enforce a delay before executing	timelock.<yourdao>.eth, executor.<yourdao>.eth	Enscribe / Raw Tx builder
Main Wallet	DAO treasury / operations multisig	wallet.<yourdao>.eth, operations.<yourdao>.eth	ENS App
Treasury	DAO treasury where funds are stored	treasury.<yourdao>.eth	Enscribe / Raw Tx builder
Voting Contract	Based on Aargon's voting plugins or OZ's Voting Modules	voting.<yourdao>.eth	Enscribe / Raw Tx builder
Other wallets (smart wallets/EOAs)	Guardians, Endowment, Admin, Emergency, Veto, Security council	<role>.<yourdao>.eth	ENS App
Other access/permission/controller/misc Contracts	Delegation contract, Access/permission manager, Controllers, Other Aragon or OZ based contracts	<contract-name>.<yourdao>.eth	Enscribe / ENS App / Raw Tx builder

Step 5: Add Contract Metadata

Add detailed metadata to each contract name according to ENSIP: Contract Metadata Standard and Text Records (draft standard).

Example - governor.ensdao.eth metadata →

name: ENS DAO Governor
description: ENS DAO's Governance contract to create and execute proposals
Avatar: ipfs://qwerty…
url: https://ensdao.org/
category: governance
license: MIT
docs: https://docs.ens.domains/dao/
audits: []
proxy (optional):

Step 6: Claim DNS Domain (Optional but Recommended)

Claiming your DNS domain on ENS establishes trust and verifies that the ENS name belongs to the legitimate organization by creating a verifiable link between your traditional web presence and your DAO's ENS identity.

This process involves visiting the ENS Manager App, searching for your DNS domain (e.g., <yourorg>.com), and following the verification process.

For detailed instructions, refer to the official DNS on ENS documentation which provides step-by-step guidance on the claiming process.

Real-world example - Base (base.org linked to base.eth as manager) demonstrates how an organization should link their traditional domain with their ENS presence for enhanced credibility and trust within the web3 ecosystem.

Appendix

Major DAO Contract Types and Examples

1. Core Governor/DAO Contract

Description: The primary governance contract that handles proposal creation, voting, and execution. This is the heart of the DAO's decision-making process.

Naming Convention:

• governor.<yourdao>.eth

Example DAOs: Uniswap, ENS

2. Governance Token

Description: The ERC-20 token that represents voting power in the DAO. Token holders use these tokens to participate in governance decisions.

Naming Convention:

• token.<yourdao>.eth
• <token-symbol>.<yourdao>.eth

Example DAOs: Uniswap, ENS

3. Timelock Controller

Description: A contract that introduces a delay between proposal approval and execution, providing security by allowing token holders time to react to malicious proposals.

Naming Convention:

• timelock.<yourdao>.eth
• executor.<yourdao>.eth

Example DAOs: Uniswap, Arbitrum

4. Treasury

Description: The contract or multi-signature wallet that holds and manages the DAO's funds. May include multiple treasuries for different purposes (grants, operations, etc.).

Naming Convention:

• treasury.<yourdao>.eth

Example DAOs: Arbitrum, Gitcoin

5. Voting Contract

Description: Specialized contracts that handle the voting mechanism, vote counting, and delegation. In OpenZeppelin Governor, this is often integrated into the main Governor contract as voting modules. In Aragon this may be based on voting plugins.

Naming Convention:

• voting.<yourdao>.eth

Example DAOs: Lido

6. Main DAO Wallet/Multisig

Description: The primary operational wallet used for DAOs operational activities. Often a multi-signature wallet controlled by core team members or elected delegates.

Naming Convention:

• operations.<yourdao>.eth
• wallet.<yourdao>.eth

Example DAOs: ENS, zk-nation