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MolochDAO was initially established to support the development of Ethereum 2.0, enabling token holders to vote on grant proposals and collaboratively fund projects that enhance the Ethereum ecosystem (Ethereum, 2015). In response to ongoing difficulties with grants funding in the web3 ecosystem, the Builders Grant Platform was developed in collaboration with Build Guild. Smart contracts on a blockchain encode the rules, while proposals and votes—either on-chain or off-chain—facilitate collective decision-making. Prior to proceeding with a binding on-chain vote, some DAOs conduct a temperature check through off-chain voting , Snapshot, to eliminate proposals that do not have strong community backing early on. Smart contracts that everyone can audit ensure transparent enforcement of treasury management — proposal execution, and voting rules.
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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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