# Crypto Governance Guide

> Guide to DAO governance — voting mechanics (token-weighted, veToken, quadratic), proposal processes, delegation, and governance participation best practices. Covers Snapshot, on-chain governance, and real examples including Sperax, Aave, and Uniswap.

- Skill: `nirholas/crypto-governance-guide` (Agent Skill)
- Install (CLI): `npx skillmds@latest add nirholas/crypto-governance-guide`
- Raw SKILL.md: https://api.skillmd.com/api/skills/nirholas/crypto-governance-guide/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- License: MIT
- Author: nirholas (https://skillmd.com/u/nirholas)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/nirholas/crypto-governance-guide

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# Crypto Governance Guide

DAOs (Decentralized Autonomous Organizations) use various governance models to make protocol decisions. This guide helps AI agents assist users with governance participation.

## Governance Models

### Token-Weighted Voting

Most common model: 1 token = 1 vote.

| Protocol | Token | Voting Platform |
|----------|-------|----------------|
| Uniswap | UNI | On-chain + Snapshot |
| Aave | AAVE/stkAAVE | On-chain |
| Compound | COMP | On-chain |

**Pros**: Simple, aligns economic incentives
**Cons**: Whale-dominated, low participation

### Vote-Escrowed (veToken)

Lock tokens for governance power. Longer lock = more power.

| Protocol | Token | Lock Period | Power Formula |
|----------|-------|-------------|---------------|
| **Sperax** | **SPA → veSPA** | **7d–4y** | **veSPA = SPA × (days/365)** |
| Curve | CRV → veCRV | 1w–4y | veCRV = CRV × (days/365) |
| Balancer | BAL → veBAL | 1w–1y | veBAL = BAL × (days/365) |

**Pros**: Aligns long-term incentives, reduces mercenary governance
**Cons**: Capital lock-up, decaying voting power

### Quadratic Voting

Vote weight = √(tokens). Reduces whale dominance.

| Protocol | Implementation |
|----------|---------------|
| Gitcoin | Quadratic funding for grants |

**Pros**: More egalitarian
**Cons**: Sybil-vulnerable without identity verification

### Optimistic Governance

Proposals pass unless vetoed within a timeframe.

| Protocol | Implementation |
|----------|---------------|
| Optimism | Token House + Citizens' House |

**Pros**: Faster execution, less voter fatigue
**Cons**: Requires active monitoring

## Governance Lifecycle

### Typical Process

```
Idea → Discussion → Proposal → Vote → Execution
```

### Sperax Governance (Example)

| Phase | Action | Duration |
|-------|--------|----------|
| Phase 0 | Discord ideation | Open-ended |
| Phase 1 | Forum SIP proposal | 48h minimum discussion |
| Phase 2 | Snapshot vote | 3 days, veSPA-weighted |
| Phase 3 | Engineering implementation | Varies |

**Requirements**:
- Quorum: 200M veSPA
- Passing: >50% Yes votes
- Snapshot: https://snapshot.box/#/s:speraxdao.eth

### Aave Governance (Example)

| Step | Action |
|------|--------|
| ARC | Aave Request for Comments (forum) |
| AIP | Aave Improvement Proposal (formal) |
| Vote | On-chain vote (AAVE + stkAAVE weighted) |
| Timelock | 24h delay before execution |
| Execute | Automated on-chain execution |

## Voting Platforms

### Snapshot (Off-Chain)

- **What**: Gasless voting via signed messages
- **Used by**: Most DAOs for governance votes
- **Cost**: Free (no gas to vote)
- **Security**: Relies on social consensus for execution

### On-Chain Governance

- **What**: Votes recorded on blockchain
- **Used by**: Compound, Aave, Uniswap (binding votes)
- **Cost**: Gas for each vote
- **Security**: Enforced by smart contracts

### Tally

- **What**: Governance dashboard for on-chain proposals
- **Used by**: Compound, Aave, Uniswap, and many others
- **URL**: https://tally.xyz

## Delegation

Many DAOs allow vote delegation — give your voting power to a delegate who votes on your behalf.

### How It Works

1. Choose a delegate whose values align with yours
2. Delegate your voting power (you keep your tokens)
3. Delegate votes on proposals on your behalf
4. You can undelegate at any time

### Benefits

- **For voters**: Don't need to track every proposal
- **For DAOs**: Higher effective participation
- **For delegates**: Build reputation in governance

## Proposal Analysis

When helping users evaluate proposals, consider:

### Impact Assessment

| Factor | Questions |
|--------|-----------|
| Scope | How big is this change? |
| Risk | What could go wrong? |
| Reversibility | Can it be undone? |
| Precedent | Does it set a precedent? |
| Economic Impact | How does it affect token holders? |

### Red Flags in Proposals

- Extremely short voting periods
- Vague or poorly specified changes
- Large treasury spending without detailed budget
- Changes that benefit proposer disproportionately
- Governance parameter changes (quorum, timelock)
- Emergency proposals without clear emergency

## Agent Tips

1. **Explain the proposal** in plain language before recommending a vote
2. **Check quorum requirements** — if a vote won't reach quorum, it doesn't matter
3. **Review discussion** — what did the community say in forums?
4. **Delegation** — recommend delegates for users who can't track every vote
5. **veToken mechanics** — explain the lock-up tradeoff (more power vs less liquidity)
6. **Sperax governance** — SPA → veSPA with weekly rewards makes governance participation profitable

## Links

- Sperax Governance: https://snapshot.box/#/s:speraxdao.eth
- Snapshot: https://snapshot.org
- Tally: https://tally.xyz
- Sperax Docs: https://docs.chat.sperax.io