Governance Proposal

A formal request submitted to a Decentralized Autonomous Organization (DAO) proposing a specific change to a protocol's parameters, treasury allocation, code upgrades, or operational policies. Governance proposals typically follow a lifecycle: discussion on a forum, a temperature check (non-binding poll), a formal on-chain or snapshot vote, and execution if passed. Token holders vote with their governance tokens, and proposals must meet quorum and approval thresholds to pass. Major DeFi protocols like Uniswap, Aave, and Compound are governed entirely through this process.