On-chain Governance Proposals: Engaging with Your Token Holders
August 26, 2023
Unvest blog


In the decentralized finance (DeFi) realm, on-chain governance has emerged as a powerful mechanism for token holders to actively participate in decision-making. Crafting effective on-chain governance proposals is pivotal in ensuring community engagement, project alignment, and the evolution of a decentralized ecosystem.

The Significance of On-chain Governance

Decentralized Decision-Making:

Alignment and Accountability:

Adaptability and Evolution:

Creating Effective On-chain Governance Proposals

Clear Objectives:

Research and Context:

Engage with the Community:

Transparent Documentation:

Promoting Community Participation

Educational Efforts:

Incentivizing Participation:

Timely Communication:


Navigating Potential Challenges

Low Voter Turnout:

Sybil Attacks:

Complexity and Jargon:

Implementing Lessons from Successful Proposals

  1. Compound's Governance: The story of Compound's governance proposal that enabled the distribution of COMP tokens to users.
  2. Uniswap's UNI Airdrop: A deep dive into how Uniswap's UNI airdrop was a masterclass in engaging its user base.


On-chain governance is more than just token holder voting; it's a mechanism for collective wisdom to shape a project's future. Effective proposals are a bridge between the project's leadership and its community, enhancing alignment, fostering engagement, and creating a decentralized foundation for sustainable growth.