How to Use Aragon for DAO Governance
Aragon is a platform for creating and managing decentralized autonomous organizations (DAOs) on Ethereum. To use Aragon for DAO governance, you deploy a DAO using one of Aragon’s templates, configure its voting parameters, and then submit proposals for token holders to vote on, with results executed automatically on-chain. This page walks through the practical steps.
What Aragon Provides
Aragon gives you a set of smart contracts and a user interface to run a DAO without writing code from scratch. Core components include:
- Token-based voting: Members vote using native governance tokens (e.g., ANT or a custom ERC-20).
- Vote execution: Approved proposals trigger actions like transferring tokens or changing parameters.
- Permission system: Roles control who can create proposals, vote, or execute actions.
- Templates: Pre-built setups like “Company” or “Membership” that define default rules.
Aragon DAOs run on Ethereum mainnet or compatible networks (e.g., Polygon, Arbitrum). The platform supports on-chain voting only - off-chain signaling is handled by external tools like Snapshot (covered elsewhere on this site).
Step-by-Step: Creating and Using an Aragon DAO
1. Choose a Network and Template
Select an Ethereum-compatible network. Mainnet provides security but higher gas costs; sidechains or L2s reduce fees. Aragon currently offers templates such as:
- Company: For profit-sharing or project DAOs with transferable tokens.
- Membership: For non-transferable membership tokens, common in collectives.
- Reputation: For non-transferable voting power based on reputation tokens.
Pick the template that matches your governance model. Templates set default parameters (e.g., minimum voting period of 24 hours, support threshold of 50%).
2. Deploy the DAO
In the Aragon App (app.aragon.org), connect your wallet (e.g., MetaMask), select your network, and follow the deploy wizard. You will:
- Name your DAO.
- Set token details (symbol, decimals, initial supply).
- Define the token distribution (who gets how many tokens at launch).
- Confirm the deployment transaction. Gas costs vary - check current estimates on Etherscan.
After deployment, your DAO contract is live. You access it through the Aragon interface or directly via the contract address.
3. configure governance parameters
Before proposals go live, adjust settings in the “Governance” or “Voting” app:
- Minimum approval: Percentage of votes needed for a proposal to pass (default often 50%).
- Voting duration: How long votes remain open (e.g., 24 hours to 7 days).
- Support threshold: Percentage of yes votes relative to total votes cast (not total supply).
- Quorum: Minimum percentage of total voting power that must participate (default often 15%). Low quorum risks minority capture, as covered in a separate page on this site.
- Proposal threshold: Minimum tokens required to create a proposal (e.g., 1% of supply). This prevents spam.
To change these, you must first pass a proposal - a chicken-and-egg problem if the default parameters are unsuitable. Plan ahead: deploy with sensible defaults or use a multisig during setup.
4. Create a Proposal
Only wallets meeting the proposal threshold can submit. In the Aragon interface:
- Click “New Proposal.”
- Write a title and description. Aragon stores this on-chain, so keep it concise. For longer context, link to a forum post or IPFS document.
- Add actions: the actual smart contract calls the proposal will execute (e.g., “Transfer 1000 tokens to address X”). Use the “Actions” builder to select a contract and function.
- Set the vote start and end times (usually immediate start).
- Submit the proposal transaction.
The proposal appears in the “Voting” app for token holders to see.
5. Vote
Token holders connect their wallets and cast votes (yes, no, or abstain). Voting requires a transaction on-chain, so each vote costs gas. To reduce costs, some DAOs use delegated voting (covered elsewhere) or off-chain signaling first.
Votes are weighted by token balance at the time of the proposal’s creation. Aragon does not support quadratic voting natively (see separate page on this site), but you can integrate it via custom contracts.
6. Execution
If the vote passes (meets quorum and approval thresholds) and the voting period ends, anyone can trigger execution. Aragon automatically “enacts” the proposal after a delay (default 0, but configurable via a timelock). Execution submits the actions to the blockchain. If execution fails (e.g., insufficient funds), the proposal is marked as failed.
7. Manage Permissions
Aragon’s ACL (Access Control List) lets you assign roles like “Create Proposals,” “Vote,” or “Execute.” By default, token holders vote and the DAO’s multisig (if set) can veto. You can grant specific addresses elevated permissions through proposals.
Practical Considerations
- Gas costs: Each vote and proposal costs ETH. On mainnet, this can be prohibitive for frequent votes. Consider using a sidechain or L2.
- Vote delegation: Aragon supports delegation natively in some templates, but you may need to enable it via a proposal.
- Integration with other tools: Aragon DAOs can use Zodiac modules (covered on this site) for multisig or delayed execution. The OpenZeppelin Governor contract library (also covered) is a separate system, not directly compatible.
- Upgradability: Aragon’s base DAO contracts are not upgradeable. To change core logic, you must migrate to a new DAO.
Limitations
Aragon’s on-chain governance is transparent but inflexible. You cannot cancel a vote once started. If a proposal passes with unintended consequences, the only remedy is a subsequent proposal - which may not execute in time to prevent damage (see the page on treasury drains). For many DAOs, Aragon works best alongside off-chain deliberation on Snapshot and a timelock for safety.
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