> For the complete documentation index, see [llms.txt](https://dolr-ai.gitbook.io/dolr.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://dolr-ai.gitbook.io/dolr.ai/how-it-works/governance-with-daos.md). # Governance with DAOs DOLR AI’s DAO framework empowers decentralised applications (dApps) within the ecosystem to operate autonomously under community-driven governance. This framework fosters transparency, ownership, and rapid deployment of governance systems tailored to each dApp, leveraging ICP’s governance infrastructure for enhanced decentralisation and security. ## Governance Framework #### Decentralised Governance for dApps * Projects transition from developer-led control to **token-based governance**, where the community collectively decides on the project's future direction. ICP’s SNS model provides an ideal structure for executing on-chain governance decisions. * Governance actions such as proposing changes, voting on initiatives, and resource allocation are executed through smart contracts, ensuring fairness and security. #### Unique Governance Tokens * Each DAO issues governance tokens specific to its dApp, granting holders **voting power** on proposals and changes. * Token holders can stake their tokens to participate in governance, influencing project evolution and ensuring their interests are represented. #### On-chain Decision-making * Governance processes, including voting, token staking, and proposal execution, occur fully **on-chain**, enhancing trust and reducing manipulation risks. * The governance system stores proposals, tracks voting history, and manages the evolving rules of the ecosystem. ## Lifecycle of a DAO on DOLR AI #### DAO Formation * Projects initiate governance by distributing governance tokens to their community via decentralised swaps or direct distribution methods. * DOLR AI’s automation enables projects to transition into a DAO within minutes, removing technical barriers. * ICP’s decentralised identity framework ensures fair and secure token distribution. #### Community Participation * Token holders participate by **staking their tokens** to engage in governance decisions, incentivizing long-term commitment and active involvement. #### Governance Execution * Proposals are submitted by stakeholders, reviewed by the community, and executed via smart contracts after reaching consensus. * ICP's SNS autonomously manages upgrades, feature additions, and security enhancements based on token-holder decisions. #### Ongoing Maintenance * The community oversees tasks such as parameter adjustments, software upgrades, and funding allocations to ensure sustained project success and growth. * Computing resources are replenished as needed to keep the DAO operational without external intervention. ## Key Features of DOLR AI's DAO Framework * **Flexible Token Utility:** Governance tokens are versatile, allowing holders to participate in voting, stake tokens for rewards, and access premium features, driving meaningful engagement. * **Enhanced Security and Transparency:** With all governance actions recorded on-chain, participants can independently verify every decision, fostering **trust and accountability**.