Creating Proposals
Any INV holder can initiate discussion around a governance proposal, but successful proposals require more than just meeting the 1,900 INV threshold. They require community buy-in, clear articulation, and thoughtful execution planning. This guide walks you through the process of creating, socializing, and launching a proposal that has the best chance of passing.
Getting Involved in the DAO
Before creating your first proposal, spend time understanding how the Inverse Finance community operates and what priorities matter most to existing contributors.
Discord is where the community interacts daily through text and voice channels. Join discussions in #governance-general to socialize ideas, ask questions to understand the protocol better, and participate in the public working group channels to contribute to specific areas. Discord is the best place to gauge community sentiment before formalizing a proposal.
The Forum is where proposals are formally discussed before going on-chain. Every major proposal should have a forum thread where community members can provide detailed feedback, raise concerns, and suggest improvements. Forum discussions are archived and searchable, making them the official record of proposal development.
Twitter, Newsletter, and Blog keep you informed about protocol updates, partnership announcements, and DAO priorities. Follow @InverseFinance on Twitter, subscribe to the weekly newsletter, and read the blog to understand the context and trajectory of the protocol.
Start by contributing, not proposing. The most successful proposals come from active community members who understand the protocol's needs and have built trust through participation. Spend time in Discord, comment on existing proposals, and help others before launching your own initiative.
Attributes of Successful Proposals
Strong proposals share common characteristics that make them clear, actionable, and trustworthy.
Clarity
Write in plain language that both technical and non-technical community members can understand. Clearly define the specific on-chain actions being proposed and any responsibilities assigned to DAO members or third parties. Avoid jargon where possible, and explain technical concepts when necessary.
Completeness
All referenced information must be accessible through the proposal. Include links to relevant forum discussions, prior proposals, external documentation, or data sources. Do not make the proposal dependent on future circumstances that haven't been defined yet. Disclose any conflicts of interest for all parties involved.
Accountability
Word responsibilities in a way that makes success or failure easy to define. If your proposal creates a new role or working group, specify deliverables, reporting requirements, and success metrics. Avoid vague commitments like "improve governance" without concrete actions.
Time Limits
For experimental initiatives like new working groups or pilot programs, include moderate time limits (e.g., 3-6 months) with the expectation that successful programs will be renewed through subsequent proposals. This allows the DAO to evaluate results before committing long-term resources.
Reporting Requirements
If your proposal involves ongoing work or spending, specify reporting requirements. Reports should have a clear owner responsible for publishing them, a defined frequency (monthly, quarterly), and a standard format. This ensures transparency and allows the DAO to track progress.
Budgeting
All expenses required to execute the proposal must be accounted for upfront. Long-term contributors with consistent workloads are paid in DOLA through the Payroll contract. One-time or project-based expenses should specify the exact amount needed from the Treasury. If the proposal passes, a spending allowance will be created for the appropriate wallet.
Agency
Any required multisig wallets, contract deployments, or technical prerequisites must be created before the proposal's execution. Identify willing multisig signers, verify their availability, and confirm they understand their responsibilities. Gas fees for setup actions will be reimbursed by the Treasury Working Group if the proposal passes.
The Proposal Lifecycle
Proposals follow a structured path from ideation to execution:
Forum Discussion
Ideas are first discussed on the Inverse Finance Forum, where community members provide feedback, raise concerns, and refine the proposal scope. This informal discussion phase helps gauge sentiment before moving forward.
On-Chain Proposal
Once refined, a proposal is submitted on-chain by an address holding at least 1,900 INV. The proposal includes a detailed description, forum link, and specific on-chain actions (contract calls, parameter changes, fund transfers).
Voting Period
The voting period lasts 60 hours. INV holders cast votes weighted by their balance at the proposal's snapshot block.
Queueing Period
Once the voting period ends and If the proposal reaches the 15,500 INV quorum and receives majority support, the proposal will enter a mandatory 40 hour queueing period. The Policy Committee holds a governance guardian role allowing it to cancel proposals before execution if critical issues are identified, but this power is reserved for emergency situations only.
Execution
After the queueing period, the proposal becomes executable. Anyone can trigger execution by calling the execute function and paying the gas fee (typically done by a DAO member). The proposal must be executed within 14 days or it will expire and become unactionable. Once executed, all on-chain actions specified in the proposal occur automatically and irreversibly.
Proposal Execution Requirements
Quorum: 15,500 INV minimum (combined For + Against votes)
Passage: More For votes than Against votes
Queueing: Automatic 40-hour delay after voting ends
Execution Window: 14 days from the end of the queueing period
Execution is not automatic. While proposals queue automatically if they pass, someone must manually trigger execution within the 14-day window. This is typically handled by DAO members, but anyone can execute a passed proposal.
Governance Resources
Good proposals take time. Budget at least 1-2 weeks from initial Discord discussion to on-chain launch. Rushing the process increases the likelihood of rejection or, worse, passing a flawed proposal that harms the protocol.
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