# The DAO Tooling Ecosystem

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> This lesson provides a comprehensive tour of the core products in the DAO tooling ecosystem. From multisig wallets to no-code DAO creation platforms, from governance contract frameworks to contribution-tracking tools, you will build a complete picture of the toolkit needed to run a DAO — and learn how to choose the right tools for your situation.
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## Table of Contents

- [Safe (Gnosis Safe): Multisig Wallet](#safe-gnosis-safe-multisig-wallet)
- [Aragon: No-Code DAO Creation](#aragon-no-code-dao-creation)
- [OpenZeppelin Governor: Governance Contract Framework](#openzeppelin-governor-governance-contract-framework)
- [Nouns Builder: Nouns-Style DAO Creation Tool](#nouns-builder-nouns-style-dao-creation-tool)
- [Treasury Management Tools](#treasury-management-tools)
- [Contribution Tracking Tools](#contribution-tracking-tools)
- [Tool Selection Guide](#tool-selection-guide)
- [Summary](#summary)
- [Further Reading](#further-reading)

---

## Safe (Gnosis Safe): Multisig Wallet

[Safe](https://safe.global/) (formerly Gnosis Safe) is one of the most important pieces of infrastructure in Web3 and the standard tool used by the overwhelming majority of DAOs to manage treasury funds.

### What Is a Multisig Wallet

A multisig wallet (multi-signature wallet) requires a **specified number of signers out of a larger set** to jointly approve a transaction before it executes. A 3-of-5 multisig, for example, requires at least 3 of 5 signers to approve before any transaction goes through.

Think of it like a joint bank account where withdrawals require signatures from multiple account holders.

### Core Features

1. **Asset management**: Safely store and manage ETH, ERC-20 tokens, NFTs, and other assets.
2. **Multisig approval**: Customize the signer set and threshold (e.g., 3/5, 4/7).
3. **Transaction queue**: Pending transactions queue up so signers can sign in turn.
4. **Transaction simulation**: Preview the effect of a transaction before executing it.
5. **Module system**: Extend functionality with modules (spending limits, recurring payments, etc.).
6. **Multi-chain support**: Ethereum, Arbitrum, Optimism, Polygon, Base, and more.

### Usage at Scale

As of 2025, Safe's numbers are impressive:

- **Total assets managed**: Over $100 billion
- **Safe wallets created**: Over 9 million
- **Cumulative transactions**: Over 50 million
- **Notable users**: Uniswap, Aave, Lido, ENS, Gnosis, and many others

### Creating a Safe: Basic Steps

1. Visit [app.safe.global](https://app.safe.global/)
2. Connect your wallet and select a network
3. Set a name for the Safe
4. Add signer addresses (Owners)
5. Set the confirmation threshold (e.g., 3 of 5)
6. Deploy the Safe contract (requires gas)

### Safe's Role in DAO Governance

```text
DAO governance vote passes
    |
    v
Timelock waiting period ends
    |
    v
Safe multisig executes
    |
    v
Funds leave treasury / contract parameters updated
```

Many DAOs vest their ultimate execution power in a Safe multisig. For example, a DAO's timelock contract may designate a Safe as the executor, so governance-approved proposals still require multisig confirmation to run.

### Security Best Practices

- **Signer diversity**: Avoid having all signers from the same team or geography.
- **Sensible threshold**: Too low is insecure; too high hurts efficiency. A 60–70% ratio is generally recommended.
- **Hardware wallets**: Signers should use Ledger, Trezor, or equivalent hardware devices.
- **Regular rotation**: Replace signers who become inactive.

---

## Aragon: No-Code DAO Creation

[Aragon](https://aragon.org/) is one of the oldest DAO creation and management platforms, offering tools to launch a DAO without writing a single line of code.

### Core Products

#### Aragon App

Aragon's primary product — a graphical interface for creating and managing DAOs:

- **DAO creation**: Choose a governance template, set parameters, deploy contracts.
- **Proposal management**: Create, vote on, and execute governance proposals.
- **Treasury management**: Manage DAO funds and initiate transfers.
- **Member management**: Add/remove members and manage permissions.

#### Aragon OSx

Aragon's underlying protocol framework — a modular DAO construction toolkit for developers:

```solidity
// Aragon OSx plugin architecture
// A DAO consists of a core contract + interchangeable plugins

// Core DAO contract
contract DAO {
    // Permission management
    function grant(address _where, address _who, bytes32 _permissionId) external;
    // Execute actions
    function execute(bytes32 _callId, Action[] calldata _actions) external;
}

// Voting plugin (replaceable)
contract TokenVotingPlugin {
    function createProposal(...) external returns (uint256);
    function vote(uint256 _proposalId, VoteOption _option) external;
}
```

### Creating a DAO with Aragon

1. Visit [app.aragon.org](https://app.aragon.org/)
2. Connect your wallet and select a network (Ethereum, Polygon, Arbitrum, etc.)
3. Choose a governance type:
   - **Token Voting**: ERC-20 token-weighted voting
   - **Multisig**: Multisig governance
4. Configure governance parameters:
   - Minimum participation (Quorum)
   - Minimum approval rate
   - Voting duration
5. Create or import a governance token
6. Set initial members
7. Review and deploy

### Advantages and Limitations

**Advantages**:
- No coding required — a DAO can be live in 5 minutes.
- Modular architecture — add functionality as needed.
- Battle-tested, used by thousands of DAOs.
- Solid frontend and documentation.

**Limitations**:
- Limited customizability compared to writing contracts from scratch.
- Some advanced features require developer involvement.
- Higher gas cost (multiple contracts are deployed).

---

## OpenZeppelin Governor: Governance Contract Framework

[OpenZeppelin Governor](https://docs.openzeppelin.com/contracts/5.x/governance) is the most widely used on-chain governance smart contract framework. Compound's GovernorBravo was its predecessor; OpenZeppelin standardized and modularized it.

### Governor Contract Architecture

```text
Governor (core contract)
├── GovernorVotes           (voting power source: ERC-20Votes / ERC-721Votes)
├── GovernorCountingSimple  (vote counting: For / Against / Abstain)
├── GovernorVotesQuorumFraction (quorum: percentage of total supply)
├── GovernorTimelockControl (timelock integration)
└── GovernorSettings        (voting delay, voting period, proposal threshold)
```

### Deploying a Basic Governor Contract

```solidity
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.20;

import "@openzeppelin/contracts/governance/Governor.sol";
import "@openzeppelin/contracts/governance/extensions/GovernorSettings.sol";
import "@openzeppelin/contracts/governance/extensions/GovernorCountingSimple.sol";
import "@openzeppelin/contracts/governance/extensions/GovernorVotes.sol";
import "@openzeppelin/contracts/governance/extensions/GovernorVotesQuorumFraction.sol";
import "@openzeppelin/contracts/governance/extensions/GovernorTimelockControl.sol";

contract MyGovernor is
    Governor,
    GovernorSettings,
    GovernorCountingSimple,
    GovernorVotes,
    GovernorVotesQuorumFraction,
    GovernorTimelockControl
{
    constructor(
        IVotes _token,
        TimelockController _timelock
    )
        Governor("MyGovernor")
        // Voting delay:     1 day  (7200 blocks)
        // Voting period:    1 week (50400 blocks)
        // Proposal threshold: 0 (any token holder can propose)
        GovernorSettings(7200, 50400, 0)
        GovernorVotes(_token)
        // Quorum: 4% of total supply
        GovernorVotesQuorumFraction(4)
        GovernorTimelockControl(_timelock)
    {}
}
```

### Key Governor Parameters

| Parameter | Meaning | Typical Value |
|-----------|---------|---------------|
| `votingDelay` | Blocks between proposal creation and voting start | 1 day (7200 blocks) |
| `votingPeriod` | Duration of the voting window | 1 week (50400 blocks) |
| `proposalThreshold` | Minimum tokens required to submit a proposal | 0–100,000 |
| `quorumNumerator` | Quorum as a percentage of total supply | 4% |
| `timelockDelay` | Timelock waiting period | 48 hours |

### Projects Using Governor

Governor (or its predecessor GovernorBravo) is deployed by many leading projects:

- **Compound**: Inventor of GovernorBravo
- **Uniswap**: Uses GovernorBravo
- **ENS DAO**: Uses OpenZeppelin Governor
- **Gitcoin**: Uses OpenZeppelin Governor
- **Arbitrum DAO**: Uses a customized Governor

---

## Nouns Builder: Nouns-Style DAO Creation Tool

[Nouns Builder](https://nouns.build/) is a DAO creation tool developed by the Zora team. It lets anyone launch a Nouns-style DAO.

### What Is the Nouns Model

Nouns DAO pioneered a distinctive governance model:

1. **Daily auction**: One NFT is automatically auctioned every day.
2. **NFT = governance right**: Each NFT represents one vote.
3. **Auction revenue = treasury**: All auction proceeds flow into the DAO treasury.
4. **Continuous growth**: Members and treasury both grow over time.

The elegance of this model is that it **unifies fundraising and governance distribution** in a single, simple mechanism.

### Nouns Builder Features

- **Custom NFTs**: Upload components (heads, bodies, accessories, etc.) and the system generates random combinations.
- **Auction parameters**: Duration, minimum bid, reserve price.
- **Governance configuration**: Voting delay, voting period, quorum, proposal threshold.
- **Founder allocation**: Set the percentage of NFTs reserved for founders (e.g., 1 in every 10 goes to founders).

### Best Fit For

- Communities that want a continuously growing membership DAO.
- Projects looking to fund and govern through NFT auctions.
- Builders who embrace CC0 (no copyright reserved) culture and open participation.

---

## Treasury Management Tools

DAO treasuries often hold significant capital and require specialized tools for security and efficiency.

### Parcel

[Parcel](https://parcel.money/) is a financial management platform built for DAOs:

- **Batch payments**: Send tokens to multiple addresses in a single transaction.
- **Payroll management**: Set up recurring payments to manage contributor compensation.
- **Budget tracking**: Track treasury spending by category.
- **Accounting reports**: Generate financial reports for compliance purposes.
- **Safe integration**: Seamlessly integrates with Safe multisig.

### Utopia Labs

[Utopia Labs](https://www.utopialabs.com/) focuses on DAO operations and payments:

- **Payment workflows**: End-to-end process from proposal to payment.
- **Contributor management**: Maintain a contributor directory with payment details.
- **Multi-currency support**: ETH, stablecoins, governance tokens, and more.
- **Tax tools**: Helps contributors manage tax-related matters.

### Llama

[Llama](https://llama.xyz/) provides on-chain governance and treasury management frameworks for DAOs:

- **Roles and permissions**: Fine-grained access control system.
- **Policy engine**: Customize approval workflows and action policies.
- **On-chain execution**: All operations happen on-chain — fully transparent.

### Hedgey Finance

[Hedgey](https://hedgey.finance/) specializes in token lockups and vesting:

- **Token vesting**: Design vesting schedules for teams and investors.
- **Token lockups**: Time-lock tokens.
- **Governance integration**: Locked tokens can still participate in governance voting.

---

## Contribution Tracking Tools

How to fairly measure and reward contributors is one of the core operational challenges for DAOs. The following tools attempt to solve it.

### Coordinape

[Coordinape](https://coordinape.com/) is a decentralized contribution evaluation and reward distribution tool.

**How it works**:

1. **Create a Circle**: The DAO creates a Coordinape Circle.
2. **Distribute GIVE**: Each member receives a fixed number of GIVE tokens per epoch (e.g., 100).
3. **Peer review**: Members distribute their GIVE to other members they believe contributed.
4. **Reward settlement**: Each member's share of the epoch's reward pool is proportional to the GIVE they received.

```text
Example: A DAO allocates 10,000 USDC as contributor rewards for the epoch.

Alice receives 300 GIVE (30% of total) --> earns 3,000 USDC
Bob   receives 200 GIVE (20% of total) --> earns 2,000 USDC
Carol receives 150 GIVE (15% of total) --> earns 1,500 USDC
...
```

**Advantages**:
- Fully peer-evaluated — decentralized by design.
- Simple and intuitive to use.
- Captures hard-to-quantify contributions (community vibes, knowledge sharing).

### SourceCred

[SourceCred](https://sourcecred.io/) uses algorithms to automatically compute contributor scores.

**How it works**:
- Analyzes GitHub commits, Discord messages, Discourse posts, and other activity data.
- Applies a PageRank-style algorithm to compute each person's "Cred" score.
- Higher Cred means higher contribution and more rewards.

**Advantages**:
- Automated, which reduces human bias.
- Based on actual behavioral data.
- Continuous tracking rather than one-off evaluations.

**Limitations**:
- Difficult to capture all contribution types.
- Susceptible to gaming by artificially inflating activity.
- Requires integrating multiple data sources.

### Guild.xyz

[Guild.xyz](https://guild.xyz/) provides role-based community access control:

- **Token-gated access**: Hold specific tokens to unlock specific channels or resources.
- **Role management**: Automatically assign roles based on on-chain behavior.
- **Cross-platform**: Supports Discord, Telegram, GitHub, and more.
- **Contribution proof**: Completing specific tasks can earn NFTs or roles.

---

## Tool Selection Guide

Different DAOs at different stages need different tool combinations. Here is a reference guide.

### Small DAO (< 50 members, < $1M treasury)

| Need | Recommended Tool | Rationale |
|------|-----------------|-----------|
| Treasury | Safe (3-of-5 multisig) | Secure, reliable, free |
| Governance | Snapshot | Zero gas, simple to use |
| Communication | Discord + Notion | Low cost, easy to onboard |
| Contribution tracking | Coordinape | Well-suited for small-team peer review |

### Mid-Size DAO (50–500 members, $1M–$100M treasury)

| Need | Recommended Tool | Rationale |
|------|-----------------|-----------|
| Treasury | Safe (4-of-7 multisig) + Parcel | More signers, professional financial management |
| Governance | Snapshot + Governor | Hybrid: major decisions go on-chain |
| DAO framework | Aragon or Nouns Builder | Standardized governance workflows |
| Contribution tracking | Coordinape + Guild.xyz | Combine peer evaluation with role management |

### Large DAO (> 500 members, > $100M treasury)

| Need | Recommended Tool | Rationale |
|------|-----------------|-----------|
| Treasury | Safe + Llama + Hedgey | Fine-grained permissions and token management |
| Governance | Governor + Tally + Snapshot | Complete on-chain/off-chain governance system |
| Delegation | Tally delegation feature | Improves voter participation |
| Financial transparency | Parcel + on-chain dashboards | Professional reporting and real-time data |
| Contribution tracking | Multi-tool stack | Different workflows use different tools |

### Core Selection Principles

1. **Security first**: Treasury security is the top priority — a multisig is the absolute minimum.
2. **Start simple**: Early-stage DAOs don't need complex on-chain governance; Snapshot + Safe is enough.
3. **Upgrade progressively**: Introduce more tools as the DAO grows.
4. **Composability**: Choose products that integrate well with the rest of the stack.
5. **Community-driven**: Prefer tools with active communities and ongoing maintenance.

---

## Summary

1. **Safe (multisig wallet)** is the foundation of DAO treasury management — nearly every DAO uses it, collectively securing over $100 billion in assets.
2. **Aragon and Nouns Builder** enable anyone to create a DAO without code, dramatically lowering the barrier to entry.
3. **OpenZeppelin Governor** is the industry standard for on-chain governance, battle-tested by Compound, Uniswap, and other top-tier projects.
4. **Treasury management tools** (Parcel, Llama) and **contribution tracking tools** (Coordinape, SourceCred) solve real operational pain points in running a DAO.
5. **Tool selection should follow the principle**: security first, start simple, upgrade progressively.

---

## Further Reading

- [Safe](https://safe.global/)
- [Aragon](https://aragon.org/)
- [OpenZeppelin Governor Documentation](https://docs.openzeppelin.com/contracts/5.x/governance)
- [Nouns Builder](https://nouns.build/)
- [Coordinape Documentation](https://docs.coordinape.com/)
- [SourceCred Documentation](https://sourcecred.io/docs/)
- [Guild.xyz](https://guild.xyz/)
- [DAO Tooling Landscape](https://www.daomasters.xyz/)
