From DAO Vote to Treasury Transfer: How Execution Works
Edited by Steinar Vigdel Kolnes, Editor, Oslo
A DAO treasury proposal can move from a governance vote to payment through automated contracts or a separate approval process, depending on its rules.
For a decentralized autonomous organization, or DAO, approving a treasury payment and sending the funds can be separate steps. The route from vote to transfer depends on how the group has configured its governance and treasury controls.
In systems with onchain execution, an approved proposal can authorize a smart contract to carry out a specified transaction. Voting thresholds, execution conditions and any required waiting period determine when the transfer can proceed.
Other DAOs use votes to signal approval while leaving execution to designated wallet signers. In those cases, the payment still requires a separate transaction, making the distinction between an approved proposal and a completed transfer important.
Source: The Defiant