> For the complete documentation index, see [llms.txt](https://docs.vestradao.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vestradao.com/dao-mechanism.md). # DAO Mechanism Decentralized Autonomous Organization (DAO) is a governance model that delegates decision-making authority of an organization to its stakeholders. It is structured in a way where the codes, written before the deployment of the smart contract, encompass all rules and details that are transparent and understood by everyone. Stakeholders can propose and vote on predefined operations by holding and staking the token of that contract. They can cast positive, negative, or neutral votes on the proposed proposals. Due to the occasionally high gas fees on the network, proposals and votes are conducted off-chain to maximize participation. Many projects with DAO governance can determine varying ratios of token holdings required for wallets to possess voting power. However, these specified ratios will dictate the voting power of the wallet in the contract. Other projects may consider exceeding a certain percentage threshold or taking into account the majority's decision in determining the results of the votes. The project team must act in accordance with the voting results through smart contracts and implement the decisions made. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.vestradao.com/dao-mechanism.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.