What Settings to Choose for Your First DAO?

Diornov

Moderator
Staff member
Hello. If you're reading this, then you're probably interested in opening a DAO. Welcome! :)

At first, you might think you need to get everything perfect right from the start - but that would actually be the wrong approach.

Why "perfect" defaults will slow you down

DAO organizations are complex by design. Every single decision has to go through the full governance flow:

  1. Propose - submit the action
  2. Wait - voting delay before voting starts
  3. Vote - community casts votes
  4. Queue - timelock delay before execution
  5. Execute - action is carried out

If you go with standard production settings (like the ones recommended for mature DAOs), you're looking at:
  • 3 days waiting before voting starts
  • 7 days of voting
  • 1 day queue time before execution

That's 11 days minimum for a single proposal - and in the beginning, you're the only member of the DAO. There's no reason to wait that long when you're setting things up.

Understanding the initial setup

When you create a DAO via CreateDAO.org for example, here's what happens under the hood:

  • You receive 1% of the total token supply - this is the minimum required to create proposals.
  • The remaining 99% goes to the DAO treasury (Timelock contract).
  • The quorum is set to 1% of total supply - meaning you alone can meet the quorum and pass votes.
  • Your tokens are auto-delegated, so you can vote immediately.

This means that in the early stage, you are effectively the sole decision-maker. Use this to your advantage to configure the DAO properly before distributing tokens.

Recommended initial settings (for fast setup)

For the initial deployment, I recommend choosing minimal timeframes so you can quickly set up your DAO without unnecessary waiting:

  • Voting Delay: 5 minutes
  • Voting Period: 10 minutes
  • Timelock Delay: 1 minute

This is ideal when:
  • You don't have a community yet, or
  • You have a community but the token doesn't have a market price or TVL yet

With these settings, each proposal takes roughly 16 minutes from creation to execution - giving you enough time to set up token distribution, configure roles, and prepare the DAO for public use.

After setup: switch to production settings

After creating the DAO and completing the initial token distribution, you must update the governance settings to proper production values. This is not optional - leaving fast settings on a live DAO is a serious security risk.

The best way to do this is in a single proposal with multiple actions (batch proposal). In one proposal, you can update all three settings at once:

  • Voting Delay: 1–3 days - gives the community time to review the proposal and its actions before voting starts
  • Voting Period: 3–7 days - ensures enough time for all members to participate in the vote
  • Timelock Delay: 1–3 days - allows members to exit (sell or transfer tokens) if they disagree with a passed proposal before it executes

Settings comparison table

SettingInitial (Setup Phase)Production (Live DAO)Purpose
Voting Delay5 minutes1–3 daysTime for members to review proposals
Voting Period10 minutes3–7 daysTime for community to cast votes
Timelock Delay1 minute1–3 daysExit window before execution
Quorum1%1%Minimum participation to pass a vote
Total time per proposal~16 minutes5–13 daysFull governance cycle

Summary

  1. Deploy your DAO with fast settings (5 min / 10 min / 1 min) for quick setup.
  2. Configure the DAO: distribute tokens, set roles, and prepare everything while you're the sole member.
  3. Update settings to production values via a single batch proposal before going public.
  4. Never leave fast settings on a DAO that has distributed tokens - that defeats the purpose of governance.

Start fast. Build right. Govern well. :cool:

- Diornov
 
Back
Top