How Is Tally Different from Snapshot?

The big difference between Tally and off-chain voting tools like Snapshot and others is that Tally supports fully on-chain DAOs. 

On-chain DAOs use smart contracts to propose, vote on and execute proposals. That makes DAO operations automated, safer and more decentralized.

The Governor smart contract is responsible for managing proposals, counting votes and executing passed proposals on-chain with no human intervention. The benefit of a Governor DAO is that the token holders or NFT membership holders have direct control over the protocol and/or treasury through voting. Holders don’t have to trust their multi-sig signers to execute a proposal vote, and they don’t have to worry about rogue multi-sig signers creating a transaction that wasn’t approved by the voters. The tradeoff is that creating on-chain proposals and voting isn't free: it costs gas.

How do off-chain DAOs work?

A typical off-chain voting setup involves a DAO with both tokenholder/member voting and a multi-sig treasury. However, those two pieces aren't connected with on-chain code. Rather, they're connected by a social expectation that multi-sig signers faithfully execute token holder votes. 

This setup is great for small DAOs and lower-stakes projects where the multi-sig signers aren’t worried about the liability, fiduciary responsibility, or securities-law implications of controlling user funds. Off-chain voting is also great for social layer proposals, where DAO members want to come to consensus about something that doesn’t involve on-chain actions.

Why upgrade to an on-chain DAO?

For DAOs with more distributed stakeholders, more valuable protocols & treasuries to govern, and higher expectations around decentralization, on-chain voting is probably the better solution. These DAOs often still use off-chain polling for straw polls or temperature checks before moving a proposal to an on-chain vote.

An additional benefit of an on-chain vote is that the proposed transaction to execute is unambiguous: the transaction is part of the proposal, so there’s no chance that the transaction that executes is different from what the voters expected.

For more information about deploying or upgrading to an on-chain DAO, see Tally's developer documentation.

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