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How to Create a DAO on Velas in 2026: Step-by-Step Guide

A DAO on Velas is a set of smart contracts that hold funds and carry out member votes. This guide covers the design choices, deployment steps, treasury setup and security checks you need before launch.

By the DappsAtlas editorial team · Updated

Illustration for How to Create a DAO on Velas in 2026: Step-by-Step Guide

What a DAO on Velas is and what you need first

A DAO, or decentralized autonomous organization, is a group whose rules are written in smart contracts. Members hold tokens or other credentials, submit proposals and vote on them, and the contracts carry out approved actions such as moving funds or changing settings.

Velas is an EVM-compatible Layer-1 blockchain. In practice, that means Solidity contracts and common Ethereum developer tools often work with little or no change. Confirm the current RPC endpoints, chain ID and native token details in the official Velas documentation before you configure anything, because these details can change.

Before you start, gather the following:

  • A clear purpose for the group and a list of who will be members
  • A wallet you control, funded with the native token needed for deployment and gas
  • Basic familiarity with Solidity, a test framework such as Hardhat or Foundry, and a block explorer for Velas
  • A short written document describing how decisions get made

A DAO on Velas can be a simple multisig with a shared proposal process, a full token-based governance system, or something in between. The steps below cover the common path and point out where your choices matter most.

Decide your governance design before writing code

Most setup mistakes come from unclear rules, not from code. Before you write anything, answer these questions in writing:

  1. Who can submit proposals?
  2. Who can vote, and how is voting power assigned?
  3. What share of votes passes a proposal, and what quorum is needed?
  4. How long does voting last, and is there a delay before execution?
  5. Who can change the rules later, and how?

The main models differ in who holds power and how much trust they require:

Model Who votes Suited to Main risk
Multisig with a proposal board A fixed list of signers Small teams and early projects Signers can act outside the agreed process
One member, one vote Each verified member equally Community groups and clubs Sybil attacks if membership is not verified
Token-weighted voting Token holders, by balance Protocol and treasury decisions Large holders can dominate
Delegated voting Token holders who delegate to representatives Larger communities Low participation and concentrated delegates

Write down your choice and the reasons for it. Members should be able to read the rules before they join, and you will need the same text when you configure the contracts. If the rules are vague, a contract cannot fix that later.

Check for existing DAO tools on Velas before building

Before you build from scratch, look for tools that already run on Velas. The official Velas ecosystem directory lists dApps built on the chain, and the Velas documentation describes how the network is set up. Check whether any DAO framework is deployed there and whether it has been audited.

Public reporting also show that Velas has been associated with OccamDAO, a multi-chain DAO incubator that works with several layer-1 networks. Treat that as background only. Look for current announcements on Velas channels to confirm what, if anything, is active today.

When you evaluate a framework, check these points:

  • The contracts are deployed on Velas mainnet, and the addresses match the project's published documentation
  • A recent, reputable audit covers the version you plan to use
  • The project is still maintained, with recent updates and a clear issue tracker
  • The framework supports the voting model you chose in the previous step
  • Upgrade and admin controls are documented, so you know who can change the contracts

If no suitable framework exists on Velas, you can use a widely used EVM governance standard and deploy it yourself. This gives you full control but also full responsibility. The rest of this guide assumes you take that path, but the review steps apply either way.

Deploy the governance token and voting contracts

If your DAO uses a token, write and deploy the token contract first. A standard ERC-20 style token is the usual starting point. Decide the total supply, how tokens are distributed, and whether the supply can increase later. Fixed supply is simpler to explain to members.

Next, deploy the governance contract. Many EVM projects use the Governor pattern from OpenZeppelin's widely used contract library, which handles proposals, voting periods, quorum and execution. Set these parameters carefully:

  • Voting delay: time between proposal creation and the start of voting
  • Voting period: how long members can vote
  • Quorum: the minimum participation needed for a result to count
  • Proposal threshold: the minimum voting power needed to submit a proposal

A practical deployment order looks like this:

  1. Deploy the token contract and record its address
  2. Deploy the timelock controller with a minimum delay
  3. Deploy the governor and link it to the token and the timelock
  4. Grant the proposer and executor roles as your rules require
  5. Revoke any admin role the deployer still holds, so no single key controls the DAO

Save every address and constructor argument in a shared document. Verify the source code on the Velas block explorer, so members can read exactly what is deployed.

Set up the treasury, timelock and vesting

A DAO's treasury should not sit in a single personal wallet. Use a multisig wallet to hold funds, with several trusted signers who must approve transactions. Choose a threshold that matches your risk, such as three of five for a small group. Make sure every signer has tested a small transaction before the treasury holds real value.

Connect the treasury to governance through the timelock. Approved proposals should queue in the timelock for a set delay, which gives members time to review and react if something looks wrong. Set the delay in your rules document and make it visible on your public page.

For payments to contributors, token vesting, or grants, consider a vesting or streaming tool rather than manual transfers. Sablier Lockup is an onchain protocol built for token vesting, payroll, grants and airdrops, and it is aimed at DAOs and businesses on many chains. Confirm that it is available on Velas before you plan around it, and review its audit reports and documentation.

Keep a simple record of all treasury balances and outgoing transactions. Recording approvals alongside each payment makes audits and member questions much easier to answer.

Test on a testnet and get an audit before mainnet

Never deploy a new DAO straight to mainnet. Run the full process on a Velas testnet first, using test tokens that have no real value. Deploy every contract, create a proposal, vote with several test wallets, queue it in the timelock, and execute it. Then try the failure cases: a proposal that does not reach quorum, a vote that is too close, and an attempt by an unauthorized wallet to submit a proposal.

After testing, get an independent security audit of your contracts. An audit is a professional review of the code for logic errors and common vulnerabilities. Choose a firm with public experience in governance contracts, and ask for a written report. Fix the findings, then ask for a re-review of the changed code.

A short checklist before mainnet:

  • All tests pass, including failure paths
  • The audit report is published, and critical findings are fixed
  • Contract source is ready to verify on the Velas explorer
  • The rules document matches the contract parameters exactly
  • Every signer and member who needs access has confirmed their wallet address

Do not skip the audit because the contracts are based on widely used code. Small changes to parameters or custom logic can create new risks.

Launch the DAO and run the first proposal

Deploy to mainnet only after the checklist is complete. Use a fresh deployer wallet, separate from any personal wallet, and keep its funds limited to what the deployment needs. Once contracts are live, verify the source on the Velas block explorer and publish the addresses in one place that members can find.

After launch, run a first proposal that is simple and low risk, such as approving a small test payment or confirming the signer list. This shows members how the process works and reveals any gaps in your documentation. Write a short guide for members that covers how to submit a proposal, how to vote, how to delegate if that is supported, and what to expect at each stage.

During the first months, watch for these issues:

  • Low voting participation, which may mean the quorum is set too high
  • Confusion about the difference between a passed vote and an executed action
  • Requests for transfers that do not match the approved rules

Change the rules only through the same governance process you set up. If you need an emergency pause or upgrade path, define it in advance, limit who can trigger it, and state it clearly in the public documents.

Security practices every DAO creator should follow

Security for a DAO is mostly about keys, permissions and process. Follow these practices:

  • Store every admin and signer key in a hardware wallet or a secure multisig setup, never in a browser extension used for everyday browsing
  • Remove deployer and admin roles once they are no longer needed, and keep a record of who still has any power
  • Keep the timelock delay in place so members can review proposals before funds move
  • Do not paste seed phrases or private keys into websites, forms, chat messages or support tickets
  • Be cautious of anyone who messages you privately claiming to be from Velas, a framework team or a signer, and verify through official channels first
  • Check every transaction's destination address and amount on a block explorer before signing

Also plan for failure. Decide in advance how the group responds to a suspected exploit, a lost signer key, or a dispute over a proposal. A written incident plan with contact methods and steps is more useful than a quick decision made under pressure.

These steps reduce risk but do not remove it. Smart contracts can contain bugs that only appear under unusual conditions, so keep the treasury size proportionate to what the DAO can responsibly manage.

Maintain the DAO and check current Velas details

A DAO is an ongoing system, so plan the maintenance from the start. Keep a public record of proposals, votes and treasury activity. Members are more likely to participate when they can see how past decisions were made and carried out.

Review the governance parameters once or twice a year. If participation is low, consider whether the quorum or voting period needs adjusting, but make any change through a proposal. If signers leave, rotate them through the multisig process rather than sharing keys.

Check facts that change often before you publish or update your documentation. This includes the Velas RPC details, the current status of any framework you used, the fee levels on the network, and whether vesting or treasury tools are still supported. Use the official Velas documentation and the project's own channels rather than third-party summaries, and date any figures you publish.

Finally, keep a short summary of your decisions, including why you chose each parameter. Future members and auditors will need that context, and it makes the DAO easier to hand over or change when the group evolves.

Frequently asked questions

Do I need a governance token to create a DAO on Velas?

Often no, but it depends on what you are building. A plain multisig with a shared proposal process can run without a governance token. A token is useful when voting power should follow ownership, but it adds legal, tax and distribution questions. Decide on the membership model first, then choose whether a token supports it.

How much does it cost to set up a DAO on Velas?

Costs depend on the gas fees and the amount of contract code you deploy, and both change over time. Check current fees on the official Velas explorer or in your wallet before you deploy, and test the full sequence on a testnet so you know roughly what the mainnet steps will cost.

Can I create a DAO on Velas without writing code?

It depends on the tools available at the time you build. If a no-code DAO tool is deployed on Velas and has been audited, it can reduce the work. Read its documentation, confirm it is live on the Velas network, and check its security history. Most custom DAOs still need someone who can read and review Solidity.

Is a DAO on Velas legally recognized?

Legal treatment of DAOs varies by country and sometimes by state or province. Some jurisdictions treat them as partnerships or companies, and token distributions can raise securities or tax questions. Get advice from a qualified lawyer or accountant in the places your members live before you distribute tokens or hold funds on behalf of others.

What is the biggest security risk when launching a DAO?

Make sure the vote-counting and execution logic is correct, keep admin keys in a multisig with a timelock, and never share seed phrases or private keys with anyone, including people who say they are from the Velas team. Use an audit before you hold meaningful funds, and set up alerts for governance activity.

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