DAO Governance

Integrate Kleros with DAO governance using the Zodiac Reality Module to translate Snapshot votes into on-chain transactions with dispute resolution.

Overview

The Zodiac Reality Module connects off-chain Snapshot voting with on-chain execution through a Gnosis Safe. It uses Reality.eth as the verification layer and Kleros Court as the backstop arbitrator. This pattern is used in production by DAOs including Gnosis and Kleros itself.

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Architecture

Flow

1. A DAO member creates a Snapshot proposal with a batch of on-chain transactions attached via the SafeSnap plugin
2. When the vote passes, SafeSnap posts a question to Reality.eth: “Did this proposal pass and does it meet the DAO requirements?”
3. An answerer posts a bond affirming the result. If unchallenged within the timeout, the transactions execute through the Gnosis Safe
4. If the answer is disputed, the bond escalation mechanism activates. At any point, either party can escalate to Kleros Court for a binding ruling

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Setup Steps

1. Deploy Zodiac Reality Module

   Deploy the Reality Module through the Zodiac app and connect it to your Gnosis Safe. Configure it with:

   • The Reality.eth contract address for your chain
   • A Kleros arbitrator proxy as the arbitrator
   • Minimum bond and timeout parameters
2. Install SafeSnap Plugin

   Add the SafeSnap plugin to your Snapshot space. This adds a transaction builder to proposals, allowing proposers to attach on-chain transactions.

3. Set DAO Requirements

   Upload a DAO requirements document to IPFS and register it as an ENS text record under the key daorequirements on your Snapshot space’s ENS name.

   This document defines the criteria for valid proposals. Kleros jurors evaluate proposals against this document when arbitrating disputes.

   // ENS record example:
   // gnosis.eth → daorequirements → /ipfs/QmYourPolicyDoc...
   
4. Monitor Proposals

   Use OpenZeppelin Sentinel or a custom bot to monitor Reality.eth questions created by the module. Any address can submit proposals to the Reality Module, so monitoring is critical for detecting malicious submissions.

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Reality.eth Question Format

The Reality Module creates questions in this format:

"Did the Snapshot proposal with the linked transactions pass
and does it meet the requirements of the document referenced
in the dao requirements record at <dao>.eth?"

Jurors evaluate:

• Whether the Snapshot vote actually passed per the space’s voting rules
• Whether the proposed transactions match what was described in the proposal
• Whether the proposal complies with the DAO requirements document

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Arbitration

When a Reality.eth answer is disputed, anyone can request arbitration by paying the Kleros arbitration fee. The Kleros Arbitrator Proxy:

1. Creates a dispute in Kleros Court (typically the Blockchain or Technical subcourt)
2. Displays the proposal details, transaction data, and DAO requirements document to jurors
3. Returns the ruling to Reality.eth, which finalizes the answer

Evidence

Evidence is submitted through the Kleros Arbitrator Proxy. Typical evidence includes:

• Screenshots of the Snapshot vote results
• Links to the proposal discussion
• Transaction simulation results
• References to the DAO requirements document

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Configuration Reference

Parameter	Description	Recommended
Minimum Bond	Initial bond required to answer a question	0.1 ETH or equivalent
Timeout	Time before an unchallenged answer finalizes	24–72 hours
Cooldown	Delay between answer finalization and execution	24 hours
Expiration	Time after which the question can no longer be answered	7 days
Arbitrator	Kleros arbitrator proxy address	Chain-specific

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Security Considerations

Malicious proposals: Anyone can submit proposals to the Reality Module. The bond requirement and Kleros arbitration backstop mitigate this, but active monitoring is essential.

Missing DAO requirements: If the daorequirements ENS record is not set, questions may be resolved ambiguously. Set this record before activating the module.

Bond exhaustion: A well-funded attacker can force multiple bond escalation rounds. The Kleros arbitration option provides a fixed-cost resolution path when bonds become prohibitively expensive.

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Resources

Zodiac Documentation

Full Zodiac module documentation

SafeSnap Guide

Snapshot SafeSnap plugin setup

Reality.eth Integration

Kleros + Reality.eth documentation

Kleros Reality Module Guide

Detailed module setup instructions