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  • Tips for setting up decentralized governance in L2?

    Ruben Hassid

    Member

    Updated: Mar 19, 2025
    Views: 1.0K

    Hey everyone, I just bombed an interview question and need your advice. The role was for a blockchain project manager, and they asked me:

    “How would you design governance for a project migrating to Layer 2 while keeping it fair, efficient, and secure?”

    I froze and rambled about “transparency” and “community votes” but didn’t give concrete steps. Now I’m kicking myself. For anyone who’s tackled governance systems or worked with DAOs/L2s:

    1. Real-world frameworks: What specific models (like quadratic voting, delegated voting, etc.) would you mention? Are there projects (e.g., Optimism, Arbitrum) that do this well?

    2. Balancing democracy vs. speed: How do you actually avoid gridlock? Do committees or time-bound voting work in practice?

    3. Security red flags: What specifics would you highlight (multi-sig, audits, time locks)? Any horror stories of governance attacks I should reference?

    I need to turn this around for future interviews. What would a strong, structured answer sound like? Bonus if you’ve been asked this before or hired for similar roles – what do hiring managers want to hear?

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  • Anne Taylor

    Member • 4mos

    To ensure decentralized governance in Layer 2 smart contracts, prioritize a transparent and adaptable framework, often through a modular approach. Implement token-weighted voting or quadratic voting, depending on the goal, but consider reputation-based models as well to balance influence among stakeholders and avoid whales disproportionately affecting outcomes.

    In Layer 2 environments, scalability can sometimes clash with decentralization. Layering governance structures—such as creating councils, committees, or DAOs with tiered voting—enables efficient, smaller-scale decisions while preserving broader community involvement. Delegate voting can also help ensure more voices are heard without overburdening the network. For security, multi-signature (multi-sig) wallets and time-locked functions are critical safeguards, preventing sudden changes by requiring consensus and offering time for the community to react.

    Finally, regular auditing and on-chain transparency tools allow participants to monitor and verify actions, adding a layer of accountability. Platforms like Aragon or Snapshot can support Layer 2 governance needs with customizable, scalable options that integrate well across ecosystems.

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  • Ruben Hassid

    Member • 4mos

    Thanks for your help. Can you explain more about Aragon and Snapshot platforms for layer 2 governance needs? I am struggling with customisable options.

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  • Anne Taylor

    Member • 4mos

    Aragon and Snapshot are platforms for governance on layer 2 networks, each serving different needs. Aragon provides on-chain, enforceable governance with advanced customization, while Snapshot offers gas-free, off-chain voting for easier community participation.

    I used Aragon to build a DAO on a layer 2 blockchain. Its features allowed me to customize roles, permissions, and treasury controls. However, syncing with layer 1 occasionally caused delays, and unexpected gas fees were an issue during high-frequency voting. Testing configurations thoroughly is essential, as mistakes in roles or permissions can create operational issues. Optimizing smart contract design helped mitigate these risks.

    Snapshot made governance simple in another project, allowing token holders to vote without gas fees. I implemented a custom strategy to fetch voting power from the layer 2 blockchain, ensuring accurate results. Since Snapshot operates off-chain, I had to manually or programmatically execute decisions on-chain. This step required careful checks to ensure alignment with voting outcomes.

    Using both platforms together can address different needs effectively. Snapshot enables cost-efficient community voting, while Aragon executes binding decisions securely on-chain. This combination helps balance simplicity with reliability for governance on layer 2 networks. Happy coding

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