What Is the Difference between a ‘Soft’ and ‘Hard’ Treasury Proposal?
A 'soft' proposal is an informal discussion or temperature check, often conducted on forums or social media, to gauge community sentiment before an official vote. A 'hard' proposal is the formal, on-chain vote, which is executed by a smart contract if it meets the required quorum and majority.
Treasury decisions typically begin with a soft proposal and culminate in a hard, binding on-chain vote.
Glossar
Community Sentiment
Narrative ⎊ Community sentiment, within cryptocurrency, options, and derivatives markets, represents the aggregated perception and prevailing mood of participants, often manifested through social media, forums, and trading activity.
Informal Discussion
Discussion ⎊ Informal Discussion constitutes the initial, unstructured phase of the decentralized governance process, typically occurring on community platforms like forums or chat applications.
Soft Proposal
Proposal ⎊ A Soft Proposal is a non-binding governance submission, typically executed off-chain, designed primarily to gauge community sentiment and consensus before committing to a formal, costly on-chain transaction.
Proposal
Governance ⎊ Within decentralized autonomous organizations governing crypto derivatives platforms, a Proposal serves as the formal on-chain or off-chain submission for a change in protocol parameters or resource allocation.