# Governance

## **Forum Portal**

{% embed url="<https://commonwealth.im/shell-protocol/>" %}

## Shell Protocol DAO

The Shell DAO is the entity governing Shell Protocol. The Shell DAO is controlled by SHELL token holders via veSHELL.

[SHELL](https://wiki.shellprotocol.io/shell-dao/shell-token) is the protocol's governance token. In order to vote or delegate votes in the DAO, users must hold [veSHELL](https://wiki.shellprotocol.io/shell-dao/veshell-staking), which is vote-escrowed SHELL (aka staked SHELL).

At this time, [all votes occur off-chain on Snapshot](https://snapshot.org/#/shellprotocol.eth). Successful votes that require on-chain actions are executed by the [DAO Multisig](https://wiki.shellprotocol.io/shell-dao/dao-multisig).

For a deep dive, [continue here](https://wiki.shellprotocol.io/shell-dao).

## Governance Minimization <a href="#governance-minimization" id="governance-minimization"></a>

By design, the Shell DAO has limited control over the core protocol, namely the Ocean smart contract. Here are some things it cannot do:

* It cannot manipulate or confiscate user assets (Shell is 100% non-custodial)
* It cannot freeze the protocol (users can always withdraw their assets at any time)
* It cannot block new primitives or adapters from connecting (anyone can build and deploy on Shell)

## Miscellaneous

* [Toucan Votes](https://wiki.shellprotocol.io/shell-dao/toucan-votes): Community polls are conducted on Snapshot using the Government Toucan NFT, a "proto-governance" token.
* [ShellDrop DAO (Retired)](https://wiki.shellprotocol.io/how-shell-works/shelldrop-dao-retired): The sole purpose of this DAO was to administer airdrops from other projects to the Shell community.