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README.adoc

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+= VEGOVERNANCE API
+
+== Core
+
+{{VotingEscrowIncreasing}}

docs/antora.yml

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+name: ve-governance
+title: "@aragon/ve-governance"
+version: 1.x
+prerelease: false
+nav:
+  - modules/ROOT/nav.adoc
+  - modules/api/nav.adoc

docs/modules/ROOT/nav.adoc

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+* xref:index.adoc[Overview]

docs/modules/ROOT/pages/index.adoc

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+= VE Governance
+
+== Description
+
+**StagedProposalProcessor** is a governance plugin developed and maintained by the Aragon core team. It orchestrates proposals through 
+a series of configurable stages, enabling complex decision-making processes where proposals progress through predefined stages with 
+multiple “bodies” (other governance plugins or contracts) that report results such as approvals or vetoes. By chaining these bodies and 
+applying thresholds, durations, and conditions, the plugin guides proposals from creation to execution in a flexible, modular manner, 
+addressing the link:https://blog.aragon.org/the-future-of-governance-is-modular-2/[problems facing large monolithic DAOs] stuck with one-size-fits-all governance processes. 
+
+== Key Concepts
+
+=== Staged Governance Processes
+
+Rather than deciding proposals in a single step, **StagedProposalProcessor** breaks the decision-making process into sequential stages. Bodies within a stage 
+approve or veto the proposal. Stages can impose timing constraints, thresholds for required number of approvals or vetoes, and rules for 
+editing or canceling the proposal.
+
+Depending on how a stage is configured, it can support different use cases. For example:
+
+1. **Normal Stages:** A stage can allow bodies to approve the proposal before advancing
+2. **Optimistic Stages:** A stage can allow any body to act as a vetoer rather than approver, effectively allowing any stage to 
+act as an optimistic stage as desired, only passing if not vetoed.
+3. **Time-Locked Stages**: If no bodies are added to a stage, it effectively acts as a timelock delay period, preventing a proposal 
+from advancing until the period has passed.
+4. **Cancelable or Editable Stages**: These allow addresses with permission to do so to either cancel a proposal or modify proposals’
+metadata and list of actions prior to advancing to the next stage.
+
+=== Bodies and Results
+
+A “body” represents an external governance component—such as another plugin or any other address—that evaluates the proposal at a given stage. 
+Bodies call `reportProposalResult` to indicate if they are approving or vetoing a proposal. Stages can have any number of bodies, 
+each reporting their own results. Stages have configurable thresholds to determine if it can be advanced to the next stage, based on 
+the governance results from the bodies.
+
+=== Sub-proposals
+
+When a stage starts, including upon when a proposal is initially created, the **StagedProposalProcessor** attempts to create a 
+sub-proposal on each body in that stage. For example, if someone is voting within a body, they are voting whether or not they want 
+to advance or veto the parent proposal, but not voting directly on the proposal itself. 
+
+Sub-proposals creation can only be “automatic” if both of the following are true:
+
+* body supports IERC165 and `IProposal` interface, thus supporting `createProposal` and other necessary functions.
+* body is added in a stage with `isManual` setting set to false.
+
+If a body does not meet these criteria, it is “manual,” and the external body (an EOA or other smart contract) must report results explicitly.
+
+=== Advanceability Criteria
+
+For each stage, you must define the following in the configuration:
+
+* **Approval Threshold:** How many bodies must approve for the proposal to proceed.
+* **Veto Threshold:** How many vetoes are necessary to prevent the proposal from being advanced, regardless of the number of approvals. 
+Vetoes always trump approvals.
+* **minAdvance & maxAdvance:** Minimum and maximum time windows controlling when the proposal can be advanced to the next stage.
+* **voteDuration:** Has two different effects:
+    - Used to calculate the `endTime` for sub-proposals created  on automatic bodies
+    - If and only if there are any vetoing bodies, used to extend the advance time window (potentially overriding `minAdvance`),  
+    ensuring they have enough time to veto it before it is advanced.
+
+If all the above conditions are met before `maxAdvance`, the proposal becomes `Advanceable`. After `maxAdvance`, it becomes `Expired` and 
+can no longer be advanced.
+
+[NOTE]
+====
+When a proposal reaches its final stage and meets that stage’s advanceability criteria, the proposal’s actions can be executed. 
+====
+
+=== Configurations
+
+**StagedProposalProcessor** supports updating stage configurations, allowing the DAO to evolve its governance rules over time.
+
+## Proposal Lifecycle
+
+1. **Creation:**
+
+    * A user with `CREATE_PROPOSAL_PERMISSION_ID` calls `createProposal` providing metadata, actions, and start times. The proposal 
+    references the active configuration index and starts at stage 0, where sub-proposals are created on its automatic bodies.
+
+2. **Evaluation at Each Stage:**
+
+    * Bodies at the current stage report `Approval` or `Veto` results via `reportProposalResult`. If the required advanceability criteria 
+    are met (see above), the proposal state becomes `Advanceable`.
+
+3. **Advancing to Next Stages:**
+
+    * Proposal can be advanced by calling `advanceProposal` function, requiring the caller to have `ADVANCE_PERMISSION_ID`. This moves the 
+    proposal to the next stage, triggering sub-proposals on the new stage’s automatic bodies.
+
+4. **Execution:**
+
+    * Once the proposal reaches the last stage and becomes `Advanceable`, it can be executed. A user with `EXECUTE_PROPOSAL_PERMISSION_ID` 
+    calls `execute`. 
+
+
+[NOTE]
+====
+If allowed by the stage configuration, a user with `EDIT_PERMISSION_ID` can modify the proposal’s metadata and actions prior to being advanced. 
+A user with `CANCEL_PERMISSION_ID` can cancel the proposal if the stage permits it.
+====
+
+## Plugin Setup
+
+=== **Deployed Contracts**
+
+During the plugin’s installation process, the setup contract deploys and configures the following contracts:
+
+- **StagedProposalProcessor Proxy**
+    - A UUPS proxy instance of the main `StagedProposalProcessor` contract. This proxy is initialized with the chosen stages, metadata, 
+    and target configuration. It is the primary contract that users interact with to create, advance, and execute proposals through multiple 
+    stages.
+- **StagedProposalProcessor Implementation Contract**
+    - The underlying implementation referenced by the UUPS proxy. While you typically won’t interact with this contract directly, it provides 
+    the upgradable logic that the proxy delegates all calls to. As the DAO evolves, addresses with permission to do so can upgrade this logic.
+- **SPPRuleCondition**
+    - A condition contract deployed to enforce rules for determining whether callers meet the necessary criteria to create proposals on 
+    the StagedProposalProcessor. The condition’s logic modularly inherits conditional logic from other conditions. For example, 
+    the condition can be configured to return true if the `msg.sender` is a member of a multisig plugin and/or tokenvoting plugin, 
+    using boolean operators.
+
+
+
+**Permissions**: The following permissions are set up by default by the **StagedProposalProcessorSetup**:
+
+|===
+| Permission ID | Where (Granted By) | Who (Granted To) | Condition | Functions
+
+| UPDATE_STAGES_PERMISSION_ID
+| Plugin
+| DAO
+| None
+| updateStages
+
+| CREATE_PROPOSAL_PERMISSION_ID
+| Plugin
+| Any Address
+| SPPRuleCondition
+| createProposal
+
+| SET_TRUSTED_FORWARDER_PERMISSION_ID
+| Plugin
+| DAO
+| None
+| setTrustedForwarder
+
+| SET_TARGET_CONFIG_PERMISSION_ID
+| Plugin
+| DAO
+| None
+| setTargetConfig
+
+| SET_METADATA_PERMISSION_ID
+| Plugin
+| DAO
+| None
+| setMetadata
+
+| EXECUTE_PROPOSAL_PERMISSION_ID
+| Plugin
+| Any Address
+| None
+| execute
+
+| CANCEL_PERMISSION_ID
+| Plugin
+| Any Address
+| None
+| cancel
+
+| ADVANCE_PERMISSION_ID
+| Plugin
+| Any Address
+| None
+| advanceProposal
+
+| EXECUTE_PERMISSION_ID
+| DAO
+| Plugin
+| None
+| execute
+
+| UPDATE_RULES_PERMISSION_ID
+| SPPRuleCondition
+| DAO
+| None
+| updateRules
+|===

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