Launch Your Own SNS

A comprehensive guide to creating and launching a Service Nervous System (SNS) on the Internet Computer Protocol, enabling decentralized governance for your dApp.

Launch Your Own SNS

Introduction

Service Nervous Systems (SNSs) are decentralized autonomous organizations (DAOs) provided by the Internet Computer Protocol (ICP) platform. They enable dApp developers to decentralize their applications through a built-in launch process that raises initial funds for the project and hands over ownership of the dApp to a community.

An SNS DAO community then fully controls the evolution of the dApp, including key decisions such as tokenomics, upgrades, and project direction. This represents a fundamental shift from traditional centralized development models to true decentralized governance.

The SNS launch process is designed to be seamless and automated after initial setup, with only the first two stages requiring manual action from developers. All subsequent stages are executed automatically by the Network Nervous System (NNS), ensuring a smooth transition to decentralization.

What is SNS?

A Service Nervous System (SNS) is a sophisticated DAO framework built into the Internet Computer Protocol that allows dApp developers to transform their centralized applications into decentralized, community-governed projects.

Key Components

Each SNS consists of multiple smart contract canisters that work together:

SNS Governance Canister: Manages proposals, voting, and neuron staking
SNS Ledger Canister: Handles the native SNS token transactions and balances
SNS Swap Canister: Manages the decentralization swap process
SNS Root Canister: Controls the dApp canisters and coordinates upgrades
SNS Archive Canister: Stores historical transaction data

Token Distribution: Initial tokens are distributed through a decentralization swap where participants contribute ICP tokens
Neuron Creation: Swap participants receive neurons (voting power) based on their contribution
Governance: Token holders stake their tokens in neurons to participate in voting on proposals
Proposal Execution: Approved proposals are automatically executed by the SNS canisters

Benefits of SNS

True Decentralization: Complete handover of control from developers to community
Community Funding: Built-in mechanism to raise initial funds through token swaps
Automated Governance: Transparent, on-chain voting and proposal execution
Upgrade Control: Community decides on all future dApp upgrades and changes
Token Utility: Native tokens can be used for governance, rewards, and ecosystem growth

Recent Developments (2024)

In 2024, SNSs have evolved significantly with enhanced security measures, simplified operations, and greater community collaboration:

Critical Proposals: Higher voting thresholds and longer periods for sensitive operations like treasury movements
Token Rebranding: Ability to change token symbols, names, and logos through governance
Simplified Upgrades: Single proposal to upgrade all SNS canisters to latest versions
Community Tools: Growing ecosystem of tools for better governance management

Prerequisites

Before launching an SNS, thorough preparation is essential. The SNS preparation checklist outlines several key areas that must be addressed:

1. Documentation & Preparation

1.1 Tokenomics Specification

1.1.1 Token Utility Define concisely for which use cases the token will be used:

Governance participation and voting
Rewarding active contributions to the dApp ecosystem
Staking for additional benefits and rewards

1.1.2 Initial Token Allocation Plan distribution across main categories:

DAO Treasury: Funds for ongoing operations and development
Decentralization Swap: Tokens distributed to ICP contributors
Seed Funders: Early supporters and investors
Development Team: Team allocation with appropriate vesting

1.1.3 Voting Power

Ensure swap participants have majority voting power at genesis
Justify any developer or seed investor majority clearly
Consider potential attack vectors and long-term power evolution

1.1.4 Funding Target

Define minimum and maximum ICP collection targets
Include detailed usage plans (team expansion, marketing, development)
Be transparent about funding requirements and projections

1.1.5 SNS Tokenomics Tool

Use the SNS Tokenomics Analyzer to validate distributions
Analyze resulting voting power distribution
Test different scenarios and configurations

1.2 Technical Architecture, Whitepaper & Roadmap

1.2.1 Technical Architecture

Document complete canister structure and relationships
Detail dependencies on off-chain services or 3rd parties
Include data flow diagrams and system interactions

1.2.2 Whitepaper

Provide comprehensive overview of the dApp and its goals
Explain decentralization strategy and SNS benefits
Include detailed tokenomics, revenue streams, and treasury usage
Reference successful projects like OpenChat's whitepaper

1.2.3 Project Roadmap

Outline post-launch development plans and vision
Show how the project will evolve under community governance
Reference examples like OpenChat's roadmap

1.3 Disclosure of Dependencies

Document all dependencies that cannot be controlled by the DAO:

Off-chain services and APIs
Third-party providers (payment gateways, SMS services, etc.)
Data providers or external oracles

Include migration plans for bringing critical dependencies on-chain.

Create comprehensive sns_init.yaml with all initial parameters:

Token Configuration: Name, symbol, transaction fees
Supply Distribution: Treasury, swap allocation, developer tokens
Governance Parameters: Voting thresholds, proposal types
Swap Settings: Minimum/maximum targets, timing constraints

		# Example configuration snippet
token_name: "My Token"
token_symbol: "MTK"
transaction_fee: 1000
 
# Geo-restrictions (optional)
restricted_countries: ["US", "CA"]
 
# User confirmation text
confirmation_text: "Please confirm participation in this decentralization swap."

Include detailed comments explaining each parameter choice for transparency.

1.5 NNS Proposals

Prepare comprehensive proposal content covering:

Complete tokenomics breakdown and justification
Links to whitepaper, technical documentation, and forum discussions
Detailed dApp architecture and canister information
Security review status and open-source code location
Community discussion history and feedback incorporation

Follow DFINITY's voting guidelines for proposal structure.

2. Technical Preparation & Testing

2.1 Security Review

Conduct security audits of the dApp codebase
Document security review extent and findings

2.2 Open Sourcing

Make the dApp code publicly available before SNS launch
Enable community evaluation and verification

2.3 Reproducible Builds

Provide Docker-based build instructions
Ensure community can verify builds independently

Test the complete SNS lifecycle locally using sns-testing repository
Simulate user participation and proposal voting

2.5 dApp Operations Testing

Verify all maintenance operations work via SNS proposals
Test canister upgrades, asset management, and cycle management
Establish cycles management strategy

Optionally integrate SNS governance UI into your dApp
Test all integrations thoroughly

3. Community Consultation

3.1 Documentation Publishing

Make all documentation publicly available (website, GitHub, etc.)

3.2 Community Discussion

Start forum discussion at least 2 weeks before NNS proposal
Share init file, whitepaper, technical architecture, and tokenomics analysis
Demonstrate working product-market fit and community traction
Articulate token utility, voting power evolution, and treasury usage

4.1 Dapp Control Handover

Prepare for NNS root as co-controller before proposal submission

4.2 Submit Decentralization Proposal

Submit properly formatted NNS proposal to initiate SNS creation

Steps to Launch

The SNS launch process consists of 11 stages, where only the first two require manual action from developers. All subsequent stages are executed automatically by the NNS.

Developers define all initial parameters for the SNS, including:

Token name, symbol, and transaction fees
Tokenomics and governance structure
Initial token distribution
Decentralization swap conditions (ICP min/max targets, start/end times)
Initial neurons for governance during launch

These parameters are typically prepared using the SNS Tokenomics Analyzer and documented in the whitepaper.

Stage 2: Add NNS Root as Co-Controller

Before submitting the NNS proposal, developers hand over their dApp by adding the NNS root canister as an additional controller of the dApp canisters. This expresses intent to decentralize and allows the automated stages to proceed.

Stage 3: Submit NNS Proposal to Create SNS

Submit an NNS proposal presenting all initial SNS parameters to the NNS community. This proposal can only be submitted when no other SNS creation proposal is pending. Include comprehensive information about the dApp, tokenomics, and decentralization plan.

Stage 4: NNS Proposal Decision

The NNS community votes on the proposal. If adopted, the automated SNS creation begins. If rejected, dApp control returns to original developers.

SNS-W canister automatically creates SNS canisters on the SNS subnet (governance, ledger, swap, root, archive).

SNS-W transfers control of dApp canisters from developers to SNS root, with NNS coordination for the transition.

SNS canisters are initialized with approved parameters. The SNS enters pre-decentralization-swap mode where only limited governance actions are available.

Stage 8: Swap Timing Protocol

A timing protocol ensures at least 24 hours between proposal execution and swap start. On mainnet, swap starts at specified time or randomly 24-48 hours later if no time specified. In testing, swap begins immediately if no time specified.

Decentralization swap opens for ICP participation. Users can contribute ICP tokens to participate in the token distribution.

Swap closes when end time is reached or maximum ICP target is met.

If minimum ICP target is met, tokens are distributed to participants in neurons. SNS enters full governance mode. If unsuccessful, dApp control returns to developers and ICP is refunded.

Management

After successful SNS launch, the community takes control through decentralized governance. Here are key aspects of managing an SNS DAO:

Governance Operations

Proposal Types

Normal Proposals: Require 50% yes votes, 4-8 day voting period
Critical Proposals: Higher security for sensitive operations (treasury transfers, token minting, canister deregistration) - require 67% yes votes, 5-10 day voting period

Critical Proposal Categories

Treasury movements (ICP and SNS tokens)
Minting new SNS tokens
Deregistering controlled canisters

Voting Mechanics

Liquid democracy with following system
Critical proposals exclude "catch-all" following for individual decision-making
Minimum dissolve delay requirements for voting eligibility

Post-Launch Tools and Resources

Official Tools

NNS Frontend dApp: Primary interface for proposal voting and neuron management
SNS Frontend Integration: Optional embedding of governance UI in dApp
SNS Tokenomics Analyzer: For analyzing voting power distribution

Community Tools

SNS Geek: Overview of all SNS DAOs with metrics and tracking
Cycle Ops: Cycle consumption monitoring and management
Toolkit: User-friendly proposal creation and voting
Tally Bot: Real-time proposal voting tracking
ICHouse Explore SNS Tracker: Detailed SNS DAO analytics
ICSNS-Neurons: Browser-based proposal creation

Maintenance Tasks

Regular Operations

Canister Upgrades: Propose and execute dApp canister upgrades through SNS governance
Cycle Management: Monitor and replenish canister cycles
Asset Management: Control content changes via SNS proposals
Treasury Management: Community-controlled fund allocation

Framework Upgrades

SNS Canister Upgrades: Use AdvanceSnsTargetVersion proposal for one-click upgrades to latest framework versions
Security Updates: Stay current with SNS framework improvements

Testing and Development

Local Testing

Use sns-testing repository for local SNS lifecycle simulation
Test with Docker or direct binary installation
Validate proposal flows and user participation

PocketIC Integration

Deploy and test SNS launches in PocketIC environment
Complete launch process simulation for development

Community Building

DAO Circle

Join the ICP DAO Circle on OpenChat for cross-SNS collaboration
Share governance practices, tools, and experiences
Participate in ICP labs DAO events

Best Practices

Maintain active community engagement
Provide clear communication on proposals
Foster diverse participation in governance
Plan for long-term token utility and ecosystem growth

Conclusion

Launching an SNS represents a significant milestone in transforming a traditional dApp into a truly decentralized, community-governed project. The Internet Computer's SNS framework provides a robust, battle-tested system for decentralization that has successfully launched 30+ DAOs as of late 2024.

Key Success Factors

Thorough Preparation: The SNS preparation checklist is not just a recommendation—it's essential for building community trust and ensuring technical readiness.
Community Engagement: Start forum discussions early, be transparent about plans, and demonstrate real product-market fit before proposing decentralization.
Technical Excellence: Open source your code, provide reproducible builds, and conduct security reviews. Test extensively using the sns-testing tools.
Realistic Tokenomics: Use the SNS Tokenomics Analyzer to validate your distribution ensures decentralized governance from day one.

Potential Challenges

NNS Proposal Competition: Only one SNS creation proposal can be active at a time
Timing Constraints: Swap timing protocols require careful planning
Community Expectations: Ensure your project can deliver on the decentralization promise
Operational Complexity: Post-launch maintenance requires ongoing community coordination

Future Outlook

The SNS ecosystem continues to evolve rapidly:

Enhanced Security: Critical proposals and improved treasury controls
Better UX: Simplified upgrades and user-friendly governance tools
Cross-DAO Collaboration: Growing community of SNS DAOs sharing tools and best practices
Innovation: Token rebranding, advanced proposal types, and improved liquid democracy

Getting Started

Review the SNS preparation checklist
Study successful SNS launches like OpenChat, Sonic, and Hot or Not
Join the ICP Developer Forum for discussions
Test locally using the sns-testing repository
Use the SNS Tokenomics Analyzer for planning

SNS decentralization is more than a technical process—it's a commitment to building with your community rather than for your community. When done right, it creates sustainable, decentralized projects that can thrive independently of their original developers.

Launch Your Own SNS

Introduction

What is SNS?

Key Components

How SNS Works

Benefits of SNS

Recent Developments (2024)

Prerequisites

1. Documentation & Preparation

1.1 Tokenomics Specification

1.2 Technical Architecture, Whitepaper & Roadmap

1.3 Disclosure of Dependencies

1.4 SNS Configuration File

1.5 NNS Proposals

2. Technical Preparation & Testing

2.1 Security Review

2.2 Open Sourcing

2.3 Reproducible Builds

2.4 SNS Launch Testing

2.5 dApp Operations Testing

2.6 SNS Frontend Integration

3. Community Consultation

3.1 Documentation Publishing

3.2 Community Discussion

4. SNS Launch Workflow

4.1 Dapp Control Handover

4.2 Submit Decentralization Proposal

Steps to Launch

Stage 1: Choose Initial SNS Parameters

Stage 2: Add NNS Root as Co-Controller

Stage 3: Submit NNS Proposal to Create SNS

Stage 4: NNS Proposal Decision

Stage 5: SNS-W Deploys SNS Canisters (Automatic)

Stage 6: SNS-W Sets SNS Root as Sole Controller (Automatic)

Stage 7: SNS-W Initializes SNS Canisters (Automatic)

Stage 8: Swap Timing Protocol

Stage 9: SNS Swap Starts (Automatic)

Stage 10: SNS Swap Ends (Automatic)

Stage 11: SNS Swap Finalizes (Automatic)

Management

Governance Operations

Proposal Types

Critical Proposal Categories

Voting Mechanics

Post-Launch Tools and Resources

Official Tools

Community Tools

Maintenance Tasks

Regular Operations

Framework Upgrades

Testing and Development

Local Testing

PocketIC Integration

Community Building

DAO Circle

Best Practices

Conclusion

Key Success Factors

Potential Challenges

Future Outlook

Getting Started

Resources

Official Documentation

Community Resources

Tools & Utilities