DAO proposal systems use on-chain or off-chain governance tools to determine how tokens are allocated. Members submit proposals outlining funding needs, including airdrop plans, budgets, and eligibility criteria. Voting occurs through platforms like Snapshot or Tally, where token holders or delegates approve or reject proposals. The outcome depends on voter turnout, quorum rules, and proposal design. Successful proposals may lead to smart contract-triggered allocations from treasury wallets. Active community engagement and clear communication increase the likelihood of approval for airdrop-related initiatives.