In the context of the dedicated smart contract, proposals are structured requests initiated within the contract to facilitate specific operations, such as the transfer of validator ownership. Northstake can create these proposals to simplify complex actions for Depositors, who then only need to review and accept the proposals to execute them.

This approach is particularly useful when Northstake does not have custodial rights over the Depositor’s funds, as it allows Northstake to support operational needs without directly controlling or transferring assets on behalf of the Depositor. By proposing actions rather than executing them, Northstake maintains a clear, compliant structure where Depositors retain ultimate authority over their assets.