# Governance

Terra's Governance module inherits from Cosmos SDK's gov module. This document is a stub, and covers mainly important Terra-specific notes about how it is used.

Governance is the process through which participants within the Terra network can effect change on the protocol by submitting petitions known as "proposals," arriving at a popular consensus when a threshold amount of support has been reached for it. The proposal structure is versatile and allows for holders of Luna (those who have an interest in the long-term viability of the network) to voice their opinion on both blockchain parameter updates as well as future development of the Terra protocol.

Check the Governance section of the terracli Reference to see examples of how to participate in the Governance process.

# Proposals

type Proposal struct {
	Content `json:"content" yaml:"content"` // Proposal content interface

	ProposalID       uint64         `json:"id" yaml:"id"`                                 //  ID of the proposal
	Status           ProposalStatus `json:"proposal_status" yaml:"proposal_status"`       // Status of the Proposal {Pending, Active, Passed, Rejected}
	FinalTallyResult TallyResult    `json:"final_tally_result" yaml:"final_tally_result"` // Result of Tallys

	SubmitTime     time.Time `json:"submit_time" yaml:"submit_time"`           // Time of the block where TxGovSubmitProposal was included
	DepositEndTime time.Time `json:"deposit_end_time" yaml:"deposit_end_time"` // Time that the Proposal would expire if deposit amount isn't met
	TotalDeposit   sdk.Coins `json:"total_deposit" yaml:"total_deposit"`       // Current deposit on this proposal. Initial value is set at InitialDeposit

	VotingStartTime time.Time `json:"voting_start_time" yaml:"voting_start_time"` // Time of the block where MinDeposit was reached. -1 if MinDeposit is not reached
	VotingEndTime   time.Time `json:"voting_end_time" yaml:"voting_end_time"`     // Time that the VotingPeriod for this proposal will end and votes will be tallied
}

type Content interface {
	GetTitle() string
	GetDescription() string
	ProposalRoute() string
	ProposalType() string
	ValidateBasic() sdk.Error
	String() string
}

A Proposal is a data structure representing a petition for a change that is submitted by to the blockchain alongside a deposit. Once its deposit reaches a certain value (MinDeposit), the proposal is confirmed and voting opens. Bonded Luna hoolders can then send TxGovVote transactions to vote on the proposal. Terra currently follows a simple voting scheme of 1 Bonded Luna = 1 Vote.

The Content on a proposal is an interface which contains the information about the Proposal such as the title, description, and any notable changes. Also, this Content type can by implemented by any module. The Content's ProposalRoute returns a string which must be used to route the Content's Handler in the Governance keeper. This allows the governance keeper to execute proposal logic implemented by any module. If a proposal passes, the handler is executed. Only if the handler is successful does the state get persisted and the proposal finally passes. Otherwise, the proposal is rejected.

# Text Proposals

type TextProposal struct {
	Title       string `json:"title" yaml:"title"`
	Description string `json:"description" yaml:"description"`
}

Text Proposals are used for creating general-purpose petitions, such as asking the Core team to implement a specific feature. The community can reference a passed Text Proposal to the core developers to indicate that a feature (requiring potentially a soft or hard fork) is in significant demand.

# Parameter Change Proposals

type ParameterChangeProposal struct {
	Title       string        `json:"title" yaml:"title"`
	Description string        `json:"description" yaml:"description"`
	Changes     []ParamChange `json:"changes" yaml:"changes"`
}

type ParamChange struct {
	Subspace string `json:"subspace" yaml:"subspace"`
	Key      string `json:"key" yaml:"key"`
	Subkey   string `json:"subkey,omitempty" yaml:"subkey,omitempty"`
	Value    string `json:"value" yaml:"value"`
}

Parameter Change Proposals are actually located in the Params module, an internal module. It is shown here for your convenience. {note}

Parameter Change Proposals are a special type of proposal which, once passed, will automaticaly go in effect by directly altering the network's parameter specified. For each module, you can find the parameters associated with it by browsing to the Parameters section of the module specification.

# Community Pool Spend Proposals

Defined and handled in the Distribution module.

# Tax Rate / Reward Weight Update Proposals

Defined and handled in the Treasury module.

# Software Upgrade Proposals

WARNING

Software Upgrade Proposals also exist due to inheritance from Cosmos SDK but are for the moment considered unavailable, as they have not yet been implemented. They thus share the same semantics as a simple Text Proposal. It is strongly advised to not submit these types of proposals at the risk of losing your Luna deposit.

# Transitions

# End-Block

This section was taken from the official Cosmos SDK docs, and placed here for your convenience to understand the Governance process.

ProposalProcessingQueue is a queue queue[proposalID] containing all the ProposalIDs of proposals that reached MinDeposit. At the end of each block, all the proposals that have reached the end of their voting period are processed. To process a finished proposal, the application tallies the votes, computes the votes of each validator and checks if every validator in the validator set has voted. If the proposal is accepted, deposits are refunded. Finally, the proposal content Handler is executed.

for finishedProposalID in GetAllFinishedProposalIDs(block.Time)
	proposal = load(Governance, <proposalID|'proposal'>) // proposal is a const key

	validators = Keeper.getAllValidators()
	tmpValMap := map(sdk.AccAddress)ValidatorGovInfo

	// Initiate mapping at 0. This is the amount of shares of the validator's vote that will be overridden by their delegator's votes
	for each validator in validators
	tmpValMap(validator.OperatorAddr).Minus = 0

	// Tally
	voterIterator = rangeQuery(Governance, <proposalID|'addresses'>) //return all the addresses that voted on the proposal
	for each (voterAddress, vote) in voterIterator
	delegations = stakingKeeper.getDelegations(voterAddress) // get all delegations for current voter

	for each delegation in delegations
		// make sure delegation.Shares does NOT include shares being unbonded
		tmpValMap(delegation.ValidatorAddr).Minus += delegation.Shares
		proposal.updateTally(vote, delegation.Shares)

	_, isVal = stakingKeeper.getValidator(voterAddress)
	if (isVal)
		tmpValMap(voterAddress).Vote = vote

	tallyingParam = load(GlobalParams, 'TallyingParam')

	// Update tally if validator voted they voted
	for each validator in validators
	if tmpValMap(validator).HasVoted
		proposal.updateTally(tmpValMap(validator).Vote, (validator.TotalShares - tmpValMap(validator).Minus))

	// Check if proposal is accepted or rejected
	totalNonAbstain := proposal.YesVotes + proposal.NoVotes + proposal.NoWithVetoVotes
	if (proposal.Votes.YesVotes/totalNonAbstain > tallyingParam.Threshold AND proposal.Votes.NoWithVetoVotes/totalNonAbstain  < tallyingParam.Veto)
	//  proposal was accepted at the end of the voting period
	//  refund deposits (non-voters already punished)
	for each (amount, depositor) in proposal.Deposits
		depositor.AtomBalance += amount

	stateWriter, err := proposal.Handler()
	if err != nil
		// proposal passed but failed during state execution
		proposal.CurrentStatus = ProposalStatusFailed
		else
		// proposal pass and state is persisted
		proposal.CurrentStatus = ProposalStatusAccepted
		stateWriter.save()
	else
	// proposal was rejected
	proposal.CurrentStatus = ProposalStatusRejected

	store(Governance, <proposalID|'proposal'>, proposal)

# Parameters

The subspace for the Governance module is gov.

type DepositParams struct {
	MinDeposit       sdk.Coins     `json:"min_deposit,omitempty" yaml:"min_deposit,omitempty"`
	MaxDepositPeriod time.Duration `json:"max_deposit_period,omitempty" yaml:"max_deposit_period,omitempty"` //  Maximum period for Atom holders to deposit on a proposal. Initial value: 2 months
}

type TallyParams struct {
	Quorum    sdk.Dec `json:"quorum,omitempty" yaml:"quorum,omitempty"`
	Threshold sdk.Dec `json:"threshold,omitempty" yaml:"threshold,omitempty"`
	Veto      sdk.Dec `json:"veto,omitempty" yaml:"veto,omitempty"`
}

type VotingParams struct {
	VotingPeriod time.Duration `json:"voting_period,omitempty" yaml:"voting_period,omitempty"`
}

# MinDeposit

Minimum deposit for a proposal to enter voting period.

  • type: sdk.Coins
  • default value: uluna

# MaxDepositPeriod

Maximum period for Luna holders to deposit on a proposal.

  • type: time.Duration
  • default value: 2 months

# Quorum

Minimum percentage of total stake needed to vote for a result to be considered valid.

  • type: sdk.Dec
  • default value: N/A

# Threshold

Minimum proportion of Yes votes for proposal to pass.

  • type: sdk.Dec
  • default value: 0.5 (50%)

# Veto

Minimum value of Veto votes to Total votes ratio for proposal to be vetoed.

  • type: sdk.Dec
  • default value: 0.33 (1/3rd)

# VotingPeriod

Length of the voting period.

  • type: time.Duration
  • default value: N/A