# Governance

Governance is the process by which Terra network participants can effect change for the protocol, by collectively demonstrating consensus support for proposals.

# Proposals

Proposals start out as ideas within the community, and a member drafts it into a format and submits the proposal alongside an initial deposit.

Currently, proposals that can be automatically applied include:

  • ParameterChangeProposal: changing of blockchain parameters (defined in each module)
  • TaxRateUpdateProposal: update Tax Rate monetary policy lever
  • RewardWeightUpdateProposal: update Reward Weight monetary policy lever
  • CommunityPoolSpendProposal: disbursement from the Distribution module's Community Pool

Other issues like large directional changes or decisions requiring human involvement (manual implementation) can be also be voted on, through submitting a plain TextProposal.

Proposals are submitted on the network through creating a proposal, depositing some Luna tokens, and reaching consensus through a community vote.