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.