Governance is the process by which Terra network participants can effect change for the protocol, by collectively demonstrating consensus support for 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
Proposals are submitted on the network through creating a proposal, depositing some Luna tokens, and reaching consensus through a community vote.