Terra Blockchain DAO is governed by LUNA holders through its Governance process. Though Governance LUNA holders can effect change on the protocol by submitting petitions, also known as “proposal”. Once a “proposal” is submitted then it will be open for voting. LUNA holders can voice their opinion by casting their votes (1 LUNA = 1 vote) either to accept or reject the proposal. Once a proposal reaches a consensus threshold then it is either implemented or rejected. You can view all Governance Proposals over here.
Types of Proposals
Here are few types of proposals that were proposed and voted by LUNA holders on Terra Blockchain network
- 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 is in significant demand. Here are few example: Allow a CSV download of all transactions based on wallet address, Columbus-4 Upgrade Governance Proposal
- Parameter Change Proposals are a special type of proposal which, once passed, will automatically go in effect by directly altering the network’s parameter specified. Here are few examples: Further improvements to minting parameters, Add Terra {IDR, PHP} stablecoins.
- Community Pool Spend Proposals are distribution proposals that upon passed will disburse specified amount of tokens to a recipient specified in the Proposal. The funds are drawn from the Community Pool and disbursed to the recipient. Here are few examples: LocalTerra – Development – Community Pool Funding, Rapid Grants to Accelerate Ecosystem Development with Committee Oversight.
- Reward Weight Update Proposals are used to make changes to the incentives provided by Treasury module of Terra Blockchain. The Treasury acts as the “central bank” of the Terra economy, measuring macroeconomic activity by observing indicators and adjusting monetary policy levers to modulate miner incentives toward stable, long-term growth. Here is an example: TIP43: Update reward_weight to 0
Let us explore what type of proposals are submitted & voted on Terra Blockchain as well as trend of proposals by their type.
We see an uptick in Text Proposals since the beginning of 2021!