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Core Definitions and Concepts

Proposal Types​

On-Chain Governance​

On-chain governance refers to all protocol level execution of proposals using Cosmos SDK's gov module. Anyone who holds or stakes TERP can participate in these votes, regardless of the voter's validator choices.

Off-Chain Governance​

Off-chain governance refers to all community decisions that do not require an on-chain protocol-level change. These types of decisions include a wide variety of topics and concepts, from passing meta-governance proposals to the formation of special task forces or workstreams.

All proposals are assumed to be On-Chain Proposals until the necessary infrastructure and toolings for Off-Chain Voting is established. Cosmos SDK's TextProposal will be used for Off-Chain Proposals for the time being.

Proposal Types by Category​

Protocol Proposals​

Proposals that contain state changing logic that will be run by the protocol itself, if approved via governance consensusn.- Most commonly used for software upgrades, parameter changes, & smart contract interactions.

Community Proposals​

Proposals that only require to be posted as a TextProposal on the Cosmos SDK - Most commonly used for meta-governance proposals.

SubDAO​

subDAOs are teams with a recurring budget with no termination date (i.e., Community Outreach, Marketing & Creative Services, etc). More information on SubDAO can be found on the SubDAO page.,

SubDAos are the sub-units of how Terp DAO advances its purpose. A subDAO is a group of people actively working on tasks that align with Terp Networks' Constitutional Values and community run initiatives. As such, ratifying workstreams sets boundaries on what is and isn't in scope for Terp DAO's governance.

Anyone may start a subDAO and gather momentum behind it by posting on Commonwealth. Until a formal proposal for a budget is made, this subDAO is considered “informal.” A workstream can be as broad or narrow as its initiators like, but workstream proposals must satisfy the following criteria:

Proposals that requests any type of funding from the CommunityPool or the DAO's treasury to form an in-house workstream (team, squad, sub-DAO, guild) or project with the direct purpose of benefiting the Terp ecosystem.

  • Have a clear objective that aligns with Terp Networks' values and objectives as listed in the Constitution.
  • Distinguish itself from or explicitly state its improvements on existing workstreams.
  • Propose clear budgets and timelines for producing outcomes and all in line with the budget proposal flow.

SubDAOs have five potential states. Each of the five states and the requirements for a subDAO in each state are outlined below:

  • Informal: The workstream is not funded by the DAO, and has not made a formal proposal with its goals and a budgetary request.
  • Proposed: The workstream has made a formal proposal to the DAO for a working budget.
  • Active: The workstream is active and funded by the DAO.
  • Inactive: The workstream has been discontinued and is no longer being funded by the DAO.

Special Initiatives / Projects​

Special Initiatives and Projects are DAO-funded projects with a set budget and "completion" goal or date (i.e., Governance Tooling Project, Event Sponsorships, etc.)

Network Upgrades & Security​

Proposal Phase & Identification Tags​

You do not need to know the proposal phase and identification naming conventions! A Governance Council member will assist -- the content below is for reference.

Proposal Phases are denoted as: [IDEATION], [PRE-PROPOSAL], [PROPOSAL], [VOTING] for the 4-phases, and [PASSED], [REJECTED], [DEFERRED] for proposals in the other stages. Refer to the Proposal Lifecycle page for more information on proposal lifecycle phases.