How to Write a Governance Proposal for Terra Classic: A Detailed Guide

Creating a well-structured and clear governance proposal is crucial to ensuring community understanding and engagement on the Terra Classic blockchain. Here’s a step-by-step guide to drafting an effective proposal for submission.

Introduction

The introduction should provide a high-level explanation of the proposal’s purpose. It should clearly outline the problem you’re addressing or the improvement you’re proposing. This section is where you capture the community’s attention, so be concise yet informative. You want to make it immediately clear why your proposal matters.

Example: “This proposal aims to optimize the Terra Classic staking reward distribution to ensure fairer returns for small validators and prevent centralization of network power.”

Amendments

This section details the specific governance amendments that will be enacted if the proposal passes. It’s important to break down each amendment for clarity, providing a title, a description, and any relevant commit IDs.

Amendment X/Y

For each individual change, describe what will be altered in the network and how it will be implemented.

• Title: A concise title for the amendment.
• Description: Detailed explanation of the change, including the rationale and impact on the Terra Classic ecosystem.
• Commit ID: Reference the commit ID that will implement the change. This ensures transparency and traceability of the technical modifications.

Example:

“Amendment 1: Adjust staking rewards formula
Description: Modify the staking rewards formula to balance returns between high and low-stake validators. This adjustment prevents large validators from monopolizing rewards.
Commit ID: ab12c34d5e.“

Acceptance Criteria

The Acceptance Criteria section outlines the expected outcomes if the proposal is accepted. It provides a clear measure of what success looks like once the changes have been implemented. These criteria help the community understand the goals and the direct impact of the proposal. For example, if a proposal aims to change staking rewards, the acceptance criteria might include specific improvements, such as increased rewards for small validators or maintaining network stability post-implementation. This ensures the proposal’s success can be evaluated objectively.

Example:

“If this proposal passes, small validators will see a 10% increase in staking rewards, promoting decentralization.“

Testing Phase (Results or Expected Results)

Including testing results or Proof-of-Concept (POC) data strengthens the proposal. This section shows that the proposed changes have been thoroughly tested and are ready for deployment. It helps build trust that the changes won’t disrupt the network and assures the community of their viability.

Provide a summary of the test cases, metrics, and any issues encountered during the testing phase, as well as their resolutions.

Example:

“Testing of the new staking rewards formula demonstrated a balanced redistribution, with no disruptions in the block validation process during a 2-week test on the Testnet.“

Summary

Summarize the proposal, recapping the key points in a few sentences. Then, provide a high-level timeline for executing the proposal once passed, outlining key milestones for implementation.

Consequence of a YES Vote

Clearly explain what happens if the community votes “Yes”. Focus on the benefits and the impact on the Terra Classic ecosystem.

Example:

“If approved, this proposal will strengthen the network’s decentralization by improving rewards distribution across all validators, making Terra Classic more secure and resilient.“

Consequence of a NO Vote

Detail what happens if the community votes “No.” Clarify the risks or challenges that may arise from the rejection of the proposal.

Example:

“If rejected, the current staking reward imbalance will persist, which may lead to further centralization of network power among large validators.“

Additional Tips for a Strong Proposal

• Clarity and Precision: Use clear language and avoid jargon where possible. Remember that your audience may include non-technical community members.
• Data and Evidence: Back up your claims with data or evidence where possible. Testing results, metrics, or case studies can strengthen your argument.
• Community Engagement: Engage with the community in forums or discussion groups to gather feedback before submitting your proposal formally.

By following this structure, you’ll ensure that your proposal is comprehensive, understandable, and ready for community voting.