There 3 phases for governance.
Phase 1: Partial On-Chain Voting (lasts 10 proposals)
Users can use the seigniorage governor alpha to make votes, proposals for simple parameter changes.
Phase 2: Full On-Chain Voting (lasts 10 successful proposals)
Users can modify and call every function in every contract.
Phase 3: Full On-Chain Voting + Upgradeability
Users can modify, call and upgrade all contracts in addition to owning the proxy-upgradeability contracts.
The contracts currently have a guardian (dollar protocol deployer address) that has the ability to cancel/veto any proposal. This will rarely be used.
During Phase 3, we will hold a community-led election of members who will hold a seat on the multisig. This multisig will be the new guardian of the protocol and will veto any hostile proposals that jeopardize the protocol. The multisig for the guardian will last as long as it feels is necessary until the community feels the protocol has been sufficiently decentralized.