Governance basically means that the important decisions of the network will be made by the community.

In the beginning of the project team is often in more control but at @MidnightNetwork the plan is to gradually decentralized the network.

This process is called phased approach that is step by step control is given to the community.

$NIGHT token holders can submit proposals using on chain governance tools, such as adding a new feature to the network or changing a rule.

Apart from this, the community can also vote on treasurey, i.e. how to use the project funds.

When there is a protocol update or important decision, token holders vote and the automated system implements that decision.

In this way, the direction of the ecosystem is not determined by a central authority but by the collective decisions of the community.

#night