Decentralized governance refers to systems where authority, responsibility, and decision-making are dispersed amongst various stakeholders typically facilitated through blockchain technology. This contrasts with traditional governance structures, where a small group or individual holds power over resources and decisions. In decentralized governance, all participants can propose ideas, vote on proposals, and implement changes, leading to a more democratic process. This is particularly prevalent in decentralized autonomous organizations (DAOs), where token holders can vote on key issues like budget allocations and project direction.