Decentralized on chain governance means that important decisions on the Midnight network are not made by just a central team but by the community and NIGHT token holders.
The governance process takes place on the blockchain itself hence it is called cross chain governance.
NIGHT token holders can submit proposals, such as adding a new feature to the network, upgrading the protocol or how to use treasury funds.
Then the community votes on these proposals.
If the majority approves, the protocol automatically implements that decision.
So the Midnight ecosystem gradually becomes a community driven system where Nightholders decide the future direction of the network.