diff --git a/QuantumNexusProtocol/src/core/governance.py b/QuantumNexusProtocol/src/core/governance.py
new file mode 100644
index 000000000..f969bd042
--- /dev/null
+++ b/QuantumNexusProtocol/src/core/governance.py
@@ -0,0 +1,106 @@
+import json
+from datetime import datetime
+from collections import defaultdict
+
+class Governance:
+    def __init__(self):
+        self.proposals = []
+        self.votes = defaultdict(lambda: defaultdict(int))  # proposal_id -> {voter_id: vote_count}
+        self.voting_threshold = 0.5  # 50% of votes needed to pass a proposal
+
+    def create_proposal(self, proposal_id, description):
+        """Create a new governance proposal."""
+        proposal = {
+            'id': proposal_id,
+            'description': description,
+            'created_at': datetime.utcnow().isoformat(),
+            'votes_for': 0,
+            'votes_against': 0,
+            'status': 'pending'  # pending, passed, rejected
+        }
+        self.proposals.append(proposal)
+        print(f"Proposal created: {proposal}")
+
+    def vote(self, proposal_id, voter_id, vote):
+        """Vote on a proposal."""
+        if vote not in ['for', 'against']:
+            raise ValueError("Vote must be 'for' or 'against'.")
+
+        # Check if the proposal exists
+        proposal = self.get_proposal(proposal_id)
+        if not proposal:
+            raise ValueError("Proposal not found.")
+
+        # Record the vote
+        if vote == 'for':
+            self.votes[proposal_id][voter_id] += 1
+            proposal['votes_for'] += 1
+        else:
+            self.votes[proposal_id][voter_id] -= 1
+            proposal['votes_against'] += 1
+
+        print(f"Vote recorded: {voter_id} voted {vote} on proposal {proposal_id}")
+
+    def get_proposal(self, proposal_id):
+        """Retrieve a proposal by its ID."""
+        for proposal in self.proposals:
+            if proposal['id'] == proposal_id:
+                return proposal
+        return None
+
+    def tally_votes(self, proposal_id):
+        """Tally votes for a proposal and determine its status."""
+        proposal = self.get_proposal(proposal_id)
+        if not proposal:
+            raise ValueError("Proposal not found.")
+
+        total_votes = proposal['votes_for'] + proposal['votes_against']
+        if total_votes == 0:
+            print("No votes have been cast for this proposal.")
+            return
+
+        if proposal['votes_for'] / total_votes >= self.voting_threshold:
+            proposal['status'] = 'passed'
+            print(f"Proposal {proposal_id} has passed.")
+        else:
+            proposal['status'] = 'rejected'
+            print(f"Proposal {proposal_id} has been rejected.")
+
+    def execute_proposal(self, proposal_id):
+        """Execute a proposal if it has passed."""
+        proposal = self.get_proposal(proposal_id)
+        if not proposal:
+            raise ValueError("Proposal not found.")
+
+        if proposal['status'] != 'passed':
+            raise ValueError("Proposal must be passed to execute.")
+
+        # Implement the logic for executing the proposal here
+        print(f"Executing proposal {proposal_id}: {proposal['description']}")
+
+    def get_all_proposals(self):
+        """Return all proposals."""
+        return self.proposals
+
+# Example usage
+if __name__ == '__main__':
+    governance = Governance()
+
+    # Create proposals
+    governance.create_proposal('1', 'Increase block size limit.')
+    governance.create_proposal('2', 'Implement new consensus algorithm.')
+
+    # Simulate voting
+    governance.vote('1', 'Alice', 'for')
+    governance.vote('1', 'Bob', 'against')
+    governance.vote('1', 'Charlie', 'for')
+
+    # Tally votes
+    governance.tally_votes('1')
+
+    # Execute proposal if passed
+    governance.execute_proposal('1')
+
+    # Retrieve all proposals
+    all_proposals = governance.get_all_proposals()
+    print("All Proposals:", all_proposals)