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The chapter provides a historical overview of the use and theory of the referendum from its emergence in its present form in the early part of the nineteenth century. It sums up the philosophy behind the referendum, namely to be a people’s veto. In addition, the chapter surveys the main consequences of referendums, and what determines their use. It is concluded that by developing mechanisms for letting out political steam in the form of referendums, political systems become more legitimate, as giving people more voice—under ideal circumstances—can be a remedy against the current crisis of democracy.