diff --git a/contracts/GovernanceContract.sol b/contracts/GovernanceContract.sol
new file mode 100644
index 0000000..a0acfa7
--- /dev/null
+++ b/contracts/GovernanceContract.sol
@@ -0,0 +1,136 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.19;
+
+import "./interfaces/IGovernance.sol";
+import "./VotingContract.sol";
+
+contract GovernanceContract is IGovernance {
+    struct Proposal {
+        address proposer;
+        string description;
+        bytes32 proposalHash;
+        uint256 votingStartTime;
+        uint256 votingEndTime;
+        ProposalStatus status;
+        uint256 totalVotesFor;
+        uint256 totalVotesAgainst;
+        mapping(address => bool) hasVoted;
+    }
+
+    enum ProposalStatus {
+        Pending,
+        Active,
+        Passed,
+        Rejected,
+        Executed
+    }
+
+    VotingContract public votingContract;
+    mapping(uint256 => Proposal) public proposals;
+    uint256 public proposalCount;
+    uint256 public constant VOTING_PERIOD = 7 days;
+    uint256 public constant QUORUM_PERCENTAGE = 30;
+    uint256 public constant PASS_THRESHOLD_PERCENTAGE = 50;
+
+    event ProposalCreated(
+        uint256 indexed proposalId, 
+        address indexed proposer, 
+        string description
+    );
+
+    event ProposalVoted(
+        uint256 indexed proposalId, 
+        address indexed voter, 
+        bool support
+    );
+
+    event ProposalStatusChanged(
+        uint256 indexed proposalId, 
+        ProposalStatus newStatus
+    );
+
+    constructor(address _votingContractAddress) {
+        require(_votingContractAddress != address(0), "Invalid voting contract address");
+        votingContract = VotingContract(_votingContractAddress);
+    }
+
+    function createProposal(string memory _description) external returns (uint256) {
+        require(bytes(_description).length > 0, "Description cannot be empty");
+        
+        uint256 proposalId = proposalCount++;
+        Proposal storage newProposal = proposals[proposalId];
+        
+        newProposal.proposer = msg.sender;
+        newProposal.description = _description;
+        newProposal.proposalHash = keccak256(abi.encodePacked(_description, block.timestamp, msg.sender));
+        newProposal.votingStartTime = block.timestamp;
+        newProposal.votingEndTime = block.timestamp + VOTING_PERIOD;
+        newProposal.status = ProposalStatus.Active;
+
+        emit ProposalCreated(proposalId, msg.sender, _description);
+        return proposalId;
+    }
+
+    function vote(uint256 _proposalId, bool _support) external {
+        Proposal storage proposal = proposals[_proposalId];
+        
+        require(proposal.status == ProposalStatus.Active, "Proposal not active");
+        require(block.timestamp <= proposal.votingEndTime, "Voting period has ended");
+        require(!proposal.hasVoted[msg.sender], "Already voted");
+
+        proposal.hasVoted[msg.sender] = true;
+        
+        if (_support) {
+            proposal.totalVotesFor += votingContract.getVotingPower(msg.sender);
+        } else {
+            proposal.totalVotesAgainst += votingContract.getVotingPower(msg.sender);
+        }
+
+        emit ProposalVoted(_proposalId, msg.sender, _support);
+    }
+
+    function finalizeProposal(uint256 _proposalId) external {
+        Proposal storage proposal = proposals[_proposalId];
+        
+        require(block.timestamp > proposal.votingEndTime, "Voting period not ended");
+        require(proposal.status == ProposalStatus.Active, "Proposal already finalized");
+
+        uint256 totalVotes = proposal.totalVotesFor + proposal.totalVotesAgainst;
+        uint256 quorumVotes = (votingContract.getTotalVotingPower() * QUORUM_PERCENTAGE) / 100;
+        
+        if (totalVotes >= quorumVotes) {
+            uint256 supportPercentage = (proposal.totalVotesFor * 100) / totalVotes;
+            
+            if (supportPercentage >= PASS_THRESHOLD_PERCENTAGE) {
+                proposal.status = ProposalStatus.Passed;
+            } else {
+                proposal.status = ProposalStatus.Rejected;
+            }
+        } else {
+            proposal.status = ProposalStatus.Rejected;
+        }
+
+        emit ProposalStatusChanged(_proposalId, proposal.status);
+    }
+
+    function getProposalDetails(uint256 _proposalId) external view returns (
+        address proposer,
+        string memory description,
+        uint256 votingStartTime,
+        uint256 votingEndTime,
+        ProposalStatus status,
+        uint256 totalVotesFor,
+        uint256 totalVotesAgainst
+    ) {
+        Proposal storage proposal = proposals[_proposalId];
+        return (
+            proposal.proposer,
+            proposal.description,
+            proposal.votingStartTime,
+            proposal.votingEndTime,
+            proposal.status,
+            proposal.totalVotesFor,
+            proposal.totalVotesAgainst
+        );
+    }
+}
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