Referenda empower citizens by allowing them to vote directly on specific issues or policy changes instead of relying solely on their elected representatives. This process enhances democratic participation, giving citizens a voice in crucial decisions affecting their lives, such as tax measures or constitutional amendments. It can help hold legislators accountable and stimulate public discourse. However, referenda can also pose challenges, such as oversimplifying complex issues or being influenced by misinformation. While effective in engaging citizens, it's crucial to ensure informed voting to maintain the integrity of the decision-making process.