Direct democracy has benefits such as increased public participation and responsiveness to the electorate's needs, allowing voters to have a direct say in policies. It can enhance political engagement and promote civic responsibility, as individuals feel more invested in decision-making. However, drawbacks include potential majority tyranny, where minority rights may be overlooked, and the risk of populism, where decisions could be based on emotion rather than informed deliberation. Balancing direct democracy's advantages and challenges is vital for effective governance.