Launched in 2010 by Democracy International, the Direct Democracy Navigator describes and updates all legal provisions for direct democracy around the world. It is currently being developed to include a historical series to capture legal changes over time. It aims to help identify the best practices, the obstacles, or the origins of direct democratic institutions. As the new scientific directors of the Direct Democracy Navigator, we initiated the idea of a yearly report on the State of Direct Democracy. After all, reports on democratic quality and its evolution over time abound, but no report specifically focuses on direct democracy institutions and practices. Such a taking stock exercise appeared important to us for two reasons. First, direct democracy institutions have a long and dynamic history in many countries, but their experience rarely hit the headlines. Second, as civil society movements and activists over the world fight for introducing citizens rights to initiate and veto legislation at the local, regional and national level, it is more important than ever to identify best practices and learn from each other. We are delighted to share with you the first edition of the State of Direct Democracy Report focusing on the year 2023. Legal provisions, referendums held, short-term trends in the use of direct democracy institutions, reforms and academic publications are gathered and commented to provide a comprehensive picture of the current state of direct democracy. While the contours of direct democracy institutions are widely accepted, their respective importance is still debated. Switzerland is usually considered the best model of direct democracy, and this report follows that tradition. After Switzerland, however, scholars disagree on which countries are the best examples of direct democracy and which best practices should be followed. The approach of this report is centered on the hierarchy between the legal norms enacted and voted on directly by the citizens and those enacted and voted on by their representatives. From this distinction, two main models of direct democracy are presented and detailed, focusing on their legal institutions and their use in recent years, especially in 2023. The State of Democracy Report is aligned with the scholarly consensus arguing that details matter in the design of democratic institutions. In most databases, including the Direct Democracy Navigator, the coding scheme does not allow to fully capture important details, which are stressed out in this report. In doing so, this report calls for debates on direct democracy typologies and practices to contribute to a better understanding of this fascinating regime and its impact on the political life. We hope you will enjoy the read and look forward to your feedback, that will allow us to prepare the 2024 edition.