An Upgrade Contract refers to a type of smart contract that allows for the modification or improvement of existing contracts on a blockchain. These contracts are designed to facilitate upgrades without needing to completely redeploy a new contract, which can be costly and complex.When an upgrade is necessary due to bugs, security vulnerabilities, or new features, an Upgrade Contract can redirect calls to a new version of the contract. This means users can benefit from enhancements while maintaining their current contracts seamlessly.Typically, Upgrade Contracts include a mechanism for governance, where stakeholders can vote on proposed upgrades. This ensures that changes align with the community’s interests. These contracts play a crucial role in ensuring longevity and adaptability in blockchain systems, allowing them to evolve and improve over time. By enabling updates through a governance process, projects can keep up with technological advancements and user needs.