Establishing the Republic of Taiwan through plebiscite has been the Democratic Progressive Party's (DPP) major assertion. Owing to the Kuomingtong's (KMT) position against independence of Taiwan, it equates referendum with pursuing independence and thus opposes institutionalization of referendum, regardless of the stipulation of the Constitution of the Republic of China that people are granted the initiative and referendum rights. Through the long term enlightening process of Taiwan's democratization, the KMT has been silent to all plebiscite issues, and let the DPP dominate the interpretation of democratization. Since the DPP came into power in 2000, it has endeavored to promote institutionalization of direct democracy, by which it bands its supporters and consolidates its regime. When the DPP intended to hold a nation-wide consultative referendum as a political mobilization tool in the 2004 presidential election, the KMT and its ally, the People First Party (PFP), formed the majority in the Legislative Yuan, and they decided to regulate the DPP's stratagem by legislation. The Referendum Act was born under the blue and green camps’ political calculation. Because the purpose for the KMT and the PFP was to confine referendum within the Referendum Act, the law has thus become the greatest institutional obstacle to realizing direct democracy.