This chapter sets forth the conceptual scheme for the V–Dem project. We begin by discussing the concept of democracy. Next, we lay out seven principles by which this key concept may be understood – electoral, liberal, majoritarian, consensual, participatory, deliberative, and egalitarian. Each defines a “variety“ of democracy, and together they offer a fairly comprehensive accounting of the concept as used in the world today. Next, we show how this seven-part framework fits into our overall thinking about democracy, including multiple levels of disaggregation – to components, subcomponents, and indicators. The final section of the chapter discusses several important caveats and clarifications pertaining to this ambitious taxonomic exercise.