A transition to a circular economy (CE) is necessary to limit waste, conserve resources, and maximize sustainability. Nevertheless, the principle of governance is the biggest impediment to CE approaches. This review highlights important gaps in the literature on governance frameworks in CE and an explanation of when a framework might impact biodiversity conservation. A systematic literature review is done, and a thematic analysis is carried out to identify six core themes. To address the governance problems, this research proposes a Dynamic Polycentric Model (DPC) for Circular Economy Governance, a new governance framework enabling collaboration, improving regulation efficiency, and lowering governance costs.  It is based on three key governance connections: Resource Optimization, Regulatory, and Digital Trust, whose role is to bring together the industry's efforts, policy mechanisms, and technological tools for circular practices.  It also introduces trust-weighted governance, where stakeholders with strong sustainability records face fewer regulatory burdens while non-compliant actors receive stricter oversight.  Blockchain-powered circular economy smart contracts and adaptive resilience protocols enable real-time compliance, automated resource tracking, and flexible responses to market disruptions. This study contributes to CE governance research by proposing a structured yet flexible framework that nurtures greater collaboration, transparency, and resilience. The model aims to provide practical solutions for overcoming regulatory and operational challenges in CE transitions by refining governance mechanisms and integrating emerging technologies.