With Justin Sun as Prime Minister of a decentralized country with Bitcoin as its currency, will Liberland become a crypto paradise?

This week, the founder of Tron, Justin Sun, was elected as the prime minister of Liberland, a micronation established by right-wing libertarians in 2015. The largely unrecognised European state exists in theory, claiming a small stretch of disputed territory between Croatia and Serbia.

Liberland’s status remains in question, as no nation officially acknowledges its sovereignty. Despite its ambitions, the micronation’s claim centres around 2.7 miles of uninhabited floodplain, and attempts by self-proclaimed citizens to settle have resulted in arrests by Croatian authorities.

Crypto Community’s Utopian Vision

The founders of Liberland, however, continue to promote a libertarian vision, asserting that they have onboarded over 1,000 digital citizens. Support from the cryptocurrency community has grown, attracted by Liberland’s proposed crypto-friendly governance.

Although the “Laws” section on its official website is currently empty, previous versions suggested an environment with no restrictions on drugs or firearms, and a controversial age of consent at 13. Liberland aims to establish a “decentralized hyperdemocracy,” relying on blockchain technology to facilitate governance and crypto-based legislation.

The flag of Liberland. Source: Liberland

Network states and sovereign crypto micronations

Liberland’s statement reflects a growing desire among crypto enthusiasts and industry executives to leverage blockchain technologies to form micronations, decentralized network states, and overhaul arcane election processes in already established countries.

The term network state, popularized by investor, entrepreneur, and former industry executive Balaji Srinivasan, refers to a geographically distributed nation that uses blockchain technology and privately held land to function as a sovereign state.

In 2014, Bitnation became the first crypto microstate to declare sovereignty, which inspired other jurisdictions to seek independence.

These jurisdictions include landlocked locations, such as the 2.7 square-mile Liberland, islands, and oceanic vessels. Futurists have also proposed the idea of ​​seasteading, or building permanent installations in international waters that would function as sovereign countries.

A 3D design of a futuristic seastead. Source: Arktide

Sun’s Role in Liberland's Future

As prime minister, Sun now leads the campaign to realise this libertarian utopia, a position that brings him back into political prominence after his previous role as Grenada’s ambassador to the World Trade Organization. Sun, maintaining his title of “His Excellency,” remains an influential figure within the crypto sphere.

In a statement, Sun expressed his vision, saying, “I aim to actively promote the idea of small government not only within Liberland but also as a model for the world. Our success can inspire other nations to embrace libertarian principles.”

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A Flawed Project with Limited Potential

Despite these lofty ambitions, Liberland’s lack of recognition and physical presence poses significant challenges to its realisation.

Sun’s involvement may generate interest, but the practical impact remains questionable.