Justin Sun reigns as the new Prime Minister of Liberland, but the network state would need more than just Bitcoin

Justin Sun, the founder of Tron, has been elected as the new Prime Minister of Liberland, a self-declared micronation situated between Croatia and Serbia. The election results was announced on October 5, signal a major milestone in Sun’s expanding political career.

In addition to Sun, other prominent individuals elected to the Liberland Congress include entrepreneur Evan Luthra, journalist Jillian Godsi, former Croatian politician Ivan Pernar, and tech expert Dorian Stern Vukotić.

The Republic of Liberland

Liberland, also known as the Free Republic of Liberland, is a micronation that was first promoted by Czech politician and activist Vit Jelicka. In 2015, Jedlicka started campaigning for the stretch of Floodplain on the Croatian bank of the Danube to be its own territory as a self-acclaimed independent country.

This nation emanated from the escalation of border dispute between Croatia and Serbia, which led to an unclaimed portion of land in the West of the Danube. In 2018, it was reported that the half a million people applied for the citizenship in Liberland with 5,500 of them from the UK.

The nation accepts Bitcoin, Ethereum and Bitcoin cash for its financial operations and donations. Jelicka revealed that the nation has no debt and has a low running cost.

Liberland calling for the help of Bitcoin payment providers

Liberland currently accommodates 1000 citizens with minimal infrastructure. On top of that, 99% of its reserves are held in Bitcoin. Liberland is also currently building a Bitcoin-focused environment with the state reserve fund established in digital assets.

Fascinatingly, this concept of Bitcoin nation strangely aligns with what El Salvador is currently trying to do with its Bitcoin city, which is powered by geothermal energy from a volcano.

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Liberland boasting its forward looking Election Process

Liberland officials lauded the election’s transparency, attributing it to their innovative algorithmic voting system.

Spokespeople for the micronation issued this statement upon announcing the election results said,

"The election process, governed by a simple set of rules, was entirely algorithmic, providing transparency. This system has a unique ability to eliminate doubt regarding election outcomes, a challenge faced by many countries still relying on traditional methods."

He adds that the micronation is a pioneering example of what will soon become the norm that all the other countries will follow.

Liberland’s emergence reflects a growing trend among crypto enthusiasts toward creating blockchain-based micronations or network states. These decentralized entities, enabled by blockchain technology, seek to challenge conventional models of governance—a movement that began with Bitnation in 2014, which declared itself the first crypto microstate.

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

More facets of sovereignty that needs to be addressed

Despite their ambitions to revolutionize governance, critics raise concerns about the practicality of such digital nations. Many argue that blockchain technology alone cannot safeguard these micronations from interference by larger, established countries, particularly in matters of border defense and sovereignty.

The concept of sovereign crypto nations, including floating seastead platforms in international waters, continues to meet resistance from traditional governments, casting doubt on their long-term sustainability.

Despite these challenges, Sun’s election as Prime Minister puts him at the helm of an experimental form of governance, where blockchain technology intersects with sovereignty. His new role places him at the center of a bold venture that aims to redefine what it means to govern in the digital age.