Justin Sun Elected Prime Minister of Bitcoin-Backed Micronation Liberland, Promises Small Government Model

Justin Sun, the founder of Tron, has been elected as the new prime minister of Liberland. This tiny, self-proclaimed micronation sits between Croatia and Serbia. Sun aims to promote the idea of small government. He believes it can serve as a model for the world.

Liberland holds 99% of its reserves in Bitcoin. It was established in 2015 by Vít Jedlička, a Czech libertarian politician. He claimed an uninhabited area on the Croatian bank of the Danube River as a new independent country.

Sun shared his vision with DL News, saying, “Just as Vatican City represents a central spiritual authority for Catholics, Liberland will be the heart of the libertarian movement.” He wants to build on the foundation of libertarian principles that define the nation.

The ideology of Liberland is rooted in the ideas of libertarian thinkers like Ayn Rand. The micronation doesn’t charge taxes and aims for minimal government. It seeks to create a free-market economy based on cryptocurrency.

On October 6, a seven-member congress elected Sun through a blockchain voting system. This congress represents about 1,000 citizens. Despite its ambitions, no country has recognized Liberland as an official state. Croatia and Serbia have dismissed its claims as frivolous.

Sun is not new to politics. He served as Grenada’s representative to the World Trade Organization from 2021 to 2023. Liberland is about 2.7 square miles, similar in size to Gibraltar. Sun has big plans for the micronation.

He stated, “I aim to actively promote the idea of small government not only within Liberland but also as a model for the world.” However, it's unclear what success looks like for Liberland.

The micronation is trying to gain recognition from countries like Argentina, El Salvador, and Somaliland. Still, there is no clear path to official recognition.

Sun explained, “There are no forced obligations, no taxes, and no mandates imposed on its citizens.” Liberland relies on donations and generates some income by selling passports and stamps. Most of its revenue quickly turns into Bitcoin. The nation claims to be permanently inhabited, but most residents are campers or people living on boats.

Notably, the idea has attracted some prominent supporters. Javier Milei, Argentina’s libertarian president, has shown his support. He even dressed as an anarcho-capitalist superhero at a comic book convention in Buenos Aires in 2019 to express his backing for Liberland.

The crypto community has a long-standing fascination with micronations. These are small, self-proclaimed territories that lack recognition from major international organizations. In 2020, three crypto enthusiasts bought a cruise ship and parked it off Panama, hoping to create a new libertarian society that traded only in cryptocurrencies.

While that idea didn’t pan out, the dream of crypto micronations lives on. Liberland has embraced crypto too. It has issued a Liberland dollar token, available on the Ethereum-based exchange Uniswap. It also runs its own Proof of Stake blockchain and plans to issue land deeds as NFTs.

Sun believes in voluntary participation. He stated, “Everything is built on voluntary participation and mutual respect, which is how I believe all governments should operate.” He reiterated, “There are no forced obligations, no taxes, and no mandates imposed on its citizens.”

However, creating a society based on voluntary participation poses challenges. Many in the crypto space recognize that incentives often don’t align. Liberland depends on wealthy patrons for support. This raises questions about its sustainability as it looks to grow and welcome more citizens.