Liberland: A Blockchain-Based Sovereign State for Crypto-Friendly Governance

Liberland, formally known as the Free Republic of Liberland, is a pioneering sovereign state situated between Croatia and Serbia on the west bank of the Danube River.

Founded on the principle of “To live and let live,” Liberland is dedicated to fostering personal and economic freedom by minimizing government intervention.

Governance on the Blockchain

Liberland stands out as a nation-state whose governance and legislative processes are entirely managed on-chain. This innovative approach allows citizens and E-Residents to establish businesses under Liberland law and within the jurisdiction of Liberland courts.

The nation offers a comprehensive legal framework for the operation of insurance, enforcement of both smart and traditional contracts in court, and the facilitation of direct democracy accessible globally via the internet.

The Liberland Blockchain

The backbone of Liberland’s digital infrastructure is its blockchain, which employs a nominated proof-of-stake consensus mechanism.

This eco-friendly system ensures participation is open to all as nominators, while the role of running validators is reserved for citizens, adding an extra layer of security.

Decentralized Hyperdemocracy

Liberland’s political structure is characterized by decentralized hyperdemocracy, where citizens can directly vote on referenda or delegate their voting power to members of Congress. The flexibility to re-delegate or reclaim voting power at any time empowers citizens with control over their political representation.

Additionally, the ability to veto new legislation is a unique feature that ensures the government remains truly by the people and for the people.

Crypto-Friendly Legislation

In line with its modern and progressive stance, Liberland is a haven for cryptocurrency enthusiasts. The government embraces Bitcoin as its preferred currency and provides a regulated environment for individuals and companies to engage in crypto-related activities.

On-Chain Business Operations

Liberland takes the concept of digital enterprises to the next level by allowing companies to be entirely run on the blockchain.

This includes the management of shares, contracts, and governance, all facilitated by the Liberland blockchain.

NFTs and Asset Registries

The use of native NFTs in Liberland extends to the representation of digital and physical assets such as land and vehicles.

Future plans include the introduction of soulbound NFTs to represent citizenship and other government functions, enabling a seamless transition of power through smart contracts.

Hybrid and Smart Contracts

The legal system in Liberland is equipped to handle hybrid and smart contracts, providing an efficient, fair, and transparent adjudication process. This legal recognition of smart contracts signifies Liberland’s commitment to embracing technological advancements in governance.

Digital Identity and Passport

Liberland’s passport system is integrated with on-chain identities, streamlining verification processes for citizens and enabling their participation in both private and government-related activities.

The Liberland Currency System

Liberland’s economy operates on two main tokens: the Liberland dollar (LLD) and the Liberland merit (LLM).

LLD is used for transactional purposes, such as paying gas fees and running contracts, while LLM is the political token used for voting and participating in the democratic process.

Voluntary Taxation and PolitiPooling

In a revolutionary approach to taxation, Liberland adopts a voluntary tax system. Citizens can choose to fund specific projects or contribute to the general expenses of the state. The concept of PolitiPooling allows citizens to stake their LLM as a form of tax payment, which is proportional to their political power.


Liberland is a bold experiment in nation-building, leveraging blockchain technology to create a transparent, secure, and democratic society.

Its commitment to personal and economic freedom, combined with its innovative governance model, makes it a fascinating case study in the potential of decentralized systems to shape the future of nation-states.