The self-proclaimed micronation of Liberland has received over 800,000 applications for citizenship, according to its founder, Czech libertarian politician Vit Jedlicka. The seven-square-kilometer territory, located on a muddy floodplain on the border of Serbia and Croatia along the Danube River, was claimed by Jedlicka in 2015 with the stated goal of establishing a libertarian state built on blockchain technology.
Liberland, officially the Free Republic of Liberland, aims to attract crypto billionaires and individuals seeking to escape high taxation and government regulation. Its motto is "To Live and Let Live." The micronation proposes a voluntary monthly contribution system in lieu of taxes, which it claims is superior to forced taxation and allows citizens to become true co-owners of the nation.
Citizens use cryptocurrency, specifically the Liberland Dollar for money and network fees, and Liberland Merit for voting and laws, both purchasable with bitcoin. The system includes a rating badge based on contributions, ranging from Bronze to Diamond, which is publicly published monthly to maintain transparency.
The micronation has its own official language, 'Liberlandish,' is preparing for a congressional election, and boasts its own passports and a navy known as 'the Liberty.' An administration has appointed legal professionals to form a Supreme Court, and an app is being developed to expedite applications for those without criminal records.
Since its declaration of independence by Jedlicka, Liberland has accumulated over 1,262 registered citizens. A settlement on the island, about the size of Gibraltar, has been operational since August 2023, with a core group developing the land, constructing infrastructure, and establishing marina facilities.
Liberland's existence is rooted in a territorial dispute between Croatia and Serbia following the dissolution of Yugoslavia. Jedlicka claimed the land under the principle of 'terra nullius,' meaning unoccupied land belongs to the first occupant. Croatia and Serbia have previously deployed border police and patrol boats to prevent organizers from accessing the territory.
The establishment of Liberland aligns with a broader trend of wealthy individuals and groups creating micro-states and special economic zones, such as Prospera in Honduras, a 'Crypto City' in Venezuela, and 'Liberstad' in Norway. However, Liberland has yet to achieve international recognition.
This development occurs amid reports of an exodus of entrepreneurs from the United Kingdom, with nearly 6,000 business owners leaving the UK in the past two years, reportedly seeking destinations with more favorable tax regimes like Dubai. Changes to Capital Gains Tax, inheritance tax, and other fiscal policies have been cited as contributing factors to this trend.