The Liberland Blockchain is a public blockchain designed to support the governance and economy of the micronation of Liberland. It is built on the Substrate framework, which is also used by the Polkadot blockchain.
Key Tokens
Liberland Dollar (LLD):
— The native currency of the Liberland Blockchain.
— Used for transactions, paying fees, and securing the network.
— Not a stablecoin; its price is determined by market forces.
— Initial supply was 3 million LLD, distributed to Liberland citizens and LLM holders.
Liberland Merit (LLM):
— The governance token representing ownership in Liberland.
— Allows holders to participate in decision-making processes.
— Has a maximum supply of 70 million tokens and is deflationary.
Staking and Governance
PolitiPooling:
— A process where LLM must be staked to participate in governance.
— Only 10% of staked LLM can be unvested each year, promoting long-term commitment.
Staking LLD:
— Required to run validator nodes and secure the network.
— Validators earn rewards in LLD tokens.
Staking LLD
To stake LLD on the Liberland Blockchain, you have two options:
Run a validator node:
— Requires at least 200 LLD to get started.
— Validators are responsible for producing new block candidates and finalizing blocks.
— Validators must be Liberland citizens.
— Validators are selected per epoch based on the size of their stake.
— Misbehaving validators can be “slashed” by the system.
Nominate an existing validator:
— Anyone can become a nominator by staking some LLD.
— Nominators don’t host a node themselves, but stake LLD into a validator’s node.
— Nominators help increase the validator’s chance of being selected.
— Nominators share in the rewards earned by the validator they nominated.
Liquid LLD (LLLD)
When you stake LLD, you receive Liquid LLD (LLLD) tokens in return. LLLD represents a proportional claim on the pool of LLD staked with a particular validator.LLLD tokens are fully liquid and can be traded immediately without unstaking the underlying LLD. This allows you to get in and out of staked positions quickly if needed.To unstake the actual LLD, you must send back your LLLD tokens to the validator component and wait for a cooldown period of about 7 days.
Staking Rewards
Staking rewards come from a maximum coded inflation of 10% per year, which is subject to reduction by governance. The inflation is distributed to validators, nominators, and the government.The purpose of inflation is to incentivize staking and ensure the sustainability of the validator nodes. As adoption increases, transaction fees are expected to eventually cover validator costs, allowing inflation to be reduced to 0% and making LLD slightly deflationary through burn mechanisms.In summary, you can stake LLD by running a validator node or nominating an existing one. Staking rewards come from inflation and are designed to incentivize participation in securing the network. The liquid LLLD tokens allow for flexible staking positions.
Further Reading
White Paper | Liberland Wiki
Polkaswap Polkadot Substrate Bridge from Liberland to SORA to Ethereum.
- You own LLM and LLD and want to bridge LLD to the Ethereum Blockchain and exchange it via Uniswap
- You don’t own LLD and want to buy LLD on Ethereum and bridge it to the Liberland Blockchain
Let us start with the first and more staight forward simple process of exchanging LLD on Liberland to LLD on Ethereum.
If not done already, unpool LLM to Liquid LLM (you need liquid LLD for this process in your wallet, if you have no Liquid LLD, you can scroll down and I will explain how to acquire LLD via ETH and bridge it via Polkaswap to Liberland).
Login to your Liberland account via https://blockchain.liberland.org/ and navigate to Wallet.
Click on PolitiPooled LLM followed by Unpool inside the pop-up:
Once done, navigate to the EXCHANGE tab and chose BUY LLD FOR LLM.
Navigating to Polkaswap, then BRIDGE, you have to connect the Liberland Blockchain and BRIDGE the LLD on Liberland Blockchain to LLD on SORA Mainnet (you will need XOR for that to pay for the fees).
Once you have your LLD on SORA you can BRIDGE from SORA to ETHEREUM mainnet (you need ETH for that to pay for the fees).
Once bridged (you pay XOR first, then ETH to finish the bridge process) you can go to Uniswap and swap the LLD for ETH
You pay fees again in ETH to finish the swap (execute the smart contract on the Ethereum blockchain) and you should see your ETH incoming and your LLD disappearing.
Once done you can just send your ETH to Binance and sell it to any other currency or crypto currency or token.
The same way around you can acquire LLD and swap it to LLM. If you have more than 5000 LLM, you qualify for Citizenship in Liberland.
Please reach out via whatsapp.emin.de if you’ve questions to Liberland or the tutorial above.