That makes sense! It's basically a small town that has retained some form of soverignity since the Roman era.
Are you from San Marino by chance? It seems like such a cool and wonky political system, and would love to learn more!
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I'm italiano not Sammarinese, but we know a lot about them as we speak the same language! Its mostly known for its past as a tax haven, still is with some accounting tricks (like trust funds that can end paying 1.7% on income) and its various ways in which avoided being annexed by other countries, like refusing a land gift from Napoleon (Rimini) to not end up being drawn in his conflicts and end up annexed