Crypto Billionaires Build 'Network States', A New Kind of Nation?

The crypto-rich are attempting to create new nations, but they're doing it without asking for anyone's vote. Instead of relying on traditional democratic governance, a growing group of founders and investors is exploring the concept of 'network states', sovereign entities built on blockchain rails and funded by venture capital.

At the heart of this movement is Balaji Srinivasan, former Coinbase CTO and partner at Andreessen Horowitz. In his 2022 book 'The Network State: How to Start a Country,' Srinivasan argues that online communities sharing values and pooling capital can eventually acquire land and negotiate for diplomatic recognition.

Srinivasan points to Bitcoin and Ethereum as proof of concept, suggesting that decentralized networks can coordinate trillions in value without central authority. This idea has inspired several projects, including Praxis, a Mediterranean city-state designed for 10,000 residents, governed through blockchain-based systems.

Liberland, the self-declared micronation occupying a disputed strip of land between Croatia and Serbia, holds 99% of its reserves in Bitcoin and issues two native tokens. TRON founder Justin Sun was elected prime minister of Liberland in October 2024 through a blockchain-based voting process.