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People who are smarter than you and I are reinventing how we look at borders worldwide. We now live in a world that is increasingly digital, The majority of us are spending more than half our days responding to emails, texting loved ones, interacting with our favorite communities, or playing a game with people who may be on the other side of the planet. Face it, the world has completely changed.
It is not a surprise to crypto natives that the idea of a Network State could exist but everyone outside of our bubble has no idea about any of the things that are happening in this space. Just the other day, the UAE bought premium real estate from Eygpt (source) and our good friend Balaji (Author of The Network State) went online to shout that this idea of the Network State is coming, and it coming fast.
How fast? Personally, I think it is further than most will claim but with the zero-to-one nature of technology, it could be way sooner. The idea of “fast” in my head would mean 3-5 years but even that timeline seems unreasonable. People are creatures of habit that hate change, the idea of changing the way people see the world from nation-states to network states if no small feat and in my eyes shifts the way the world operates.
What is a Network State?
Let’s rewind a bit and start to dissect the idea of a Network State. Crypto natives for the most part would have a decent understanding of this idea but to say the masses do, would be a stretch.
The idea of a Network State redefines what we call a state. A Network State is formed when an online community of people pool capital together and decide to purchase land or real estate in the physical world.
The purchases of land and large amounts of physical real estate will grow to a size where it eventually gains diplomatic recognition. Borders would be reimagined and this community of people would be brought together under a united mission statement much like a company or what the United States of America used to feel like.
It is no secret, that the southern border of the United States is being flooded with people escaping war-torn areas to flock here but what are the second-order effects of something like this happening? Here is my guess:
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More Violence and safety concerns with the general population
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Increased aggression towards other people and a growing distrust in the system as a whole
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More people on the streets
Let’s say we are right here and the three things listed above do happen, what do normal people who want to live normal lives do? Do they just tuck away into their home and never come outside? Maybe they say screw this and fight back. Or maybe the idea of creating new environments, fostered around shared values starts to gain serious traction and collectively people start to adopt the idea of a Network State much faster than everyone originally anticipated.
This Idea Was Predicted in 1999
The best book I have ever read in the recent past has been The Sovereign Individual. This book was how I got introduced to the concept of Network States in the first place but at the time I was reading it I thought “This idea makes no sense why would anyone do this?” As of lately, with the way the United States is handling its situation and having the UAE expanding into new areas, the likelihood that a highly aligned online community group together to buy property in the physical world does not seem too farfetched.
Can Web3 Build New Countries?
The short answer to this is yes, and people are already out there doing this. Want to see a complete list of network states that are being built? Here you go (source).
Digital First, Physical Second
Online communities are powerful. Probably more powerful than people think. They can completely reshape the way we see the world. Just look at Wall Street Bets, this “simple little digital community” completely put Wall Street in a frenzy back in 2021 and has been labeled a “risk to share price” by Reddit who plans on doing an IPO soon(source).
The whole situation was so crazy they went and made a movie about it.
One of these days, someone will crack the code and the startup society thesis will begin to gain national consciousness.
Theopetra
Theopetra is a system that uses a truly decentralized approach, via a network of verified individuals called citizens. Theopetra not only makes it easier for communities to obtain the real estate they need, but it also does so while maintaining web3’s value of trustlessness.
The introduction of Bitcoin heralded a new era in human organization, extending beyond traditional nation-state boundaries and into digital realms. This evolution suggests a move towards tangible, physical domains, reshaping resource control and societal structures.
In this context, Theopetra is developing a Network State where only citizens collectively & equally own both the financial infrastructure of a nation and the real estate it encompasses. This model fosters decentralization and predictability, elements currently lacking in the Web3 sphere.
Rethinking the Future of Nations
A crucial aspect of Theopetra’s design is the involvement of verified individual citizens and real-world assets. The objective is to create a self-sustaining currency based on residential real estate, while ensuring equal ownership among all citizens. This system is designed to prevent any single individual or corporation from dominating the currency or real estate sectors.
Members of a network state collaborate much like teams or guilds in an online game, but beyond playing, they govern the community, decide on rules, and interact using digital platforms. These communities are not just theoretical; they actively crowd-fund to acquire real-world territory and land, establishing a tangible presence and assets that they collectively manage.
Within a network state, the economy operates on a unique currency created and used by the community, independent of traditional financial systems. Governance is often managed through smart contracts, allowing for transparent and democratic decision-making.
Network states complement existing nation states and the rapid growth and evolution of these digital communities will catalyze nation states’ economic development.
Stages to Establishing a Network State
Theopetra stands as a ‘forever hold’ Network State, emphasizing sustainable, long-term asset management over transient speculative activities. Its strategic acquisition and perpetual maintenance of a portfolio of residential real estate—including standard affordable housing units and more compact studios.
Theopetra will also use citizen revenue to purchase raw land across the United States. This approach is not only in harmony with Theopetra’s broader community and national interests but also contributes to the economic stability of its host nation.
The New Tokenomics is Nation Formation
Being an early founder in a Network State is no easy task. Fundamentally you have to think as though the founding fathers did. With no real new land to discover, we have to “venture west” into the world of the internet and think from a first principles standpoint to collectively move this asset class forward. Personally, this will more than likely be a market where a winner takes the majority of the market share. Winner-take-all all is unlikely but the founders that can create a constitution that can inspire and serve the smartest and brightest people will win.
You can find a complete dashboard of all the communities trying to tackle the Network State Thesis on the website thenetworkstate.com/dashboard.
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