Tech Elites Back For‑Profit ‘Network States’ and Experimental Cities

Wealthy tech founders and investors are funding for‑profit cities and “network states” to escape perceived regulatory and political constraints. Prominent figures include Balaji Srinivasan (Network State Conference), Patri Friedman (Pronomos Capital), Peter Thiel, Marc Andreessen, Sam Altman, Brian Armstrong and projects such as Próspera in Honduras and Praxis. Around 120 start‑up societies are in development; some have attracted hundreds of millions in venture and crypto capital. Models range from semi‑autonomous special economic zones and private company‑run cities to pop‑up “micro exits” and month‑long incubator cities. Proponents argue these projects spur investment, jobs and governance innovation; critics warn of elite capture, regulatory arbitrage, legal battles (Próspera is suing Honduras for $11bn) and ethical risks such as regulatory avoidance for medical treatments. Crypto and token economies are often proposed as infrastructural elements, reviving seasteading and decentralised‑currency ideas. For traders, the headline implications are increased institutional and VC funding flowing into crypto‑adjacent projects, continued narrative support for crypto as a tool of governance innovation, and elevated reputational and regulatory scrutiny that could affect token sales and on‑chain projects tied to these initiatives.