Tech elites turn to "network states" as new frontier

A Financial Times long-read details the rapid rise of “network states” — experimental, semi-autonomous cities and communities backed by Silicon Valley founders and billionaires seeking alternatives to traditional governance.

In early October,Balaji Srinivasan addressed hundreds of tech workers in Singapore, proclaiming, “I think it’s fair to say, in 2025, we have a movement.”

His Network State Conference pitched the idea of building new societies by turning online communities into physical settlements funded like start-ups. What was fringe has become a serious venture: about 120 such “start-up societies” are now in the works, some backed by investors such as Peter Thiel, Marc Andreessen, Sam Altman and Coinbase’s Brian Armstrong.

Srinivasan himself has created a “Network School” on an artificial island near Singapore, where members pay $1,500 a month for what he calls “society-as-a-service.”

Supporters, the FT notes, see these projects as escapes from what they view as stagnation and dysfunction in the US. Replit CEO Amjad Masad says, “It’s young people being dissatisfied with stagnation, corruption and isolation.”

Critics, however, see them as elitist or even authoritarian. Academic Olivier Jutel calls the movement an “elite victim complex,” asking, “Can you imagine being that rich and that miserable?”

A leading figure profiled by the FT is Patri Friedman, founder of Pronomos Capital and grandson of Milton Friedman. He seeks to build privately run cities where operators “design the laws and they earn revenue through some combination of rents, taxes, service fees.” To make this possible, he asks governments — increasingly in the Global South — to delegate regulatory authority.

“The product market fit today, for what I do, I strongly believe is helping the global south to become first-world,” he says.

The FT identifies Próspera in Honduras as the most advanced example: a gated, semi-autonomous zone with low taxes, its own labour rules and arbitration courts. Founder Erick Brimen calls it “an evolved way to drive socio-economic development,” citing thousands of jobs and more than $150mn in foreign investment. Yet its legal foundation is contested.

Honduras’ government has tried to revoke its special status, prompting Próspera to sue for $11 billion. Analysts quoted by the FT warn this is “a predatory project in a weak state” and a cautionary tale for governments considering similar autonomy zones.

Not all projects aim for full independence. The FT highlights “pop-up cities,” like Edge City’s month-long Patagonia gathering, and renewed interest in “charter cities,” which even appeared in Donald Trump’s campaign promises.

One of the most flamboyant ventures, Praxis — backed by figures including Sam Altman, Pronomos and the Winklevoss twins — has attracted 150,000 prospective citizens. Founder Dryden Brown says the group plans a “defence-focused spaceport city” called Atlas at Vandenberg Space Force Base, and warns of a future in which a “techie escape from America” might be needed.

The FT stresses that many initiatives fail to materialise and face resistance from local communities. Patri Friedman acknowledges the tensions but is direct about the movement’s philosophy: “I mean, we are funding companies that will operate non-democratic cities. And if you’re not into that you shouldn’t move there.”

By Sabina Mammadli