Do you look at the possibility of political turbulence ahead of November’s US presidential election and think: democracy could be in trouble? So does a group of tech entrepreneurs backed by big Silicon Valley money. And they love it.
Imagine if you could choose your citizenship the same way you choose your gym membership. That’s a vision of the not-too-distant future put forward by Balaji Srinivasan. Balaji – who, like Madonna, is mostly just known by his first name – is a rockstar in the world of crypto. A serial tech entrepreneur and venture capitalist who believes that pretty much everything governments currently do, tech can do better.
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Silicon Valley loves “disruption”. Tech startups have been disrupting traditional media for years; now they are making inroads into other areas too: education, finance, space travel. “Imagine a thousand different startups, each of them replacing a different legacy institution,” Balaji told the audience. “They exist alongside the establishment in parallel, they’re pulling away users, they’re gaining strength, until they become the new thing.”
If startups could replace all these different institutions, Balaji reasoned, they could replace countries too. He calls his idea the “network state”: startup nations. Here’s how it would work: communities form – on the internet initially – around a set of shared interests or values. Then they acquire land, becoming physical “countries” with their own laws. These would exist alongside existing nation states, and eventually, replace them altogether.
You would choose your nationality like you choose your broadband provider. You would become a citizen of the franchised cyber statelet of your choice.
There is nothing new about corporations having undue influence in the affairs of nation states. The term “banana republic” derives from the fact that a US company, United Fruit, effectively ruled Guatemala for decades beginning in the 1930s. Apart from owning the majority of the land, they ran the railways, the postal service, the telegraph. When the Guatemalan government tried to push back, the CIA helped United Fruit out by instigating a coup.
But the network state movement appears to have greater ambitions still. It doesn’t just want pliant existing governments so that companies can run their own affairs. It wants to replace governments with companies.
It’s a long piece (his Coming Storm is worth a listen too) but keeps getting worse:
At some point during the day-long pitching session in Amsterdam, a young man in a grey hoodie slouched on stage. His name was Dryden Brown. He said he wanted to build a new city-state, somewhere on the Mediterranean coast. It would be governed not by a giant state bureaucracy, but on the blockchain, the technology underlying cryptocurrency. Its founding principles would be ideas of “vitality” and “heroic virtue”. He called it Praxis, the Ancient Greek word for “action”. The first citizens of this new nation, he said, would be able to move in in 2026.
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For now, though, the “Praxis community” exists mainly on the internet. There is a website where you can apply for citizenship. Who, exactly, these citizens are, is unclear. Dryden flashed up another slide with his remote. It was a Pepe meme: the sad-looking cartoon frog that became an “alt-right” mascot during the Trump campaign in 2016.
In this niche world of startup nations, Praxis had a reputation for edginess. They hosted legendary parties: people spoke of candle-lit soirees in giant Manhattan loft spaces, where awkward computer coders mixed with hipster models and figures from the “Dark Enlightenment” – people like the blogger Curtis Yarvin, who advocates a totalitarian future in which the world is ruled by corporate “monarchs”. His ideas are sometimes described as fascist, something he denies.
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The place was almost empty, with a few Praxis people laying out copies of their magazine around the bar. I flicked through it: expensive, heavy paper; lots of advertisements for seemingly random things: perfume; 3D-printed guns; one for just… milk. Like Pepe the Frog, milk is an internet meme. In “alt-right” circles, posting an icon of a white milk bottle signals white supremacy.
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Azi said he was excited to be “on the precipice of what I think is the next renaissance”. But before this renaissance, he predicted a “Luddite movement” against new technology that would destroy millions of jobs and monopolise the global economy. The Luddites would fail, Azi said. Yet he predicted that the transition period to what he called the “next stage” of human societal evolution – the “network state” stage – would be violent and “Darwinistic”.
Far from being perturbed by this prospect, Azi seemed excited at the thought that out of the smouldering ashes of democracy, new kings would emerge: corporate dictators ruling over their networked empires.
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At this point in the film, the screen shows an animated figure pointing a pistol straight at the viewer.
“Contemporary media proclaims that having any ideals is fascist,” the voice continues. “Everything of conviction is fascist.”
Was it an invitation to embrace the label of fascism? This movement seemed to yearn for a specific conception of Western culture - a Nietzschean world in which the fittest survive, where disruption and chaos give birth to greatness.
“Let’s try setting up our own fascist state?”
“It’s been tried and they get a bit genocidey.”
“But has it been tried with blockchain?”
“I’m listening…”
