A peculiar, technology-driven ideological movement known as the "Network State" is gaining momentum. Advocates of this movement aim to establish privately owned, anarcho-capitalist autonomous cities, akin to urban planning’s version of cryptocurrency. It is reminiscent of a high-tech adaptation of Galt’s Gulch, the utopian libertarian society depicted in Ayn Rand’s Atlas Shrugged, which has long captured the imaginations of affluent technophiles.
One notable development associated with the Network State movement is a proposed new city named "Praxis." Dryden Brown, the 28-year-old founder and CEO spearheading the project, has described the urban development initiative as an effort to "create a more heroic, more interesting place than anything we’ve seen.” While Brown envisions establishing this new city in the Caribbean, he has not disclosed a specific location, and project details remain confidential.
According to a recent report by the Wall Street Journal, the Praxis project has secured $525 million in new funding, with $500 million coming from a crypto investment firm called GEM Digital. This funding is structured as part of a "drawdown financing facility," allowing capital to be dispersed in phases throughout the deal. Under this arrangement, GEM will receive crypto tokens from Praxis, representing a form of ownership in the urban development venture. The release of funds depends on Praxis listing these tokens on a public crypto exchange. Additionally, Praxis has obtained $25 million from financial lender Arch Lending.
Despite the substantial financial resources now accessible to Praxis, the venture remains primarily a concept. Brown, an advocate of Ayn Rand’s philosophies, has openly admitted, as reported by the New York Times, to leaving college, working briefly as a hedge fund analyst before being fired, and subsequently deciding in his mid-twenties to dedicate his life to building a new city. Despite a relatively limited professional track record, Brown has experienced a privileged life involving social gatherings, travel, interactions with affluent circles, and nebulous business deals.
Brown appears suited to the "Network State" movement, which is composed of individuals with ambitious visions that may not be firmly grounded in reality. Among these advocates is Balaji Srinivasan, former chief technology officer of Coinbase, who recently launched a school aimed at educating individuals on the principles of the Network State philosophy. The initiative "California Forever," which seeks to create a privately owned city on expansive Bay Area farmland, has also been associated with the movement.
The "Network State" perspective is intensely focused on cryptocurrency, viewing these speculative digital assets as central to realizing their envisioned high-tech future. This fervent belief is reflected in statements from the Praxis website, emphasizing the importance of integrating crypto infrastructure into society’s core functions, and highlighting the potential of large communities in Network States using blockchain technology for payments, contracts, identity, communications, and physical infrastructure. Such doctrines reflect a unique brand of political fervor.
The movement might seem amusing if not for the substantial financial resources backing it, which have begun to influence the U.S. political system. The crypto industry has infused significant funds into the current election cycle, contributing nearly half of the total corporate expenditure on political action committees. This financial influence aims to support the U.S. presidential election, with a substantial amount directed towards favored candidates like Donald Trump, while also targeting political adversaries, primarily Democrats, though efforts are gradually extending to other political factions.
