Foreword to the Second Edition

"In theory, theory and practice are the same. In practice, they are not." Prof. Einstein

In the first edition of The Network State, we predicted that the next great country would be born not in the aftermath of war or revolution, but on the internet. And as soon as the book shipped, history accelerated. New technologies landed. Markets and governments reacted. Suddenly, "network state" wasn't just a meme; it was a movement.

And here's the outcome: the book, by and large, was proven right. The fundamental ideas thrived, sparked action, and gave a generation of builders a language and a direction.

Today, "network state" is like "blockchain" - a word bigger than its origin, debated, referenced, attacked, defended, and copied across every corner of the internet, from crypto Twitter to mainstream media. It's embedded in thousands - perhaps tens of thousands - of reviews, blog posts and tweets.

Fig - dashboard snapshot As of [DATE], our live Network State Dashboard ([URL]) tracks [XXX+] startup societies, with [Y,000+] members, and more than [Z,000+] references.

The network state has become a playbook for a new world, where anyone, anywhere, can assemble a society in the cloud, then realize it on land. If AI is about building a new god, crypto is about building new states, and the network state is its apotheosis. What was once radical is now simply what's next.

We tested the thesis

In the second edition, we're not merely doubling down on theory. Over the last few years, we actually shipped the product, built the campus, and saw what works. We:

• Launched the Network School: A frontier campus for techno-optimists, builders, and founders.
• Seeded 100+ startup societies: Not just online groups, but real communities with feet on the ground and eyes on the future.
• Held annual Network State conferences in 2022, 2023, 2024, and now 2025 - gathering the founders, funders, and finders from across the globe to share lessons and forge alliances.

The state of the network is strong. With every new society founded, every pop-up launched, and every skeptic converted, the network becomes more tangible and resilient.

But some lessons only become obvious by doing - by building, by shipping, by learning from the world's reaction. This is why we decided that it is time to release a second edition, updated and expanded, starting with the following ten practical lessons.

1. The Network State is Real Estate

Just as the interface between crypto and fiat defined Coinbase, the interface between cloud and land defines the network state. Aspiring network state founders must master not only online community, but also the logistics of real estate.

Not every patch of land is equally suited for reinvention. Take downtown Manhattan: ossified by bureaucracy and entrenched interests, it's the worst possible place to build something new. In such legacy cities, even minor changes are stymied by gridlock, regulations, and residents resistant to new ideas. The cost of editability is simply too high.

At the other extreme lie seasteads and abandoned islands - pure blank slates, free from bureaucracy. But here the obstacle is the opposite: infrastructure. Before a single resident can move in, you need power lines, water, transportation, even basic shelter. The blankest slates demand the heaviest lifts.

Distressed real estate is the right canvas. Abandoned towns, empty hotels, depopulating villages: these places are affordable, editable, and ready for reinvention. In the wake of the upcoming sovereign debt crisis, there will be plenty of opportunities for a new wave of founders.

Fig: map or headlines with abandoned American towns, €1 houses in rural Europe, empty Japanese villages-all made accessible by remote work and Starlink arbitrage.

2. Start With a Pop-Up

Don't try to build Rome on day one. Begin with a pop-up - a temporary gathering that tests whether your online community can materialize offline. Hotels and resorts are great launchpads: they're flexible, available, and a low commitment. Zuzalu proved this model, bringing hundreds together for months. If you can do that, you have the beginnings of something real. If you can't, you need to go back to the drawing board.

Fig: The Zuzalu experiment Fig: the 2013 "cloud formations taking physical shape" chart coming alive.

3. Your First Permanent Location Is Your Destiny

Pop-ups are your prototypes - low-commitment ways to test if your online community can survive offline. But the moment you establish your first year-round, permanent site, you set the direction for everything that follows. Geography becomes destiny: visas, travel costs, local regulations, even cultural rhythms start to shape your project and your people.

If you run several pop-ups in Europe, chances are your community's DNA is already becoming European - your first long-term base will almost certainly end up there, shaped by who can show up, who can stay, and what's possible on the ground. Deliberately choose for "fit", not prestige. Once you go permanent, you're building not just an institution, but a future - one that will be shaped by everything from airport access to the local language.

4. Government, Patriots, Tourists

Every durable network state has three roles:

• Government: The core team, holding the keys and setting direction.
• Patriots: Committed long-termers, the ones with skin in the game.
• Tourists: The curious, the visitors, the short-term energy.

Governments build the rails, tourists keep things lively, but only patriots make a network state endure.

5. Go Long on Long-Termers

Anyone can fill a room for a weekend, but true stability comes from those who commit for the long haul. Long-termers - the patriots of your network state - are the ones who choose to invest not just their money or enthusiasm, but years of their lives. They shape and steward the community through its earliest, most fragile phases. Think of them as your holders: they weather the storms, adapt to setbacks, and invest sweat equity in the project's growth.

A society built on tourists and short-term visitors is just a well-decorated hotel; a society of long-termers is a nation in the making. The real measure of progress isn't just headcount or media buzz; it's how many choose to stay, year after year. If you want your network state to last, optimize for long-termers above all else.

Fig: [Pie chart - Ideal share of patriots versus government and tourists in successful network societies.]

6. Frontier, Not Fancy

Startup societies are rough around the edges, not polished resorts. This is the "Wild 90s" of the post-Soviet world, or Silicon Valley's garage days - messy, chaotic, but full of opportunity. You are optimizing for editability, not comfort. Sacrifice luxury now for a radically better future later. Most people can't handle this, but the ones who do get all the upside.

Fig: [Exponential chart with NY sloping down and NS going exponential]

7. 100% Democracy, Not 51% Democracy

Legacy states run on 51% democracy - majority rules, minority loses, and the tyranny of 51% often stifles progress and creates division. In a network state, everyone is there by choice - triple opt-in: they vote with their feet (choosing to join), their wallet (investing and supporting), and their ballot (participating in decisions).

This is democracy by consent, not coercion. Techno-democracy is true democracy.

Fig: [Outcome of Starbase Texas vote; rate of voluntary alignment in new network societies.]

8. Bridge to the Real World via Distressed Real Estate

The world is full of launchpads for network societies, if you know where to look. Distressed real estate is not just cheap, it's editable and underutilized - with infrastructure (power, roads) already in place.

The world is full of abandoned towns, villages, and hotels. Thanks to Starlink and remote work, they can now be rebooted.

Fig: Headline(s) with abandoned American towns, villages in Europe or Japan emptied by demographic decline, unused resorts now viable thanks to Starlink and remote work.

9. Society as a Service - and the Subscription State

Network states work because they borrow from software: modular, subscription-based, opt-in, and easy to upgrade or exit. This isn't just about technology; it's a response to how daily life has changed.

Forty years ago, routines were linear and local - the same commute, the same TV, the same physical routines. Today, life is modular and global: we wake up to notifications from around the world, start work online, order Ubers, meet at gyms or cafés by default, and communicate at the speed of light. The physical world hasn't caught up to these new rhythms - cities and communities are still built for a 1980s commute, not for cloud-first living.

That's why Society as a Service makes sense now: housing, coworking, gyms, and more - delivered as a package, subscription-based, with property secured by digital keys. Membership is opt-in and recurring; if you stop paying, you lose access, but you're never coerced at gunpoint.

The future of governance is opt-in, peaceful, and as scalable as the cloud.

10. Startup Societies are Upstream of All Other Tech Ambitions

Why does this project matter now? Because the network state is directly upstream of every other ambitious technology. Elon Musk can't get to Mars without FAA permission. Sam Altman can't build AGI without chips and a friendly jurisdiction. Bryan Johnson can't test new medicines without FDA approval. Before we fix longevity, build AGI, or reach Mars, we need new governance - not just new software.

Fig: Headline(s) showing ridiculous bureaucratic obstacles? Or simply links?

Founding the Future

This is urgent: the sovereign debt crisis approaches, and the old institutions cannot save themselves. This book is not about naive optimism. This is Nietzschean realism and determination. The road ahead will be rough. But we have a playbook, not just a pitch.

To the founders, funders, and finders: it's time. The cloud is ready. The land is available. The future is up for grabs. Let's move from meme to movement, from cloud to land, from theory to practice. Let's found the future.