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@Gonzohall@ProsperaGlobal@ns I'm not saying integration isn't helpful or even community building. Just that community building isn't necessary and that it should come second to getting a jurisdiction.
Maybe you're right about the talent part, but it still doesn't translate into getting a jurisdiction.
Legal autonomy, the crucial element that everyone keeps getting wrong. What we call 'rights of government': the right to make and enforce laws, and levy taxes, in lieu of the host state.
There are two ways to get it:
1. A charter: what @ProsperaGlobal has—an explicit bundle of rights of government over a defined territory.
2. Cessation of authority: when a government explicitly cedes certain rights of government over a territory, which thereby land in the hands of landowners. Own the land, own the rights of government.
What Praxis and the Network State crowd keep getting wrong: that you can just 'make a deal' with a host government. In reality, these governments have to change their constitutions to make it possible. Charters and cessations of authority are UNCONSTITUTIONAL almost everywhere, and definitely every country worth building a special jurisdiction in.
Changing the constitution requires multiple successive parliaments to vote in favour, often with a supermajority. Many years of political dealmaking and legislative work.
The common attitude is "we'll figure that out later". Well, good luck. Better to drive the legislative process first in a number of countries in parallel, to pave the way for special jurisdictions later. Then, you'll probably find you'll need very little community building if any. The jurisdiction attracts investors who create jobs and the jobs attract people.
Get the jurisdiction first. It takes many years, but otherwise you won't make it.
Heard the unfortunate news about Network School.
I’m not sure moving countries solves the underlying issue. It changes your sovereign dependency but doesn’t remove it, and for Balaji’s vision to come to life, it needs to own everything end to end.
From a software analogy perspective, you need to own the full stack: land, laws, infrastructure, economy, and citizen experience. Otherwise, you’re an app running on someone else’s operating system, and they can change the rules or shut you down.
I get that it’s a chicken and egg problem get users and citizens, build a community temporarily, then reestablish elsewhere once you have momentum. But you’re not competing with typical competitors you’re competing with nation states.
And your users aren’t just dealing with a specific niche problem you’re solving, like shopping or payments. It’s all of it, from things like healthcare to where citizens stay, how they transport themselves, and more.
So if you get too powerful, nation states will cut you off. Getting users acclimated to a new city is also extremely hard and will likely face adverse selection. Founders who want to get to PMF quickly will tap into Silicon Valley, NYC, or other global cities with established network effects.
Praxis showed how hard this is. They built the network and raised capital but still struggled to secure land, legal autonomy, funding, and enough residents to build the actual city.
I do believe in what Balaji is doing, and it is the ultimate fail safe plan. But I think it requires an Elon Musk level, Herculean effort, with large corporate partners or billions of dollars in capital to get it off the ground.
I'm very skeptical of Balaji's approach (which Praxis also has) because:
1. The legal aspect of it makes negotiating futile. Especially when you've already invested a lot in your presence in a country, giving the host country a lot of leverage.
2. Community building isn't and shouldn't be necessary. Most migration happens within countries, and before LIBRE got voted in there were companies taking steps to invest tens of millions into manufacturing in Próspera. Workers would mostly be Hondurans migrating to the ZEDE.
3. Politicians aren't interested in attracting or keeping migrants unless they expect those migrants to vote for them. That's why Europe hasn't made legislation to attract a tech community. The same applies to the network state crowd.
The common reaction from Silicon Valley types is to say "it's worth trying anyway" because the lean startup method is all they use. To a man with only a hammer, everything looks like a nail. But that just doesn't apply here. It's not about trying a bunch of things and finding out. That only leads to a waste of time and money. There's no reason to try anything that you can rule out a priori using sound reasoning.
balaji’s anti-western polycule that produced no economic output, a sex camp established in the great nation of malaysia with the sole purpose of trafficking brown “young adults” for wealthy american tech bros is officially OVER
@graciehartie Plenty of places in Italy, Spain, Eastern Europe, Latin America and Asia that offer low costs and high quality of life with a stronger rule of law. Thailand would be a great place for instance.
End of the line for the Network School project in Malaysia.
In retrospect, fleeing "ethnic cleansing" by Blues from SF to an Islamic country that hates LGBTQ, hates "Zionists", and pushes DEI for Malays at the expense of Chinese and Indians, perhaps wasn't the optimal decision.