A growing cohort of crypto-wealthy founders and investors have decided that democracy, as a governance technology, is due for an upgrade. Their proposed replacement: sovereign entities built on blockchain rails, funded by venture capital, and governed by token holders rather than elected officials.

The network state playbook

The intellectual backbone of this movement traces to Balaji Srinivasan, the former Coinbase CTO and general partner at Andreessen Horowitz, who published “The Network State: How to Start a Country” in 2022. His thesis is straightforward, if ambitious: online communities that share values and pool capital can eventually acquire land and negotiate for diplomatic recognition, effectively…