An unusual ideological movement driven by technology is gathering momentum, focused on the creation of privately owned, anarcho-capitalist cities known as "Network States." These proposed urban environments are analogous to the world of cryptocurrency, described as a high-tech iteration of Ayn Rand’s Galt’s Gulch from Atlas Shrugged, long desired by affluent technophiles.
Among the noteworthy initiatives associated with the Network State concept is the proposed establishment of a city called "Praxis." Dryden Brown, the 28-year-old founder and CEO leading this project, recently announced that the urban development aims to create a "more heroic, more interesting place than anything we’ve seen." Brown has plans to situate this new city in the Caribbean, although specific details and the precise location remain undisclosed.
Recently, the Wall Street Journal reported that the Praxis project secured $525 million in new funding, with a significant portion—$500 million—originating from a cryptocurrency investment firm known as GEM Digital. This funding is structured as a "drawdown financing facility," a type of loan facilitating capital distribution at various intervals during the transaction. As part of the agreement, GEM Digital will receive crypto tokens from Praxis, signifying a potential ownership stake in the urban development. Moreover, the release of funds is contingent upon Praxis listing these crypto tokens on a public exchange. Additionally, Praxis obtained another $25 million from the financial lender Arch Lending.
Despite accessing substantial funding, Praxis is still primarily an embryonic concept driven by Brown, who is described as an admirer of Ayn Rand. According to coverage by the New York Times, Brown left college, briefly worked as a hedge fund analyst before being dismissed, and subsequently embarked on this visionary endeavor. Although his achievements are limited, Brown appears to have lived a life filled with luxury, travel, and interactions with influential individuals.
This background makes Brown a compatible participant in the Network State movement, which attracts individuals with grand ambitions yet seemingly detached from practical constraints. Balaji Srinivasan, another proponent of the movement and former CTO of Coinbase, has even launched an educational institution focused on the Network State philosophy. Furthermore, efforts such as "California Forever," aimed at establishing a private city on Bay Area farmland, have also been linked to this movement.
The Network State ideology is heavily intertwined with cryptocurrency, viewing digital assets as pivotal to the envisioned high-tech future. These fervent beliefs are evident in statements from the Praxis website, which discuss integrating cryptocurrency infrastructures into societal functions and utilizing on-chain infrastructure for community operations.
While the movement’s goals might appear humorous, the financial influence of its supporters is substantial, with notable implications for the U.S. political landscape. The crypto industry has invested significantly in this election cycle, comprising nearly half of the total corporate contributions to political action committees. This financial leverage has been directed toward influencing the U.S. presidential election and targeting political adversaries, primarily Democrats, although there is a trend towards bipartisan outreach.