The Presentation by Jur founder Alessandro Palombo, provides an overview of the concept of state and nation, their history, the context in which they arose, and how the internet has changed that context, followed by an explanation of the concept of the Network State with examples of possible Network States.

1. The Network State
Primer
Alessandro Palombo, Jur [ @0x_ale ]
November 28th, 2022
Lisbon
jur.io
The Network State Foundation

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Contents
The Network State Foundation
● States, Nations, and the Internet
● The Network State Primer
● A Network State Example
● Conclusive Notes

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I. States, Nations, and the Internet
The Network State Foundation

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A State is a form of human organization comprised of four essential elements:
States & Nations
The Network State Foundation
Territory
A determined
territory bound by
borders;
Population
A group of people
residing in a determined
territory permanently;
Government
An apparatus of sovereignty
with power of command over
people within a territory;
Doesn't require the
consent of any superior
authority.
Sovereignty

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Nations are a large body of people united by common descent, history, culture, or
language, usually inhabiting a particular territory.
A Nation-State is a homogenous nation governed by its own sovereign State; each
State contains one nation.
Rarely do Nation-States, in their proper meaning, come into existence.

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Gutenberg's printing press played a central role in
the birth of modern Nation-States. In 1440, the
Gutenberg printing press enabled vast
populations across expansive territories to
develop a common sense of culture.
Mass vernacular newspapers laid the basis for the
nation as a result of their readership sharing a
collective experience of the news, irrespective of
physical proximity or social status.
Technological Innovation
Created the Foundations for
Nation-States

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Many democratic Republics approved their Constitution in the
mid XX century.
Nation States Are Relatively Young
The concept of sovereign states emerged in 1648 with
the Treaty of Westphalia enacting the principles of non
interference and equality, irrespective of size.
The first Nation-State, arguably, was France in 1789 as
the first State that explicitly claimed legitimacy on the
basis of the nation.

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The Internet produced digital-native communities (Discord
Servers, Reddits, etc.), a global borderless commerce, and even
new vernacular languages (MEMEs) . People can interact, do
business, own assets independently from national borders and
sometimes independently from statal protection.
Source Statista Overall cryptocurrency market
capitalization per week from July 2010 to November 2022
1990-2020
Internet → Online communities, Borderless
Commerce, Globalized Economy
Web3 → Stateless Asset Management Layer
Technological Innovation Redefined
the Scene Again: the Internet and
Web3

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This is what could be described as a Copernican Revolution of the
dynamic between the digital and physical worlds. The digital world is
becoming the main realm where our consciousness is formed,
relationships are built, culture is made, and scarce resources are
managed. Minting tokens online was only the first step.

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New Companies, New
Communities, New
Currencies
New companies created in a garage
expanded to billions of users worldwide;
new communities and currencies are
doing the same.
States are a relatively new concept–
about 200 years old. There is no
particular reason that this field is an
exception to the rule of innovation.
Why not New Countries?
New Companies
Google 1998
New Communities
Facebook 2004
New Currencies
Bitcoin 2008
New Countries?
Network States
[ Slide borrowed by a Balaji's presentation. ]

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II. The Network State Primer

12. What is a Network State?
jur.io

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A Network State is a State operating by an on-chain social
contract which is founded without territorial boundaries.
The relationship between Government and Citizens is on-chain. Key organizational aspects of the State are
built on trustless technologies.

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Why It Matters
Bitcoin demonstrated how stateless management of finances was possible;
similarly, Network States are a stateless management of community coordination
and purpose.
The Network State Foundation
Immediate rights
exercised for
citizens
Truthful vs trustable
States
Easy opt-in and
opt-out from
States
Can't be evil, instead
of don't be evil - for
States

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A Network State will be a spectrum of concepts: some will aim to become
real countries, others new forms of purpose-driven communities
organized for peaceful action.
The inclusion of territory is secondary to the shared values of the digital
collective, and isn’t necessary for collective action or coordination.

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In July 4th 2022, Balaji Srinivasan
published "The Network State," a
book identifying an actionable path
for creating new forms of human
organization.
What Is a Network State
for Balaji?
A Network State is:
a highly aligned online community
a capacity for collective action
crowdfunds territory around the world
eventually gains diplomatic recognition
from pre-existing states.
with
that
and

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The Network State Definition [According to Balaji]
A Network State is:
a social network with a:
● moral innovation
● sense of national consciousness
● recognized founder
a capacity for collective action with:
● in-person level of civility
● integrate cryptocurrency
● consensual government limited by a
social smart contract
an archipelago of:
● crowdfund physical territories
● virtual capital
an on-chain census that proves:
● a large enough population
● income
● real-estate footprint
● to attain diplomatic recognition
1
2
3
4

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How to Create a Network State [According to Balaji]?
7 steps to the Network State:
1. Found a startup society.
2. Organize it into a group capable of collective action.
3. Build trust offline & a crypto economy online.
4. Crowdfund physical nodes.
5. Digitally connect physical communities.
6. Conduct an on-chain census.
7. Gain diplomatic recognition.
"Startup Society"
"Network Union"
"Network Archipelago"
"Network State"

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Network States Might Look Like This

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Network States and DAOs Are Inherently Different
A Network State is a Web3 based organization with common values and culture with population +1 million.
DAOs are token-based, focused on collective asset management, based on decentralized decision-making.
Network States are values-based, potentially centralized (generally 1-member 1 vote). Their evolutionary path will be
different:
DAO Network State
Voting Token-Based Member-Based
Governance Collective voting Potentially centralized (government model
defined by citizens)
Main purpose Collective management of assets Collective management of civic life
Ideal size 1000 people 1M people
Adjacent non Web3 concepts Clubs, LTDs, Associations, Foundations States, Nations, Countries, Global NGOs

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Nation-States and Network States Are Complementary
The Internet didn't kill the "traditional economy," rather it pushed the economy into a new
dimension. Similarly, new forms of human organizations are inevitable.
Special Economic Zones (SEZ) are the analogic version of
Network States
SEZ is an area in which the business and trade laws are different from
the rest of the country. SEZs are located within a country's national
borders, and their aims include increasing trade balance, employment,
increased investment, job creation and effective administration. To
encourage businesses to set up in the zone, financial policies are
introduced. These policies typically encompass investing, taxation,
trading, quotas, customs, and labour regulations.

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The Network State
Docs
Network State Wiki Network State Revolution

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III. An Example of Network State

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There Will Be Infinite Visions of Network States
An Example of Network State
● Ideologic Network States
🌱 Vegan Country: “Non Vegan Products Are Not Allowed Here”
● Global Collective Action Networks
🌎 Climate Change Network Union: “Tackling a Global Problem With a Global Solution”
● Non Ideologic Network States
💻 Network State for Digital Nomads: "Digital Nomads, United."
● [...]

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Non-ideologic Digital Nomad
Republic
An Example of Network State
● Population Target: 35 million+
● Value Proposition: Servicing digital
nomads around the world
● Issue: living across countries is a
bureaucratic nightmare!
● 85k/Y average salary per digital
nomad
[ Data from nomadlist.com ]

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Non-ideologic Digital Nomad
Republic
An Example of Network State
[ Data from nomadlist.com ]
● Where are digital nomads coming
from?

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With a 15% penetration of the target
market, we get about 5.25M population.
That would be smaller than Norway and
larger than Ireland.
15% Penetration
Market
5.25M population
Non-ideologic Digital Nomad Republic
An Example of Network State

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$1.3B Annual Revenue
5.25M * $250 membership fee would be equal to $1.3B per year as base
revenue. Part of this income would cover administrative fees, including the
hosting jurisdiction.
Non-ideologic Digital Nomad Republic
An Example of Network State

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IV. Jur

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Why Jur
● Peaceful competition between different Startup Societies and models will produce a 0 to 1, for
states.
● There is nothing more important than improving the Public sphere, aiming to generate
transformative improvement for billions of citizens around the world.
● TAM for Network States: Public Governments expenditure, equal at least to 25%+ worldwide
GDP

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We are building the system for letting the next 10.000 founders to
create new societal models fast, experiment and grow.
Jur is the agnostic, composable, multi-level infrastructure for
societies, countries, and network states. As a substrate-based chain,
Jur consists of a series of composable modules to provide advanced
Web3 governance systems, while creating the ultimate trustless
coordination layer
Interoperability
Brings passports, reputation
and digital assets across
multiple States
Create New States Easily
Nesting
More power and autonomy
for your State in just a few
clicks, instead of years of
development and expensive
investments.
Mirroring
Connect assets and people
from offline jurisdictions
with States and vice versa.
Scalability
A series of composable
modules ready to be used by
anyone.

32. Towards to a 1-Click Country Ecosystem
jur.io
Releasing soon: Ethos Testnet, Mainnet, NS Stack, and a dApp
Jur's Network State Stack allows
founders to create easily Web3
societies, defining their Ethos,
coordinating and evolving into
Nations and then into States.

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Network State Stack
Reputation Government Identity Citizenship Recognition
Finance Judicial Assets Services Territory

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www.jur.io @0x_ale www.ale.so