Investing in the Future States: We Are at the Beginning of a Transitional Period
When I first met Viktor Diordiiev in September 2023, he was returning from TOKEN2049 in Singapore, buzzing with excitement. "People were crowding to get seats, there weren't enough," he recounted of Balaji Srinivasan's side event. "The atmosphere was like Bitcoin in 2016." Since then, we've frequently caught up, exchanging updates and even collaborating on an event during Berlin Blockchain Week. So it felt natural to interview him about his vision for the future state, the idea of network states, and where his perspective diverges from Balaji's.
The Vision for Network States
While investments in the network state domain represent a confluence of financial interests and ideology, Diordiiev definitely has reservations about the current framing. "I'm not a 100% fan of the concept as it exists," he remarked, pointing, for example, to the entrenched notion of having a singular "founder" as potentially too domineering. This establishes a dominant hierarchy and logic of interactions that could be difficult to overturn. Praising absence of a central figure thanks to the anonymity of Satoshi in the Bitcoin ecosystem, Diordiiev wondered whether network states might inadvertently recreate power structures antithetical to their decentralized ethos.
Yet, the broader movement kindles strong optimism in him: "We are somewhere at the beginning of the transitional period from the nation-states as we know them now to some next formation," he mused, envisioning a 20-year investment horizon. But much is already emerging.
The Prospera Experiment
One of Diordiiev's key investments is in Prospera, an ambitious attempt to create a new governance model on the island of Roatán, Honduras. He has invested in both the operational company acting as a "private government" and the real estate prospects, which have multiplied in value.
Among Prospera's advantages, he cited its location, time zone alignment with the Americas enabling direct flights, a pleasant climate with minimal temperature variation throughout the year, and – crucially – a legal framework that has helped Prospera safeguard its investments against pushback from the local government. The agreement between Honduras Próspera Inc. and the Government of Honduras includes claims against the state for violations of international and Honduran law, with compensation sought up to $10.775 billion.
But we're discussing a decades-long horizon here. Technologies, moral norms, and legal frameworks will continue evolving. The current iteration of the French Republic – the Fifth Republic – was only established recently, on October 4, 1958. The present versions of products aiming to reshape governance will likewise be refined over time. Interestingly, the gap between GDP per capita in the U.S. and Honduras stands at a staggering 25-fold difference – $81,695 and $3,247, respectively, according to World Bank Open Data. It's a contrast akin to that between humans and extraterrestrials. Ensuring the local population feels the benefits of this integration process is paramount. Cultural and economic integration will be crucial, and observing this unfold will be fascinating.
"Success always needs an element of luck," Diordiiev noted.
Viktor's vision for network states highlights both opportunities and challenges. His investments, like Prospera, showcase a move towards innovative governance. The success of network states will depend on their ability to genuinely benefit local communities. The next twenty years will be crucial in seeing how these ideas evolve.