Free Cities Conference 2026, Day 2

Following the pattern of the previous post, I am posting the main theses of the second day of the Free Cities Conference 2026.

1. Seasteading Panel

  • Speakers: Joe Quirk (moderator), O’Shane Balloon, Jorge Schmidt (maritime lawyers), Chad and Nadia Elwartowski (the first seasteaders).
  • Topic: Legal realities, obtaining flags, and seasteading security in international waters.
  • Key points:
    • Chad and Nadia’s experience: After building the first floating home prototype in Thailand’s contiguous zone (14 nautical miles from the shore), they faced a harsh reaction from the Thai military, who accused them of threatening sovereignty (which carried the risk of life imprisonment or execution).
    • The role of the flag: Being in the contiguous zone (from 12 to 24 miles) allows coastal states to exercise customs and immigration control. Registering a vessel under a flag (e.g., Panama) does not provide full extraterritoriality, but it moves the seastead from the status of a “pirate” or undocumented vessel to the protection of an internationally recognized registry. Without a flag, any state has the right to inspect the vessel under universal jurisdiction.
    • Taxes and citizenship: A Panamanian flag does not automatically grant citizenship or the right to reside on land. Regarding taxes, Panama uses a territorial principle (taxes are paid only on income earned within the country). However, O’Shane Balloon reminded that US citizens are taxed on worldwide income, and even working in Antarctica is taxable since it is not the territory of a foreign “state.”
    • Security against pirates: Security is the first step in blank-slate governance on the water. The flags of some countries (e.g., Mongolia) explicitly allow weapons on board, making it legal to hire private security firms.

2. IP Debate

  • Speakers: Alex Voss (moderator), Stephan Kinsella (patent attorney, IP opponent) and Brian O’Hearn (lawyer, IP supporter).
  • Topic: Should free cities protect intellectual property?
  • Key points:
    • Stephan Kinsella (against IP):
      • Patents and copyright are government privileges and monopolies arising from royal decrees, not natural rights. True property rights are only needed to resolve conflicts over scarce (physically limited) resources. Ideas are not physically limited and can be copied freely, which historically makes humanity wealthier.
      • Large corporations use patents not to protect inventors, but to create cartels. Free cities should minimize IP protection (exclude software, remove criminal penalties, shorten terms) without fearing sanctions, since patent law is strictly national in nature and does not prevent residents from patenting their inventions directly in the USA or EU.
    • Brian O’Hearn (for IP):
      • IP is one of the last lines of defense for the individual and their intellect against corporate monopolies merged with central banks. Without copyright protection, large corporations will take any developments for free.
      • IP rights are symmetrical (everyone has the right to protect their invention). Brian suggested segmenting the patent system by industry (for example, granting long patents to the expensive pharma industry and short or zero patents to software). He cited J.K. Rowling as an example, who would never have become a billionaire from being a single mother without copyright protection.

3. Per Bylund (economist)

  • Topic: How to make free cities entrepreneurial superpowers.
  • Key theses:
    • The essence of entrepreneurship: It is the creation of subjective value for the consumer, rather than simply satisfying “unsatisfied demand” (demand is formed only when a supply is created).
    • Invention vs Innovation: An invention is the creation of a new thing, which may not have value in itself. Innovation is bringing a product to market and creating real utility for the consumer (for example, the Pet Rock in 1975 was not an invention of a stone, but became a successful innovation).
    • Advice for free cities:
      • Do not subsidize entrepreneurship artificially (criticism of the models of Klaus Schwab and Mariana Mazzucato, which redirect resources to serve the state instead of consumers).
      • Ensure clear and simple property rights (excluding IP) and make the costs of doing business the diametrical opposite of what the Internal Revenue Service (IRS) does.
      • Perceive the free city as an “exchange platform” (similar to a Sears catalog).
      • Focus on B2B clients rather than B2C, as consumers are fickle, while businesses are oriented toward objective profit, and it is B2B that forms the basis of the Austrian economic model.
      • Do not plan industrial clusters from the top down — they should emerge organically through competition and the selection process of the entrepreneurs themselves.

4. Institutional Investment Panel

  • Speakers: Alex Voss (moderator), Trey Goff (Prospera), Lada Moberg (macro investor), Patry Friedman (Pronomos Capital).
  • Topic: How free cities can attract large institutional capital.
  • Key points:
    • Venture Capital vs Real Estate: Venture Capital (VC) is suitable for the early stage, when investors believe in the founding team and the story. As the project grows (Growth stage), real financial metrics and proven unit economics are required. Large real estate and infrastructure funds enter based on the collateral of hard assets, which reduces risks. Real estate in free cities acts as a “value soak,” absorbing the positive externalities of good governance.
    • Political Risks: The risk of expropriation by the state is extremely difficult to assess in the private sector, which is why commercial insurance against political risks is insanely expensive. Only state structures (for example, the US International Development Finance Corporation — DFC) can effectively insure such risks, as they are backed by the diplomatic and military power of the state.
    • Crowd Effect: Investing is a herd process. Once at least one large “boring” investor (for example, the US DFC) is attracted, it will serve as a powerful signal of safety for the entire global financial market.

5. Francisco Litvay

  • Topic: Special Economic Zones as a tool of Flag Theory.
  • Key points:
    • Flag Theory: The distribution of key spheres of life (citizenship, residency, company, banking) across countries that offer the best conditions.
    • Second Passport: No SEZ has the right to issue its own citizenship. The closest path is investing in a business within SEZs of countries offering citizenship by investment (Egypt — from $350k, Turkey — from $400k, Caribbean programs — from $1.5 million).
    • Tax Residency: Madera (Portugal) gives 10 years of 0% tax on foreign income and low VAT; Prospera (Honduras) offers tax resident status for a fixed $5,000 per year if staying on the island for at least 7 days; Indonesia introduced 5–10 year visas for investments from $350k to $700k in a new financial center.
    • Business Advantages: Uruguayan Zonamerica (0% tax on service exports); export zones of Paraguay (1% value-added tax, cheap energy); UAE (popular free zones for obtaining residency); ADGM/DIFC (UAE) and Cayman Enterprise City — the best zones for crypto projects and fintech.

6. Max Medina (architect)

  • Topic: Invisible Architecture: why all cities are the same and how to design a free city.
  • Key points:
    • Invisible Architecture: The shapes of buildings are determined not by architects, but by invisible rules, regulations, economic factors, and sunlight standards.
    • Design Principles: A symbiosis of nature, people, and technology. Ecosystems (coral reefs and rainforests) should serve as inspiration as multi-layered, ultra-efficient bio-cities.
    • Projects in Prospera:
      • Pioneer Village: A modular settlement capable of growing over time like a coral reef.
      • Circular Factory: A factory for producing modular homes with a roof that mimics mountains. It includes a beer garden where clients can drink beer while robots assemble their homes. Local Honduran women manage the robots.
      • Beta Residences: A prototype for modular housing (currently a hotel) that allows the house area to expand twofold as the family grows by simply moving partitions. Construction costs turned out to be 60% cheaper than similar options on the island.
    • Designing for the Moon: Experience working on lunar base projects with NASA and Elon Musk, based on a triad: survival, community, and purpose.

7. Jeremy Kaufman

  • Topic: The Free State Project in New Hampshire.
  • Key Points:
    • The main political question: what is more important — rules or people? The Free State Project proved that people come first.
    • Starting as an assurance contract on a Yahoo forum in the early 2000s with the goal of gathering 20,000 libertarians in one state, the project became the most successful freedom movement in the USA.
    • New Hampshire’s Successes: The state has no income tax and no sales tax. Libertarian activists now control about 25% of the state’s legislative body. The state has the best gun laws, the lowest murder rate in the USA, flying cars are legalized, and a universal school voucher system (school choice) has been introduced.
    • Displacement Strategy: Democratic opponents are so intimidated by the activity of libertarians that they themselves discourage progressive leftists from moving to the state via social networks, helping the project select the right population.

8. Mark Lutter

  • Topic: The transition of charter cities from idea to reality.
  • Key points:
    • Rules Determine Prosperity: The difference between North Korea and South Korea (with identical culture and geography) lies solely in the rules.
    • The Lesson of Shenzhen: It was not just an industrial park, but a zone of over 320 sq. km with colossal autonomy. Economic reforms only reveal their potential with a sufficient population scale.
    • Urban Expansion Company: A new initiative of the Charter Cities Institute (CCI). Instead of endless and complex negotiations with governments to obtain sovereign concessions, the company is starting to build physical satellite cities in Africa using a development business model.
    • Business Model: Purchasing large tracts of land (the first project is about 700 hectares for 40,000 residents), providing basic utilities (roads, sewage, water, electricity), and selling plots to residents for independent construction. This allows bypassing construction regulatory barriers and providing affordable housing for the middle class.

9. Patrick Lamson-Hall (Fitted Projects)

  • Topic: How to plan working free cities: 5 lessons.
  • Key points:
    • The movement is very well-versed in the theory of governance, but weaker in urbanism, which has been in crisis for the last 100 years due to the failure of utopian projects.
    • Lesson 1: A city is not a building. Clear specifications make a building better, but kill a city. A good city should develop emergently. Rigid zoning deprives a city of flexibility (for example, preventing a cat cafe from opening in place of an unwanted barbershop). “Good cities build the stage, they don’t write the script”.
    • Lesson 2: Aesthetics and function are subject to the market. People go to cities for jobs, not just for beautiful isolates. Any elite enclave depends on service personnel, and if you don’t integrate them into the city’s economy, you lose their purchasing power.
    • Lesson 3: Location is the most important decision. Two critical things that cannot be underestimated: proximity to a good international airport (fixing this mistake costs billions) and proximity to a mature labor market.
    • Lesson 4: New urbanistic concepts rarely work. Be skeptical of eco-cities (Songdo) or projects like “The Line” that optimize transport systems instead of human convenience and require coercion to function.
    • Lesson 5: Focus on public space. The developer should take their hands off the private sector and focus on public space (streets, parks). A street grid is the most durable solution (the Roman grid of Turin is still visible after 1000 years).

10. Max Borders (Human Respect Labs)

  • Topic: Full-spectrum free jurisdictions.
  • Key points:
    • Accountability Loops: The relationship between “citizen-client” and “service provider” must be regulated by clear feedback loops. All disputes should be resolved by private arbitration, not elections.
    • Role of culture and philosophy: Entrepreneurial initiative alone is not enough; it is necessary to form a culture and an “empire of the mind” (solidarity/asabiyyah) so that the community can survive during times of hardship.
    • Direction of liberalism: The speaker divided the participants into “gnostics” (out-of-touch theoretical purists) and “droids” (pure pragmatists who ignore philosophy). The movement needs “directed liberals”—pragmatists who have a value compass but know how to move step-by-step from A to B.
    • Human Respect Labs: A grant program (microfinancing up to $30,000) to support early projects of liberal innovators and communicators.

11. Dušan Matuška

  • Topic: Lessons from the “bitcoinization” of Roatan island.
  • Key points:
    • Lesson 1: Trust takes time. It took 2 years of work to overcome the negative legacy of local “large-scale” crypto scammers (for example, a pastor from French Harbor who sold shitcoins to his congregation).
    • Lesson 2: Start with financial literacy. It is pointless to offer bitcoin as a means of saving to people living paycheck to paycheck. First, you must teach them how to budget.
    • Lesson 3: Quality is more important than quantity. Chasing the number of merchants accepting BTC is a mistake, as high staff turnover often means new baristas do not know how to use wallets. It is more effective to make the business owners themselves bitcoiners, who then train the staff.
    • Lesson 4: Do not say the word “Bitcoin” immediately. To overcome the fear of school principals regarding crypto, Dušan’s team first taught the history of money and the collapse of fiat, which opened doors for 10-week educational courses.
    • Replaceability: The project must be sustainable and independent of the founder; it is important to train local ambassadors.

12. Panel “Ocean Living on a Budget”

  • Speakers: Chad Elwartowski (Ocean Builders), Mason (Atlas Yachts), Mitchell Sutner (Arcpad).
  • Topic: What you can buy on the water for $3k, $30k, and $600k.
  • Key points:
    • Budget $3,000 – $30,000: For $3,000, you can rent a luxury floating villa for a week (Maldives/Philippines), and for $30,000, you can build a simple floating house of plywood and fiberglass yourself using the True North Yachts method for closed lagoons. For $500 in the Philippines, you can buy a 0.75% share in Reef Resort with dividends paid in crypto.
    • Budget $300,000 – $600,000: With this budget, you can acquire an Arcpad D (deep-sea seastead) costing $300k, with a lifespan of 80–95 years (version C successfully withstood four typhoons in 2024 in the Philippines without any damage). From Mason (Atlas Yachts), for $275k you can buy a 42-meter floating condominium (studio catamaran), and for $375k–$650k — full-scale family floating homes with solar energy and desalinations systems.
    • Operating expenses: Practically zero. Atlas Yachts aluminum hulls require no maintenance, and on stationary Arcpad platforms, a low current is applied to prevent corrosion and the buildup of biomass, which additionally protects the metal and attracts fish. Waste is processed by incinerator toilets (only ash remains). The only regular fee is the annual vessel flag registration fee (about a couple hundred dollars).

13. Joe McKinney

  • Topic: Sovereign Tribal Governments and SEZs in the USA.
  • Key Thesis:
    • Purely contractual free zones often collapse during power shifts, as constitutions must become “living” by overcoming inevitable conflicts (similar to a marriage or Lincoln’s reconstitution of the USA after the Civil War).
    • Native American Tribal Sovereignty: This is a powerful, centuries-tested legal tool for decentralization in the USA. Tribes possess inherent sovereignty that predates the USA itself and is enshrined in the Constitution. They can establish their own courts, commercial codes, and zones.
    • Catawba Digital Economic Zone Case: The first digital SEZ created in partnership with the Catawba tribe, allowing fintech companies to register bypassing state jurisdiction. The overturning of the Chevron doctrine in US courts has further strengthened the position of tribes against federal agencies.

14. Timothy Allen

  • Topic: Results of 200 hours of conversations on the “Free Cities Podcast”.
  • Key Thesis:
    • Top 3 Insane Government Regulations:
      1. Car License in Liberland: Croatian police fined Liberlanders for driving a motorized construction wheelbarrow without a driver’s license.
      2. The Veritas Villages Panama Paradox: Government-approved HOA rules created a bureaucratic loop, complicating any simple household changes within the community.
      3. £114 Million Bat Tunnel in the UK: As part of the HS2 high-speed rail project, a protective tunnel was built to protect 50 bats, costing more than £2.2 million per bat.
    • Top 3 Libertarian Fails:
      1. Self-destruction of the Libertarian Center in New Hampshire: After expelling two problematic residents by vote, the community became obsessed with endless ideological “purges” and inquisitions until no one was left in the center.
      2. Massimo Mazzone’s Perfect Hack: In Ciudad Morazán (built on 100% libertarian principles), ordinary Honduran workers live and work without arguing about Hayek and Mises, which is why the society prospers — the key to success is the absence of libertarians.
      3. Joe Quirke’s Harmful Ideas: Joe’s book “Seasteading” makes wealthy people abandon comfortable lives, spend millions, and nearly die twice on barges.
    • Top 3 Kidnappings in SEZs:
      1. Hostages in Bir Tawil: Christoph Hoyermann declared a free city in Bir Tawil. Local Bedouins with Kalashnikovs took them hostage for 20 hours because someone jokingly hoisted a flag with a penis on it.
      2. The Coup in Sealand (1978): Sealand’s founders were lured to Austria, while a landing party arrived by helicopter on the platform, capturing the Prince’s 26-year-old son and sending him to Holland on a trawler.
      3. James Bond in Sealand: Prince Michael’s son hired a stuntman from James Bond movies; they flew in on a doorless helicopter with shotguns, retook Sealand, and locked the traitor in the local prison.
    • Conclusion: 2026 became a turning point — we moved from abstract theory to Booking.com, real cups of coffee, and playgrounds in free zones.

15. Titus Gebel (closing of the conference)

  • Topic: Closing remarks, secrecy, and the future.
  • Key points:
    • A record number of participants — 260 people — attended the conference. Holding the event within the actual free city of Prospera (rather than in Prague or Switzerland) proved that the movement has materialized.
    • Pipeline secrecy: Answering participants’ questions, Titus explained why the foundation does not disclose the list of future projects: it is too politically vulnerable, as opposition in host countries instantly spin a populist narrative of “betrayal of the homeland” and blame Peter Thiel for everything.
    • The example of Shenzhen: Deng Xiaoping’s reforms were a successful attempt to decriminalize the market in communist China based on the model of a free Hong Kong. Even if states try to lock capitalism within small zones, this trend can no longer be stopped.

Free Cities Conference 2026, Day 1

The Free Cities Conference 2026 is taking place in Prospera.

I started listening to the first day’s broadcast, but I quickly grew tired of perceiving so much English speech by ear, so I waited for the broadcast to end and uploaded the entire first day into Gemini Notebook. Then I asked for the main talking points of the presentations. Here is what resulted:


1. Peter Young (Host, Opening Remarks)

  • Presentation Topic: Introduction to the “Free Cities” concept and the conference program.
  • Key Points:
    • The free city concept is based on two elements: de facto or legal autonomy (a special zone expanding upon the SEZ idea) and the protection of individual rights (life, liberty, property), allowing people to freely build businesses and partnerships.
    • Four types of projects are presented at the conference: intentional communities (Veritas Villages), systeding (Arcpad, Liber Arcs), migration movements (Free State Project in New Hampshire), and next-generation SEZs (Morazán, Prospera).
    • The first day’s program focuses on specific projects and systeding; the second day is dedicated to macro-problems (including debates on intellectual property); the third day is for decentralized networking.
    • Decentralized governance is the future, capable of radically improving quality of life and defeating poverty through the competition of systems.

2. Titus Gebel

  • Presentation Topic: Stepping into the future.
  • Key Points:
    • The future of society will be determined by three spheres: government as a service (GSP) and meritocracy, permissionless innovation, and beautiful architecture.
    • Government as a service: a provider protects life, liberty, and property for a fixed fee based on a contract (without forced taxes, DEI, ESG, and interference in citizens’ affairs), with independent arbitration.
    • It is necessary to respect the sovereignty of the host state — this relieves the project of concerns regarding foreign policy and defense, provides automatic integration into the banking system, and allows arbitration decisions to be enforced abroad.
    • Architectural principles of Tibolis: walkability (pedestrian accessibility of all objects within 5–10 minutes to stimulate personal interaction), mixed use (mixed use), and beauty as productive capital (including the reduction of visual noise from advertising).

3. Eric Brimman

  • Presentation topic: Developing the Prospera model to create prosperity.
  • Key points:
    • The legitimacy of libertarian ideas in practice is proven only by how much they actually improve the lives and well-being of specific people.
    • The MAYA concept (Most Advanced Yet Acceptable): innovations must remain within the bounds of what is possible in the existing world (within the framework of the host country’s sovereignty), otherwise the accumulation of too many innovations will lead to automatic failure.
    • Political lessons: projects inevitably exist within a political field. Prospera made a mistake by not working in the early stages to win political and social legitimacy at all levels of the host country’s society. Paper agreements do not work on their own without a social license, although they do require a solid legal foundation.
    • St. John’s Bay: a new semi-private city based on Prospera for young entrepreneurial families. It will be complemented by the Satu mainland industrial park following the successful “Hong Kong — Shenzhen” model (the island as a hub for talent and finance, the mainland as a base for low-cost production).
    • Co-creation: a rejection of centralized planning in favor of co-investors who receive real land ownership and shares.

4. Patrick Hebert

  • Presentation topic: Building self-sufficient Veritas Villages communities in Latin America.
  • Key points:
    • The FIRST philosophy: Freedom, Independence, Resiliency, Sustainability, Transparency.
    • While Canada and Europe are sliding into authoritarianism and high taxes, Latin America is gradually moving away from socialism toward the market.
    • Absolute autonomy: 100% off-grid premium homes powered by solar energy. In Panama, the “Green Cities” law was lobbied for, allowing homes not to connect to the state power grid. Own chlorine-free water from deep wells, own farms, gardens, and fish ponds.
    • Bitcoin integration: up to 20% of land is purchased with BTC. Corporate reserves are held in bitcoins, and employees receive part of their salary in them. Residents mine BTC using excess solar energy to fully cover HOA expenses and reduce the cost of living to zero.
    • Governance: The HOA operates entirely on the blockchain using quadratic voting for conflict-free dispute resolution.

5. Mikuel Thorup

  • Presentation topic: A century mindset and a millennium family.
  • Key points:
    • It is impossible to plan life in detail 1,000 years in advance, but it is possible to grow a family capable of adapting to changes in laws, languages, and states. A century mindset spanning three generations is needed.
    • Transferring wealth is not yet a legacy. Assets passed to unprepared heirs without the development of a sense of responsibility lead to the rapid liquidation of capital.
    • A family must develop 8 types of capital: economic, physical, intellectual, social, reputational, emotional, cultural, and spiritual.
    • Pronatalism and upbringing: it is important to create large families and instill in children the desire to have children of their own. Upbringing happens through modeling: Mikuel’s children sit with him at real board meetings and business gatherings.
    • Family office is the key institutional system for coordinating assets, jurisdictions, and preparing the new generation.

6. Danny Hatler

  • Presentation topic: Presentation of Los Freedom Ranking 2026.
  • Key points:
    • Traditional freedom indices (Heritage, Cato) assess only recognized states and are skewed toward the development of government regulation.
    • The new Los ranking includes 235 territories (including private cities, overseas territories, individual US states, Swiss cantons, and special economic zones).
    • Freedom is defined classically: “the right of a person to be left alone” as long as they do not harm others. Evaluation is based on 6 categories: taxes, money, economy, property, personality, and space.
    • In the ranking, Prospera takes 1st place with a score of 9.313, while mainland Honduras is in 189th place with a score of 2.13. The ranking is fully interactive and customizable based on the user’s individual values.

7. Joe Quirk

  • Presentation topic: Legalization and legal arbitrage in seasteading.
  • Key points:
    • Historic achievement: lawyer George Schmidt obtained the first Panama flag for a seastead in international waters, which opens up 2/3 of the planet for jurisdictional freedom.
    • The first profitable seastead is the floating resort Reef Resort by Mitchell Sutner in the Philippines (water hotel + high-tech self-cleaning fish farm that produces 10 times more food than it consumes).
    • Mobility as protection against corruption: when the coast guard began extorting bribes from Reef Resort, the resort simply weighed anchor and moved to an island with a friendlier mayor. In the future, states will begin to compete for floating cities, offering them favorable regulatory packages under their flags.
    • Freedom for biotech: floating platforms outside the control of the FDA are a trillion-dollar market for accelerated testing of revolutionary medical drugs and life-extension technologies.

8. Yan Bertram

  • Presentation topic: Free Cities Foundation Knowledge Base and the new portal.
  • Key points:
    • Launched Knowledge Hub — a single interconnected digital database of all foundation materials (articles, podcasts, presentations, project and speaker profiles) from the last 8 years.
    • The fight for the digital narrative: The speaker urged projects to optimize their websites for AI crawlers (LLMs), so that algorithms learn from accurate data on alternative governance rather than distorted articles from mainstream media.
    • A donor portal has been opened (available for a $5 micro-donation) featuring exclusive content and the ability to add events to a unified community calendar.

9. Nicholas Anzinger

  • Presentation topic: Five-year retrospective of Prospera’s development and biotech acceleration.
  • Key points:
    • Starting with the organization of the Build Prospera Summit in 2022, Nicholas created the venture fund Infinita VC, which invested in 34 startups (4 of which work directly with Prospera, utilizing its flexible regulation).
    • The creation of the temporary pop-up city Vitalia (2024) attracted over 500 people, including Balaji Srinivasan, Naval Ravikant, and Bryan Johnson, and made Prospera a global hub for longevity.
    • In Vitalia, biotech startups were given the opportunity to conduct rapid clinical trials (e.g., Unlimited Bio’s gene therapy).
    • Prospera’s experience was transferred to the USA: Nicholas’s team helped develop bill SB535 in Montana, which allows private oversight boards to conduct experimental treatment (expanded right-to-try).

10. Mitchell Sutner

  • Presentation topic: The infinite future of floating cities and Arcpad technology.
  • Key points:
    • Advantages of seasteading over land-based cities: permissionlessness (only a flag is needed, rather than coordinating laws with a host country); mobility; modularity (the cost of expansion decreases due to economies of scale, unlike increasingly expensive land); high food production density.
    • Jurisdictional quilting: residents of a modular floating city can physically move from a home under the Panama flag (for business) to a home under the Netherlands or USA flag, choosing the laws that suit them best.
    • Arcpad D: a completed modular construction made of fiberglass and stainless steel with a lifespan of 80–95 years. It is disassembled and delivered in a standard shipping container, assembled on-site according to instructions (following the IKEA furniture principle). Official approval from the Panama Maritime Authority has been obtained.

11. Tim Stern

  • Presentation topic: Change of power in Venezuela and the Crypto City project.
  • Key points:
    • The sudden fall of the Maduro regime in January 2026 and changes in oil laws open up colossal potential for the return of capital and explosive economic growth.
    • Crypto City on Margarita Island: a special economic zone covering 40 hectares with a tax-free regime. Development is carried out in terraces (300 houses) to ensure an ocean view for every resident.
    • Management via DAO: residents vote on the admission of new neighbors based on their resumes. The community uses a blockchain-based DAO for collective funding of projects in Venezuela (a diamond mine, a nursing home for the parents of expats, a state lottery on Margarita).

12. Mason

  • Presentation topic: Atlas Yachts floating home.
  • Key points:
    • Mobility provides freedom (like a queen in chess).
    • Atlas Yacht (formerly Libra Arcs) is a full-fledged solar-powered “floating condominium” for permanent family living, not a status pleasure craft.
    • It is equipped with a huge solar roof, a reverse osmosis desalination system, and Starlink, making the owner completely independent of external power grids and water pipelines.
    • Open-source model: vessel blueprints are made publicly available so that buyers can build them at any shipyard, as well as repair and customize their home independently.
    • The model range consists of 4 types of vessels (from 39 to 79 feet) at the price of a regular condominium ($275k–$950k), but without property tax and utility payments.

13. Patri Friedman

  • Presentation topic: Questions and Answers (Ask Me Anything).
  • Key points:
    • The most promising project of the Pronomos fund right now is the Alpha City holding in Africa (working in 7 countries to create special jurisdictions: geothermal AI data centers, universities, agriculture).
    • Incentive alignment model: the host country’s government becomes a minority shareholder in the project, receiving a direct benefit from its success.
    • The “cold start” problem: infrastructure in a new location is very expensive, and attracting people is difficult. African projects solve this through the gratuitous allocation of vast land areas by governments, which immediately strengthens the company’s balance sheet.
    • A free city is primarily a commercial product and a business. Systemic freedom is more important than the personal ideology of the residents; therefore, it is not necessary to hire only libertarians—it is better to attract the best professionals (urbanists, engineers).

14. Telmon

  • Presentation topic: Edge City as an incubator for society and network cities.
  • Key points:
    • Edge City runs month-long pop-up villages for scientists, philosophers, and tech entrepreneurs (12,000 participants in 3 years).
    • Community principles: health by default (workouts, healthy food), interdisciplinarity, co-creation (95% of activities are created by the participants themselves), and intergenerational continuity (children’s camps).
    • Month-long pop-up camps are “version 0.1” for testing long-term partnerships with permanent smart cities and SEZs (such as Gelyphu Mindful City in Bhutan or Esmeralda in California).
    • An experiment called Agent Village is being conducted: every resident receives an AI agent with the context of the entire city, which helps coordinate meetings, create schedules, and manage the shared budget.

15. Billy Tetrude and Stacia Wilson

  • Presentation topic: How to build a “freestead” in Texas.
  • Key points:
    • Freestead uses existing legislation to create a free city without the need to request special statuses, international treaties, or SEZs from governments.
    • Freestead toolkit: mandatory arbitration (creates alternative courts and legal norms); tax redirection (land rent payments based on the Georgist system instead of property tax); private roads (allow for removing cars, narrowing streets, and distributing utility costs at the block level); absence of rigid regulations (in unincorporated areas); resident screening (to form a high-trust society).
    • Stacia Wilson emphasized the importance of forming clear, filtering value-constraints (e.g., “take personal responsibility for everything in life”) as early as the marketing stage, so that undesirable people filter themselves out.

16. Oliver Porter

  • Presentation topic: The contractual municipal model of the city of Sandy Springs.
  • Key points:
    • The residents of Sandy Springs (100 thousand people) for years paid a huge share of taxes into the county budget, receiving terrible municipal services in return. After gaining autonomy in 2005, the city applied a corporate approach.
    • Fully contractual city: at launch, Sandy Springs had only two employees on staff. Absolutely all city services (road repair, cleaning, administration) were purchased on a competitive basis from private corporations.
    • Results: over 10 years, taxes did not increase by a single cent, the quality of services entered the top 10% in the country, and a surplus of $40 million was accumulated with absolutely zero long-term debt and pension obligations. Using this model, 12 more cities were later created in Georgia.

17. Massimo Mazzone

  • Presentation topic: Philosophical roots of entrepreneurial communities and Ciudad Morazán.
  • Key points:
    • The social contract in traditional states is coercive. An alternative is private proprietary cities (entrepreneurial communities / entriccom), operating on a shopping mall model (one landowner provides security and infrastructure services in exchange for rent). This eliminates collective choice and political disputes—those dissatisfied simply leave.
    • Ciudad Morazán operates under the ZEDE law of Honduras: a free economic zone (0% VAT, customs duties, and taxes to the state, except for 12% contributions to national needs such as the army), a flat income tax of 5%, its own police force without the right to use violence (operating under a contract with residents), and a total absence of government jurisdiction in labor and education law.
    • Unlike Prospera, Morazán targets not wealthy libertarians, but local factory workers (maquilas). The real estate rental model (without sale) protects the project from evolving into a totalitarian democracy.

18. Joyce

  • Presentation topic: The “Live and Let Live” movement (3L).
  • Key points:
    • The movement was founded by Marc Victor and proposes a formula for conflict resolution: “Did a person, group, or government commit aggression?”. If society cannot unambiguously agree, the issue is resolved at the most local level of the community.
    • Application in Morazán: private police have no right to use force, issue fines, or lock people in prisons. They monitor the residents’ contract. Rule-breakers receive warnings, and for persistent violations, the administration simply does not renew the lease, and the person leaves without violence.

I think the conference provided a convenient snapshot of the current state of affairs: to what extent libertarians, having decent resources and not being under sanctions, have managed to make progress in the promotion of charter cities, what difficulties they encountered, and what conclusions they drew.

Naturally, Russian libertarians, being relatively poor and severely deprived of their rights—above all, to any self-governance initiatives worldwide—are unlikely to be able to reproduce any of this for themselves. For us, it would be a blessing to ensure a level of interaction in the mode of “living among ourselves relatively peacefully, not attracting the close interest of the state, and having established some kind of internal market.” The knowledge that one should not chase all innovations at once on one small site is somewhat redundant for us, although not without interest.

Nevertheless, an individual Russian libertarian could well try to join a charter city project in a private capacity; perhaps there is a need somewhere for ordinary citizens, and not just fat investors who are not considered affiliated with special services.

A Book About Contracts, Trust, and Trading Enterprises

I asked ChatGPT to style my longread about the problem of contracts as an Arabic treatise. You can see how it handled it in the following text; I haven’t changed a single letter, for as the Lord said: leave man to his manliness, and leave the neural-slop to the neural networks.

A Treatise on How Men Maintain Justice in Their Affairs When There is No Single Sovereign Over Them

In the name of Allah, the Most Gracious, the Most Merciful.

Praise be to Allah, Who created humans in need of one another and made the exchange of goods the cause of the prosperity of the lands. Peace and blessings be upon His Prophet, who was a merchant before he became a Messenger, and who said:

“The honest and trustworthy merchant will be on the Day of Resurrection with the prophets, the truthful, and the martyrs.”

Know then, O seeker of knowledge, that there exist societies where people primarily acquire what they desire through exchange, rather than through gift or violence. In such societies, well-being depends on trade, crafts, and mutual agreements. However, therein arises a particular difficulty: no one can guarantee in advance that every transaction will prove honest.

This is especially noticeable when one person fulfills their part of the agreement today, while another promises to fulfill theirs only after months or years.

Therefore, wise men since antiquity have resorted to written contracts.

The Almighty said in the Surah “Al-Baqarah”:

“O you who have believed! If you contract a debt for a specified term, write it down.”

Note that the Almighty does not command the recording of the purchase of an apple at the bazaar or a cup of sherbet in a teahouse. For such transactions are completed before a dispute can even arise. One hands over the goods, the other the money, and both depart satisfied.

But it is otherwise with agreements whose consequences stretch across time.

When a master hires a worker, he buys not labor already performed, but a promise of labor. When a craftsman accepts an order, he sells not a finished product, but a promise to manufacture it. When a merchant equips a caravan, he buys not goods, but the hope of future profit.

Therefore, the parties are forced to describe their expectations in detail.

Who provides the tools?

Who is responsible for damages?

How to distinguish diligence from negligence?

Which circumstances should be considered excusable?

Without such clarifications, each will later remember only that part of the conversation which is advantageous to them.

However, another difficulty arises here.

For human life is not like the drawings of a geometer.

Aristotle said that matters of practical wisdom do not possess the precision of mathematical objects. And indeed: if a triangle remains a triangle today and tomorrow, people are constantly changing.

A servant may become the friend of the master.

A student may become the companion of the teacher.

A companion may become a rival.

And a man hired to sweep the floor may turn out to be a skilled cook or a skilled thief.

Therefore, every contract is inevitably drawn up by people who know the future worse than it seems to them.

If the relationship ceases to benefit one of the parties, it can usually be terminated with moderate losses. The worker leaves the master, the master releases the worker, and the remaining disagreements are most often not so great as to destroy the lives of both parties for their sake.

But the most difficult case arises when it concerns the investment of capital.

For here the desires of the parties are inherently different.

He who gives the money would like to see it again someday, and with profit.

He who receives the money would be most pleased by a situation in which the money remains with him forever.

Therefore, commercial enterprises need a force that compels people to keep their promises.

However, here too, excess is as harmful as deficiency.

If coercion is too weak, no one will trust their funds to other people.

If coercion is too strong, then every unlucky entrepreneur risks becoming a slave to their creditors.

For the success of an enterprise is never guaranteed.

A ship may sink.

A caravan may be plundered.

A workshop may burn down.

And thus, not every loss is a consequence of deception.

Consequently, the prosperity of a state depends not on maximum severity nor on maximum leniency, but on the correct proportion between them.

In this matter, wisdom resembles what Aristotle called the mean between extremes.

For there exist two diseases of trade.

The first disease consists in that no one owes anyone anything.

In such a society, merchants quickly cease to trust one another, craftsmen work sloppily, and the borrower perceives other people’s money as a gift of fate.

The second disease is the opposite.

In such a society, every debtor lives under the threat of ruin, every worker chooses only between various forms of dependence, and those in power use their might to destroy competitors.

Both diseases are ruinous.

Therefore, reasonable people treat contracts with respect, but do not turn them into an object of worship.

For the contract exists for the benefit of people, and not people for the contract.

If every letter of the scroll becomes more important than common sense, then the contract gradually transforms from an instrument of cooperation into an instrument of domination.

For this reason, all trade rests on the presumption of good faith.

People must proceed from the assumption that their partner wishes to obtain benefit not through the destruction of the deal, but through its successful completion.

A good contract is beneficial to both parties.

If benefit is obtained by only one party, then we have before us not a contract, but a kind of command.

However, hope for good faith alone is not enough.

One must understand which forces make good faith profitable.

In all times, such a task was solved by communities.

A merchant did not travel simply as an individual.

Behind him stood his city.

His kin.

His guild.

His faith.

If the merchants of some city acquired a reputation as fraudsters, the next caravan from that city was met without former hospitality.

If anyone offended such merchants without cause, he risked bringing upon himself the enmity of the entire community.

Therefore, reputation became a kind of wealth.

Ibn Khaldun wrote that people achieve great goals only thanks to asabiyyah — mutual support and solidarity.

The same is true for trade.

However, here too, excess brings harm.

When belonging to a corporation becomes more important than a person’s abilities, the market loses flexibility.

Then monopoly takes the place of trust.

Privilege takes the place of reputation.

And coercion takes the place of cooperation.

Therefore, over time, other ways of ensuring trust emerged.

One of them was insurance.

In such a scheme, a third party appears, who receives payment for the readiness to cover losses from unforeseen circumstances.

But precisely because the insurer does not wish to pay extra, he carefully examines the behavior of the participants of the deal.

Thus, insurance not only distributes risks, but also encourages transparency.

However, it too is not a miracle.

Insurance protects well against misfortune, but protects poorly against evil intent.

If fraud proves more profitable than honest work, no insurance fund can exist for long.

Therefore, merchants also devised pledges and escrow accounts.

In some cases, the money remains with an intermediary until the obligations are fulfilled.

In other cases, the parties risk a pre-deposited security.

But these means too have limits.

They work well where the subject of the transaction already exists.

They work worse where the subject of the transaction is yet to be created.

Precisely for this reason, the most risky type of trade remains the investment of capital in new enterprises.


As the market develops, a greater number of interactions become customary.

Rules appear for them.

Standards.

Intermediaries.

Insurers.

Arbitrators.

Experience.

The world of trade gradually becomes like a beautiful garden, where the paths are paved with stone, dangerous places are fenced off, and a signpost stands at every intersection.

It is comfortable to live in such a garden.

But it is difficult to get rich.

For high profit arises where there are no paths yet.

Therefore, the largest fortunes are created not in the garden, but beyond its fence.

There, where merchants set out for unknown lands.

There, where seafarers seek new routes.

There, where people invest money not in an existing business, but in the mere possibility of its appearance.

Just as Sinbad the Sailor once obtained diamonds from a valley to which no safe path led, a prudent investor seeks opportunities where others see only danger.

Yes, dreamers, adventurers, and fraudsters will always gather around such enterprises.

But beside them, people capable of distinguishing fruitless madness from fruitful madness will also appear.

And it is they who will become the pioneers of new markets.

Others will come later, when the risk diminishes and the profit becomes more modest.

And therefore it should be concluded:

Contracts are necessary.

Reputation is necessary.

Surety is necessary.

Insurance is useful.

But none of these instruments is capable of completely ridging a person of risk.

For risk is the price people pay for the opportunity to discover something new.

And thus, the greatest riches are born not where there is no danger at all, but where people know how to face it with open eyes.

Mechanics of “Freedom”

I don’t quite understand publishing books on paper, unless they are books for small children that can be physically chewed on or, at a slightly older age, creatively doodled in. Even if a person leads a sedentary life in their own home, storing paper books at home is a luxury, as it requires acquiring such a strange vintage interior item as a bookshelf (if there are few books in the house, a small shelf in the toilet would be more suitable). And if a person rents housing, is forced to move from time to time, and doesn’t even know in which country they will be in six months, then for them the expression “paper book” is definitely something for the rich. Therefore, paper books migrate to public spaces, and they can more often be seen in some time-cafes next to board games. The few paper books that for some reason ended up with me in recent years quickly migrated to one of these spaces, and now in the apartments I rent there lies a single comic in Serbian about Corto Maltese, which wandered in from a comics festival.

Nevertheless, paper books, this deeply niche product, are still not only being bought but even produced in new editions. For example, my acquaintances were engaged in this back in Russia, founding the “Svoboda” publishing house, then continued in Montenegro, and now in Germany. However, they are still oriented towards the Russian market and are sold mainly on Ozon. I doubt that my own books will be published in this way because they are extremely small in volume, which means that the share of postage costs in the expenses of obtaining the finished product will be disproportionately high. However, if I happen to write another work, then three books under one cover would already have a chance.

On the other hand, “Svoboda” published my translation of Friedman’s “Mechanics of Freedom,” and there are even a couple of dozen reviews on the Ozon website. You can perfectly well read the translation absolutely free in electronic form, but if you enjoy owning a hefty souvenir brick, then you are welcome. As I understand it, the links I will provide here contain a mention that they were received specifically from me. I think this is for analytics, so that the publishers understand how effective advertising in this way is. I have no idea myself; we’ll see.

What’s there on libertarianism, besides Friedman?

2. Alya Zanoza. A Guide to Rational Egoism. Well, I’ve started with my trump card, of course. You are probably familiar with Alya from her YouTube channel, which will likely be soon renamed to “Serbian Political Stove.” The text of the book is not in the public domain, so buying a two-hundred-page brick is not only a souvenir but also an extremely perverse way to get acquainted with the content of Alya’s creativity. If the author throws the text my way, maybe I’ll even post a review.

3. Linda and Morris Tannehill. The Market for Liberty. This is another exclusive, previously unpublished in Russian. Friedman and the Tannehills almost certainly actively cross-pollinated each other’s ideas (judging by the nearly identical publication years and references in Friedman, since I am not directly familiar with the Tannehills’ work). For instance, the famous idea of private security agencies, which are intended to replace the most toxic function of the state, was launched to the masses in the 20th century specifically by the Tannehills.

4. Hans-Hermann Hoppe. The Theory of Socialism and Capitalism. This is no longer an exclusive of “Svoboda” publishing, but a reprint of an edition by the Novosibirsk Hyde Park Library. Judging by the annotations, the most valuable part of the book is not the discussions on socialism and capitalism at all, but Hoppe’s argumentative ethics, upon which he presumably builds all further constructions.

5. Ayn Rand. Capitalism: An Apologia. This is a noticeably less popular author, judging by the number of reviews on Ozon. This is a collection of various articles in which Ayn Rand applies the tools of her developed objectivism to discuss different political concepts. Maybe in my old age I’ll also put together a collection of appendices to different aspects of reality for my own theories…

6. David Bergland. Libertarianism in One Lesson. Somehow it happened that I knew about this book with the basics of libertarianism, but didn’t get around to reading it in my time, immediately rushing to gnaw through Rothbard. As a result, I have no idea how good this direct competitor to my Ancap is for carriers of Russian culture. If anyone has compared them, please share your opinion.

Perhaps in the foreseeable future I will make more detailed reviews of these books, as well as new releases from the publisher, should any appear.

Stephan Molynieux’s “Practical Anarchy” is over!

The translation of the last two chapters of “Practical Anarchy” has been completed. One dealt with the issue of abortion and left a favorable impression on me because the author did not fantasize about a bright totalitarian future in which omnipotent libertarian PORs subject those performing abortions to total ostracism, forcing these terrible criminals to die in a ditch—but merely reminded us that government subsidization ensures the overproduction of whatever is subsidized. Surprisingly gentle for a conservative moral philosopher.

The final chapter, on the other hand, turned out not to be a standard conclusion at the end of the book, briefly summarizing what the reader has just spent several hours of their life on, but rather a couple of completely separate worldview essays. One is about how lucky Molynieu himself is to have been born in such a wonderful time, when he can burn people with the word in relative physical safety, and how boring it would be for him to live in a world of triumphant anarchy, where there is no longer any need to burn anyone. The second is about how wonderful it is when you clear your mind and realize that it is not you who should please the reader, but the reader who should please you, and then you can graciously choose not to ban them in the comments. In general, the text is very personal and sincere.

In the near future, I plan to format the text into an epub, proofreading various minor slips in the process, and, having refreshed this long-term project in my memory, provide a coherent review of the entire book rather than its individual chapters.

Stephan Molynieux, Practical Anarchy, translation of chapter 27 of 29

In recent days, I have experienced a considerable slump in energy, so I’ve accumulated a backlog of texts. The weather outside has noticeably improved now, and I hope to shorten this queue a bit. But first, I am publishing the final version of the translation of Chapter 27 of Stephan Molinari’s “Practical Anarchy,” simply because this work required less creative effort. The chapter is devoted to describing the system of incentives that a market stateless society is capable of creating to encourage good child-rearing and, accordingly, punishment for bad parenting.

The main flaw of the text, of course, is the complete omission of the fact that children and their parents share a common budget. The greater the financial sanctions against the parents, the less money can technically reach the child. At some point, the ubiquitous representative of the PRS must appear on the doorstep of a problematic parent and announce that since the parent cannot pay the increased insurance, they can, of course, waive the policy entirely, but then neither they nor their child will be allowed to set foot in any decent place (I won’t recount it; the logic is roughly the same as in Chapter 25 regarding stateless prisons). But the parent can also sign a waiver of parental rights, and lo and behold, we have a list of people wishing to acquire such rights here; would you like to review their offers? If you do not sell your rights today, their value will be lower tomorrow, because in all the ratings, your child will be considered more and more problematic. Think about it. After which, the PRS representative vanishes in a cloud of smoke with a demonic laugh.

Of course, the PRS will be financially interested in ensuring that various marginals go bankrupt paying increased rates on contracts with the PRS, and subsequently, by hook or by crook, hand over their children to well-bred and wealthy members of society, who will not create problems for those around them, but, more importantly, will be able to further financially motivate the PRS inspector to pay particularly close attention to a specific problematic family. The more people there are wishing to acquire a child at as early an age as possible, the higher the financial incentives for the PRS to introduce the strictest possible rules, the violation of which will trigger a chain ending in the financial collapse of the family and separation from the child.

How did it happen that Molinari prefers not to write about the extortion aimed at taking children away from parents deemed problematic? Because he is a conservative, he is categorically against state juvenile justice, and for him, the raising of children by the parents themselves is a value of very high order. But market logic couldn’t care less about the values of a specific Stephan Molinari.

Stephan Molynieux, The Practical Anarchy, translation of chapter 26 of 29

The final edited translation of another chapter from Stephan Molinari’s book Practical Anarchy has been posted—about how a stateless society solves the problem of issuing reliable money. The text was written shortly before the appearance of Bitcoin, and therefore it does not concern how a stateless society can ensure reliable money despite the will of governments, but merely how it all could work in the absence of state opposition.

Nevertheless, the text is by no means useless. In essence, it describes the prospects of what the tokenomics of Montelibero could turn into if it were to achieve significant scale. We already have a fairly developed system of private monetary obligations of varying liquidity, but overall our monetary market is still too small for there to be economic sense in the emergence of complex clearing systems. Our private money largely takes the form of obligations backed by goods and services offered by the issuer, and the issuance represents a form of obtaining a loan to launch or maintain the production of these very goods and services. Accordingly, the more widely a service is demanded, the more liquid the monetary obligations issued for it become.

Molinari will soon be finished, and it is not a given that I will take on new large projects for translation. Firstly, people do not read long texts very often. For example, during the entire time a volunteer-translated draft of the chapter on money was on my site, no one complained that a page of text was simply missing from the middle. Secondly, if a person needs to tackle a text in a foreign language, they search for a translation less and less often, and more and more often trust the on-the-fly translation tools built into the browser. Yes, neural networks produce a mediocre semi-finished product, but for simple texts this is enough, and in the case of complex ones, the reader usually has a good understanding of the subject and understands what the author wanted to say, even based on a poor translation of individual difficult parts.

Stefan Molynieux, Practical Anarchy, translation of chapter 24

The final version of the translation of another chapter of Practical Anarchy by Stephan Molinari is ready, this time concerning healthcare. In principle, the structure of the chapter is already quite familiar: an analysis of the current statist picture, followed by a description of how it would all look in a stateless market society. Unlike the situation with roads and similar infrastructure, here it was necessary to add a touch of socialism in the form of charity, without which purely commercial healthcare could present unsightly images of the poor dying by the fence. However, charity does not need the state, so this does not disrupt the coherence of the constructions.

Translation of an article about tulip mania

There is a new commissioned translation on the site, the article “Tulipmania: The classic story of the Dutch financial bubble is largely false“. It is 2018, the Bitcoin bear cycle, and there are once again talks that all this crypto of yours is just a new version of tulipmania; so, the article, without mentioning Bitcoin a single word, instead explains that everything with the tulips was not at all like it is in popular economic anecdotes.

New translation. Gustave de Molinari. Evenings on Rue Saint-Lazare. Chapter 11.

At the request of @mysery_tg, I have produced a translation of one of the chapters of “Evenings on the Rue Saint-Lazare” by Gustave de Molinari (1849). In the mid-19th century, the author conceived and popularized the idea that we now know as ancap; in the text presented here, he lays out the arguments for this system of social organization in a theoretical dialogue with a conservative and a socialist.

The translation was made from David Hart’s English translation of 2009. I did not cross-reference it with the French original, but I hope that the “telephone game” factor is negligible.