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.
- Stephan Kinsella (against IP):
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:
- Car License in Liberland: Croatian police fined Liberlanders for driving a motorized construction wheelbarrow without a driver’s license.
- The Veritas Villages Panama Paradox: Government-approved HOA rules created a bureaucratic loop, complicating any simple household changes within the community.
- £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:
- 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.
- 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.
- 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:
- 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.
- 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.
- 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.
- Top 3 Insane Government Regulations:
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.