{"id":46961,"date":"2025-09-04T20:54:21","date_gmt":"2025-09-04T13:54:21","guid":{"rendered":"https:\/\/hbbgroup.net\/all-filler-no-pillar-why-blockchain-cities-fail\/"},"modified":"2025-09-04T20:54:21","modified_gmt":"2025-09-04T13:54:21","slug":"all-filler-no-pillar-why-blockchain-cities-fail","status":"publish","type":"post","link":"https:\/\/hbbgroup.net\/zh\/all-filler-no-pillar-why-blockchain-cities-fail\/","title":{"rendered":"All filler, no pillar: Why blockchain cities fail"},"content":{"rendered":"
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The blockchain industry has long strived to build its \u201ccity on a hill\u201d \u2014 idealistic communities where blockchain provides a foundation and code is law. But they\u2019ve not always panned out, as regulations, unrealistic expectations and other factors often make them dead on arrival.<\/p>\n

For several years, idealistic, would-be founders have strived to build communities on blockchain. Some of these projects have been more grounded, using blockchain as a means of land registry, while others sought to build entire cities that would run solely on blockchain and crypto.<\/p>\n

One of the most recent \u2014 and perhaps controversial \u2014 examples is US President Donald Trump\u2019s alleged plan to build a \u201cGaza Riviera\u201d<\/a> in the embattled territory that would incorporate a token into its fundraising and property investment model.<\/p>\n

Artist\u2019s interpretation of the Gaza Reconstitution, Economic Acceleration and Transformation Trust. Source: <\/em>The Washington Post<\/em><\/a>
<\/figcaption><\/figure>\n

MS Satoshi Bitcoin cruise flounders amid maritime regulations\u00a0<\/h2>\n

Eccentrics have long sought a freer life at sea, from pirates to French actor G\u00e9rard Depardieu and Scientology founder L. Ron Hubbard. In October 2020, three Bitcoin (BTC<\/a>) idealists \u2014 Grant Romundt, R\u00fcdiger Koch and Chad Elwartowski \u2014 bought a 245-meter cruise ship called Pacific Dawn <\/em>for $9.5 million, <\/em>with the aim of converting it to a Bitcoin city parked off the coast of Panama.<\/p>\n

The boat was supposed to provide an inclusive community for digital nomads and Bitcoin adopters that combined crypto enthusiasts with the \u201cseasteading\u201d movement \u2014 a campaign born among tech executives, which insisted that the next step in human development was to make communities living together on the high seas.<\/p>\n

The former cruise liner boasted restaurants, pools, cafes and a gym. Residents would be allowed to mine crypto and conduct their affairs without troublesome government regulators. Bitcoin was to be accepted aboard the ship for any goods and services.<\/p>\n

Arist\u2019s rendering of the <\/em>MS Satoshi, which was to eventually include \u201cfloating off-grid seapod homes\u201d adjacent. Source: <\/em>Cruise Mapper<\/em><\/a><\/figcaption><\/figure>\n

Unfortunately for the founders, investor interest was insufficient to cover the costs. Fuel alone was costing them $12,000 per day, and the COVID-19 pandemic presented logistical obstacles that they could not overcome. Furthermore, cruise ships are subject to some of the tightest maritime regulations on earth, a factor the founders failed to consider.<\/p>\n

\u201cWe were like, \u2018This is just so hard,\u2019\u201d Romundt told<\/a> The Guardian.\u00a0<\/p>\n

By December 2020, the owners sold the MS Satoshi.<\/p>\n

Trump\u2019s \u201cGaza Riviera\u201d wants to tokenize displacement<\/h2>\n

On Aug. 31, the Washington Post reported that the Trump administration was forming a plan, dubbed the Gaza Reconstitution, Economic Acceleration and Transformation Trust, to develop the Gaza Strip under an American custodianship.<\/p>\n

The 38-page document outlining the administration\u2019s vision proposes a number of high-tech ideas that would supposedly stimulate the economy of the Gaza Strip, whose residents are victims of famine and repeated Israeli airstrikes.<\/p>\n

Amid proposals for a deep-sea port, a \u201cTrump touristic riviera\u201d and electronic vehicle manufacturing zones, the prospectus suggests a \u201cvoluntary\u201d program for Palestinians who offer their land to the trust. The token could be redeemed for relocation elsewhere or for a residence in one of eight \u201csmart cities\u201d planned in Gaza.<\/p>\n

Part of the plan to tokenize Gaza. Source: The Washington Post<\/em><\/figcaption><\/figure>\n

The plan has yet to move forward. UN experts have claimed<\/a> that the trust, which was developed by the Israel-backed Gaza Humanitarian Foundation (GHF), serves as cover for \u201ccovert military and geopolitical agendas in serious breach of international law.\u201d<\/p>\n

Related: <\/strong><\/em>Trump mulls post-war Gaza plan featuring tokenized land: Report<\/strong><\/em><\/a><\/p>\n

Liberland: A Libertarian micronation on the Danube<\/h2>\n

In 2015, Czech right-wing libertarian politician V\u00edt Jedli\u010dka claimed an uninhabited stretch of floodplain on the Danube River between Croatia and Serbia. <\/p>\n

An odd combination of politics and engineering, in which the course of the Danube changed in the 19th century, left the seven-square-kilometer parcel of land unclaimed by either nation. Jedli\u010dka believed that he should be able to form a country there under the principle of terra nullius<\/em> and founded the Free Republic of Liberland as its first president.<\/p>\n

The flag of Liberland. Source: Liberland<\/em><\/figcaption><\/figure>\n

The project caught the attention of crypto enthusiasts as the micronation issues its own cryptocurrency, the Liberland Dollar (LLD), and promised a laissez-faire<\/em>, minimalist approach to governance. <\/em>On Sept. 2, 2025, the token became<\/a> available on crypto trading platform Alchemy Pay.<\/p>\n

While neither Croatia nor Serbia claims the territory, neither supports the group of crypto libertarians. The founders, press and activists have had multiple run-ins with police while trying to cross the Croatian border.<\/p>\n

Magazine: <\/strong><\/em>Breaking into Liberland: Dodging guards with inner-tubes, decoys and diplomats<\/strong><\/em><\/a><\/p>\n

After multiple attempts to make landfall and run-ins with the Croatian police, Jedli\u010dka was banned<\/a> from entering the country for five years due to \u201cextremist\u201d activities.<\/p>\n

Jedli\u010dka (left) makes landfall on the presidential jet ski, holding the Liberland flag. Source: <\/em>Total Croatia News<\/em><\/a><\/figcaption><\/figure>\n

CityDAO, Wyoming: Crypto goes West<\/h2>\n

Cryptocurrencies and interest around blockchain technology surged amid the COVID-19 crisis in 2020-2021, leading several states in the US, including Wyoming, to make laws for decentralized autonomous organizations (DAOs). In April 2021, Wyoming Governor Mark Gordon signed a bill recognizing DAOs as legal entities.<\/p>\n

The law went into effect on July 1, 2021. That same day, software engineer Scott Fitsimones posted:<\/p>\n

Source: <\/em>Scott Fistsimones<\/em><\/a><\/figcaption><\/figure>\n

The project aimed to prove that DAOs could purchase and manage land, streamline municipal decision-making and governance and resolve conflicts.\u00a0<\/p>\n

Within a month, the project had secured<\/a> over $250,000 through the sale of non-fungible tokens (NFTs) called \u201cCitizen NFTs.\u201d Purchases from influential, pro-crypto entrepreneurs like billionaire \u201cShark Tank\u201d investor Mark Cuban and Coinbase CEO Brian Armstrong helped fuel interest.<\/p>\n

By October of that year, more than 5,000 people from around the world had contributed a sum of $8 million to buy 40 acres of land in Wymoning and begin<\/a> \u201cbuilding the city of the future on the Ethereum blockchain.\u201d<\/p>\n

But the community ran into some challenges, namely, most members believed that \u201cParcel 0,\u201d the plot of land they purchased, should be used \u201cprimarily for conservation and wildlife.\u201d<\/p>\n

A January 2022 hack in which fraudsters netted $95,000 through a fake \u201cland drop\u201d in the project\u2019s Discord soured many on the project\u2019s prospects.\u00a0<\/p>\n

The project was further limited by zoning laws. Even if the DAO had decided to use the project for something other than conservation, Wyoming residential zoning laws limit the 40-acre plot to just one, single-family home.\u00a0<\/p>\n

CityDAO may have succeeded in forming a legal entity, which was a first for a DAO, but it still fell short of the utopian goal of the city on the hill.<\/p>\n

Akon City hits a bad note in Senegal<\/h2>\n

One of the highest-profile crypto city projects is Akon City, the brainchild of Senegalese-American singer Akon.<\/p>\n

Akon announced his intent to launch the \u201cAkoin\u201d cryptocurrency in 2018. Initially pitched as a coin to support African creatives and entrepreneurs, Akon announced in 2020 that it would underpin his futuristic and self-titled \u201cAkon City\u201d project in Senegal.<\/p>\n

Akon had secured 2,000 acres from the Senegalese government to support his eye-watering $6-billion smart city project, where Akoin would provide the means of payment for residents and visitors.<\/p>\n

By 2029, the city was supposed to boast a modern hospital, office parks, a university and upscale residences, all within futuristic-looking skyscrapers along the Senegalese coast.<\/p>\n

Visual concepts for Akon City. Source: <\/em>Planning Times<\/em><\/a><\/figcaption><\/figure>\n

However, it barely got off the ground. The COVID-19 pandemic stalled construction, and by 2024, only the welcome center was partially complete.<\/p>\n

By August 2024, Akoin\u2019s price had totally collapsed. The Senegalese government demanded that Akon either start construction or return the land granted to him. As of July 2025, the project was officially abandoned.<\/p>\n

The welcome center. Source: <\/em>The Sun<\/em><\/a><\/figcaption><\/figure>\n

Blockchains LLC\u2019s crypto city goes dry in Nevada<\/h2>\n

In February 2021, blockchain incubator and investment firm Blockchains LLC set out on an ambitious project<\/a> to build a blockchain city. The company purchased over 67,000 acres of land for $170 million in the Nevada desert in Storey County, which it intended to turn into homes and business parks.<\/p>\n

CEO Jeffrey Berns envisioned a city where residents would pay for goods and services in cryptocurrency. All information, including tax, medical and employment records, would be recorded onchain.<\/p>\n

Blockchain LLC\u2019s vision for an office park in the Nevada desert. Source: <\/em>MarketWatch<\/em><\/a><\/figcaption><\/figure>\n

The company aimed to break ground in 2022, starting with the construction of 15,000 homes and 3 million square meters of commercial and industrial space.<\/p>\n

However, the project\u2019s proposed water source would have required a 100-mile pipeline. Kyle Roerink, executive director of the Great Basin Water Network, said<\/a> there would be \u201ca lot of rights-of-way on federal lands in addition to those tribal considerations … It would be a very long process, likely with a lot of litigation involved.\u201d<\/p>\n

Another problem was that Bern\u2019s plan hinged on his desire to change Nevada law and create \u201cinnovation zones,\u201d which would essentially allow companies to operate like a county government, including levying taxes, creating courts and making land and water use decisions.<\/p>\n

Lawmakers and the general public were not enthused with the plan. Critics claimed<\/a> that the \u201cinnovation zones\u201d would essentially be company towns<\/a>. <\/strong>Berns said that the proposal failed to gain traction in the state legislature, and \u201cone of the biggest problems the proposed legislation encountered was it appeared to have no champion.\u201d<\/p>\n

Success story: Liberstad, Norway\u2019s anarchist commune<\/h2>\n

\u00a0In 2015, John Holmesland and Sondre Bjell\u00e5s founded the community Liberstad and began developing the property in March 2017<\/a>. They\u2019d purchased the land through donations to the Liberstad Drift Association. It was officially established the following June.<\/p>\n

The project, which is founded on anarchist, voluntaryist principles, says it is \u201ccompelled to embark on the journey of creating a new and improved society that champions peace and liberty.\u201d<\/p>\n

An anarchist flag flies over a Liberstad residence. Source: Liberstad<\/em><\/figcaption><\/figure>\n

The Liberstad complex, which is located not far from Kristiansand in southern Norway, consists of 150 hectares of land that hosts visitors and residents as it tries to grow its scope.<\/p>\n

The initial land plots for Liberstad were purchased with Bitcoin, and the \u201ccity\u2019s\u201d sole medium of monetary exchange is City Coin (CITY), which it adopted in 2019.<\/p>\n

Liberstad actually owns and operates land, boasts permanent residents and has developed proprietary blockchain technology for its economy. It may be small, but compared to the others, it\u2019s a resounding success.<\/p>\n

The Liberstad compound. Source: <\/em>Liberstad<\/em><\/a><\/figcaption><\/figure>\n