In Balaji Srinivasan's vision, 'The Network State' is a new type of nation that starts from the cloud and ultimately lands in reality.
In 2025, the first true network state will be declared. It has no territory but boasts 5 million high-net-worth citizens. They refuse to be taxed by traditional nation-states and reject the use of inflationary fiat currencies. They need a reserve currency that can represent 'digital sovereignty'.
This country has no central bank president, only smart contracts. The fiat currency they choose is neither Bitcoin (too volatile) nor USDT (controlled by the US), but USDD 2.0.
1. Treasury that cannot be sanctioned
The biggest risk for the network nation is being sanctioned by real-world powers.
If USDT is used, the U.S. Treasury can freeze the treasury of this country at any time. However, the unfreezable attribute of USDD 2.0 grants the network nation true independence. This is the cornerstone of digital sovereignty—if your money can be turned off by others, you are not a country; you are merely a tenant.
2. Automated fiscal system
The network nation does not have a large tax bureau.
By converting treasury funds into sUSDD, the nation maintains public services (such as cloud server fees, legal aid) through the DeFi earnings generated by Smart Allocator. This is a prototype of a 'tax-free nation' economic model—the government does not tax citizens but profits by managing treasury assets.
3. JST: Citizens' voting rights
In the network nation, citizenship is governance power.
The governance token JST of USDD 2.0 naturally aligns with the democratic mechanism of the network nation. Citizens hold JST to vote on the country's monetary policy (such as adjusting the collateral rate). This is no longer representative democracy but direct 'on-chain democracy'.
Disclaimer: The above content is personal research and views of 'Carving the Boat to Seek the Sword', intended for information sharing only, and does not constitute any investment or trading advice. Data is compiled from research reports/public information; please refer to official pages and on-chain data, DYOR.
