Introduction: The Blockchain City Dream
The blockchain sector has long aspired to establish idealized communities—often dubbed “cities on a hill”—where blockchain technology underpins governance and transactions, with code acting as law. Despite enthusiasm, many such projects struggle to move beyond conceptual stages due to regulatory constraints, unrealistic expectations, and operational challenges.
Maritime Blockchain Communities: The MS Satoshi Case
In 2020, three Bitcoin advocates acquired the 245-meter cruise ship Pacific Dawn for $9.5 million, intending to convert it into the “MS Satoshi,” a floating Bitcoin city off Panama’s coast. The vision combined crypto adoption with the seasteading movement to create a regulator-free environment where residents could mine cryptocurrency and transact exclusively in Bitcoin.
However, the project faltered due to insufficient investor support, the prohibitive daily fuel costs of $12,000, and the logistical complexities introduced by the COVID-19 pandemic. Additionally, the founders underestimated the stringent maritime regulations governing cruise ships. By December 2020, the MS Satoshi was sold, marking the project’s premature end.
Tokenizing Displacement: The Controversial Gaza Riviera Proposal
In 2023, reports surfaced of a plan under the Trump administration called the Gaza Reconstitution, Economic Acceleration and Transformation Trust, aiming to develop the Gaza Strip through American custodianship. The 38-page proposal included high-tech infrastructure projects and envisioned tokenizing land ownership to facilitate relocation or residence in planned “smart cities.”
The trust, backed by the Israel-supported Gaza Humanitarian Foundation, faced criticism from UN experts who labeled it a cover for military and geopolitical agendas violating international law. As of mid-2025, the initiative has not advanced.
Liberland: Libertarian Micronation on the Danube
In 2015, Czech libertarian Vít Jedlička declared the Free Republic of Liberland on a disputed Danube floodplain between Croatia and Serbia. Liberland issued its own cryptocurrency, the Liberland Dollar (LLD), promoting minimal governance and crypto adoption. Despite neither neighboring country claiming the territory, neither supports Liberland, and Jedlička was banned from entering Croatia for five years due to alleged “extremist” activities.
CityDAO in Wyoming: Legal Recognition Meets Practical Limits
Wyoming became a pioneer in recognizing decentralized autonomous organizations (DAOs) as legal entities in 2021. Capitalizing on this, CityDAO raised $8 million through NFT sales to purchase 40 acres of land, aiming to demonstrate DAO-led municipal governance.
Despite initial enthusiasm and high-profile supporters, the project faced internal disagreements over land use, a security breach resulting in $95,000 in fraud, and restrictive zoning laws permitting only a single-family home on the property. While legally notable, CityDAO fell short of creating a functioning blockchain city.
Akon City: Ambitions Stalled in Senegal
Senegalese-American artist Akon announced in 2018 plans for Akon City, a $6 billion smart city powered by his Akoin cryptocurrency. The government granted 2,000 acres for the project, which promised hospitals, universities, and residential skyscrapers.
Progress stalled due to the COVID-19 pandemic, and by 2024 only a welcome center was partially complete. Akoin’s value collapsed, and the Senegalese government demanded construction commence or the land be returned. By mid-2025, the project was officially abandoned.
Blockchains LLC’s Nevada Blockchain City: Water and Legislative Roadblocks
In 2021, Blockchains LLC purchased 67,000 acres in Nevada’s desert with plans to build a blockchain-powered city where all records and transactions would be onchain. The project depended on constructing a 100-mile pipeline for water and establishing “innovation zones” to grant governing powers to companies.
Local opposition, environmental concerns, and lack of legislative support stalled the initiative. Critics viewed the innovation zones as potential company towns, and the proposal failed to gain traction in the state legislature.
Liberstad, Norway: A Modest Blockchain Community Success
Founded in 2015 by John Holmesland and Sondre Bjellås, Liberstad is a small community in southern Norway based on anarchist and voluntaryist principles. It owns 150 hectares of land, purchased initially with Bitcoin, and uses its own cryptocurrency, City Coin (CITY), as the sole medium of exchange.
Unlike larger blockchain city projects, Liberstad has established permanent residents, proprietary blockchain infrastructure, and ongoing development, marking it as a rare, tangible success in the blockchain city landscape.
Conclusion
While blockchain city projects captivate imaginations with visions of decentralized governance and crypto economies, they repeatedly encounter substantial practical barriers. Regulatory frameworks, infrastructural demands, financial viability, and geopolitical complexities have so far limited their scale and impact. Smaller initiatives like Liberstad suggest that incremental, community-focused efforts may offer a more feasible path forward.
