Praxis, a self-described “internet-native alliance” project, just announced that it had secured $525 million in funding to develop the world’s first “Network State.”
According to the project’s blog post on October 16, this initiative, aimed at creating a new city with innovative regulatory frameworks, is backed by several tech companies and angel investors, including Arch Lending, Manifold Trading, and Global Emerging Markets (GEM) Digital.
According to the Wall Street Journal, GEM Digital contributed the largest portion of the funding, over $500 million. To access these funds, Praxis will issue crypto tokens representing future real estate ownership to GEM. It also has plans to list the tokens on a public cryptocurrency exchange.
Dryden Brown, CEO and co-founder of Praxis, also shared the news on X, revealing that the company had developed a “novel drawdown mechanism” to facilitate the creation of new cities. The $525 million raised will support the first phase of the city-building project.
Brown emphasized that this financing structure is a crypto-based mechanism designed to fund large-scale projects, such as real-world assets (RWAs), similar to those championed by institutions like BlackRock.
Praxis outlined that the Network State that the Network State is designed to lower regulatory barriers, fostering “rapid breakthroughs in AI, crypto, biotech, energy, and advanced manufacturing.” The team plans to establish the new city in an “Acceleration Zone,” a special economic area with reduced regulations, allowing tech companies to operate with greater flexibility. At the same time, the city will uphold the “traditional values of Western Civilization.”
Though the specific location of the city remains undisclosed, Brown informed the Wall Street Journal that potential sites in Latin America and the Mediterranean are being considered.
This announcement follows a previous blog post from Praxis, which highlighted Network States as a pivotal development for advancing crypto adoption. It claimed that the project aims to redefine urban development and the financial structures that power it. The team stated it will incorporate on-chain infrastructure into its core institutions, serving as a modern alternative to traditional financial systems typically seen in nation-states.
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