N3GOV-48: Merge towards endgoal

Summary

When launching Nation3, the idea was to leverage Web3’s capital formation to accumulate a massive treasury that would allow the community to negotiate a favorable deal with a host country and create a new nation state.

As the crypto bear market came (and other events like the FTX collapse), any glimpse of such treasury has been erased.

The first pivot was then to creating the internet’s legal system, powered by Nation3’s checks and balances.

After thorough analysis and a deep dive on the problem and solutions space (posted on #agora on Discord), such quest seems overly complicated, with many risky assumptions and ultimately getting us further from the idea of creating a network state.

Baseflow is an OS for sovereign individuals, allowing them to acquire residencies and citizenships with ease, and move where they are treated best.

Such funnel and community of sovereign individuals, as well as close ties with government agents, can be leveraged as a launchpad to negotiate Special Economic Zones with host countries. That was the original idea for Nation3, and we believe it is still the right path to pursue.

A merge with Baseflow would ensure the continuity of such endeavor. Baseflow’s short-term goal is to help sovereign individuals acquire citizenships and residencies with the governments that treat them best. Nation3’s long-term goal is to create Special Economic Zones where they are treated best.

Implementation

• A new legal entity to be incorporated in Zug, Switzerland (The Network State Company AG).
• All funds (directly or over time for vested ones) to be transferred to networkstateco.eth.
• Aragon Ecosystem Association (Aragon DAO’s legal wrapper), the only entity that purchased tokens from the Nation3 DAO (via a swap), will be given a proportional amount of shares in The Network State Company, once incorporated.
• All citizens with valid passports (>2 $veNATION balance) at block 17690000 are allowed to participate in The Network State Company at the valuation of the merge. Such valuation is the sum of Baseflow Inc.’s valuation plus the Nation3 valuation that the Aragon token swap was done at ($52.069m total valuation). $veNATION holdings, at 1 $veNATION = $100 (roughly market price at writing time) are taken into account for their investment. In other words, a citizen holding 2 $veNATION would get $200 worth of shares “for free”. The minimum ticket is $2,500 (otherwise KYC and other processes aren’t worth it). Founder tokens and tokens from AEA are excluded from participating (since that would be double participation). Although the Nation3 DAO never sold $NATION to citizens or others (apart from AEA), and instead did a massive token airdrop (giving away more than $10m in tokens), we feel this allows aligned citizens to continue being involved, while filtering away those who don’t.
• $NATION and other smart contracts will continue existing, they are permissionless and cannot stop. The Nation3 Constitution will still be in effect, and the Nation3 DAO won’t lose sovereignty over itself. $veNATION holders will still govern it.
• North Star metric changes towards GDP of the network state.

North Star metrics alignment

To increase the GDP of a network state, first we need to create a network state.

To do so, this proposal aims to onboard tons of sovereign individuals (high mobility, high wealth) into a platform helping them move to where they are best treated. Then we aim to flag their economic interest in setting up Special Economic Zones to governments, eventually reaching deals with them. After that, sovereign individuals can move and kickstart economic activity within the network state, further increasing its GDP.

PR at https://github.com/nation3/gov-proposals/pull/69/files