Blockchain Cities and Liners: Where Did They Go?

Blockchain Cities and Liners: Where Did They Go?

Estimated reading time: 9 minutes

• Most ambitious blockchain city and liner projects failed due to regulatory hurdles, financial instability, and logistical complexities, as seen with MS Satoshi, Akon City, and Blockchains LLC.
• Projects like Liberland (micro-nation) and CityDAO (DAO land ownership) faced significant challenges with diplomatic recognition, internal consensus, and legal limitations.
• Liberstad, Norway, stands as the lone success story, demonstrating that grassroots, anarcho-capitalist communities can be established with a focus on legal compliance and incremental growth.
• Future decentralized settlements require realistic funding, phased development, strong regulatory engagement, and genuine community consensus for success.
• Transforming digital ideals into physical realities necessitates adapting to real-world limitations rather than attempting to bypass them entirely.

• Visions on Water and Land: Projects That Stumbled
  • MS Satoshi Cruise Ship
  • Liberland: The Micro-Nation’s Diplomatic Struggle
  • CityDAO: DAO Governance Meets Real Estate
  • Akon City: Celebrity Backing vs. Practical Hurdles
  • Blockchains LLC: Nevada Desert Dreams Confronting Regulatory Realities
• The Lone Success Story: Liberstad, Norway
  • Liberstad: A Grassroots Anarcho-Capitalist Community
• Lessons from the Crypto-Utopias: Actionable Steps for the Future
• Conclusion: The Future of Decentralized Settlements
• Frequently Asked Questions

The vision was compelling: autonomous communities, free from traditional constraints, powered by the immutable logic of blockchain technology. Imagine a floating digital nomad haven, a self-governing micro-nation, or an entire city where every transaction and record exists on a distributed ledger. These grand aspirations captured the imaginations of idealists, entrepreneurs, and crypto enthusiasts alike, promising new frontiers of freedom, efficiency, and innovation.

Yet, the path from whitepaper to concrete reality proved to be fraught with challenges. While the digital realm offers boundless possibilities, the physical world, with its entrenched regulations, logistical complexities, and human nature, often presents formidable obstacles. This article delves into the ambitious projects that sought to materialize these blockchain-powered utopias, exploring why most of them ultimately failed to launch, or simply faded away.

Visions on Water and Land: Projects That Stumbled

From the high seas to disputed territories, and even the American desert, proponents of blockchain cities envisioned diverse settings for their new societies. Each project, while unique in its approach, shared a common thread: the belief that decentralized technology could fundamentally reshape governance and community. However, this belief often collided with harsh realities, leading to many unfulfilled dreams.

MS Satoshi Cruise Ship

In 2020, three Bitcoin enthusiasts bought the Pacific Dawn cruise ship for $9.5 million with the intention of turning it into a floating blockchain city near Panama. The allure was undeniable: a sovereign-like environment where digital nomads could escape traditional tax structures and regulatory oversight. The ship was supposed to become a hub for digital nomads, where they could mine crypto, do business, and pay for everything in Bitcoin. It was a bold experiment in seasteading, promising a new frontier for digital liberty on the waves.

However, the immense operational costs of maintaining such a vessel, particularly fuel costs of around $12,000 per day, coupled with the global challenges of the COVID-19 pandemic and strict maritime regulations, proved insurmountable. The dream of a floating crypto haven quickly capsized, and the ship was sold in December 2020, just months after its acquisition. The venture highlighted the stark practicalities of maritime operations that even the most innovative ideas couldn’t easily overcome.

Liberland: The Micro-Nation’s Diplomatic Struggle

Back in 2015, Czech right-wing libertarian politician Vit Jedlicka claimed ownership of an uninhabited stretch of floodplain on the Danube River between Croatia and Serbia. Jedlička proclaimed a new state there called the “Free Republic of Liberland,” where they introduced their own cryptocurrency, the Liberland Dollar (LLD). This ambitious project sought to establish a micro-nation based on libertarian principles, with minimal government intervention and a strong emphasis on individual freedom and property rights.

In September 2025, the Liberland token became available on the Alchemy Pay crypto trading platform, showcasing its digital aspirations. However, the project faced significant hurdles in establishing physical sovereignty. Although neither Croatia nor Serbia claims the territory of Liberland, neither supports the idea of an independent state emerging between them. The founders, press, and activists have repeatedly clashed with police while attempting to cross the Croatian border, highlighting the gap between proclaimed sovereignty and recognized statehood.

The Free Republic of Liberland has no diplomatic recognition from any member states of the United Nations. Despite this, Liberland has established diplomatic relations with the self-proclaimed state of Somaliland, which declared independence from Somalia in 1991. Liberland and Somaliland signed a Memorandum of Understanding in September 2017 with the aim of establishing closer relations and cooperation in the fields of technology, energy supply, and banking. On April 16, 2017, Bitnation also announced a partnership with Liberland. Bitnation is a company that calls itself the world’s first “electronic state” based on blockchain technology. These unique partnerships illustrate the project’s strategy of forging alliances within the emerging decentralized and self-proclaimed state ecosystem, even as it struggles for broader international acceptance.

CityDAO: DAO Governance Meets Real Estate

In 2021, the US state of Wyoming passed a law recognizing DAOs (decentralized autonomous organizations) as legal entities, paving the way for a novel experiment in land ownership and governance. With the support of 5,000 people, the CityDAO project raised $8 million in investments and purchased 40 acres of land. The goal of the project was to prove that DAOs can buy and manage land, optimize decision-making and municipal management, and resolve conflicts. This represented a fascinating attempt to bridge the decentralized governance model of DAOs with the tangible reality of physical land ownership.

In its first month, the project raised over $250,000 by selling non-fungible tokens (NFTs) called Citizen NFTs. Purchases by influential crypto entrepreneurs such as Shark Tank billionaire investor Mark Cuban and Coinbase CEO Brian Armstrong helped fuel interest in CityDAO. Thus began the “construction of the city of the future on the Ethereum blockchain.” However, the project encountered significant internal and external challenges. Most community members wanted to use the land as a nature reserve, while initial marketing hinted at a bustling futuristic city. Complicating matters further, according to local law, only one residential building could be built on the acquired land, severely limiting any urban development. Additionally, the hack of the Discord server cost the project $95,000, demonstrating vulnerabilities even in a decentralized framework. The dream of a utopian city remained just a dream, although it was successful in legal terms by demonstrating the viability of DAOs owning real estate.

Akon City: Celebrity Backing vs. Practical Hurdles

In 2018, renowned singer Akon announced the creation of the Akoin cryptocurrency, which was to become the basis for the city of the future — Akon City in Senegal. The vision was grand: a $6 billion project designed to be a “real-life Wakanda,” featuring a university, a hospital, business centers, housing, and utilizing renewable energy sources. All this was to be implemented by 2029, promising a beacon of Afro-futurism and sustainable development powered by crypto.

However, despite Akon’s statement in 2022 that the project was “100,000% in progress,” no significant construction work has been carried out since the initial launch ceremony. The Senegalese government confirmed that the project had stalled and could not be resumed. Officials cited a lack of funding and the pandemic-induced construction freeze as the main reasons. The ambitious timelines and vast financial requirements proved difficult to meet, even with celebrity backing. Meanwhile, the Akoin cryptocurrency has fallen to zero, and in 2025, the Senegalese government officially announced the cancellation of the project. However, the country’s authorities claim that they are now working with Akon on a more “realistic” development project for the same site. The land near Mbodien remains valuable, especially with the 2026 Youth Olympic Games approaching and an expected increase in tourist activity, suggesting a pivot from a pure blockchain city to a more conventional, albeit still significant, development.

Blockchains LLC: Nevada Desert Dreams Confronting Regulatory Realities

In February 2021, blockchain incubator and investment firm Blockchains LLC launched an ambitious project to build a blockchain city in the United States. The company purchased 67,000 acres of land for $170 million in the Nevada desert in Storey County, an immense tract intended for transformation into residential buildings and business parks. CEO Jeffrey Burns envisioned a city where residents would pay for goods and services with cryptocurrency, and all critical information—including tax, medical, and employment records—would be immutably kept on the blockchain. This was a vision of a fully integrated, transparent, and digitally governed metropolis.

Construction was scheduled to begin in 2022 with the development of 15,000 homes and 3 million square meters of commercial and industrial space. However, the project encountered significant practical and political obstacles. A major challenge was the water source: the proposed plan would have required a 160 km pipeline to supply the new city in the arid desert, a monumental infrastructure undertaking. Even more controversially, the plan required changing Nevada law and creating an “innovation zone” that would essentially allow companies to function as county governments, including collecting taxes, establishing courts, and making decisions about land and water use. This proposal sparked widespread concern among lawmakers and the public, who were not enthusiastic about granting such broad governmental powers to a private corporation. The lack of public and legislative support ultimately stalled the project, demonstrating the difficulty of creating new jurisdictional entities within existing state frameworks.

The Lone Success Story: Liberstad, Norway

Amidst a landscape littered with grand intentions and unrealized dreams, one project stands out as a genuine achievement in establishing a physical community based on decentralized principles.

Liberstad: A Grassroots Anarcho-Capitalist Community

In 2015, John Holmsland and Sondre Bjelloss founded the Liberstad community in Norway and began developing the site in March 2017. They purchased the land with donations to the Liberstad Drift Association, creating a grassroots foundation for their vision. Liberstad officially opened in June of the following year. The project, based on anarchist and volunteer principles, is “compelled to embark on the path of creating a new and improved society that upholds peace and freedom.” This philosophy underpins its gradual, organic development, contrasting sharply with the top-down, large-scale ambitions of other projects.

In 2019, the private anarcho-capitalist city adopted the City Coin (CITY) cryptocurrency, built into a blockchain-based smart city platform, as its official currency. The autonomous region of Liberstad, located near Kristiansand in southern Norway, covers 150 hectares of land. Crucially, Liberstad legally owns and manages the land and has permanent residents. It is the only known success story in the creation of blockchain cities, showcasing that with a clear, consistent vision, a focus on smaller-scale, self-funded development, and careful navigation of existing legal frameworks, such a community can indeed be brought to fruition. Their success lies in incremental growth and adapting to real-world limitations rather than attempting to bypass them entirely.

Lessons from the Crypto-Utopias: Actionable Steps for the Future

The journey of blockchain cities and liners offers valuable insights for anyone looking to build decentralized physical communities. The pitfalls are clear, but so are the pathways to potential success. To avoid the fate of most ambitious projects, consider these actionable steps:

1. Prioritize Regulatory Engagement and Local Integration: Projects that attempt to circumvent or drastically alter existing legal and governmental frameworks often face insurmountable opposition. Early and transparent engagement with local authorities, understanding zoning laws, environmental regulations, and political landscapes, is crucial. Integrating with, rather than isolating from, surrounding communities can foster goodwill and facilitate necessary approvals.
2. Secure Realistic Funding and Phased Development: Grand visions require equally grand budgets, which are often difficult to sustain through volatile crypto markets or speculative investments. Instead of aiming for immediate mega-cities, adopt a phased development approach. Secure diversified, stable funding sources beyond initial token sales, and focus on building out essential infrastructure gradually, proving viability at each step before scaling.
3. Foster Genuine Community Consensus and Governance: While DAOs offer decentralized governance, internal disagreements (as seen with CityDAO) can paralyze progress, especially concerning physical land use. Clear, well-defined governance mechanisms for decision-making regarding land, resources, and community rules are essential. True decentralization involves active participation and agreement on common goals, not just technological implementation.

Conclusion: The Future of Decentralized Settlements

The dream of blockchain cities and liners, offering new models of governance and community, is far from dead, but its early attempts serve as a stark reminder of the complexities involved. The tales of the MS Satoshi, Liberland’s diplomatic struggles, CityDAO’s internal conflicts, Akon City’s funding woes, and Blockchains LLC’s regulatory clashes underscore the significant hurdles of transforming digital ideals into physical realities. These projects often underestimated the power of traditional governance, the cost of infrastructure, and the inherent challenges of human cooperation on a grand scale.

However, the existence of Liberstad demonstrates that with a grounded approach, a clear philosophy, and persistent, incremental development within established legal boundaries, decentralized physical communities can indeed thrive. The future of blockchain cities likely lies not in sudden, sweeping declarations, but in careful, collaborative, and realistic efforts to build tangible value for residents, while respecting the broader world around them. It’s a journey of evolution, not revolution, for those seeking to blend the best of decentralized technology with the demands of the physical world.

Frequently Asked Questions

• What is a blockchain city?
• Why did most blockchain city projects fail?
• Is there any successful blockchain city?
• What were the main challenges faced by Akon City?
• What is the future outlook for decentralized physical communities?

Q: What is a blockchain city?
A: A blockchain city is an ambitious concept for a physical settlement or community where governance, transactions, and public records are managed using blockchain technology. The goal is often to create autonomous, transparent, and efficient societies with minimal traditional governmental oversight.

Q: Why did most blockchain city projects fail?
A: Most projects failed due to a combination of factors: insurmountable regulatory hurdles, immense financial and logistical costs (e.g., fuel for MS Satoshi, infrastructure for Blockchains LLC), lack of diplomatic recognition (Liberland), internal community disagreements (CityDAO), and unrealistic expectations or funding issues (Akon City).

Q: Is there any successful blockchain city?
A: Yes, Liberstad in Norway is considered the lone success story. Founded on anarcho-capitalist principles, it has established legal land ownership, permanent residents, and uses its own cryptocurrency (CITY), demonstrating that a grassroots, incremental approach can lead to successful decentralized communities.

Q: What were the main challenges faced by Akon City?
A: Akon City, despite celebrity backing and a grand vision, faced significant challenges primarily due to a lack of sustained funding and construction freezes, exacerbated by global events like the pandemic. The project officially stalled and was later cancelled by the Senegalese government due to these issues.

Q: What is the future outlook for decentralized physical communities?
A: The future of such communities lies in a more realistic, collaborative, and incremental approach. Success will likely require strong engagement with existing regulatory frameworks, securing diversified and stable funding, phased development, and fostering genuine community consensus on goals and governance, rather than attempting to create entirely separate jurisdictions.