The blockchain industry has long been committed to creating a "City on the Peak"—an idealized community based on blockchain, where code is law. However, regulatory issues, unrealistic expectations, and other factors often make it difficult for these projects to achieve success from the outset.
In recent years, idealistic entrepreneurs have continuously attempted to build communities using blockchain. Some projects are more pragmatic, using blockchain for land registration; others aim to establish cities that operate entirely on blockchain and cryptocurrency.
One of the most recent and controversial cases is the rumored plan by U.S. President Trump to create a "Gaza Riviera" in the war-torn Gaza region, incorporating tokens into his fundraising and real estate investment model.
Many have long yearned for a more liberated life at sea, from pirates to French actor Gérard Depardieu, and even to Scientology founder L. Ron Hubbard. In October 2020, three Bitcoin idealists—Grant Romundt, Rüdiger Koch, and Chad Elwartowski—purchased a 245-meter cruise ship, Pacific Dawn, for $9.5 million, planning to convert it into a Bitcoin-themed city docked off the coast of Panama.
The cruise ship was initially intended to provide an inclusive community for digital nomads and Bitcoin advocates, combining cryptocurrency enthusiasts with the "seasteading" movement—a movement initiated by tech executives advocating that the next step in human development is to live together on the high seas.
The former cruise ship was equipped with restaurants, a pool, cafes, and a gym. Residents could mine on board and conduct business freely without government oversight. All goods and services on the ship accepted Bitcoin as payment.
Unfortunately, the founders failed to attract enough investors to cover costs. Fuel alone cost $12,000 per day, and logistical challenges caused by the COVID-19 pandemic hindered the project's progress. Additionally, the cruise ship was subject to some of the strictest maritime regulations in the world, which the founders had not adequately considered.
Romundt stated in an interview with The Guardian, "We thought it was really too difficult at the time."
In December 2020, MS Satoshi was sold.
On August 31, The Washington Post reported that the Trump administration was developing a plan called the Gaza Reconstruction, Economic Acceleration, and Transformation Trust, aimed at developing the Gaza Strip under U.S. oversight.
The 38-page document proposed several high-tech ideas intended to stimulate the Gaza economy, which has long suffered from famine and Israeli airstrikes.
In addition to plans for a deep-sea port, a "Trump Tourism Coastal Zone," and an electric vehicle manufacturing area, the prospectus also proposed a "voluntary" program encouraging Palestinians to offer land to the trust. Tokens could be used to relocate to other areas or settle in one of the eight "smart cities" planned for Gaza.
Currently, the plan has not made substantial progress. UN experts believe that the trust developed by the Israel-backed Gaza Humanitarian Foundation (GHF) is, in fact, a cover for a "serious violation of international law's covert military and geopolitical agenda."
In 2015, Czech right-wing libertarian politician Vít Jedlička announced the establishment of a nation in the uninhabited floodplain between Croatia and Serbia along the Danube River.
The changes in the Danube River's course in the 19th century left this 7-square-kilometer area unclaimed by any country. Jedlička founded the Free Republic of Liberland based on the principle of "terra nullius" and appointed himself as the first president.
The project attracted the attention of cryptocurrency enthusiasts, and the micro-nation issued its own cryptocurrency, Liberland Coin (LLD), promising to implement laissez-faire and minimal governance. On September 2, 2025, the token was launched on the cryptocurrency trading platform Alchemy Pay.
Neither Croatia nor Serbia claimed the territory or supported this group of crypto-libertarians. Founders, media, and activists attempted to cross the border multiple times but were intercepted by police.
After several attempts to land and clashes with Croatian police, Jedlička was banned from entering the country for five years due to "extremist" actions.
During the COVID-19 pandemic from 2020 to 2021, interest in cryptocurrency and blockchain technology surged, leading several U.S. states, including Wyoming, to enact legislation related to decentralized autonomous organizations (DAOs). In April 2021, Wyoming Governor Mark Gordon signed a bill officially recognizing DAOs as legal entities.
The law took effect on July 1, 2021. On the same day, software engineer Scott Fitsimones announced:
The project aimed to demonstrate that DAOs could purchase and manage land, simplify municipal decision-making and governance, and resolve conflicts.
Within a month, the project raised over $250,000 by selling non-fungible tokens called "Citizen NFTs." Influential entrepreneurs in the crypto space, such as billionaire venture capitalist Mark Cuban and Coinbase CEO Brian Armstrong, participated in the purchases, boosting the project's popularity.
In October of that year, over 5,000 people collectively donated $8 million to purchase 40 acres of land in Wyoming, beginning "the construction of a future city on the Ethereum blockchain."
However, the community faced challenges, as most members believed that the purchased "Parcel 0" should be "primarily used for conservation and wildlife."
In January 2022, the project's Discord was hacked, with scammers profiting $95,000 through a fake "land distribution," leading many to feel disappointed about the project's prospects.
The project was also constrained by zoning regulations. Even if the DAO decided to use the project for purposes other than conservation, Wyoming's residential zoning laws allowed only a single-family home to be built on the 40-acre plot.
Despite CityDAO successfully forming the first DAO legal entity, there remains a significant gap to achieving the ideal "City on the Peak."
One of the most influential crypto city projects is Akon City, initiated by Senegalese-American singer Akon.
In 2018, Akon announced the issuance of the "Akoin" cryptocurrency, initially positioned to support African creative talents and entrepreneurs; in 2020, he announced that the coin would serve as the payment foundation for the futuristically named city "Akon City" in Senegal.
Akon has obtained 2,000 acres of land from the Senegalese government to support his $6 billion smart city project, with Akoin providing payment means for residents and visitors.
By 2029, the city plans to feature modern hospitals, office parks, universities, and high-end residences, all designed in a futuristic style, distributed along the Senegalese coast.
However, the project has progressed slowly, with construction long stalled due to the COVID-19 pandemic, and as of 2024, only the welcome center has been partially completed.
In August 2024, the price of Akoin collapsed completely. The Senegalese government demanded that Akon either commence construction or return the land acquired. By July 2025, the project was officially declared terminated.
In February 2021, blockchain incubation and investment company Blockchains LLC launched an ambitious blockchain city project, purchasing over 67,000 acres of land in Storey County, Nevada, for $170 million, planning to create residential and commercial parks.
CEO Jeffrey Berns envisioned that residents could use cryptocurrency to pay for goods and services, with all information (including tax, medical, and employment records) recorded on-chain.
The company originally planned to start construction in 2022, with the first phase to build 15,000 housing units and 3 million square meters of commercial and industrial space.
According to Kyle Roerink, executive director of the Great Basin Water Network, laying pipelines on federal land requires numerous easements and consideration of tribal factors, making the entire process potentially very lengthy and involving significant litigation.
Another issue is that Berns hoped to create "Innovation Zones" by amending Nevada law, allowing companies to operate like county governments, including taxation, establishing courts, and deciding land and water resource use.
Legislators and the public were not supportive of the plan. Critics argued that "Innovation Zones" were essentially corporate towns. According to Berns, the proposal failed to gain support in the state legislature, with "one of the biggest problems being that the legislation seemed to lack a firm champion."
In 2015, John Holmesland and Sondre Bjellås founded the Liberstad community and began developing the property in March 2017. The land was obtained through donations to the Liberstad Drift Association, which was officially established in June of the following year.
The project is based on anarchist and voluntarist principles, claiming to "commit to creating a new society that values peace and freedom."
The Liberstad complex is located near Kristiansand in southern Norway, covering 150 hectares, capable of accommodating visitors and residents, with the community continuously expanding.
Liberstad initially purchased land using Bitcoin, and the only currency medium in the city is the city coin (CITY) adopted in 2019.
Liberstad not only owns and operates the land but also has permanent residents and has developed proprietary blockchain technology for community economic development. Although small in scale, Liberstad stands as a successful model compared to other projects.
Related: Early Hyperliquid users sold airdropped Hypurr NFTs for $467,000
Original text: “Why Blockchain Cities Often Struggle to Take Root”
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