Network State Identity and Free Market Ecology
Originally published on Botsfordism Substack on June 23, 2025.
The author proposes a practical framework for implementing identity verification and resource management systems within network states using blockchain technology. Rather than adopting existing solutions like Worldcoin’s World ID, the system uses NFTs and “validation event” resource usage rights (RURs) to manage membership and prevent fraud.
Core System Components
Initial Setup
The framework establishes an “Ecological Central Bank” where founders allocate validation event RURs and grant themselves citizenship through initiation NFTs. Citizens receive monthly UBI in the form of validation event RURs, enabling event participation.
Event Organization
Event organizers borrow RURs from private ecological banks, then charge attendees for participation. Existing citizens use their UBI allocation; newcomers must purchase initiation NFTs or obtain RURs from inactive citizens.
Onboarding Process
New members complete an initiation overseen by “Ecological Private Finance.” Upon completion, initiators generate membership NFTs tied to individual sign-up information. Initiates purchase these NFTs in cryptocurrency, with proceeds shared between initiators and finance entities. The purchased NFT repays borrowed RURs, validating organizational acceptance.
Economic Incentives
Market forces naturally constrain pricing because UBI allocations are finite. Citizens with unused RURs can profit by transferring them to non-citizens. Event organizers may mark up RURs or practice price discrimination without ethical concerns, since participation remains voluntary. Organizers post NFTs as collateral, which authorities can revoke for fraudulent activities.
Key Advantages
The system addresses multiple concerns: implementing UBI without unlimited resources, verifying identity through multiple trust roots, enabling pseudo-anonymity, allowing multi-jurisdictional membership, and mitigating Sybil attacks where bots create fake identities.
The author invites developers to implement variations and requests attribution to “Free Market Ecology” for movement growth.