The network-state path saves its one step that it does not control for last. As of October 2026 no network state has diplomatic recognition, and every project on the path runs under host-country law. A host has already enforced a stop once: Johor revoked the Network School operator's licence in July 2026 and the school moved to Kazakhstan under an MOU. Honduras repealed its ZEDE law in 2022, a legal reversal that has not yet become a physical one: Próspera keeps operating under a contested status, and it is the live test of this claim (Honduras facts from secondary sources; Próspera is a charter city, an analogue to a startup society, not one). The project changed landlord; it still has a landlord. Going cloud first moves dependence on incumbents to the end of the sequence; it does not remove it. Any parallel institution that has to hold physical or legal assets inherits the same constraint.

Evidence 1 passage

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should eventually be able to negotiate for diplomatic recognition from at least one pre-existing government