Does Prospera Represent Decentralization?
Some thoughts on special zones and decentralization
After the private premiere of The Network Society documentary, one of the most recurring comments was:
“Isn't it contradictory to use Próspera as an example of decentralization while a company runs the city?"
The short answer is: No.
Why?
Because Prospera represents the decentralization of the Honduran Government in a public-private-civil win-win-win relationship.
The State of Honduras is exercising its sovereignty power through the ZEDE law, which allows the creation of autonomous municipalities. This is a proven tool to attract investment, generate new revenue sources for the country, bring in talent, and most importantly, provide an internal governance sandbox to test innovations and adopt what works.
For Hondurans, this means they will have a network of micro jurisdictions to choose from, depending on their needs and interests. They could opt for a city with more security and basic job opportunities, like Ciudad Morazan, or a flexible, modern place to incorporate their startup, like Prospera. Or they may simply remain where they are, under Honduran law, and ignore these experimental new cities.
For startups, it’s a huge business opportunity and a big chance to cause a positive impact in the world by addressing longstanding issues, like chronic poverty, or unlocking cutting-edge innovation.
If a new city wants to experiment with more crypto-native, on-chain decentralized governance, go for it. I would love to see these types of experiments bringing DAOs into the physical world. But centralized governance in a very small, empty, opt-in territory is fine too, since there is an easy exit and a clear path for creating new cities to compete within the country.
That’s the network society I’m envisioning.
Do you want to know more about startup societies? Stay tuned to the premiere of The Network Society documentary on Oct 24th.
If you are in Brazil, Florianópolis, come watch the screening with us.
The word decentralized is often used in the purest form.
A good system can have elements of both centralization and decentralization. the key is what we call the LAST HAND ON THE BAT theory of systems - who has final control? If it is the people, then centralized entities can work for the decentralized people.
If the governance structure uses human swarm intelligence, it is about as decentralized as it can get.
https://joshketry.substack.com/p/decentralize-everything-in-1776-america?utm_source=publication-search