@balajis.eth what happens to a so called network "state" when guys with guns show up? violence is what defines the line between a country and a country club, no? ofc one can point to places like singapore but these are the historical exception, not the rule

Some answers:

1) Decentralized networks are hard to invade. You can get physically attacked in N places but take refuge in the other K.
2) Crypto networks are also hard to rob
3) You can contract with local states for protection
4) Many netizens will retain dual citizenship for a while, just as people hold BTC & USD

Further to this:

1) Its not about the land. States need resources, and network states have digital resources, not physical.

2) Its not about circumventing rules or making enemies. Why would they attack? They'll want to enter in trade, because of the Network economy.