A Web3 Sovereign Nation-State

What was the project about?

This project explored one of the most recent and fascinating topics driven by the evolution of blockchain-based fintech: the creation of network states, based on crypto-economic systems, which is strategic emerging agenda founded in cybernetics and complex systems operated by distributed ledger technologies and accelerated by fintech innovations, open-source and developments in theDLT/blockchain-based crypto-economies.​

More specifically the project explored the dimensions of the nation-state in a web3+ format and research practices and preconditions for nation-states in both web2 (traditional world), web3, and also look towards DAOs on topics of decentralization, autonomy, and governance, extrapolating the findings to nation-states as relates to political science, administration, and fiscal, but extending to crypto disciplines such as complex systems engineering, cybernetics, management science, economic principal agents theory, finance, law and technology, crypto-economic systems and more, as nation-states are complex and multidisciplinary. ​

It was the aim of the partners to deliver sufficient academic evidence to motivate a broader academic research agenda as relates web3 based nation-states, which they call the‘web4’, the next iteration of decentralized, autonomous organizations operating in cyberspace with affiliations across geographies and cultures, but with common affinity and purpose as a networked community.


During the project the partners decided to shift the research focus due to the following new insights and key developments:

1) Early on they realized the large global brands (so-called) IPs would not allow full decentralization of their brands

2) The emergence of generative AI

So instead of trying to design a decentralized organization they instead developed a new framework that allows IPs to scale cultural production in pseudonymous communities using generative AI.

A New Framework

They proposed a new and streamlined analytical framework utilizing Large LanguageModels (LLMs), in this instance open-access generative pre-trained transformer(GPT) models, offering an efficient solution with deeper insights into community dynamics.

The framework aids moderators in identifying pseudonymous actor intent, moderating toxic behavior, rewarding desired actions to avoid unintended consequences of blockchain-based gaming,and gauging community sentiment as communities venture into metaverse platforms and plan for hypergrowth.

The framework also strengthens community controls, eases onboarding, and promotes a common moral mission across communities while reducing agency costs by 95 pct.

Highlighting the transformative role of generative AI, the project emphasizes its potential to redefine the cost ofcultural production. It also showcases the utility of GPTs in digital communitymanagement, expanding their implications in cultural economics and transmedia storytelling.

Host Institution(s):

Copenhagen University​

Principal Investigators:

Henrik Axelsen, Ph.D, Department of Computer Science​


Reality+ and Doercircle​


200.000 DKK​

Project Period


Project outcomes


Can AI Moderate Online Communities? (Axelsen et al., 2024) - Find here

Scaling Culture in Blockchain Gaming: Generative AI and Pseudonymous Engagement (Axelsen et al., 2023) - Find here


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