According to Cointelegraph, Ethereum co-founder Vitalik Buterin has identified two major issues—governance and membership—that need to be resolved to make his concept of 'popup cities' or 'network states' viable. Speaking at the Network State Conference 2024 in Singapore on September 22, Buterin elaborated on the theory behind network states, which involve online communities forming physical communities to seek political autonomy.

Buterin reflected on his experiment called Zuzalu, which brought together 200 individuals from the Ethereum community, crypto executives, biotech entrepreneurs, and scientific researchers in Montenegro from March to May 2023. The aim was to collaboratively address collective problems such as human longevity. Participants engaged in activities like healthy eating, cold plunges, and yoga, emphasizing the importance of the human element. However, Buterin noted that the experiment did not provide clear next steps for governance and membership issues.

He suggested that network states could create their own regulations to benefit their citizens and avoid over-regulation that hinders progress, as seen in the West. Despite the potential, the experiment did not clarify how to implement these regulations effectively. Buterin emphasized the need for productive relationships between network states, warning against the unproductive tribalism prevalent on social media.

Buterin concluded that while popup cities have a 'product market fit,' resolving governance and membership issues is crucial for further development. He stressed the importance of cooperation, even among those with different goals, and urged careful consideration of the path forward. The concept of network states, initially proposed by Balaji Srinivasan and expanded upon by Buterin in 2022, is seen as a potential successor to libertarianism, blending individualism with community values.