This paper proposes the first systematic classification framework for Network States — digitally-native communities building real-world institutional presence and economic activity outside traditional nation-state structures. Drawing on established economic taxonomies from the World Bank (income classifications), United Nations (M49, HDI, EGDI), and World Economic Forum (Global Competitiveness Index), we develop the Network State Classification Framework (NSCF), a seven-axis system covering Stage of Development, Type, Economic Output, Governance Structure, Physical Presence, Digital Infrastructure, and Tokenomics and Treasury. We further propose the Network State Development Index (NSDI), a composite 0–1 score using HDI methodology, and apply both frameworks to all 89 Network States listed on the ns. com dashboard, drawing on primary sources across English, Chinese, Japanese, Russian, French, Spanish, Arabic, and Korean. v2. 1 changes: The illustrative scoring cohort expanded from 8 to 32 entities (those with NSDI ≥ 0. 20). New entities include Gelephu Mindfulness City (Bhutan state-backed SEZ), Catawba CDEZ (Native American digital economic zone), Itana by Talent Cities (Nigeria), Ciudad Morazán (Honduras), Edge City and Edge Esmeralda (Zuzalu derivatives), Don't Die (longevity NS), Urbit (decentralised OS), Proof of Humanity, Frontier Tower, RNS. ID (Palau), Oceanix (UN-Habitat floating city), Liberstad (Norway), Bitcoin District, Etherlaken, Zupass, Crecimiento, Zanzalu, Montelibero, Logos, Ârc, ZuJapan, and Trad. Dream Factory. The remaining 57 entities (NSDI < 0. 20) are documented in an appendix as "below scoring threshold" with rationale per entity. Key findings: 75% of Network States remain at Stage 1 (online community only) ; 70% score Very Low on the NSDI; the median NSDI is 0. 16 across the 89-entity universe; Prospera ranks highest at 0. 504, Network School second at 0. 490, Kleros third at 0. 440. Among the new entries, Gelephu Mindfulness City is notable for the highest Sovereignty & Recognition score (0. 50) due to its 2, 500 sq km Bhutanese Special Administrative Region designation. Capital raised does not correlate with development — Praxis has raised 544 million yet scores lower than Network School. Not a single Network State has achieved diplomatic recognition, making sovereignty the universal structural bottleneck. The framework addresses a critical gap identified in both academic literature and practitioner discourse: the absence of rigorous, comparable metrics for evaluating entities that violate the core assumptions of territorial contiguity, sovereign recognition, and involuntary membership underpinning all major existing economic classification systems. This paper is the first in a four-paper research programme. Companion papers: Grey, K. M. (2026). Network State Credit Rating Framework (NSCRF) v1. 1. DOI: 10. 5281/zenodo. 19493110 Grey, K. M. (2026). Network State Economic Index (NSEI) v1. 0. DOI: pending Day 1 mint Grey, K. M. (2026). Network State ESG Framework (NS-ESG) v1. 0. DOI: pending Day 1 mint Licensed under CC BY-NC-ND 4. 0.
Kate M Grey (Tue,) studied this question.
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