TLDR:
- Praxis secured $525 million in funding for a tech-friendly city project
- The city aims to reduce regulations for AI, crypto, and other tech industries
- Location is undecided, but Latin America and Mediterranean regions are being considered
- Initial plans cover 1,000 acres for 10,000 people, with selection expected in Q1 2025
- Funding is milestone-based, requiring steps like land purchase and construction to access capital
Praxis, a self-described “internet-native alliance,” has announced securing $525 million in funding commitments for its ambitious project to build a tech-friendly city. The project aims to create a urban environment with fewer regulations for emerging technologies such as artificial intelligence, cryptocurrency, biotechnology, and advanced manufacturing.
The funding package includes a $500 million commitment from GEM Digital, a Bahamas-based crypto investment firm, and $25 million from Arch Lending. Dryden Brown, the 28-year-old founder and CEO of Praxis, stated that this financial backing is a crucial step towards making the proposed technologically advanced locale a reality.
$525M in financing for @praxisnation to build the next great city.
Together with our partners, we designed a novel drawdown mechanism for the development of new cities. This is its first deployment. pic.twitter.com/Q5uWTfROiJ
— Dryden (@drydenwtbrown) October 15, 2024
The project’s initial plans envision a city covering approximately 1,000 acres and accommodating around 10,000 residents. While the exact location remains undecided, Brown revealed that discussions are underway with landowners in Latin America and Mediterranean regions. The final site selection is expected to occur in the first quarter of 2025.
According to Brown, the chosen location would allow for the establishment of a special economic zone where “Praxians” could develop various technologies more freely. The project aims to create what Brown describes as “a more heroic, more interesting place than anything we’ve seen.”
The funding from GEM Digital is structured as a milestone-based financing facility. Jonathan Collins, director at GEM, explained that Praxis would need to list cryptocurrency tokens representing ownership in the future real estate development on a public exchange before accessing the capital.
Subsequent fund releases would be tied to specific project milestones, such as land acquisition, obtaining permits, tokenizing land ownership, commencing construction, and attracting residents.
Praxis has previously received support from venture firms including Paradigm, Bedrock, Apollo Projects, Winklevoss Capital, and Day One Ventures. The project has also garnered interest from a community of around 14,000 individuals who have joined the Praxis online platform.
Brown emphasized that admission to the Praxis community is based on demonstrating useful skills and alignment with certain values. These include technological accelerationism, bravery, grit, endurance, a pioneering spirit, and rugged individualism, which Brown considers core principles of Western civilization.
Similar projects have been proposed or are in various stages of development around the world, including Prospera in Honduras, Neom in Saudi Arabia, and the East Solano Plan (formerly known as California Forever) in California.
However, experts like David Murakami Wood, a professor at the University of Ottawa studying urban tech utopias, caution that such projects face numerous challenges. These include potential government resistance, financing difficulties, and the inherent complexity of building thriving, convivial cities.
Wood also raised concerns about the tendency of these projects to cater primarily to wealthy tech workers, potentially exacerbating societal divisions at a time when greater investment from the well-off is needed to address global challenges like climate change.
In response to such criticisms, Brown asserted that the Praxis experience would ultimately benefit humanity as a whole. He stated,
“We are not interested in creating a little enclave. The goal is to have a space to experiment with the best approach to urban living and technological progress. We are taking the risk. Everyone gets to benefit from the learnings.”
