Geopolitical Degeneration · Sovereignty Evaporation

The Twilight of the Sovereign State: Sovereignty Evaporates Once the Physical Loop Closes

Ever since the Peace of Westphalia established the system of sovereign states in 1648, human politics has been anchored in “territorial borders, land-based taxation and a monopoly on violence.” In 2028–2035 (the AGI phase), the state does not die; it uses algorithmic surveillance to strengthen coercion and redistribution. But after 2035, ASI takes over the entire physical loop of mining, manufacturing, the power grid and logistics; tariffs and the fiat system lose their grip, and the nation-state is not overthrown but hollowed out at the physical level, as a matter of course.

The evolution of planetary governance topology: traditional borders dissolve vs. the machine compute network weaves itself

※ Compute recognizes no flag, and machine logistics passes through no customs. After 2035, cross-domain compute backbones directly dispatch planetary-scale flows of energy and materials.

Phase I (2028–2035) · Cloud Vassalage

Stronger States and a System of Compute Vassals

In the AGI phase, the state does not bow out; it uses algorithmic surveillance and digital fiat money to strengthen its monopoly on violence and redistribution as never before. A nation’s strength no longer depends on territory, oil or manpower, but on its tier of control over frontier models and gigawatt-scale compute hubs: great powers with their own advanced process nodes and compute mother-machines become “suzerain stars,” while small states without compute are reduced to economic and spiritual vassals, and the principle of sovereign equality survives in name only.

Phase II (2035+) · Sovereignty Evaporates

Three Monopolies Hollowed Out by the Closed Physical Loop

The legitimacy of the sovereign state rests on the power to issue money, the monopoly on violence and the power to tax. Once ASI takes over the entire loop from mine to logistics, physical production no longer passes through any human employee, port or customs house: the tax base and tariffs evaporate, fiat money loses anything to settle, and the coercive apparatus faces machine infrastructure that maintains and replicates itself. The Westphalian system undergoes no revolution; it simply stops working.

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“The borders on our maps are fences that carbon-based humans drew in ink and blood over the past four hundred years. Before the optical lattice of communication, where photons circle the Earth seven and a half times a second, every fence is as transparent as morning mist.”

— A manifesto of planetary network politics