Disclaimer: I don't think this is a necessarily good idea. In fact, in many ways it's a bad idea. I recognize that. But it's an interesting thought experiment. Some iteration of this ideal COULD be a good idea. TBD.
Problem: People have always been aligned by belief systems. And back when communication consisted of physical, written letters being mailed back and forth via the Pony Express, you more than likely held similar beliefs to your neighbor. Your community become your echo-chamber.
But now, since communication can happen with people all over the world and travel (barring COVID stuff) is much more affordable, your beliefs can be quite a departure from your neighbors.
Suddenly, your belief system is reinforced by subreddits and YouTube channels as opposed to town squares and general stores. Geographic boundaries matter a lot less.
So what if there was a digital nation. Specifically, a nation that existed on-chain. Your laws and transactions could be enforced via smart contracts. Your currency could be a cryptocurrency. Your town square, a forum.
In the real world, you'd be a nomad living in foreign countries either with dual citizenship or visas while your primary citizenship was relegated to the 0's and 1's of your cryptonation.
Haven't really put more thought into it than that. But it's an interesting idea.