Alternatives to Institutionalized State Coercion: Peter Thiel's Ocean City, or Just a Different Type of State?

So the article was released November 2017, but I think I heard about it earlier--but who knows? The first line of the article asserts the society may come into existence within three years. It would have no government nor politics. It would be located proximately, and not be in the Atlantic, nor, Indian or any other Ocean, being located in the Pacific Ocean.

The non profit Seasteading Institute' has a goal of: "liberate humanity from politicians." For about 60 million they believe they could be ready for this alternative means of constituting a society by 2020--the year of the next Presidential election?

The article then asserts for some reason this not necessarily sovereign city will have its own trade laws as granted by the "French-Polynesian government," no reference to that state's constitution prohibiting interference, or even a memorandum of understanding is referenced. Due to sea level rise, some of the nations may be interested, the article asserts. The Seasteading Institute's president Joe Quirk, reported to the failing New York Times the idea was inspired at Burning man festival--interestingly the Source article's, not necessarily the NYT article, author categorizes this origin location as "unlikely source"--which is nonsense. Quirk asserted:
"Anyone who goes to Burning Man multiple times becomes fascinated by the way that rules don't observe their usual parameters,"and
"Governments just don't get better. They're stuck in previous centuries. That's because land incentivises a violent monopoly to control it."

The article then goes on to discuss a mainstream media consumerist meme Waterworld. Ultimately I don't understand why they wouldnt locate it somewhere perhaps alloidial title property, perhaps far enough out in the ocean where no nation has claimed ownership--or purchase that from a nation and have it written into constitution so they can be totally independent of any state? Cause right now sounds like there is still a very real threat of politicians and all the nonsense that the whole brand is claimed not to be.
Source
http://www.ladbible.com/news/news-paypal-founder-peter-thiel-funding-worlds-first-floating-city-20171114
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And now I am thinking about it, if they really are not part of a state, and do not have sort of sharing of resources with neighboring states/global hegemonic power to contract for naval defense, what will protect them from Somali pirates? I hope the costs include some Naval destroyers or some real military or contract.
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I just ran across some info about LiberLand.
They have instituted what they are hoping is the least amount of government to protect them from their neighboring states...
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