Great insight, I encountered Bitnation sometime last year, but It is still on my watchlist, not investing in them just yet. However, I recognized the importance of self-sovereignty and the the shift from analog identity (static, hence prone to attacks) to a digital one.

my only concern is Bitnation, Proof-of-reputation concept, because if I got this correctly, it is issued if you start, complete, or settle a contract in the platform. users need to build it and it takes time. I dont know how sustainable this concept would be and I sense a lack of incentive mechanism for users to use it, as compared to POS. I like the hybrid approach by Decred, integrating both POW and POS component to the governance model. in order for Bitnation to be successful, they need the effective approach towards the users, not just the tech but the incentives and social reward as well. my two cent.