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Supposedly this is the purpose of private property. To be a check and balance against municipal corporate corruption. We have this already. Why not build upon it? Why do we have this innate desire to cluster? Why does it have to be a town or city?
What do we need to make this work. 1. Libertarian hippie mindset but with guns. 2. Would work hard to earn or not have to spend sats. 3. Everyone is rich AF but no one from outside could tell because everyone is living humble and modest homestead lifestyles. If everyone just wants to build a mansion then you are looking at a security estate where power/control and services get centralized through a body corporate. That already exists in fiat world. Homestead communities also exist in fiat world but I think bitcoin changes the incentive structures enough to make for a novel outcome. The more people get involved the more formalised your constitution needs to be. So a community cap could be needed.