Note:24 On the Counter-Argument — and Why It Fails

Written by Lu Heng

|

29 December 2025

CEO of LARUS Limited and founder of the LARUS Foundation. He works at the intersection of Internet infrastructure, IP address markets, and global Internet governance, drawing on direct involvement across all five Regional Internet Registries. These notes aim to clarify how number resources are governed in practice and advance a more accountable, resilient framework for critical IP assets.

On-the-Counter-Argument

There is a serious counter-argument to what I am saying.
It deserves to be stated clearly, not caricatured.

They argue that IP addresses are not capital.
They are a shared operational resource.
They must be administratively allocated to prevent speculation, hoarding, and inequality.
Markets, in their view, reward money rather than connectivity.

They argue that legitimacy comes from “community governance.”
Not from efficiency.
Not from markets.
Participation itself is the source of authority, even if outcomes are imperfect.

They argue that global uniqueness and stability require central coordination.
One registry.
One source of truth.
Too much decentralization, they say, risks fragmentation, abuse, and routing chaos.

They also argue that forcing change through courts and markets accelerates breakdown.
That pressure should be absorbed slowly.
That abrupt disruption invites government takeover, sanctions, or intergovernmental control.
In short: the diagnosis may be right, but the method is dangerous.

That is their strongest case.

It still fails.

The first failure is that they confuse legitimacy with survivability.
Open participation does not scale once participation collapses to a small, aging, self-selecting group.
A process can be legitimate on paper and still fail under real stress.
History is merciless on this point.

The second failure is the assumption that coordination requires centralization.
This is historically false.
The Internet already solved global coordination without central control at the network layer.
They never explain why the same logic cannot apply to the resource layer once risk becomes visible.

The third failure is reliance on trust that geopolitics has already destroyed.
Sanctions are real.
Court freezes are real.
Jurisdictional capture is real.
Their model requires permanent goodwill between states that openly treat each other as adversaries.
That is not governance.
That is wishful thinking.

The fourth failure is the absence of a credible end state.
Their answer to scarcity is better behavior.
Better norms.
More patience.
Your answer must work even when behavior fails.

This is where the comparison becomes decisive.

Their model works only when everyone behaves well.
Mine works when no one does.

They require trust.
I require mechanisms.

They require restraint.
I require redundancy.

They require consensus.
I require portability.

They require moral alignment.
I require enforceable rights.

History always chooses the second set.

This is not about ideology.
It is about constraints.

Nations cannot agree with each other.
But they cannot afford Internet failure.

Any system that depends on permanent trust between competing powers will eventually break.
A system designed around incentives, rights, and redundancy will survive.

That is why this transition is inevitable.

And that is why their argument, however well-intentioned, cannot hold.

They are defending a system that says:
“Please don’t use power.”

I am describing a system that says:
“Power exists, so design around it.”

Only one of those survives history.

Categories: Note