<p>This paper proposes that the metaverse constitutes a potential third layer of sovereignty where bounded, ownable virtual land enables modes of control and governance that operate at the territorial level rather than through technical protocols or platform governance. This paper examines two competing frameworks for sovereignty in the metaverse: Srinivasan’s (2022) network state, where decentralized, bottom-up communities construct novel sovereignty through voluntary alignment, and a top-down framework extending Anderson’s (1983) imagined community to virtual land, where existing states project Westphalian authority into virtual territory. Applying comparative case analysis to Decentraland, the first decentralized metaverse, and Xirang, the first Chinese metaverse, the paper examines how the two metaverses embody different sovereignty projects. It further suggests that a Chinese metaverse may be scaffolded by Confucian principles embedded architecturally rather than enforced regulatorily. This represents a potentially significant departure from web2’s platform-based governance models and suggests that rather than transcending boundaries, virtual worlds may crystallize and institutionalize civilizational differences in digital form.</p>