🇹🇻 Tuvalu

Tuvalu is the world's fourth-smallest country by area (26 square kilometers) and second-least populous sovereign state (12,000 people) with a GDP of about $60 million. The country's highest point is just 4.6 meters above sea level, making it one of the most climate-vulnerable nations on earth. Tuvalu's .tv internet domain has been a surprisingly lucrative asset — the country earns about $5 million annually from licensing it, which accounts for about 8% of government revenue. The country declared itself the world's first "digital nation," preserving its sovereignty in the cloud even if the islands become uninhabitable.

Fishing licenses, the .tv domain, remittances, and foreign aid are the main revenue sources. The Tuvalu Trust Fund, established by Australia, New Zealand, and the UK in 1987, provides investment income. The country uses the Australian dollar alongside the Tuvaluan dollar. There is essentially no manufacturing or tourism industry. Tuvalu's exclusive economic zone of 900,000 square kilometers is its most valuable asset.

Tuvalu's .tv domain deal was worth $50 million over 12 years — an extraordinary windfall for a country this small. The nation has no military and a police force of about 60 officers. Tuvalu was one of the last places on earth to get television — it arrived in the 1990s. The country's traditional canoe-building skills are UNESCO-recognized.

Tuvalu is the canary in the climate coal mine — if the world fails to address sea level rise, Tuvalu will be among the first countries to disappear. The "digital nation" concept is innovative but can't replace a physical homeland.