American Confederacy of Independent City-States
The Confederacy was set up as a counter to the Republic of America after a few years, by individuals thinking that the Republic was too set in the ways of the old world. The Confederacy is an opt-in government, consisting of semi-autonomous city-states, in the vein of the PDN.
Since the Republic identifies itself by geographic area, and the Confederacy identifies itself by the association of specific population groups, there is significant overlap between the two nations. The distributed nature of the Confederacy makes it a frustrating thorn in the side of the Republic.
Further complicating issues is the fact that a voting citizen of the Republic may reside in a Confederate city and refuse to acknowledge the Confederacy government at all. The same citizen may pay taxes to both nations – or quietly refrain from paying either.