"The Free State Project" is working. I went to its annual festival/convention thingy in New Hampshire last year, thousands of people and was all about simulating what a libertarian society would look like. Now, as far as how effective it is as a form of governance, it worked on a small-scale for this week-long convention, so you could always argue that it can't be applied on a large scale, you may be right, but we have yet to see real-examples in favor or against.