I would suggest the huge likelihood is that you’ve just started a war over territory, which would be the very obvious result of adopting such a mad cap scheme.
You are advocating going back to the days of fiefdoms, then Kingdoms.
You also appear to be advocating free movement between borders which would be another hare-brained disaster.Have you not noticed how immigration is the Number one issue in the long standing free- trade EU? Do you see how this overloads the infra-structure and leads to the rise of Right Wing parties? How well do you think this will work globally and how popular do you think mass migration from poorer countries will be?..lol