That is much clearer, many thanks.

The intent of the theory is to produce a type of non-territorial state (per definition). Assuming follow-through of advocating a creation of state, is in the end, the creation of a social construct, then the answer of the first question is yes.

Additional social constructs:
-Social contracts
-citizenship
-state coercion against its citizens

This answers the second question of:

Do individuals lend/give authority to the social construct?

The answer is yes, accordingly the problems of social objectivity remain in the theory or in the ends of the theory.