The article examines the Internet influence on transformation of Icelandic political system. The research methodology is based on the theories of postanarchism and technological determinism. The article refers to three cases that have a very strong correlation. The first case considers the draft of New Constitution in Iceland written by using the crowdsourcing method. The second refers to the standup comedian Jon Gnarr who organized his election campaign via the Internet. He won the elections and became a mayor of Reykjavik. The third case is connected with the change of a country political landscape with a new Pirate Party on a stage. It has become the first Pirate Party appeared in the Parliament. The empirical findings bring the authors to the obvious conclusions that the Internet gives a significance influence on the transformation of Icelandic political system while bringing the very strong elements of direct democracy.