You can never fully remove coercion because there's always an asshole willing to use coercion on you. So it's either live in a world where the bigger dogs eat the smaller dogs, or live in a world where the biggest dog keeps all the other dogs in line.

That being said, the amount of coercion necessary exists on a spectrum. And there are two ways to reduce the amount of necessary coercion that are preferrable:

1. Use technology to increase the cost of coercion. This is the cypherpunk ideal. Make it so that it's harder for the bigger dogs to exploit the smaller dogs. (This has the side effect of weakening the control of the biggest dog as well, which is why governments hate it.)
2. Foster virtue so that coercion is not needed. This is the less discussed but probably more important element. Ancient societies knew that virtue must be cultivated in their people... why have we modern people lost that sentiment? Our elites see virtue and morality as gauche. Interestingly, the need for virtue seems like a more popular idea in libertarian circles than in progressive ones.