Re: The IP address is not a great way to decide validity
Actually, the fact that only 450 people are legally resident in Vatican does not mean that only 450 people live there.
Italy - and their two "embedded" states - has the concept of "residency" being legally different from "domicile". If you are resident in Vatican, you have tax and other advantages, which are not granted to everyone.
It is most likely the same situation of Monaco: only a few people are resident there, but many more live and work there every day.