How will Asgardia handle duel citizenship and will it be allowed

I'm worried about that specifically since I'm in a country that does not allow dual citizenship. I need to know that when Asgardia is finally recognized by the UN that it will fight and defend its citizens and demand they are not barred from moving freely in and out the country of their other nationality and that they don't get forced to give up their Asgardian citizenship. At the very least, people who live in countries that don't allow dual citizenship should be given the choice to go to another country that would accept them as dual citizens instead of being forced to choose only one citizenship. I mean in case an Asgardian was forced to choose one nationality and they choose Asgardia, where will they go since Asgardia doesn't have a land or Earthly borders? We have to bring that to the table at the UN after getting recognized as a nation.

We're not at that stage yet, unfortunately. The UN doesn't have the power to make Asgardia a nation, only to accept Asgardia as a member of the organization. Other countries will have to recognize Asgardia as a proper sovereign nation. This will be a long process and if you feel threatened by the fact that your country doesn't allow dual citizenship, then I suggest waiting to see how such issues will be resolved in the future. For now you risk nothing, because Asgardia isn't a nation yet, as explained.

If we can't get UN recognition, what about a micro nation ?

And to do that, you need to purchase a piece of land to setup your HQ.

Purchasing an island would be a good method too. Similar to what Richard Branson did. He build a resort on that island.