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ICANN chair paid $114,000 last year

Kevin Murphy, July 13, 2017, Domain Policy

ICANN chair Steve Crocker was paid $114,203.24 in the organization’s last tax year.

The number was released today (pdf) in response to a request by domain blogger John Poole of DomainMondo.com.

Poole had requested the figures because Crocker is paid via his company, Shinkuro, rather than directly, so his compensation does not show up on ICANN’s published tax returns.

It was already known that ICANN’s chair is eligible for $75,000 a year in salary, but today’s letter, from CFO Xavier Calvez, states that he also received $39,203.24 for office rent (about $3,250 per month) in the year ended June 30 2016.

This does not include his travel reimbursements and such, which came to well over $100,000 in the same fiscal year according to ICANN disclosures.

If Crocker were on ICANN staff, he would be the 18th most costly employee, even if you do include the extra reimbursements.

Other ICANN directors receive $45,000 per year.

Calvez said ICANN will update its disclosure process to make it clearer how much Crocker is paid via Shinkuro.

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Could the next new gTLD round last 25 years? Or 70 years?

Kevin Murphy, July 13, 2017, Domain Policy

Will the next new gTLD round see 25,000 applications? If so, how long will it take for them all to go live?

The 25,000 figure is one that I’ve heard touted a few times, most recently during public sessions at ICANN’s meeting in Johannesburg last month.

The problem is that, judging by ICANN’s previous performance, such a huge number of applications would take anywhere from 25 to 70 years to process.

It’s unclear to me where the 25,000 application estimate comes from originally, but it does not strike me as laughably implausible.

There were just shy of 1,930 applications for 1,408 unique strings in the most recent round.

There could have been so many more.

ICANN’s outreach campaign is generally considered to have been a bit lackluster, particularly in developing markets, so many potential applicants were not aware of the opportunity.

In addition, some major portfolio applicants chose to rein in their ambitions.

Larry Page, then-CEO of Google, is known to have wanted to apply for many, many more than the 101 Google wound up applying for, but was talked down by staff.

There’s talk of pent-up demand for dot-brands among those companies that missed the 2012 window, but it’s impossible to know the scale of that demand with any precision.

Despite the fact that a handful of dot-brands with ICANN registry agreements and delegations have since cancelled their contracts, there’s no reason they could not reapply for defensive purposes again in subsequent rounds.

There are also thousands of towns and cities with populations comparable to cities that applied in 2012 that could apply next time around.

And there’s a possibility that the cost of applying — set at $185,000 on a highly redundant “cost recovery” basis — may come down in the next round.

Lots of other factors will play a role in how many applications we see, but in general it doesn’t seem impossible that there could be as many as 25,000.

Assuming for a moment that there are 25,000, how long will that take to process?

In the 2012 round, ICANN said it would delegate TLDs at a rate of no more than 1,000 per year. So that’s at least 25 years for a 25,000-app round.

That rate was set somewhat arbitrarily during discussions about root zone scaling before anyone knew how many gTLDs would be applied for and estimates were around the 500 mark.

Essentially, the 1,000-per-year number was floated as a sort of straw man (or “straw person” as some ICANNers have it nowadays) so the technical folk had a basis to figure out whether the root system could withstand such an influx.

Of course, this limit will have to be revised significantly if ICANN has any hope of processing 25,000 applications in under a generation.

Discussions at the time indicated that the rate of change, not the size of the root zone, was what represented the stability threat.

In reality, the rate of delegation has been significantly slower than 1,000 per year.

It took until May 2016 for the 1,000th new gTLD to go live, 945 days after the first batch were delegated in late October 2013.

That means that during the relative “rush-hour” of new gTLD delegations, there was still only a little over one per day on average.

And that’s counting from the date of the first delegation, which was actually 18 months after the application window was closed.

If that pattern held in subsequent rounds, we would be looking at about 70 years for a batch of 25,000 to make their way through the system.

You could apply for a vanity gTLD matching your family name and leave the delegation as a gift to your great-grandchildren, long after your death.

Clearly, with 25,000 applications some significant process efficiencies — including, I fancy, much more automation — would be in order.

Currently, IANA’s process for making changes to root zone records (including delegations) is somewhat complex and has multiple manual steps. And that’s before Verisign makes the actual change to the master root zone file.

But the act of delegation is only the final stage of processing a gTLD application.

First, applications that typically run into tens of thousands of words have to undergo Initial Evaluation by several teams of knowledgeable consultants.

From Reveal Day in 2012 to the final IE being published in 2014 took a little over two years, or an average of 2.5 applications per day.

Again, we’re looking at over a quarter of a century just to conduct IE on 25,000 applications.

Then there’s contracting — ICANN’s lawyers would have to sign off on about a dozen Registry Agreements per day if it wanted to process 25,000 delegations in just five years.

Not to mention there’s also pre-delegation testing, contention resolution, auctions, change requests, objections…

There’s a limited window to file objections and there were many complaints, largely from governments, that this period was far too short to read through just 1,930 applications.

A 25,000-string round could take forever, and ICANN’s policies and processes would have to be significantly revised to handle them in a reasonable timeframe.

Then again, potential applicants might view the 2012 round as a bust and the next round could be hugely under-subscribed.

There’s no way of knowing for sure, unfortunately.

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auDA explains secretive new regime in bid to save chair

auDA has explained why it has refused to put controversial new policies to a vote, as it recommended that members vote to save the job of chairman Stuart Benjamin.

In a letter to members published this week, the .au ccTLD administrator said it was not legally obliged to allow members to vote on its directors’ decisions to stop publishing their meeting minutes and to gag members from bad-mouthing auDA in the press.

As we reported earlier in the week, a group of domainers and others had signed a petition calling for four resolutions to be put to a vote of auDA’s members (largely domainers and registrars), but auDA only accepted one of them.

That resolution was to fire Benjamin. Members will vote July 31.

The new letter (pdf) seeks to explain why the other three resolutions were rejected.

The campaigners, organized by domainer/blogger Ned O’Meara at Grumpy.com.au, had demanded that auDA reverse its new policy of not publishing the minutes of its board meetings.

In response, auDA stated that it is under no legal obligation under Aussie corporation law or its own constitution to publish minutes and therefore under no obligation to put this policy to a member vote.

It did, however, agree to reinstate previously published and deleted minutes of meetings up to February 2017.

The Grumpy gang also wanted auDA to put is new member code of conduct, apparently unilaterally imposed by its board this May, to a member vote.

The code of conduct contains some innocuous policies about having a zero tolerance for members who abuse and harass auDA staff, but it also prevents members from saying bad things about the organization in public.

Members must agree:

In any forum, including in the media, where acting as an auDA member or identifiable as an auDA member, I will conduct myself in a manner that will not bring the organisation, Directors or staff, into disrepute.

This basically would prevent any member from criticizing auDA when talking to a journalist, under pain of having their membership suspended or revoked. Clearly uncool.

In auDA’s new letter, CEO Cameron Boardman explains that the ability of the board to suspend memberships has been removed from the policy, in response to feedback. Memberships can still be revoked by the board, however.

This U-turn appears to be a legal technicality designed to ensure that the policy does not change the organization’s constitution — which allows the board to revoke but not suspend memberships — and therefore does not need to be put to a member vote.

Finally, the Grumpy coalition had asked for auDa’s decision to create its own in-house registry — and to stop outsourcing its back-end to Neustar — to be put to a vote.

Boardman’s letter says that this decision was “a matter of management exclusively vested in the directors” and therefore legally not something it has to put out for member approval.

O’Meara and company were given the chance to recant on their fourth resolution — that Benjamin be fired — and apparently had indicated initially that they wished to do so.

However, they were so appalled by Boardman’s letter than they decided to go ahead with it anyway.

auDA’s recommendation that Benjamin keeps his job can be read in full here.

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Second-level .ke domains go on sale this month

Kenya has become the latest ccTLD to jump on the second-level domain bandwagon.

From this month, registrants will be able to purchase example.ke, rather than having to select from third-level domains such as example.co.ke or example.or.ke, according to the registry.

KeNIC becomes the latest ccTLD registry to give customers the SLD option after the UK, New Zealand and Australia, which all backpedaled historic 3LD-only policies in order to remain relevant in an increasingly crowded TLD market.

Unlike previous launches, existing 3LD .ke registrants do not appear to have first right of refusal for the matching SLD, judging by the new policy (pdf).

The launch will begin July 23 with a 30-day sunrise period for trademark owners. This will be followed by a landrush period of 30 days.

Currently, pricing for co.ke domains in Kenyan shillings is in the same ballpark as the US dollar cost of a .com domain.

There are reportedly around 62,000 .ke domains currently registered.

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Billionaire Elon Musk reacquired x.com

Kevin Murphy, July 11, 2017, Domain Sales

Billionaire entrepreneur and PayPal founder Elon Musk has reacquired the domain name x.com for an undisclosed sum.

X.com was the domain he acquired in 1999 and originally used for PayPal, before its 2001 rebrand.

Musk, who currently runs private space travel trailblazer SpaceX, confirmed the purchase in a tweet today:

The deal was first spotted by domainer/blogger Elliot Silver, who noticed the Whois change.

Musk also seemed to say in a subsequent tweet that he had originally bought x.com back from its original owner in 1999 for stock in the nascent company, which 18 years later would presumably be worth an absolute fortune.

While the price of the 2017 purchase was not disclosed, one has to assume it would be worth millions; pocket change to a man reportedly worth over $15 billion today.

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