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New ICANN funding rules will cost smaller ccTLDs more

Kevin Murphy, September 3, 2025, 10:11:24 (UTC), Domain Registries

The way ccTLDs fund ICANN is being reformed, with some registries set to pay thousands of dollars more to the Org’s annual budget.

The new rules, adopted by the ccNSO late last week, won’t affect the largest ccTLDs like .de and .uk, but they could drag mid-tier and the smallest registries into higher tax bands.

The funding model, last adjusted in 2013, is based on each registry’s number of domains under management. The suggested contribution is fixed, rather than per-domain, and depends on which DUM range a ccTLD falls into.

The newly approved bands see the top two tiers unchanged — with over five million names the due is $225,000, and over 2.5 million it’s $150,000.

The third tier, which captures at least 14 ccTLDs from the likes of Denmark, Japan and Mexico, starts at 1.2 million names (a change from one million in the 2013 guidelines) and continues to suggest a $75,000 donation.

Moving the threshold from a million to 1.2 million doesn’t seem to affect many registries. Of the ccTLDs I have up-to-date stats for, only South Korea and possibly Montenegro appear to benefit from the change.

Band D, which affects about a dozen ccTLDs from the likes of Malaysia, Norway and New Zealand, is seeing its contributions go up from $25,000 to $35,000, but the threshold is rising from 500,000 domains to 600,000.

This means that .ai would have to pay the higher rate, but historically Anguilla has not contributed to ICANN at all.

As the ccNSO is at pains to point out, ccTLD contributions are all voluntary, and the bands are suggestions rather than binding.

Fees for the smaller ccTLDs seem to have seen the most rejiggering, with three new low-end tax bands being introduced for registries with the lowest DUM counts. There are now 10 bands in total rather than seven.

Under the 2013 guidelines, any ccTLD with under 50,000 names was only asked to pay $500 a year. That lowest threshold has now been reduced to 10,000 names, raising dozens of registries into higher bands.

Countries such as Ecuador, Azerbaijan and Algeria, and the French department of Réunion, will now be asked to asked to pay $2,500, up two grand a year.

The contributions are designed to pay for the services ICANN provides ccTLDs, but the overall amount is pretty small compared to the Org’s overall budget.

The ccNSO has calculated that the 2013 model affected 255 ccTLDs and would raise as much as $4 million for ICANN a year. That would change to $4.7 million from 306 ccTLDs under the 2025 model.

But that’s only if everyone plays ball. In reality, only 109 ccTLDs gave ICANN anything at all in its last-reported year, and the total take was $2.1 million. Some registries, from the UK, Israel and Russia, cut or eliminated their funding.

Since its start of the voluntary contribution model, fewer than half of all ccTLD registries have ever given ICANN any money.

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Comments (1)

  1. Gary says:
    September 3, 2025 at 2:55 pm

    Why have a model in place that has less than 50% acceptance?

    Would it not be better to engage with ccTLDs more precisely and find out what an appropriate model looks like that would be utilized? The ccNSO perhaps needs a do-over…

    Reply

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