.ai registry fights deadbeats with tweaked auction rules

With too many auction winners failing to hand over the loot, the .ai registry has changed its auction terms to make being a deadbeat more expensive.

The registry has increased its deposit requirement from 2% to 5% for bidders considered “high risk”, which basically means new customers, or $100, whichever is higher. The deposit is forfeit if the buyer fails to pay.

The move comes because too many winners are currently failing to pay. On Twitter, registry manager Vince Cate wrote yesterday:

On http://auction.whois.ai we have had too many cases of people not paying for domains they bid for so we are increasing the deposit requirement to 5% and the non-payment fee to 5% effective immediately.

The registry conducts monthly auctions of expired inventory on its own platform using park.io software and is mirrored at Dynadot. The highest-interest names regularly attract five-figure bids, due to the increasing popularity of artificial intelligence.

Sometimes, the same names show up in consecutive auctions because the previous winner didn’t pay up. In January, for example, dog.ai and insure.ai, which had both attracted bids over $20,000, returned to auction.

.ai registry advises buyers not to use GoDaddy

The manager of the increasingly popular .ai ccTLD has seemingly escalated his beef with GoDaddy, now advising registrants to not transfer their .ai domains to the market-leading registrar due to technical and operational issues.

The list of approved registrars on the .ai registry web site has contained a warning about problems transferring domains into GoDaddy for many months, but now it explicitly advises against such transfers. The site reads:

We have had several problems with transfers into GoDaddy. First, you have to use auth codes of 32 characters or less. Second they can take weeks and many email and phone calls to actually do the transfer. Anyplace else the transfer is nearly instant once the receiving party does the transfer with the auth code and the domain is unlocked. With GoDaddy the auth code is just the start of a long process. For years GoDaddy could not transer .ai domains at all. We do not advise transfering to go GoDaddy and if you do don’t ask us for help, the problem is all GoDaddy.

GoDaddy has also been removed from .ai’s list of supported registrars, but registry manager Vince Cate tells me he did this at the request of GoDaddy, which he said is a reseller of Team Internet’s 1API. He declined to comment further.

I asked GoDaddy for comment a few weeks ago but did not receive one.

An earlier version of Cate’s warning, from about a year ago as .ai domains started to fly off the shelf, read:

The company Godaddy will say “domains with this extension are not transferable” when someone tries to transfer a “.ai” domain to them when a more correct error message would be “Godaddy does not know how to transfer .ai domains even though it is done using the industry standard EPP transfer command”.

It was later updated to read:

The company Godaddy will say “domains with this extension are not transferable” when someone tries to transfer a “.ai” domain to them when a more correct error message would be “Godaddy does not know how to transfer .ai domains even though it is done using the industry standard EPP transfer command”. They will also say, “Technically .ai domains are not transferable between most registrars, but we have a dedicated team that transfers them manually.” This is so wrong. All other registrars have no trouble doing them automatically. The only technical failure is at Godaddy. Because of they way Godaddy is doing this, I get many people asking me, “Vince, why don’t you let people transfer .ai domains?”, as if I was doing something wrong and not Godaddy. I do let people transfer .ai domains. All of the above registrars can do it automatically without any trouble. Really.

While the .ai domain is managed by the Government of Anguilla, Cate seems to have substantial autonomy over the registry. Much of its bare-bones web site is written in the first person.

.post liberalizes with new sunrise period

The .post gTLD has opened a brand-protection sunrise period 12 years after it first launched, after liberalizing its registration policies to allow private businesses to buy domains.

.post is a “sponsored” gTLD run by the Universal Postal Union, a UN agency, and so far the space has been restricted to national postal agencies which are individually vetted before their domains can go live.

But the policies have been updated to allow the likes of private shipping and logistics providers and post-related technology vendors to also register names.

Registrants will still have their credentials checked and published for opposition when applying to register names, so it’s not going to be a speculative free-for-all when .post eventually goes to “general availability” on May 1.

The sunrise period will run until April 15, with only trademark owners able to apply.

The operation is being run largely by EnCirca, which is the only accredited registrar apart from the registry itself. It had just 430 registered names at the last count.

The .post ICANN Registry Agreement is up for renewal this year.

Team Internet spends $41 million on content farm

Team Internet is back in acquisition mode, saying this morning it has picked up an Israeli content farm business for $41.8 million.

It’s bought Shinez IO, based in Tel Aviv and Denver, for the initial sum plus a potential extra $12.3 million if the company meets certain financial targets over the next two years, the company said.

Shinez operates a network of lightweight blogs covering areas such as food and fashion, which are marketed via social media and monetized via multiple ad networks.

It’s a lucrative business — Team Internet says Shinez had revenue of $111 million, $17.2 million in net revenue, and $10.4 million of EBITDA in 2023.

The acquisition edges Team Internet, formerly CentralNic, ever closer to becoming a billion-dollar company. It now expects revenue for 2023 to work out at $948 million.

The deal also seems to mean reduced exposure to Google as the company’s number one ad revenue source. Team Internet said “this acquisition would more than double the Online Marketing segment’s revenue generated independently of our Tier 1 channel partner”.

.austin names launch on blockchain

A city gTLD launching exclusively on a blockchain alternative naming system? It’s happened, with the announcement of .austin at the SXSW conference in Austin, Texas.

The extension is already on sale at $10 a name via Unstoppable Domains, in partnership with the Greater Austin Asian Chamber of Commerce.

The organizations said the names will serve 2.4 million residents of the Austin area. The extension appears on the Polygon blockchain.

There are plenty of city name gTLDs in the regular DNS, but .austin is believed to be the first blockchain-exclusive (excluding perhaps Handshake, where there are no doubt a great many).

The GAACC claims, without citation, that .austin is “far more secure than the four US city traditional TLDs that exist so far”, which is probably true — domains that don’t resolve for most people can’t be as easily abused.

There’s no word in the Unstoppable or GAACC announcements whether the plan is to apply to ICANN for .austin in the proper DNS in 2026 and mirror the two namespaces, but GAACC will face some administrative hurdles if it wishes to do so.

Under the current draft of the next round’s Applicant Guidebook, applicants need formal endorsement from the local government when applying for “a city name, where the applicant declares that it intends to use the gTLD for purposes associated with the city name.”

If the City of Austin were to apply to ICANN separately, there would no doubt be friction.

Freenom shuts down 12.6 million domains — report

Dying free-domains registry Freenom has shut down at least 12.6 million domains across three of its TLDs, according to research from Netcraft.

Netcraft’s latest web server survey shows that the domains — across .tk, .cf and .gq — no longer resolve, according to the company.

That’s 98.7% of the resolving domains Freenom had a month earlier, Netcraft said.

Freenom, also known as OpenTLD, said in February that it was to exit the domains business entirely as part of its settlement with Facebook owner Meta, which had sued it for alleged cybersquatting.

It had already lost its ICANN registrar accreditation and its government contracts to run its portfolio of ccTLDs.

The company’s business model was to offer most domains for free and then monetize them when the registrations expired or were suspended for abuse. It attracted a lot of abusive registrants.

Interestingly, Netcraft notes that the deletions meant that Cloudflare saw a 22% drop in its total hosted domains (with Cloudflare acting as host, not registrar) over the month.

Microsoft moving its cloud apps from .com to .microsoft

Microsoft is planning to move all of its Microsoft 365 apps off a multitude of .com domains and consolidate them all under .microsoft, its dot-brand gTLD.

The company says it will move Teams, Outlook, and Microsoft 365 web apps to the cloud.microsoft domain. They currently use domains such as outlook.office.com, teams.microsoft.com and microsoft365.com.

It first announced the move in April last year and this week reminded developers of apps that use its cloud platform that they need to support the new domain.

Explaining the move to the dot-brand last year, the company wrote:

Consolidating authenticated user-facing Microsoft 365 experiences onto a single domain will benefit customers in several ways. For end users, it will streamline the overall experience by reducing sign-in prompts, redirects, and delays when navigating across apps. For admins, it will drastically reduce the complexity of the allow-lists required to help your tenant stay secure while enabling users to access the apps and services they need to do their work.

Microsoft plans to launch the teams.cloud.microsoft domain in June but run the two domain schemes in parallel for a while, so as to not unnecessarily break apps in its developer ecosystem.

It’s not going to dump microsoft.com altogether, saying that it plans to use it for “non-product experiences such as marketing, support, and e-commerce.”

The cloud.microsoft domain is already one of the more visible dot-brand names out there, ranking in the top 20 most-visited, according to Majestic rankings.

Hat tip: The Register.

Cosmetics brand terminates its gTLD

Brazilian cosmetics maker Natura has become the latest new gTLD operator to tell ICANN to terminate its dot-brand contract.

The company said it is “no longer interested” in operating .natura, and ICANN has agreed to end the Registry Agreement.

Natura was not using the domain beyond the mandatory nic.natura, but my records show that it did start experimenting with usage about five years ago.

A handful of domains, including global.natura, app.natura and innovationchallenge.natura were active and resolved to full-content web sites, but these were all shut off at the end of 2023.

The move comes at a time when Natura has been in a cost-cutting drive, divesting various assets and de-listing itself from the New York Stock Exchange.

The string “natura” is a dictionary word in some languages, meaning “nature” in Italian for example, so it could feasibly be applied for in future new gTLD program rounds.

Up to 70 jobs on the line at Nominet as .uk regs dwindle

Nominet plans to lay off as many as 70 employees to cut costs, and is preparing for a .uk price increase, after years of dwindling domain registrations and the loss of a major government contract.

CEO Paul Fletcher told members yesterday that it won’t be providing the UK government with its Protective DNS recursive DNS service, PDNS, after its contract ends later this year. He implied that the government has selected a cheaper competitor to replace it, without giving details.

The deal was with the UK National Cyber Security Centre, and saw Nominet resolve half a trillion DNS queries a year for central government and other public services.

Nominet had been banking on this “cyber” business to bolster revenue in the face of “static or reduced demand for domains”, but the contract loss means some serious belt-tightening is in order, Fletcher indicated.

In its last financial year, Nominet said its cyber business had revenue of £12.6 million but had a loss of £2.4 million

“The changes that we are proposing to give us a sustainable cost base mean that up to 70 of our current roles could be made redundant,” he told members in an email. “While this would be partially offset by some redeployment opportunities, our overall headcount will reduce.”

He added that members should expect the price of .uk domains to increase in future, without giving a timetable.

“Our pricing will remain at current level of £3.90 until at least the end of the year, extending the freeze in place since 2021,” he wrote, but added that lower volume means “prices cannot be held at the level set in January 2020 indefinitely.”

Nominet had 10,688,932 .uk domains under management at the end of January, down from 11,045,559 a year earlier (a loss of almost a thousand domains a day) and its 2019 peak of 13,348,378.

Fletcher also delivered the news that one of its longest-serving staffers, registry managing director Eleanor Bradley, will leave the company later this year.

Finally, he said the company has successfully challenged a default court judgment (pdf) ordering it to repay a member’s subscription fees, a ruling that had been put forward as proof that Nominet has been breaking the law by charging membership fees for the last quarter-century.

Fletcher said the judgment came because Nominet had no idea it had been sued, adding: “On 31 January, we successfully applied to have the default judgment set aside in the County Court, having made every effort to avoid unnecessary, costly and time-consuming court proceedings. This ruling, which the claimant is appealing, allows us to defend the original claim.”

The lawsuit came as part of a campaign operated at WeightedVoting.uk that seeks to prove Nominet’s membership and voting structure is illegal.

GoDaddy to start selling graphic.design domains

In an unusual diversification into third-level domains, GoDaddy Registry seems to be planning to sell names under .graphic.design.

The company filed a request with the Public Suffix List yesterday, asking for the domain to be included on the list, so it will be recognized around the internet as a space where third-level names are registerable.

“GoDaddy Registry will be opening graphic.design to individual registrations, through a global network of authorised Registrars, similar to a standard open gTLD,” the request states.

“This inclusion in the PSL is to ensure the correct operation of the zone as an open TLD, such that providers including website, email and Certificate Authorities recognise the individual ownership of the registered domains within the graphic.design DNS zone,” it says.

The request goes on to say the company expects “5,000 to 10,000+” domains to be registered there.

The PSL is used widely by software such as browsers to determine ownership of domains for security purposes, allowing them to recognize, for example, that example1.graphic.design and example2.graphic.design are two different sites with potentially two different owners.

Registries launching third-level spaces is unusual but not unheard of. It happens much more often in the ccTLD space, where some countries have a baffling number of third-level options. In the gTLD space, the trend if anything is in the opposite direction, with third-levels being de-emphasized in favor of second-levels.

GoDaddy acquired .design from Top Level Design in 2021, a part of its massive expansion in the registry business. It’s not doing badly as new gTLDs go, with about 119,000 domains under management at the last count.