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Blockchain startup gets $5 million to apply for gTLDs

Kevin Murphy, September 5, 2023, Domain Registries

A company backed by some familiar industry names has raised $5 million in seed funding to apply to ICANN for new gTLDs and, it says, bridge the gap between the traditional DNS and blockchain alternate roots.

Las Vegas-based D3 Global is being led by Fred Hsu, one of the founders of aftermarket pioneer Oversee.net. Among its listed founders are Paul Stahura, one of the triumvirate that launched Donuts, now Identity Digital, to apply for hundreds of gTLDs in 2012.

Also listed as founders are Shayan Rostam, who’s currently building Internet Naming Co into a prominent new gTLD portfolio player, former Network Solutions engineer Shay Chinn and investment banker Michael Ho.

These are people with domain industry experience going back in some cases to the 1990s and track records of building successful disrupters, so it’s worth paying attention no matter what you think of blockchain stuff.

D3 says it plans to apply to ICANN for traditional TLDs but will also introduce interoperability with blockchain-based “Web3” naming systems.

Hsu said in a press release: “We are committed to driving forward the convergence of the traditional DNS system and Web3 to make domain names more versatile, secure, and universally accessible.”

It also talks of introducing a marketplace that combines traditional DNS names with blockchain to “significantly reduce the friction traditionally seen in domain name transactions, such as low transparency, high broker fees, transfer delays, and escrow services.”

The funding round was led by Shima Capital with participation from Lightshift, Dispersion Capital, VentureSouq, Infinite Capital, MZ Web3 Fund, Kestrel0x1, Nonagon, C² Ventures, Arthur Hayes’ Maelstrom, Stahura himself.

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Buckridge to replace Shears on ICANN board

Kevin Murphy, September 4, 2023, Domain Policy

Chris Buckridge will replace Matthew Shears on ICANN’s board of directors next month.

The Non-Contracted Parties House of ICANN, their arses burned by an August 18 finger-wagging from ICANN chair Tripti Sinha, somehow managed to narrow down a slate of four candidates to just one by Sinha’s end-of-month deadline, despite seeming to be at a very early stage of the election process just last week.

Buckridge will fill seat 14, reserved for a member of the NCPH and one of two GNSO-picked seats.

He was one of the preferred candidates of the Non-Commercial Stakeholders Group, which along with the Commercial Stakeholders Group makes up the NCPH.

The CSG had rejected the NCSG’s original preference to reappoint Shears, who joined the board in 2017, for a third and final term.

Buckridge comes from the Regional Internet Registry world. He was with RIPE NCC from 2006 until this June in a variety of external relations roles, dealing with European governments and regulators, which seems like a pretty good qualification for an ICANN directorship.

Sinha had written to the NCPH leaders last month to complain that they had failed to pick a director, missing an April deadline, and demanded they name a name before the end of August.

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CentralNic rebrands as Team Internet

Kevin Murphy, September 4, 2023, Domain Registries

Another well-known domain industry firm has rebranded itself around a forgettable, search-resistant company name.

CentralNic is now Team Internet, though it will continue to use “CentralNic” in its domains business.

The company has changed its primary domain from centralnic.com to teaminternet.com (a redirect is already in place) and its AIM ticker symbol from CNIC to TIG.

The brand comes from Team Internet the parking company, which CentralNic acquired for $48 million in 2019.

The change makes sense — CentralNic doesn’t even make a quarter of its revenue from domains any more. Today, most of its money comes from social media marketing arbitrage and domain monetization.

Even if it were still laser-focused on domains, the registrar side of the business is bigger and “Nic” doesn’t make much sense there.

The company started off selling third-level domains in pseudo-gTLDs such as uk.com and gb.com, before enthusiastically embracing new gTLDs as a back-end provider and subsequently getting into the registrar game.

As its 10-year IPO anniversary approaches this month CEO Michael Riedl observed in a press release that the company has grown from a $4 million annual business in 2013 to a $728 million business last year.

Also of note, Gavin Brown, who was with the company since pretty much the start and held various C-level positions on the technical side of the house over the years, left the company last week to join ICANN.

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.ai sells 100,000 domains in a year

Kevin Murphy, August 31, 2023, Domain Registries

The registry managing the .ai ccTLD grew its business by over 100,000 domains in the last 12 months, according to its web site.

The company that manages the domain for the Government of Anguilla, DataHaven.net, typically does not disclose its reg numbers — its plain text web site is extremely bare bones and it lets its registrars do the marketing — but that changed when it recently updated its FAQ with the lines:

What is the total number of domains?
As of July 20, 2022 the total was 143,737 domains.
As of June 14, 2023 the total is 248,609 domains.

According to a Bloomberg interview this week, the number is now 287,432. It seems the rise of ChatGPT, which launched at the end of last year, and large language model AIs has spurred interest in the domain.

Bloomberg reckons .ai may account for 10% of Anguila’s GDP. The Caribbean British territory has a population of just 16,000 and makes most of its money from tourism and offshore banking.

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Google to launch two fun new gTLDs next month

Kevin Murphy, August 31, 2023, Domain Registries

Google Registry is continuing its piecemeal rollout of new gTLDs with the launch of .ing and .meme this September.

Both TLDs will go to sunrise for a month from September 20, with general availability from December 5.

While both will have more-expensive Early Access Period phases, .meme is also getting a Limited Registration Period where “only content creation platforms specializing in the creation and distribution of internet memes may apply”.

While .meme is a pretty self-explanatory regular TLD with standard amount of long-tail potential, I think .ing might be the first TLD ever to launch with domain hacks as the primary envisaged use case.

Google gave “design.ing or writ.ing, ink.ing or row.ing” as potential domains.

There are a finite number of English verbs that would work well with a .ing suffix, potentially limiting registrations. I doubt the TLD will pass the 50,000 name threshold at which ICANN starts charging transaction fees, unless some other use cases are found.

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Domainers not welcome as .music readies September launch

Kevin Murphy, August 31, 2023, Domain Registries

The long-awaited .music gTLD finally has a set of launch dates, but it looks like actually registering and keeping hold of a name is going to be painful, especially for domain investors.

DotMusic has filed its registry launch plans with ICANN, kicking off with a two-month sunrise period on September 11. General availability seems to be slated for April 9 next year.

Before the floodgates open, there’s going to be a “Community Organization Phase” from October 16 to March 10. Judging by registry policy documents, this phase looks like an extended sunrise for “music community” members that may not necessarily qualify for regular sunrise.

It looks like applying during this phase will be free, but there will be auctions for contested names.

At all stages including GA, it looks like people will be able to register .music names as usual via registrars, but then DotMusic will carry out a post-registration check that the registrant has sufficiently high musical street cred and the name closely matches their brand.

It will delete registrations that fail to meet these criteria. Indeed, it does not consider names truly “registered” until they have past these verification checks.

The registry has come up with something called a “Music Score” — I don’t know whether that’s an intentional pun — to determine whether a registrant is eligible for a .music domain.

It’s not really clear whether this is a numerical score with a pass/fail threshold, but calculating it requires the registrant to submit evidence of intellectual property, awards, social media activity, streams, and so on — 73 categories in total.

Registrants also have to demonstrate a nexus to their domain, so Napalm Death couldn’t register justinbieber.music, for example.

These verifications will be handled by a third-party company called ID.music (the domain does not currently resolve) which is also based in DotMusic’s home nation of Cyprus.

If all of this palaver isn’t enough to deter casual registrants and domainers, there’s a strict prohibition on “domain warehousing”. The policy states “the buying and holding of MTLD domain names as assets for resale, especially in bulk is prohibited”.

Record companies will be able to register their acts in bulk, if they’re approved by DotMusic, but domainers are not welcome.

The policy also bans privacy/proxy services.

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Another six dot-brands self-terminate (two are very strange)

Kevin Murphy, August 30, 2023, Domain Registries

Three companies have asked ICANN to turn off a total of six dot-brand gTLDs. Two each.

Lifestyle Domain Holdings no longer wants to run .cityeats and .frontdoor, Paramount-owned CBS Domains wants out of .cbs and .showtime, and chocolate maker Ferrero wants rid of .kinder and .rocher.

It’s perhaps not surprising that Lifestyle Domains is done with .cityeats and .frontdoor, given that they were never used. What is surprising is that the brands themselves have been defunct for many, many years.

The registry was a part of Scripps Networks, an American cable TV company that owned HGTV and the Food Network. It’s now part of Warner Bros Discovery. CityEats.com and FrontDoor.com were part of its online empire.

But both sites were sold off to third parties in 2015 — the same year Lifestyle signed its two registry agreements with ICANN. In the case of .cityeats, the brand seems to have been sold off months before the contract was signed.

The registry appears to have been paying ICANN $50,000 a year for two TLDs is has absolutely no need for — it owned the dot-brands but not the matching brands. Very weird.

The case of CBS is little more typical. The company has three active domains in .cbs — one just a redirect to a privacy policy — and none in .showtime. It’s a case of not knowing what to do with the TLDs.

The Ferrero case is similar — the domains were not used and the company doesn’t want them any more.

I’ll give the chocolatier honesty points for the message on both nic. sites, which basically admits they were defensive registrations: “This domain is registered and protected by BARBERO & Associates Ltd”.

As both of these strings are non-English dictionary words, they could come up for grabs in the next round. “Kinder” is German for “children”, so it’s not impossible someone might want it as kid-focused generic.

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Four more years for Identity Digital in Oz

Kevin Murphy, August 30, 2023, Domain Registries

Identity Digital has won another fours years as .au registry back-end provider.

Australian ccTLD manager auDA said the reappointment was decided after an open Request for Tender process that started in May.

It’s not clear how many other registries responded, but there’s a limited pool of companies that have a proven track record of handling such a large zone.

When .au moved from Neustar (now part of GoDaddy) to Afilias (now part of Identity Digital) in 2018 it was the largest back-end migration in the history of the DNS.

Back then, .au had 3.1 million domains under management. Now, following the release of second-level names last year, it’s closer to 4.3 million. Another migration would have been another record-breaker.

auDA said dentity Digital’s next four-year contract begins July 1 next year, with a two-year extension option.

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ICANN might be a director light after election stalemate

Kevin Murphy, August 29, 2023, Domain Policy

Months of internecine bickering have led to ICANN facing the possibility that it might enter its 25th anniversary meeting this October without a properly elected director in one seat of the board.

Chair Tripti Sinha has written to (pdf) the heads of the Non-Commercial Stakeholder Group and Commercial Stakeholder Group — and then published the letter, no doubt to light a fire under their arses — to demand they name their candidate for Seat 14 on the board.

The name was due under ICANN’s bylaws by April 26, which is six months before the Hamburg AGM, she said.

Without an appointment, any newly picked director won’t be able to participate in training and meetings to help them hit the ground running at the conclusion of ICANN 78’s AGM, she said.

Seat 14 is selected by the Non-Contracted Parties House. That’s every participant in the GNSO that is not a registry or registrar. It comprises the NCSG and CSG. The incumbent director is Matthew Shears, first picked in 2017.

The CSG has made it clear that it does not want Shears, the NCSG’s initially preferred candidate, reappointed for a third term. It seems the group is unhappy with his performance. It has also rejected alternate Rafik Dammak.

The NCSG meanwhile rejected CSG preference Mark Datysgeld, saying he lacks ICANN experience.

The problem seems to be election rules (pdf) agreed to by the two SGs in 2018 that requires them to reach a “consensus” on a candidate, which can be difficult when by definition they have two fundamentally opposing policy goals.

There may also be confusion about whose “turn” it is to pick a candidate. As the names of the SGs suggests, the two groups represent diametrically opposed interests, so there’s been an informal agreement to rotate nominations between the SGs. The question is whether NCSG/Shears’ turn has ended, or whether he gets the full nine years.

Eight months after the NCPH leaders started to discuss Seat 14, there appears to be four candidates currently under consideration, albeit only at the very early interview phase of the process.

The CSG has put forward Khaled Koubaa and Ihab Osman as candidates. The names are notable as they’re both previous ICANN directors who each served a single term as Nominating Committee appointees (until 2019 and 2022 respectively).

The NCSG has picked “ICANN Policy Ninja” Amr Elsadr and Chris Buckridge, a policy guy from the Regional Internet Registry world, as its two nominees.

With three Africans in the mix, there’s a possibility that next year’s NomCom may have more freedom than usual when trying to fill its geographic diversity quota. None of the slate are female.

Right now, with voting not yet underway, it seems the chances of the two SGs settling on a consensus candidate before Sinha’s end-of-August deadline are close to zero.

ICANN’s general counsel John Jeffrey wrote to (pdf) the NCPH heads back in May to remind them that their nomination was a month late and that any failure to pick a new director before the AGM would lead to Shears retaining the role while his successor is picked (assuming he wants the gig).

There seems to be some concern among ICANN’s top brass that the deadlock within the NCPH — caused, as so many ICANN conflicts are, by a failure to compromise — might reflect badly on ICANN and the multistakeholder model in general.

Yup.

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ICANN turns down money from blockchain alt-root

Kevin Murphy, August 23, 2023, Domain Policy

It seems ICANN is turning down free money from blockchain alt-root providers, apparently as a matter of principle.

We hear one such alt-root, Freename.io, tried to sponsor the upcoming ICANN 78 meeting in Hamburg, but was rebuffed.

“At this time, ICANN is not interested in having Freename serve as a sponsor and will not be moving forward with a sponsorship agreement,” the Org told the company in an unsigned email.

Freename had offered to be a general sponsor, and not at the cheapest tier, I’m told.

ICANN sponsorship offers typically start in the low thousands but can get up to six figures at the higher tiers. Sponsorship is overall a very small part of ICANN’s revenue.

Org has become increasingly rattled in recent years with the proliferation of alt-roots, which have been gradually gaining market acceptance while ICANN’s own efforts to expand the domain universe languish in interminable policy knots.

ICANN delayed the sale of the UNR portfolio of gTLDs until buyers renounced their ownership rights to blockchain versions of their authoritative root strings.

Clearly, splashing an alt-root’s branding all over an ICANN stage would be seen as problematic.

Freename.io plans to attend the Hamburg meeting anyway.

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