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D3 signs up crypto gTLD client number five

Kevin Murphy, February 15, 2024, Domain Services

New gTLD consultancy D3 Global has signed up its fifth blockchain gTLD client since launching last September.

The company today announced a deal with Core Chain to apply for .core when ICANN next opens a new gTLD application window, currently expected mid-2026.

Core Chain makes a software platform for developers that want to building decentralized applications on blockchains. It says it has over five million connected cryptocurrency wallets.

D3 has recently announced similar partnerships with NEAR Foundation (.near), Gate.io (.gate), Viction (.vic) and Shiba Inu (.shib).

The company says its mission is to help blockchain companies operate on the traditional DNS as well as the blockchain-based alternate naming systems.

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GoDaddy reports strong domains growth

Kevin Murphy, February 14, 2024, Domain Registrars

GoDaddy reported its fourth-quarter financial results last night, including growth in primary and secondary market domain sales it described as strong.

The company reported Q4 net income up 1,132% at $1.13 billion, on revenue up 5.8% at $1.1 billion. Income was higher than revenue due to a tax fiddle worth about a billion dollars.

CEO Aman Bhutani told analysts that domains revenue growth in the quarter was up 4%, while domains bookings was up 7%. Aftermarket domain sales totaled $118 million, an increase of 14%, he said.

For the full year, GoDaddy had net income up 295% at $1.39 billion on revenue that grew 4% to $4.25 billion. The annual results were of course also affected by the same tax situation.

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How to qualify for a $40,000 gTLD

Kevin Murphy, February 13, 2024, Domain Policy

Organizations from most of the countries of the world, including some very wealthy economies, could find themselves eligible for a discount of up to 85% on ICANN new gTLD application fees, according to draft rules published for public comment today.

By my count, small businesses from 177 of the world’s countries and territories could qualify for cheap applications in the next round, expected in 2026, assuming they meet the new Applicant Support Program’s other criteria.

The list of qualifying nations includes the BRIC countries (Brazil, Russia, India, China), oil-rich nations such as Saudi Arabia and the UAE, wealthy Asian territories such as Hong Kong and South Korea, and some European nations, such as Serbia and Montenegro.

The draft ASP rules propose to subsidize applications from non-profits, intergovernmental organizations, indigenous/tribal groups, and small businesses that provide a “social impact or public benefit” from anywhere in the world.

It also promises subsidies to small businesses located in and owned by people based in several UN-designated economic regions: Small Island Developing States, Least Developed Countries, Economies in Transition, and Developing Economies.

Lists of these countries can be found in this UN document. China, Singapore, South Korea and Hong Kong are among dozens on the “developing economies” list. Russia counts as an “economy in transition” along with a handful of other east European and west Asian nations.

There’s no requirement to have a public benefit or charitable mission to qualify as a “Micro or small sized business from a less-developed economy”, you just need to have fewer than 50 employees, less than $5 million in the bank, and less than $5 million of annual sales (or meet two of those three criteria).

According to my tally, there are 177 distinct territories on the applicable UN lists. The same UN document lists just 36 nations that qualify as “developed” economies.

Because the application fees for the next round are not yet fixed, the discount eligible applicants can get isn’t either. The placeholder text in the current draft says the discount will be in the range of 50% to 85%.

ICANN has previously said that the base fee could be as much as $270,000, so an 85% discount would be worth almost $230,000, reducing the fee to about $40,000. Each applicant would be limited to one gTLD.

Support applicants under any category also have to pass various background screening checks — they can’t be affiliated with another registry, for example — and have to show that paying the full base gTLD application fee would be a “financial hardship”.

This is defined as: “Cost of the subsidized base gTLD application fee ([X%] of the [$X] USD fee) is greater than 20 percent of the organization’s annual revenue”. So, if we assume a discounted fee of $40,000, only companies with revenue under $200,000 would qualify.

The 2012 round’s Applicant Support Program worked a little differently. Applicants could be from anywhere in the world, but they could earn points under the score-based rules by being from a developing nation.

There were only three applicants using the ASP in 2012, and only one — DotKids Foundation, based in Hong Kong and founded by the same businessman who founded DotAsia and currently sits on the ICANN board of directors — ended up qualifying for the cheaper application fee.

For the next round, ICANN has penciled in a Q4 2024 date to start accepting applications for the discount. The application window is expected to close a year later, at least six months before the new gTLD application window opens.

Anyone thinking about trying to game the system should note that ICANN promises that anyone “found to have abused the intent of the program” will be banned from the new gTLD program forever.

The proposed ASP rules are open for comment for 50 days here.

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Registry service provider evaluation handbook published

Kevin Murphy, February 12, 2024, Domain Registries

ICANN has released the first draft of its RSP Handbook, the guidelines and questionnaire for registry service providers that want to get pre-approved by the Org ahead of the next new gTLD application round.

The Handbook is aimed at the few dozen companies that offer back-end services to gTLD registries — companies such as GoDaddy, Identity Digital and CentralNic — to guide them through the process of getting approved under the new Registry Service Provider Evaluation Program.

The program was called for by the GNSO community in order to minimize the amount of time-consuming, expensive evaluation work required for each new gTLD application. If a gTLD applicant’s selected RSP has been pre-approved by ICANN, it’s an automatic pass on the technical part of the application.

The new Handbook 1.0 envisages four types of RSP. A “Main RSP” is a full-service provider that looks after all technical aspects of a registry back-end. There are also categories for companies that provide DNS resolution only and DNSSEC services.

A fourth type, the “Proxy RSP”, is aimed primarily at companies that provide secondary registry services in countries that have very restrictive domain licensing rules. That basically means China, and proxies such as ZDNS.

Incumbent gTLD RSPs have a distinct advantage in the Handbook process. If they’re in good standing with ICANN and have complied with their service level agreements for the last six months, they can skip the second, technical part of the evaluation.

Incumbents also get a streamlined process for additional registry services — stuff like name-blocking and registry locks — they wish to offer. If they already offer them in an existing gTLD, they get to skip the full Registry Services Evaluation Process.

The Handbook is a first draft and does not currently include things like fees and dates. It’s not yet open for public comment but you can read the 108-page PDF here.

ICANN expects to launch the pre-evaluation program 18 months before it starts accepting new gTLD applications, so applicants have a list of approved RSPs to choose from. With a Q2 2026 target date for the next application window, that means the RSP program could launch later this year.

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WebUnited inks deal to “mirror” country’s TLD in the blockchain

Kevin Murphy, February 12, 2024, Domain Registries

Blockchain domains startup WebUnited says it has signed up its first registry client to a service that allows domain names to be “mirrored” on a blockchain naming service.

The company has inked a deal with Global Domains International, the registry for Samoa’s .ws ccTLD (sometimes marketed as a generic for “web site”), that will let its registrars up-sell matching .ws names on the Polygon blockchain.

WebUnited, a Swiss-based joint venture of domain registry ShortDot and “Web3” naming player Freename, says registrants will be able to use their mirrored .ws names to address cryptocurrency wallets, for example.

The company essentially acts as a registry service provider for its registry clients in much the same way as regular RSPs do now, except instead of putting domains into EPP databases and the consensus DNS, it adds them to a blockchain.

Registrars that choose to sign up to the service will use an “EPP-like” API to access the registry, ShortDot COO Kevin Kopas said. He expects .ws to charge about five bucks a year for the blockchain add-on domains.

Kopas said WebUnited is also mirroring policies found in regular domain names, so if somebody loses their domain in a UDRP case, for example, they also lose their matching blockchain name.

After .ws, ShortDot’s own TLDs — .bond, .sbs, .icu, .cyou and .cfd — are also expected to offer the mirroring service. Because these are gTLDs governed by ICANN contracts, ShortDot first has to go through the Registry Service Evaluation Process for approval.

Kopas said that once ShortDot has completed its RSEP it will be able to supply gTLD clients with template language to get their own RSEPs approved. He said WebUnited has a pipeline of potential ccTLD and gTLD registries that have expressed an interest in the service.

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GoDaddy project unveils brand-blocking calculator

Kevin Murphy, February 12, 2024, Domain Services

GlobalBlock, an ambitious brand-protection initiative led by GoDaddy, has revealed a blocking calculator on its web site, showing potential clients how many thousands of domains they can expect to block for a single annual fee.

The calculator takes the user’s trademark as input (you can enter any string) and tells them how many domains are eligible to be blocked with the GlobalBlock service, which includes exact-match names in hundreds of TLDs, and GlobalBlock+, which includes variants.

The first value seems to top out at 511 right now, suggesting there are currently 511 TLDs live in the system.

The GlobalBlock+ result seems to depend to a large extent on how many potentially confusing homographs (such as ASCII letters that look like Cyrillic or Greek letters) your trademark contains. The string “facebook” shows 58,765 blocks, for example, while “google” returns 63,875.

GlobalBlock, a service of the GoDaddy-owned Brand Safety Alliance, had previously said it expects to launch this week with over 650 supported TLDs. Several gTLD registries are still waiting for ICANN approval to participate via the Registry Service Evaluation Process.

What’s not currently available is pricing. GlobalBlock is selling via “agents”, usually registrars, and while some registrars have already started marketing the service with press releases or blog posts, nobody seems to have put a dollar value on the service yet.

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Report: Monster “misappropriated” millions from Epik

Kevin Murphy, February 9, 2024, Domain Registrars

Epik former CEO Rob Monster “misappropriated” over $3.5 million from the company before his departure last year, according to a report in Wired yesterday.

In a fairly in-depth piece on the registrar’s turbulent 2023, the tech publication said it has had eyes on a forensic accounting document that made the allegations:

An accounting firm hired by Epik to conduct a forensic investigation alleged that Monster had misappropriated more than $3.5 million, according to an internal preliminary report obtained by WIRED. More than $1.5 million was attributed to Monster personally withdrawing funds from the company. Nearly $2 million of Epik funds was used in Kingdom Ventures, Monsters’ venture capital firm, according to the report.

The article does not make it clear whether any criminality is alleged and Monster did not respond to the magazine’s request for comment.

The article also shed some extra light on the takeover of the former Epik Inc registrar by Epik LLC, a new company confirmed by ICANN to be owned by a company-formation outfit in Wyoming called Registered Agents Inc and not affiliated with Monster.

Registered Agents’ lawyer Bryce Myrvang told Wired that the plan is to offer its clients domains and web hosting when they form their companies, apparently confirming that the company is in it for the synergies rather than to hide Epik’s true owner.

Myrvang also offered his apologies to anyone offended by the recent weirdness coming out of its official Twitter account, which led some to believe that Monster was still pulling the strings at the company despite the new ownership.

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.com is shrinking but Verisign raises prices again anyway

Kevin Murphy, February 9, 2024, Domain Registries

Verisign has confirmed that it plans to exercise its fourth and final .com price-increasing power under its current registry contract, even as its domains under management continues to head south.

The company confirmed last night that it will increase the annual registration and renewal wholesale fee for a .com domain from $9.59 to $10.26 on September 1 this year. It’s the last of the four times it’s allowed to raise prices by up to 7% in its current contract with ICANN, which expires in November.

The news came as Verisign reported its fourth-quarter and full-year 2023 financial results, which were as profitable as we’ve come to expect.

But in terms of domains under management, .com and .net continued to decline, which CEO Jim Bidzos told analysts was all China’s fault. Domains managed by Chinese registrars shrank by 2.2 million in Q4, leading to an overall .com/.net shrinkage of 1.2 million names.

There were nine million new .com/.net registrations in Q4, down from 9.7 million in the same quarter in 2022.

Bidzos said the decline in China was due to factors such as stricter local regulations and a weaker economy, and said he expects those challenges to continue to hit Verisign’s numbers in 2024. He did not blamed higher prices for the drop.

Indeed, the .com zone file has been shrinking by about 1,500 domains per day on average since the start of the year. Zone numbers are usually a reliable predictor of DUM trends.

Revenue from China was down about $14.4 million, CFO George Kilguss said.

Bidzos said Verisign expects its DUM to be flat this year, with a possible 1% swing either way.

For Q4, the company reported revenue up 3% year over year at $380 million, with $265 million net income, up from $179 million a year earlier.

For the whole of 2023, revenue was up 4.8% at $1.49 billion and net income was $818 million, up from $674 million in 2022.

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D3 announces fourth crypto new gTLD client

Kevin Murphy, February 8, 2024, Domain Services

New gTLD consultancy startup D3 Global, which emerged just five months ago, is signing up would-be applicants at a pretty rapid clip, announcing its fourth client today.

The company said it is working with NEAR Foundation, a Swiss non-profit, to apply for .near when ICANN opens up the next application window, which is currently expected in 2026.

NEAR is behind what it calls a Blockchain Operating System, a set of software designed to make it easier for developers to create apps that work across multiple blockchains.

D3’s specialty is working with companies that want to apply for gTLDs that work on both blockchains and the consensus ICANN DNS root.

It’s already announced deals with Gate.io (.gate), Viction (.vic) and Shiba Inu (.shib).

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Donald Trump loses second UDRP case

Kevin Murphy, February 7, 2024, Domain Policy

Former US president Donald Trump has lost a second cybersquatting case related to his Mar-a-Lago resort, where he lives in Florida.

A three-person WIPO panel late last month ruled that DTTM Holdings, which has owned a trademark on the term Mar-a-Lago since 1997, had failed to show that the registrant of maralago.com, Michael Gargiulo, did not have a legitimate interest in the domain.

Gargiulo, an investor who bought the domain from a third party in 2021, had argued that “mar a lago” is a generic term, meaning “sea to lake” in Spanish and other languages. He also said it could mean the personal name “Mara Lago”.

DTTM failed to convince the WIPO panel otherwise. It ruled (pdf) that “the Complainant was unable to provide persuasive specific evidence to overcome the Respondent’s arguments”. It did not rule on whether the registration was made in bad faith.

It’s the second Mar-a-Lago case DTTM has lost recently. Late last year it lost a UDRP complaint against a company called Marq Quarius (from which Gargiulo acquired maralago.com) over the domain mar-a-lago.com.

The single panelist in the earlier case (pdf) ruled that while the registrant’s defense (that the three words in the domain corresponded to the names of dead pets) strained credulity, there was no evidence of bad-faith cybersquatting.

Trump uses maralagoclub.com for the club’s official web site.

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