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Verisign saw MASSIVE query spike during Facebook outage

Kevin Murphy, January 21, 2022, Domain Tech

Verisign’s .com and .net name servers saw a huge spike in queries when Facebook went offline for hours last October, Verisign said this week.

Queries for facebook.com, instagram.com, and whatsapp.net peaked at over 900,000 per second during the outage, up from a normal rate of 7,000 per second, a more than 100x increase, the company said in a blog post.

The widely publicized Facebook outage was caused by its IP addresses, including the IP addresses of its DNS servers, being accidentally withdrawn from routing tables. At first it looked to outside observers like a DNS failure.

When computers worldwide failed to find Facebook on their recursive name servers, they went up the hierarchy to Verisign’s .com and .net servers to find out where they’d gone, which led to the spike in traffic to those zones.

Traffic from DNS resolver networks run by Google and Cloudflare grew by 7,000x and 2,000x respectively during the outage, Verisign said.

The company also revealed that the failure of .club and .hsbc TLDs a few days later had a similar effect on the DNS root servers that Verisign operates.

Queries for the two TLDs at the root went up 45x, from 80 to 3,700 queries per second, Verisign said.

While the company said its systems were not overloaded, it subtly criticized DNS resolver networks such as Google and Cloudflare for “unnecessarily aggressive” query-spamming, writing:

We believe it is important for the security, stability and resiliency of the internet’s DNS infrastructure that the implementers of recursive resolvers and public DNS services carefully consider how their systems behave in circumstances where none of a domain name’s authoritative name servers are providing responses, yet the parent zones are providing proper referrals. We feel it is difficult to rationalize the patterns that we are currently observing, such as hundreds of queries per second from individual recursive resolver sources. The global DNS would be better served by more appropriate rate limiting, and algorithms such as exponential backoff, to address these types of cases

Verisign said it is proposing updates to internet standards to address this problem.

Battle for .web “far from over”, says Afilias lawyer

Kevin Murphy, January 19, 2022, Domain Registries

Altanovo Domains’ fight with Verisign and ICANN for the .web gTLD is not over, despite an adverse ruling late last month, according to a top lawyer for the company.

Altanovo, the company previously known as Afilias Domains No 3, has not thrown in the towel and left the path clear for Verisign to launch .web, Arif Ali of the law firm Dechert told DI last night.

“Bottom line: this matter is far from over and no, Verisign doesn’t ‘get to run .web after all;’ certainly if the Board does its job objectively and fairly,” he said in an email.

He said this just hours before ICANN published its latest, but by no means final, board resolution on the .web case.

Ali represented Afilias in its Independent Review Process complaint against ICANN’s decision to award .web to Verisign following a 2016 auction, which was won by a company called Nu Dot Co, secretly backed by $135 million of Verisign’s money.

Afilias technically won its IRP, with the panel ruling last May that ICANN broke its bylaws by shirking its duty to address Afilias’ claim that NDC broke new gTLD program rules. Afilias said ICANN should have forced NDC to disclose itself a Verisign pawn before the auction went ahead.

ICANN got close to signing a registry agreement for .web with NDC, despite it being an open question as to whether the auction was legit, the panel ruled. It ordered ICANN to pay Afilias its $450,000 in legal fees and $479,458 of IRP costs.

What the IRP did not do was void the Verisign/NDC bid, nor give Afilias rights to .web.

Instead, it instructed ICANN to stay the .web contract-signing until its board has formally “considered and pronounced upon the question of whether the [Verisign-NDC Domain Acquisition Agreement] complied with the New gTLD Program Rules”.

The board had held a secret, undocumented discussion about the case in November 2016 and decided to keep its mouth shut and just let the IRP play out, according to the IRP ruling, which essentially told the board to stop avoiding difficult questions and to actually make a call on the legitimacy of the Verisign play.

Before the board could do so, Afilias/Altanovo filed an unprecedented appeal with the IRP panel. Technically an “application for an additional decision and interpretation”, Afilias asked the IRP panel to definitively answer the question of whether Verisign broke the rules rather than merely passing the hot potato back to ICANN’s board.

But in a December 21 decision (pdf), the IRP panel denied Afilias’ request as “frivolous” in its entirely, writing:

The Panel has dismissed the [Afilias] Application in its entirety. In the opinion of the Panel, under the guise of seeking an additional decision, the Application is seeking reconsideration of core elements of the Final Decision. Likewise, under the guise of seeking interpretation, the Application is requesting additional declarations and advisory opinions on a number of questions, some of which had not been discussed in the proceedings leading to the Final Decision.

In such circumstances, the Panel cannot escape the conclusion that the Application is “frivolous” in the sense of it “having no sound basis (as in fact or law)”. This finding suffices to entitle the Respondent [ICANN] to the cost shifting decision it is seeking and obviates the necessity of determining whether the Application is also “abusive”.

The panel told Afilias to pay ICANN’s $236,884 legal fees and the panel’s costs of $140,335, leaving Afilias out of pocket and back to square one in terms of getting clarity on whether Verisign’s actions were kosher.

Afilias had basically accused the panel of shirking its duties and punting its decision on Verisign’s auction bid in much the same way as the panel decided that ICANN had shirked its duties and punted its decision on Verisign’s auction bid.

Nobody seems to want to make a call on whether the successful Verisign-NDC ploy to win the .web auction with a secretly bankrolled bid was legit.

On Sunday, the full ICANN board met to discuss the outcome of the IRP and — surprise surprise — it punted again, instructing a subcommittee to look more closely at the matter:

the Board asks the Board Accountability Mechanisms Committee (BAMC) to review, consider, and evaluate the IRP Panel’s Final Declaration and recommendation, and to provide the Board with its findings to consider and act upon before the organization takes any further action toward the processing of the .WEB application(s).

There’s not yet a publicly announced date for the next BAMC meeting. It tends to meet as and when needed, so we might not have too long to wait.

Once the committee has made a decision, it would be referred back to the full board for a final rubber stamp, and it seems that only after that would Afilias make its next move.

Ali, in an email sent to DI just a few hours before ICANN published its Sunday board resolution last night, said:

The [IRP] Panel also made it clear that the Board can’t just punt on the matter as it did previously, but must decide it, and that its decision is subject to review by a future IRP panel.

There’s nothing preventing Afilias filing another IRP to challenge the board’s ultimate decision, should it favor Verisign. Likewise, if it favors Afilias, Verisign could use IRP to appeal.

Verisign has been pursuing a counter-claim against Afilias, albeit so far only in the court of public opinion, accusing the company of breaking ICANN’s rules by trying to secretly “rig” the .web auction during a communications blackout period.

Ali calls this a “red herring”, among other things.

In my view, whichever way ICANN’s board goes, it’s going to wind up back in an IRP.

With IRP proceedings typically measured in years, and no indication that Afilias or Verisign are ready to back down, it seems the .web saga may still have some considerable time left on the clock.

If you’re desperate to register a .web domain, don’t hold your breath.

Note: most of Afilias was acquired by Donuts a year ago, but the .web application was not part of the deal. The IRP proceedings have continued to refer to “Afilias” interchangeably with “Altanovo”, and I’m doing the same in my coverage.

GoDaddy wins .tv contract after Verisign blows off 20-year deal

Kevin Murphy, December 14, 2021, Domain Registries

GoDaddy is taking over the contract to run .tv from Verisign, after Verisign didn’t even bother to bid for renewal.

The deal brings to an end a relationship between Verisign and the tiny Pacific island nation of Tuvalu that has lasted 20 years and contributed millions to the country’s economy.

The country’s communications ministry said on its Facebook page that GoDaddy Registry was selected after a “competitive tender process”, but DI understands that Verisign did not participate.

While terms of the new GoDaddy deal have not been disclosed, it seems likely that Tuvalu was looking for a far bigger slice of the pie than the $5 million a year it was getting from Verisign, and for moneybags Verisign, with its .com cash-printing machine, it simply wasn’t worth the hassle.

Tuvalu has around 11,000 inhabitants and gross national income of around $60 million — its .tv money was a big deal for the country, even at the amount Verisign was paying.

With a likely bigger chunk of change coming from GoDaddy, it’s going to have more to invest in what it calls its “digital nation” strategy, which appears to involve investing heavily in blockchain-based technologies to compensate for the fact that it may well disappear beneath the waves over the next few decades.

.tv is a cornerstone of this strategy, the government says.

There’s thought to be at least half a million registered .tv domains, and the bog-standard non-premiums retail for about $50 a year, so it’s been a nice little earner for Verisign over the last two decades.

The company first took on .tv in 2001 when it acquired startup .tv Corp, which had inked the original deal with Tuvalu in 1998, for $45 million. The contract has been renewed a few times since then.

The ccTLD was the first example of a mainstream TLD offering tiered pricing, with premium strings carrying bigger price tags — controversial 20 years ago, almost standard practice today.

There have been reports over the years that the country thought it was getting short-changed by the deal, and the contract was put up for bidding earlier this year.

Despite reports that the tender seemed suspiciously tailored for a Donuts win, it seems GoDaddy has emerged the victor.

One can only assume it’s offered Tuvalu a bigger slice of the pie, which is what it had to do (under its previous incarnation as Neustar) to keep hold of the contract to run Colombia’s .co last year.

Neither Verisign nor GoDaddy has publicly released a statement about the switch. While it’s a lot of money, it’s not strictly material to either company’s already swollen top lines.

ICANN budget: mild optimism amid maturing industry

Kevin Murphy, December 8, 2021, Domain Policy

ICANN thinks the domain industry, including the new gTLD industry, is maturing and will continue to grow, in its just-published draft budget for fiscal 2023.

The Org is predicting growing transactions across the board, as well as an increase in the number of accredited registrars and a slowing decline in the number of contracted gTLDs.

ICANN is expecting funding of $152 million for FY23, which includes the $4 million bung it negotiated with Verisign as part of the deal to allow the company to raise .com prices.

That’s up from the $149.1 million is expects to receive in the current fiscal year.

As usual, the bulk of the funding comes from gTLD transaction fees — the taxes registrants pay through their registrars and registries whenever they register, renew or transfer a domain name.

Legacy gTLD transaction fees are expected to amount to $93.1 million, up 3% on a forecast of $90.1 million in the current year, while new gTLD transaction fees are expected to rise modestly from $9.5 million to $9.9 million, a 4% increase.

Transactions in legacy gTLDs are expected to be 201.2 million, versus 193.6 million in the current year.

New, post-2012 gTLDs are expected to process 25.8 million transactions, up from 24.8 million, of which 21.1 million will be billable, up from 20.3 million. New gTLDs only pay transaction fees after 50,000 domains under management.

ICANN is expecting to lose four registries in FY23 — this almost always means dot-brands that cancel their contracts — with the total declining from a June 2022 total of 1,149 to 1,145 a year later. This will have a modest impact on fixed registry fees.

But the Org is once again expecting to see an increase in the number of registrars paying fixed accreditation fees, up by 28 to 2,447 at the end of FY23.

Accompanying the budget, ICANN has published some industry trend analysis (pdf) outlining some of the assumptions behind the budget forecasts.

Basically, the document describes what regular readers already know — many domain companies benefited from pandemic-related lockdowns driving small businesses online, but overall industry volumes were driven down by low-cost new gTLDs experiencing huge junk drops.

For ICANN’s purposes, factors such as customer quality and pricing are irrelevant. A spammer registering 1,000 domains in bulk pays ICANN the same amount in fees as 1,000 small businesses building their first web sites.

The document reads:

Taken as a whole, DUMs failed to expand in the past twelve months ending in mid-2021. While this decline is at least partly attributable to lower promotional activity among some of the largest new gTLDs which could be reinitiated in the future, it nonetheless points to an industry that has shifted from a period of rapid expansion to one that is now witnessing steady maturation.

The draft ICANN budget covers the 12 months beginning July 1, 2023, and is now open for public comment before possible revisions and final approval.

Verisign boss talks .web launch, timing and pricing

Kevin Murphy, October 29, 2021, Domain Registries

Verisign hasn’t fully won .web yet, but it expects to soon and is talking in general terms about what the it might look like live.

CEO Jim Bidzos yesterday told analysts that he expects the Independent Review Process panel currently considering an appeal by rival applicant Afilias to deliver its final verdict before the end of the year. No hearings are scheduled.

Afilias claims Verisign and its secret proxy, Nu Dot Co, cheated, and that ICANN broke its own rules, in the 2016 auction that saw Verisign promise to pay $135 million for .web. Verisign thinks the claims are rubbish.

Bidzos told analysts, wanting to known when they can put .web revenue into the models, that it while it’s a “bit early to speculate” when the company will launch .web, it will likely happen a “couple of quarters from delegation”.

On pricing, he noted that .web does not have the same price controls as .com and .net:

.web is, of course, different from .com and net and that it’s not a price controlled TLD… We do have flexibility with it that we don’t have with other TLDs, and premiums are available. Other sorts of options are available.

But will the company put its marketing muscle behind .web? Many people, myself included, have said that Verisign’s interest in the gTLD is more about keeping it out of its rivals hands. Bidzos said:

There certainly will be some sort of marketing launch that will occur, but I just think it’s too early to really talk about what that would look like and what the expense impact will be. But we certainly intend to market and promote .web. Our plan, our desire, as we’ve stated — and I’ll say again — is to offer our customers more choice and to make .web a very successful TLD.

His comments came as Verisign reported its third-quarter financial results.

The company reported revenue up 5.1% at $334 million and net income of $157 million compared to $171 million a year ago.

It had 172.1 million .com and .net domains in its registry at the end of the quarter, up 1.48 million sequentially and a 5.1% increase on the year-ago number.

PIR poaches new CTO from Verisign

Kevin Murphy, October 4, 2021, Domain Registries

Public Interest Registry has announced the hiring of Rick Wilhelm as its new chief technology officer.

Wilhelm comes from Verisign, where he was VP of platform management. He’s also previously worked for Network Solutions and Neustar and sat on ICANN’s Security and Stability Advisory Committee.

He replaces Joe Abley, who quit for a job at Neustar in August.

Wilhelm started today, and reports to CEO Jon Nevett.

Domain industry SHRINKS again… except of course it doesn’t

Kevin Murphy, September 3, 2021, Domain Registries

Verisign has published its latest Domain Name Industry Brief, once again showing growth numbers thrown off wildly by a single factor.

The second quarter closed with 367.3 million registrations across all TLDs, down by 2.8 million over the same point last year, the DNIB states.

But the entirety of that decline can be attributed to a single TLD. It’s Tokelau again!

.tk was down by 2.8 million domains compared to the year-ago quarter also. This decline was first recorded by Verisign in the fourth quarter last year, where it had a similarly depressing effect on the overall picture.

The ccTLD is operated by Dutch company Freenom, which gives away most of its domains for free, often on a monthly basis, and monetizes residual traffic whenever a name expires or is suspended for abuse.

It’s quite possible that most of its names are registry-owned, so it’s in Freenom’s discretion to keep hold of its entire inventory or periodically purge its database, which may be what happened in Q4.

It’s debatable, in other words, whether .tk’s numbers is really any reflection or guide on the rest of the domain name industry. To it’s credit, Verisign breaks out the non-.tk numbers separately.

The DNIB reports a rosier quarterly growth comparison — total internet-wide regs were up by 3.8 million names, or 1.0%.

The company’s own .com did well, growing by 2.4 million names to end June at 157 million. Even .net did better than usual, adding a net of a couple hundred thousand names, to 13.6 million.

All the top 10 ccTLDs were flat sequentially after rounding, with the exception of Brazil’s .br, which was up by 200,000 names.

Total ccTLD regs were 157.7 million, up 1.2 million sequentially but down 2.4 million year-over year. Factoring out .tk, the increases were 1.2 million and 400,000 respectively.

The second quarter of last year was a bit of a boom time for many registries due largely to the lockdown bump, which saw businesses in many countries rush to get online to survive pandemic restrictions.

Tokelau can not be blamed for the whopping 8.8 million decline in new gTLD registrations between the Junes, of course.

About six million of the plummet can be blamed on heavily discounted .icu, which saw its first junk drop begin about a year ago, and another two million seem to be attributable to .top.

Quarterly, the picture was a little brighter — Verisign says new gTLDs were up by under 100,000 compared to Q1 at 22.9 million.

.com and NameSilo fingered as “most-abused” after numbers rocket

SpamHaus has revealed the most-abused TLDs and registrars in its second-quarter report on botnets.

The data shows huge growth in abuse at Verisign’s .com and the fast-growing NameSilo, which overtook Namecheap to top the registrar list for the first time.

Botnet command-and-control domains using .com grew by 166%, from 1,549 to 4,113, during the quarter, SpamHaus said.

At number two, .xyz saw 739 C&C domains, up 114%.

In the registrar league table, NameSilo topped the list for the first time, unseating Namecheap for the first time in years.

NameSilo had 1,797 C&C domains on its books, an “enormous” 594% increase. Namecheap’s number was 955 domains, up 52%.

Botnets are one type of “DNS abuse” that even registrars agree should be acted on at the registrar level.

The most-abused lists and lots of other botnet-related data can be found here.

Domain regs dip for second quarter in a row and it’s all China’s fault

There were 363.5 million domain name registrations across all top-level domains at the end of March, down by 2.8 million names compared to the end of 2020, Verisign’s latest Domain Name Industry Brief shows.

But the losses can be attributed mostly to China, which saw plummeting .cn regs in the ccTLD world and big declines across gTLDs popular with Chinese speculators.

In .cn, regs were down a whopping four million at 20.7 million in the quarter. China has historically been subject to steep fluctuations due to local government regulations.

Overall, ccTLD registrations were down 2.4 million at 156.5 million, but that seems to be all down to China.

All the other ccTLDs in the DNIB top 10 were either flat or up slightly on Q4. The frequent wild-card .tk did not have an impact on this quarter’s numbers, staying flat.

Verisign does not break down new gTLD registrations, but zone file and transaction report data shows that the likes of .icu and .wang, which typically sell first-year regs very cheaply, were hit by material junk drops in Q1.

ShortDot’s .icu zone file shrank by 2.5 million names between January 1 and March 30. It’s still in decline in Q2, but the trajectory isn’t nearly as steep. It had 814,000 zone file names at the end of Q1.

Zodiac’s .wang was at 525,000 at the end of 2020 but had dropped to 86,000 by March 30.

.top also lost around half a million names in the first quarter.

The vast majority of regs in .icu, .top and .wang come through Chinese registrars, which often sell for under a dollar for the first year.

The DNIB reports that .com performed well as usual, up from 151.8 million reported in the Q4 report to 154.6 million, but Verisign bedfellow .net was once again flat at 13.4 million.

Afilias hints at more legal action over .web

As Verisign does everything but declare outright victory in last week’s Independent Review Process result, .web rival Afilias is now strongly hinting that its lawyers are not quite ready to retire.

John Kane, VP of Afilias (now Altanovo) said in a statement that Afilias is prepared to “take all actions necessary to protect our rights in this matter”.

This matter is of course the contested 2015 auction for the new gTLD .web, which was won by Nu Dot Co with $135 million of Verisign’s money.

Afilias thinks the winning bid should be voided because Verisign’s involvement had been kept a secret. The IRP panel stopped short of doing that, instead forcing ICANN’s board of directors to make a decision.

The earliest they’re likely to do this is at ICANN 71 later this month.

But with one IRP down, Afilias is now reminding ICANN that the board’s ultimate decision will also be “subject to review by an IRP Panel.”

So if ICANN decides to award .web to Verisign, Afilias could challenge it with another IRP, adding another two years to the go-live runway and another couple million dollars to the lawyers’ petty cash jar.

None of which should overly bother Verisign, of course, if one subscribes to the notion that its interest in .web is not in owning it but rather in preventing its competitors from owning it and aggressively marketing it against .com.

But Verisign also put out a statement reviewing the IRP panel’s decision last week, reiterating that it believes Afilias should be banned from the .web contest and banned from making any further complaints about Verisign’s bid.

While Afilias spent its press release focusing on trashing ICANN, Verisign instead focused its blog post on trashing Afilias.

According to Verisign, Afilias is no longer competent to run a registry (having sold those assets to Donuts) and is just looking for a payday by losing a private auction.

“Afilias no longer operates a registry business, and has neither the platform, organization, nor necessary consents from ICANN, to support one,” Verisign claims.

Afilias could of course outsource its would-be .web registry, as is fairly standard industry practice, either to Donuts or any other back-end operator.