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Did I find a murder weapon in a zone file?

Kevin Murphy, December 4, 2023, Domain Policy

Registrars are usually very reluctant to police the content of web sites by taking down domains they manage, but they quite often make an exception when the web site in question calls for violence. But what if the site itself attempts to physically harm visitors through their screens?

It sounds a bit mad, but I think I’ve found such a site.

I recently randomly came across a domain name that caught my eye while scrolling through a zone file. I’m not going to reveal the domain here, but it consisted of three words across the dot and could be taken as an instruction to “murder” a specific, but unnamed, individual.

Expecting humor, I visited the domain out of curiosity and was confronted by a blank page that rapidly flashed between two background colors, creating a strobe effect. There was no other content.

My first impression was that the site had been created in order to trigger seizures in photosensitive epileptics. The CSS seemed to confirm that the strobe effect fell within the frequency range that the charity Epilepsy Action says can cause such seizures.

This raised an interesting question: could this be considered “DNS abuse”?

The DNS Abuse Institute’s definition (pdf) says DNS Abuse consists of “malware, botnets, phishing, pharming, and spam (when it serves as a delivery mechanism for the other forms of DNS Abuse)”.

DNSAI says registries and registrars “must” act on these five categories of abuse, but it adds that there are some categories of web content where registrars “should” take action. Its Framework to Address Abuse, which has been endorsed by dozens of registries and registrars, states:

Specifically, even without a court order, we believe a registry or registrar should act to disrupt the following forms of Website Content Abuse: (1) child sexual abuse materials (“CSAM”); (2) illegal distribution of opioids online; (3) human trafficking; and (4) specific and credible incitements to violence. Underlying these Website Content Abuses is the physical and often irreversible threat to human life.

Epileptic seizures can be fatal. A school friend of mine did not make it out of his teens due to one. Even when non-fatal, they are dangerous and clearly unpleasant.

So if a site encouraging physical violence “should” be taken down, what about a site that seems designed to actively physically attack individuals, no incitement required? That’s a reasonable question, right?

I filed an abuse report with the registrar managing the domain and was told it did not violate its acceptable use policies.

Attacking epileptics with flashing images sent online has been a criminal offence in the UK since October 26, when the controversial Online Safety Act 2023 was enacted.

A component of the Act is named Zach’s Law, after an eight-year-old boy who in 2020 was attacked with flashing images by internet wankers after he carried out a sponsored walk for the Epilepsy Society.

The Act makes it illegal to send a flashing image to somebody you know is epileptic with the intent to harm them. You can get up to five years imprisonment and a fine.

Most registrars are shunning ICANN’s new Whois system

Kevin Murphy, November 30, 2023, Domain Policy

Most of the largest domain registrars are not currently participating in ICANN’s new Registration Data Request Service, according to my research.

I used the RDRS tool to check domains managed by every accredited registrar that has over a million domains under management and discovered that at least 25 out of these 40 registrars do not currently support the service.

The number may be 26, but RDRS did not recognize any domains managed by Chinese registrar Ali Baba as valid, giving instead a “domain does not exist” error message, even for alibaba.com itself.

In total, the 25 registrars coming up blank look after over 63 million gTLD domains, about 28% of the total.

Some very recognizable brands are not in the system.

Squarespace Domains II, the new name for the old Google Domains, the fourth-largest registrar, is the largest company not participating. Together with its original accreditation, Squarespace Domains, they have over 10 million domains under management.

TurnCommerce, GMO, IONOS, NameSilo, PDR, Gname, Dynadot, Wix, OVH, Register.com, FastDomain, Name.com, Domain.com, Hostinger, Sav.com, Xin Net, West.cn, Cronon, Domain Robot, Automattic, DNSPod, and Cloudflare are also not in the system.

Oh, and neither is Markmonitor.

While I only checked 40 registrars, not the full 2,702 that were active in the July registry transaction reports, I would expect the level of support to decline the lower down the list you get, particularly as hundreds of accreditations have a trivial number of domains or are merely aliases for companies already known to not support RDRS.

It’s quite possible some of the registrars I’ve named here are planning to sign up and have just been slow to do so, but they’ve had plenty of time — ICANN has been onboarding registrars since September 20.

The level of support from the registrar industry will be critical to judging whether the RDRS project is deemed a success.

In a recent letter to the GNSO Council discussing “success criteria” for the program, ICANN chair Tripti Sinha wrote (pdf):

The Board agrees that the participation of a sufficient number of registrars with a sufficient number of domain name registrations under management will be important with respect to gathering data.

On the bright side, GoDaddy, Tucows and Namecheap are on board, and that represents about 90 million domains. GoDaddy alone accounts for 65 million, slightly more than the combined total of the 25 large registrars that are not participating.

RDRS is a system designed to simplify the process of requesting non-public Whois data by passing all such requests to the relevant registrars through a central hub.

Of course, it’s only useful if the registrars are actually in the system.

Call for ICANN to dump anti-Semitic partner

Kevin Murphy, November 3, 2023, Domain Policy

A senior Jewish member of the ICANN community is calling on the Org to end its partnership with a company run by a Palestine-born Jordanian businessman who recently broadcast some outrageously anti-Semitic remarks.

Jeff Neuman of JJN Solutions and Dot Hip Hop, who has spent the last quarter-century involved in countless ICANN community roles, made the plea in an open letter he posted on his blog today following remarks by Talal Abu-Ghazaleh on Jordanian TV on October 12.

The letter follows an exchange at the ICANN Annual General Meeting in Hamburg last week in which Neuman raised concerns about some on-site graffiti that he considered anti-Semitic.

Abu-Ghazaleh’s comments, rather than being just some coded anti-Semitic dog-whistles, appear to directly attempt to justify the Holocaust, according to a translation by Middle-East media monitoring organization MEMRI.

Along with some less-extreme anti-Semitic tropes, he said, during an interview discussing the war in Gaza:

The Jews do not have any ideology. All they care about is money and interests. I had a friend who was a German cabinet member. I once asked him: ‘When Hitler, may God forgive him, carried out the Holocaust, why didn’t he finish the job and kill all the Jews?’ He said to me: ‘It’s the other way around, but don’t tell anyone I said this. He left a group of them on purpose, so that people would know why we carried out the Holocaust. When you would be tormented by them, you would know the reason.’

It turns out the Talal Abu-Ghazzaleh Organization (TAG-Org) that he runs hosts an instance of ICANN’s L-root server in Jordan — one of scores of redundant nodes at data centers around the world — and Neuman wants this relationship terminated.

Revealing that family members were killed in the Holocaust, he says in his letter to ICANN leadership:

I believe ICANN must take immediate action to remove this instance from TAG-Org and find a new home for this instance. In addition, ICANN should make an unequivocal statement ASAP that it does not condone such hate speech and that it will not have any partnerships whose founders or leaders espouse such views.

TAG-Org’s relationship with ICANN does not stop at the L-root instance, however. Abu-Ghazaleh is a noted champion of intellectual property rights in the Middle-East region and his companies are naturally involved in the domain industry and ICANN community.

TAG-Domains, part of Abu-Ghazaleh Intellectual Property (AGIP), is an ICANN-accredited registrar specializing in brand protection services. It has only about 1,200 gTLD domains under management.

And the group seems to be intimately involved with the Arab Center for Dispute Resolution, the only ICANN-approved UDRP service provider in the region. It was approved in 2013 with an application managed by Talal Abu-Ghazaleh Legal and there appears to be an ongoing relationship.

Neuman, who makes it clear he is not currently holding ICANN at fault for its partnerships, does not appear to be calling for ICANN to end these other relationships with the Abu-Ghazaleh group and I don’t think the Registrar Accreditation Agreement has a morality clause anyway.

Since Abu-Ghazaleh’s comments have come to light, two IP news publications — Managing IP and IAM — have publicly distanced themselves from him.

Managing IP said it was reviewing all awards it had given to AGIP and removing the company’s profile from its site, while IAM said it was removing Abu-Ghazaleh from its IP Hall of Fame.

While to my knowledge Neuman is the only person to date to ask ICANN for a similar censure, his voice does carry weight. You’d be hard-pressed to find anyone else in the community who’s put in as many hours and knows as much about ICANN policy-making.

I think it’s quite likely ICANN will say something condemning racism in response; I’m less certain that it will pull the plug on the Amman L-root or do anything concrete to distance itself from the Abu-Ghazaleh companies.

ICANN chair Tripti Sinha has already expressed dismay at graffiti that Neuman considered anti-Semitic that appeared for 24 hours on a mural at ICANN 78 in Hamburg last week.

Saying on Twitter that the graffiti implied endorsement of the murder of Jews and that he felt unsafe at an ICANN meeting for the first time, Neuman used the Public Forum last Thursday to ask ICANN’s board of directors to condemn such behavior.

“This is not the place to make statements like that,” Sinha said, referring to the graffiti. “This is meant to be a safe place for discourse and interchange of ideas. so please do not engage in any kind of political dialogue and hurtful dialogue.”

The first four new gTLDs have been unmitigated disasters

Kevin Murphy, October 16, 2023, Domain Registries

“Arabic ‘Dot Shabaka’ goes online, ‘Dot Com’ era nearing end”.

That was a headline from a Turkish news site in February 2014 when the first Arabic gTLD — شبكة. — went to general availability, having been delegated to the DNS root October 23, 2013, 10 years ago next week.

It was one of the first four gTLDs to go live from ICANN’s 2012 new gTLD application round. At the time, the registry very kindly documented its launch on the pages of this very blog.

A decade on, شبكة. — which transliterates as “dot shabaka” — has just 670 registered domains, a 2015 peak of 2,093 names, and barely any active web sites of note. The registrar arm of the registry that runs it, GoDaddy, doesn’t even support it.

شبكة. is the Arabic for “.web”. The dot goes to the right because Arabic is read right-to-left. A full domain looks like this فيمأمنمنالألغام.شبك in your address bar but in the DNS, the TLD is represented by the Punycode .xn--ngbc5azd.

Given the Latin-script version of .web auctioned off for $135 million, and that there are 274 million Arabic speakers in the world, you might expect there to be a thirsty market for dot shabaka domains.

Nope.

It added about 2,000 domains in its first three months, crept up to 2,093 over the next two years, and has been on the decline pretty much consistently ever since. It has 40 accredited registrars, but only 21 of those have any domains under management.

Notably, GoDaddy has zero dot shabaka names under management, despite GoDaddy Registry being the official registry due to a string of consolidation ending with its acquisition of Neustar’s registry business over three years ago.

Its largest registrar is Dynadot, which seems to have a pretty responsive, intuitive storefront for non-Latin domain names.

Doing a site search on Google reveals the registry’s NIC site as the top hit — never a good sign — and a first page dominated by broken, misconfigured, and junk sites. An anti-landmine organization and a reputation management service are among the legit sites that show up.

One of the first-page results is actually in Japanese, a page declaring “ドメイン「المهوس.شبكة」は、日本語では、「オタク.ネット」という意味です。” or “The domain ‘المهوس.شبكة’ means ‘otaku.net’ in Japanese.” (per Google Translate).

It’s hardly a ringing endorsement of the demand for Arabic script names. If a reasonably priced, .com-competitive, god-tier gTLD such as “.web” is a backwater neglected even by its own registry, what does that say about any long-tail internationalized domain name gTLDs that might be applied for in the next ICANN application round?

We don’t have to wait until then to get a sense, however. Dot shabaka was one of four gTLDs delegated on the same October 2013 day, and the others haven’t fared much better. The other three were:

  • .xn--unup4y (.游戏) — means “.games” in Chinese. Operated by Identity Digital (formerly Donuts).
  • .xn--80aswg (.сайт) — means “.site” in several Cyrillic languages, including Russian. Operated by CORE Association.
  • .xn--80asehdb (.онлайн) — means “.online” in several Cyrillic languages, including Russian. Also operated by CORE Association.

You might expect .游戏 to do quite well. There are over a billion Chinese speakers in the world and gaming is a popular pastime in the country, but this TLD is doing even worse than dot shabaka.

While it was a day-one delegation, Identity Digital didn’t actually start selling .游戏 domains until early 2017, so it’s had a shorter amount of time to build up to the pitiful 318 domains recorded in the last registry transaction report. While its DUM number is lumpy over time, there’s an overall upward trend.

Compare to Latin-script .games (also Identity Digital) which had over 48,000 domains at the last count. Even comparing to premium-priced and XYZ-operated .game (Chinese isn’t big on plurals), which had 4,227 names, is unfavorable.

The two decade-old Cyrillic gTLDs aren’t doing much better, despite there being 255 million Russian-speakers in the world.

While .онлайн (“.online”) has a relatively decent 2,340 domains, the English version, run by Radix, has 2,732,653 domains. The Russian “.site” (.сайт) has just 829 domains, compared to Radix’s English version, which has 1,501,721.

The major Russia-based registrars, while they are understandably the biggest sellers of Cyrillic gTLD domains, are actually selling far more of their Latin-script, English-language equivalents.

Reg.ru, for example, has 99,716 .site domains under management, but just 249 in .сайт. It has 188,125 .online domains — where it is the fourth-largest registrar — but just 918 in .онлайн.

While there are certainly supply-side problems, such as the problem of Universal Acceptance, I suspect the abject failures of these four IDN gTLDs to gain traction over the last decade, despite their first-mover advantages, is based at least equally on a lack of demand.

ICANN has made UA — particularly with regards IDNs — one of its top priorities for the next new gTLD application round. Supporting a multilingual internet is one of the CEO’s goals for the current fiscal year.

But it had the same goals in the 2012 round too. The reason the first four to be delegated were IDNs was because IDN applicants, in act of what we’d probably call “virtue signalling” nowadays, were given priority in the lottery that decided the order in which they were processed.

Second time lucky?

ICANN is starting to auto-renew new gTLD contracts

Kevin Murphy, September 21, 2023, Domain Registries

Almost 10 years have passed since ICANN delegated its first 2012-round new gTLDs and the Org has started to auto-renew their contracts.

As far as I can tell, the first delegated gTLD, شبكة. (Arabic “.web”, .xn--ngbc5azd) got its Registry Agreement renewed on July 13. The registry, dotShabaka, was informed all the way back in April.

That gTLD eventually made it to the DNS root in late October.

ICANN has this week informed Identity Digital’s subsidiaries that dozens of their RAs — the first Latin-script gTLDs from the round to go live — will auto-renew starting this month.

Under the base RA, registries get to run their TLDs for a decade and, unless they seriously screw up, there’s a presumptive right of renewal.

ICANN rejects a whole bunch of new gTLD policy stuff

Kevin Murphy, September 14, 2023, Domain Policy

ICANN has delivered some bad news for dot-brands, applicants from poorer countries, and others, at the weekend rejecting several items of new gTLD policy advice that the community spent years cooking up.

The board of directors on Sunday approved a scorecard of determinations, including the rejection (or non-adoption) of seven GNSO recommendations that it deems “would not be in the best interests of the ICANN community or ICANN”.

In reality, it’s the latter that seems to have been foremost in the board’s mind; most of the rejections appear to be geared toward reducing ICANN Org’s legal or financial exposure.

Notably, dot-brands are denied some of the relief from cumbersome or expensive requirements that the GNSO had wanted rid of.

The board rejected a recommendation that would exempt them from the Continued Operations Instrument — a financial bond used to pay an Emergency Back-End Registry Operator should the applicant go out of business.

“[T]he Board is concerned that an exemption from an COI for Spec 9 applications would have financial impact on ICANN since there would be no fund to draw from if such a registry went into EBERO,” the board wrote.

It also rejected a request to exempt dot-brands from rules requiring them to contractually ban and monitor abuse in their TLDs. The GNSO had argued that single-registrant TLDs do not suffer abuse, but the board said this could lead to abuse from compromised domains going unaddressed.

“The Board concludes that Recommendation 9.2, if implemented, could lead to DNS abuse for second-level registrations in a single-registrant TLD going unaddressed, unobserved, and unmitigated,” it said.

Applicants hoping to benefit from the Applicant Support Program — which in 2012 offered heavily discounted application fees to poorer applicants — also got some bad news.

The GNSO wants the support to extend to other costs such as application-writing services and lawyers, which naturally enough put the frighteners on the board, which noted “such expansion of support could raise the possibility of inappropriate use of resources (e.g. inflated expenses, private benefit concerns, and other legal or regulatory concerns)”.

The board also rejected a couple of recommendations that could be seen as weakening its role as ultimate authority over all things gTLD.

It rejected a proposal to remove the controversial covenant not to sue (CNTS) from the application process unless other recommendations related to appeals processes are implemented.

ICANN said that because it has not yet approved these other recommendations, it has rejected this recommendation.

The board also rejected a recommendation that would have limited its ability to reject a gTLD application to only when permitted to do so by the rules set out in the Applicant Guidebook.

The idea was to prevent applications being arbitrarily rejected, but the board said this “may unduly limit ICANN’s discretion to reject an application in yet-to-be-identified future circumstance(s)”.

The rejections invoke part of the ICANN bylaws that now requires the GNSO Council to convene and either affirm or amend its recommendations before discussing them with the board. Presumably this could happen at ICANN 78 next month.

The bylaws process essentially gives the board the ultimately authority to throw out the GNSO recommendations if it can muster up a two-thirds supermajority vote, something it rarely has a problem achieving.

Three more straggler new gTLDs coming soon

Three more new gTLDs from three different registries are set to launch this (northern hemisphere) summer.

Identity Digital is gearing up to launch .watches in June, while newcomer Digity will launch .case in July and Intercap will launch .box in August, according to ICANN records.

.watches was bought from luxury goods maker Richemont, which hadn’t used it, in 2020. It’s currently in sunrise and will go to general availability June 7.

Digity, which is affiliated with the registrar Sav, bought .case from CentralNic, which in turn bought it from industrial machinery maker CNH Industrial. It was a dot-brand, but will be repurposed as an open generic targeting the legal field.

Intercap is planning to start .box’s sunrise August 9 and go to general availability the following month, September 13. The gTLD was originally bought for $3 million before Intercap acquired it in 2020.

woke.com among domains in NamesCon auction

Kevin Murphy, May 18, 2023, Domain Sales

Right Of The Dot has published the list of domains it hopes to help auction off during the forthcoming NamesCon 2023 conference in Texas, and my highlight has to be woke.com.

ROTD said in a press release that the headline lots of the auction, which seems to have 451 listed domains, are:

qd.com, oi.com, gorilla.com, holiday.com, programming.com, successful.com, estates.com, woke.com, fighting.com, dancing.com, cryptopunks.com, gpt.info, whois.io, software.ai, robots.ai, god.eth, nftx.com, shiba.com, we.co.uk, hi.co.uk, house.net, rap.hipHop, electricmotorcycles.com, and blackberries.com.

While woke.com is certainly not the domain with the best monetization/development potential, it catches the eye due to the fantastically divisive nature of the word itself, which is coming to dominate culture-wars political bullshit in the English-speaking world.

While “woke” ideology is arguably simply a modern restatement of the Golden Rule, it can mean very different things to different people — at one extreme it means welcoming the reintroduction of racial segregation and getting people fired for wearing a hat, and at the other it means buying a closet full of AR-15s because drag queens are coming to cut off your son’s penis.

The algorithm at the parking page it currently points to thinks it relates to beds.

It’s going to be fascinating to see who, if anyone, buys it, and what they do with it. It’s listed with a starting bid north of $250,000.

qd.com and estates.com both have starting bids above $1.5 million, while oi.com starts at over $1 million.

The auction runs online at rotd.com and live at NamesCon for the next three weeks.

This is why ICANN is worried about new gTLDs right now

Kevin Murphy, March 1, 2023, Domain Policy

ICANN’s board of directors yesterday laid out a whole bucket list of concerns it has about the next round of new gTLDs, some of which it thinks might take over a year to resolve.

The board told the GNSO Council on a conference call that it has 38 areas of concern that will need to be addressed before it can fully approve the policy recommendations sent to it two years ago.

ICANN has identified 298 recommendations emerging from the GNSO’s Final Report (pdf) into the future of the new gTLD program.

The board intends to fully approve 94 of those recommendations March 16, at its meeting in Cancun, which begins next week. A further 168 are believed to be covered by already-approved policy and will simply be “acknowledged”.

That leaves 38 that will need further discussion between the board, Council and Governmental Advisory Committee, covering areas such as legal and financial exposure, potential bylaws violations, and worries about gaming.

Here’s my non-exhaustive hot take on the issues that look most interesting to me.

First-come, first-served

Most surprising to me are indications that the current board appears to favor a gradual transition to making new gTLDs available to applicants on a first-come, first-served basis.

The GNSO’s Final Report was firm that the program continue to operate in discrete, regular rounds, with finite application windows. It rejected the idea of FCFS for a host of persuasive reasons.

But director Becky Burr told the Council yesterday: “The Board really would like to consider whether it makes sense to move to a system of continuous applications at some point.”

“In other words, moving out of rounds into a first-come first-served mode at some point, because that would have a lot of potential advantages with respect to string similarity issues and contention sets and the like,” she said.

FCFS could remove these costly aspects of the program — no contention sets means no auctions, for a start — but do we really want a process where the fastest trigger-finger is the sole decider of who gets a gTLD?

This would make obtaining a gTLD more akin to drop-catching. Anyone remember digital archery?

The board suggests the GNSO reconvene its Policy Development Process working group to address this issue, with a target date of June this year for resolution.

Emojis

The board is also worried that the Final Report suggests a blanket ban on emojis “at any level” in gTLDs, for security and stability reasons — since there’s no standard for how emojis are rendered in software, the chance of confusion is pretty high.

This appears to be an easily fixable problem of wording. The board points out that it only has power to set policy for gTLDs and second-level domains, a ban “at any level” — which would include [emoji].example.example domains — may be ultra vires.

Simply clarifying that the ban only applies at any “registerable” level may be enough to put this concern to bed, but the board reckons it might take until October.

The Content Police

As previously reported, the board has concerns about proposals for “Registry Voluntary Commitments”, which would be contractually enforceable promises to only allow, for example, certain types of content or registrant.

This could go against ICANN’s bylaws commitments to stay out of policing internet content, a very sensitive issue.

ICANN has previously floated the idea of amending the bylaws to enable RVCs, but now the board wants to talk further with the GNSO before taking any action. It thinks it could take until April 2024, 13 months from now, to sort this out.

Watching the Pennies

The board has a number of concerns that some GNSO recommendations may risk emptying ICANN’s coffers.

It wants to revisit the idea that the Applicant Support program be expanded to include lawyers fees and application-writing services, for example. In 2012, it only subsidized ICANN’s own application fees.

The board is also worried that releasing dot-brand owners from the required to post a financial bond to cover the Emergency Back-End Registry Operator’s costs should the TLD fail may end up costing ICANN money.

The Future

The good news arising from yesterday’s briefing appears to be that the board is set on approving the continuation of the new gTLD program in less than two weeks.

The bad news is that there are a few dozen recommendations, grouped into 16 buckets, that it thinks need more work before they can be approved. It thinks these issues can be wrapped up by April 2024, however.

Interview: Sandeep Ramchandani on 10 years of Radix and new gTLDs

Kevin Murphy, January 12, 2023, Domain Registries

It’s over a decade since ICANN’s last new gTLD application round, and naturally enough many companies in the industry are celebrating their 10th anniversaries too. Radix has been putting a lot of effort into promoting its own birthday, so a couple months ago I had a long chat with CEO Sandeep Ramchandani about the last decade and what the future holds.

We discussed Radix’s business model, rivalries, performance, blockchain-based alt-root gTLDs, the company’s plans for the next application round, and the TLDs he wishes the company had bought.

Measuring success

Radix is based in Dubai but has most of its 75-person headcount located in Mumbai, India. It also has satellites, mainly focused on registrar relations and marketing, in the US, South America (where it markets .uno) and Asia.

Across 10 gTLDs, it has amassed over 5.6 million registrations, according to its web site. If you exclude pre-2012 TLD .info, that’s more than Identity Digital, which has more than 20 times as many TLDs in its stable.

“Donuts went for the long tail, category-specific names,” Ramchandani said. “Our idea was to launch TLDs that had mass-market potential.”

More than half of the regs to date have been concentrated in two TLDs — .online and .site, each of which measure their volumes in seven figures. The TLD .store is approaching a million names also.

More than half of the company’s sales are coming from the US, with 20% to 30% from Europe. It’s pretty much the same mix across premium sales and basic regs, he said.

Radix has been focusing most of its marketing effort on .store, .tech and .online, but Ramchandani says he thinks .site, currently at around 1.2 million domains and the company’s second-biggest seller, has a lot of untapped potential.

“We have about six million domains right now, but I don’t think that’s the best metric, as you can easily spike volumes by selling cheap,” Ramchandani said.

“The real metric is domains that are renewing every year,” he said. “Our first year registration price is still fairly low, but we optimize it to maximize our renewals.”

There’s also the matter of live web sites, of course. Radix estimates there are over 725,000 live sites on its domains, according to its web site.

On premium renewals

If you’re a domain investor, imagine you have a portfolio of tens of thousands of domains that you price at between $100 and $10,000, and you get to sell them not once, but every single year.

That’s Radix’s “high-high” business model, where domains in premium tiers are priced for users and renew at premium prices.

Ramchandani says that between 10% and 15% of Radix’s revenue comes from premiums, but it’s growing faster than regular-price regs. So far, it’s sold about 5% to 6% of its premium inventory. Many thousands of domains remain.

But the problem with premiums is of course whether or not they will renew at all, particularly if they’ve been sold to a domain investor who failed to secure the quick flip.

Ramchandani said premium renewals have been running at about 55% for the first renew, 75% for the second and above 90% for the third. The second and third-time figures are very respectable indeed for any TLD.

Premiums are typically held by end-user registrants rather than investors, he said. Probably lower the one in 10 premiums are owned by domainers, he guessed.

“We don’t have a lot of domainer interest, because the holding cost is too high,” he said. “A lot of the best web sites we see on our TLDs are on premiums.”

On industry consolidation

One of Ramchandani’s regrets over that last decade is that Radix didn’t manage to pick up some of the gTLDs that changed hands as the industry began to consolidate.

“We could have gone a bit harder to acquire some of the larger TLDs that did sell over the last few years,” he said. He would have to loved to have gobbled up .club or .design, he said, but these were bought by deeper-pocketed GoDaddy.

He said Radix sees itself as a buyer rather than a seller “for sure”, but the problem is: “We are interested in buying, but there aren’t so many out there that are really good TLDs.”

The company is not interested in the business model of buying up a dormant dot-brand and repurposing it to mean something other than its original meaning, which other registries have tried.

Ironically, that was where Radix started out, selling Palau’s .pw ccTLD as a domain for the “professional web”, which was a hard sell.

On the next round and alt-root TLDs

The long-touted next application round has been in policy development hell at ICANN for a decade, and Ramchandani agrees that “it’s a couple years away at this point and could very well be longer than that”.

“We will participate,” he confirms, adding “we’ll have to look at which TLDs we think are worth going for.”

“I think the best ones are already on the market, but there may be a few — based on recent trends — that make really good TLDs that qualify to have the scale and global impact that we look for,” he says.

“But honestly if we end up with none I think we still think have a very, very exciting business opportunity ahead of us for the next 10 years at least with the TLDs we already have, so it’s not something we’re betting the business on,” he says.

But how big will the next round be? There were 1,930 applications in the 2012 round, and plenty of anecdotal evidence today about pent-up demand, particularly from brands. That said, many say the first round wasn’t as successful as some had anticipated, which could lower turnout.

“A lot depends on the barrier to entry,” Ramchandani says. “Last time there was an investment of $185,000 for an application so there was a decent barrier to entry, but there are talks about potentially reducing that spectacularly. If that happens, I think the floodgates will open.”

(I should note that our conversation took place before ICANN announced that applications fees will likely be closer to $250,000 in the next round.)

“Last time this process ran there was less confidence that there was a sustainable business around new gTLDS, but given how some of the domainers in that round have performed — there are a bunch of TLDs that have done substantially better than everyone’s expectations — there might a lot more coming in to fight for those in contention with us in the next round,” he said.

He’s expecting to see “really high numbers” in dollar terms when strings come up for auction, but “a dozen, max, that will be really highly contested”.

One factor that could push down applications are blockchain-based alt-roots, where the likes of Unstoppable Domains throwing its legal weight around to prevent versions its TLDs appearing in other roots.

That said, Ramchandani would not rule out applying for TLDs that exist in alt-roots.