TL;DR
ICANN recently opened applications for the next round of gTLD applications. Several blockchain-based name services like .chain (3DNS/Optimism) and .NEAR (D3N/Near) are preparing to register their TLDs in the ICANN-approved root.
As the largest blockchain-based name service, ENS should proactively secure the .eth and .ens roots in the ICANN-approved namespace.
Current Status of .ETH
As many in the ENS DAO are aware, “ETH” is the ISO code for Ethiopia, which means Ethiopia could technically claim it as a ccTLD and administer the domain.
According to head ENS dev @nick, ”[i}f Ethiopia requested it be delegated in the global root as a ccTLD, and appointed ENS as the registry, it’d be possible to reflect the entire .eth registry in DNS, because we and Ethiopia would set the rules - no UDRP if we don’t want it.”
The ideal path would involve Ethiopia claiming the TLD and appointing ENS as the registry. Since ccTLDs are not subject to special ICANN rules, the ENS DAO could directly negotiate with Ethiopia and set its own standards.
ICANN automatically reserves two-letter ISO country codes, but how three-letter codes are handled remains unclear. If ICANN were to reserve all three-letter ISO codes, an application for .eth as a gTLD could be rejected outright. However, based on prior discussions in 2021 and 2022, there is a strong indication that ICANN might consider .eth as a gTLD rather than a ccTLD.
.ETH as a gTLD.
ICANN has reopened applications for new gTLDs after nearly 12 years. This round includes nuanced opportunities, such as the Applicant Support Program, which offers guidance and resources for up to 45 applicants.
Challenges in Getting .ETH as a gTLD
The ICANN Applicant Support Program Handbook outlines several prerequisites for operating a registry, including: data escrow, dispute resolution mechanisms, sunrise period for trademark claims, and stable IP resolution infrastructure.
Given that ENS operates as permissionless blockchain software, it would struggle to meet many of these requirements while maintaining its ethos of decentralisation. These challenges would need to be addressed if ENS were to operate a blockchain-based TLD within the global root.
Read more about the requirements here: 1 2 and 3.
.ETH and .ENS as Complementary Services
To meet ICANN’s requirements, ENS could position .eth and .ens are complementary services to the existing onchain registry. This approach would allow users who wish to host websites using ENS to register off-chain TLDs that are compliant with ICANN standards while maintaining the benefits of the blockchain-based system.
How to Achieve This: The .BOX Example
3DNS and .box have successfully integrated ICANN-compliant ENS domains using the .box TLD. Additionally, they have tokenised traditional TLDs like .com and .io to bring them onchain. Their approach has given us valuable insights into approaching the complex situation.
In this approach, we would maintain two parallel systems:
- The existing onchain registry remains fully decentralised and permissionless.
- A separate ICANN-compliant registry for .eth and .ens domains within the ICANN root.
- Existing ENS holders should be able to claim their SLD during the sunrise period in an ICANN-compliant manner.
Financial Implications
Pursuing ICANN approval and operating a gTLD involve significant financial commitments, including:
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Application Fee:
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ICANN charges a non-refundable application fee; in 2012 approximately $185,000 was charged per TLD. This fee covers ICANN’s evaluation and application processing.
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TLD auction fees
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1 million USD+, see for example:
1. [Namecheap bought a Handshake domain for $750k](https://domainnamewire.com/2022/03/18/a-handshake-domain-apparently-just-sold-for-750k/)
2. [.crypto | Handshake top-level domain | Namebase](https://www.namebase.io/domains/crypto)
- Operational Costs
- Legal and Consulting Fees
.ENS as an Alternative To .ETH in the Global Root?
If securing .eth TLD, is unsuccessful during this application period, the DAO should consider.ens as an alternative option within the ICANN approved global root. Unlink .eth the .ens abbreviation is uniquely tied to the Ethereum Name Service and doesn’t conflict with the ISO standards. This approach will enable our goal to integrate the private-key based Name space directly into the current IP-based architecture.
Open Questions:
- Do we need a separate legal entity to go through the application process on behalf of the ENS DAO?
- How does an .eth TLD on the global root go along with ENS Labs roadmap?
- Governance and compliance in practice?