[Ccwg-auctionproceeds] Notes and action items

Thu Mar 29 13:14:59 UTC 2018

Please see the information that has just been circulated by Julie Bisland from the following address for call and login details: Ntfy-ccwg-auctionproceeds.

Best regards,

Marika

From: Ccwg-auctionproceeds <ccwg-auctionproceeds-bounces at icann.org> on behalf of Erika Mann <erika at erikamann.com>
Date: Thursday, March 29, 2018 at 07:08
To: Stephanie Perrin <stephanie.perrin at mail.utoronto.ca>
Cc: "ccwg-auctionproceeds at icann.org" <ccwg-auctionproceeds at icann.org>
Subject: Re: [Ccwg-auctionproceeds] Notes and action items

Stephanie - we're not using Adobe. I resend Julie's invite with the new call-in details few minutes ago. Please check! Erika

On Thu, Mar 29, 2018 at 3:00 PM, Stephanie Perrin <stephanie.perrin at mail.utoronto.ca<mailto:stephanie.perrin at mail.utoronto.ca>> wrote:

How are we connecting to the call today, Adobe or what?

Stephanie Perrin
On 2018-03-27 13:39, Daniel Dardailler wrote:
Hello Marika, all

as I mentioned during the meeting in PR, I am of the opinion that we have heard enough arguments to now select one option, namely number 1, full in-house ICANN grant department, and revert the logic: try to find and alleviate the reasons not to do it this way.

I understand that some may think it's too early to come to a conclusion, and I'm not asking for that, just to change our modus operandi and target a particular option.

In any case, I came to this conclusion after the recent board report and here's my rationales:

 - ICANN needs to control closely all spending, before any disbursement, so at evaluation time if not before (strategic calls) and before final payment
 - ICANN wants the reach to be global and also wants its global community to be in the loop at various levels (orientation, selections, evaluation committees, etc)
 - ICANN wants to minimize the overhead (the granting mgnt overhead plus the executive/legal/oversight overhead if done outside ICANN) and already knows how to account internally for a separate in-house "branch"
 - ICANN wants the new framework to be accountable, transparent, to evaluate the impact, to quantify, etc. All the things that ICANN is already used/pushed to do better and better.

I don't think we'll find a external foundation that meets all those requirements, and creating a new organization will seriously raise the overhead costs and the risks that it is not considered a temporary framework. The only downside that I can imagine with option 1 is from people that really really don't want ICANN.org to grow staff-wise, but this will happen in any case even in a mixed option, just to implement a tight oversight (which is not going to be light at all IMO).

Talk to you on Thursday.

Thanks.

On 2018-03-19 15:45, Marika Konings wrote:

Dear All,

Please find attached some high-level notes from the new gTLD Auction
Proceeds CCWG meeting that took place on Sunday 11 March at ICANN61.
You are encouraged to review the recording / transcript of the meeting
for the full record (see https://61.schedule.icann.org/meetings/647691[61.schedule.icann.org]<https://urldefense.proofpoint.com/v2/url?u=https-3A__61.schedule.icann.org_meetings_647691&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=7_PQAir-9nJQ2uB2cWiTDDDo5Hfy5HL9rSTe65iXLVM&m=mosCdjTbbTQRBdP5yPfB4QAtYQXbqjLw1_b0pPU3P8M&s=m3Dldi6OygkbpA67Bqe9FM4iPHdqIkHxIAXF4DNlRME&e=>
[1]). The next meeting has been scheduled for THURSDAY 29 MARCH AT
14.00 UTC.

Best regards,

Marika

NOTES & ACTION ITEMS – NEW GTLD AUCTION PROCEEDS CCWG MEETING –
SUNDAY 11 MARCH 2018

_These high-level notes are designed to help the CCWG navigate through
the content of the call and are not meant as a substitute for the
transcript and/or recording. The MP3, transcript, and chat are
provided separately and are posted on the wiki at:
https://community.icann.org/x/DLHDAw[community.icann.org]<https://urldefense.proofpoint.com/v2/url?u=https-3A__community.icann.org_x_DLHDAw&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=7_PQAir-9nJQ2uB2cWiTDDDo5Hfy5HL9rSTe65iXLVM&m=mosCdjTbbTQRBdP5yPfB4QAtYQXbqjLw1_b0pPU3P8M&s=uO3XrJeb8rJ4WibJr5aUbVSzjhwlJobf_U47VbQAjjo&e=> [2]._

Brief intro provided concerning background and objective of CCWG (see
https://community.icann.org/download/attachments/79431895/CCWG%20AP%20-%2011%20March%202018%20updated.pptx?version=1&modificationDate=1520888233000&api=v2[community.icann.org]<https://urldefense.proofpoint.com/v2/url?u=https-3A__community.icann.org_download_attachments_79431895_CCWG-2520AP-2520-2D-252011-2520March-25202018-2520updated.pptx-3Fversion-3D1-26modificationDate-3D1520888233000-26api-3Dv2&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=7_PQAir-9nJQ2uB2cWiTDDDo5Hfy5HL9rSTe65iXLVM&m=mosCdjTbbTQRBdP5yPfB4QAtYQXbqjLw1_b0pPU3P8M&s=hoHTz4s-aEf5_gkBYfIZpGImor8bpNmLVcsbJ7SfAV0&e=>
[3])

     * Working closely together with Board liaison to minimize risk of
rejection of eventual recommendations
    * Legal and fiduciary constraints will need to be factored into any
recommendations that the CCWG puts forward

_Board Liaison Input_

Board committed to be proactive but doesn’t want to be proscriptive

Board discussed today what it would expect to see back. Preliminary
thoughts that Board has, not intended to be proscriptive. Fiduciary
obligations and Board to employ due diligence when it comes to assets
as well as mechanism used to allocate auction proceeds. Preliminary
principles:

 •    Tranches in a period of years, not all at once (e.g. 3-4 year
period) to make sure that mechanisms are in place and working
properly. May consider max. amount for which board needs to be get
involved, but not decided yet.

 •    Proceeds need to be used in service of the ICANN mission.
‘In service” provides some flexibility, but it is not wide open
either. Not used for operational purposes.

 •    Mechanism needs to be efficient and effective. Should
encompass the expertise and scale necessary to minimize overhead and
to maximize the impact.

 •    The mechanism has to be capable of acting globally, evaluate
proposals from around the world, and administer and oversee on a
global level.

 •    The mechanism needs to be accountable - need to have
disbursement based on written timelines that establish clear
milestones for release and accountability for grant recipients.

 •    Mechanism needs to have processes in place to evaluate and
quantify the impact of projects - fit for purpose, impact measurement.

 •    ICANN needs to have established processes to evaluate the
mechanism and its effectiveness

 •    Mechanism needs to ensure that we can be transparent with the
community and applicants with regards to status of various projects,
evaluation criteria, how funds are used, and these are achieving their
goals.

Questions:

     * Not for operational purposes used for ICANN, but there will be an
operational cost to disbursing. The latter would come out of the
auction proceeds.
    * On the topic of alignment with the ICANN Mission, since the new
bylaws expressly made content and services using domain names, would
projects that e.g. promote content or control of content be considered
against the ICANN mission? See some of the examples that the Board
recently provided. Content control is not within ICANN’s mission so
it would be difficult to see how any project focusing on content would
be in service of the mission.
    * Once you know the duration, you may also deduct spending per
project. Many ways to disburse the funds.
    * One decision to consider is whether there will be a few substantial
projects funded that make a tangible difference, or whether it will be
potentially hundreds of small projects that might have very local
impact.

_Exchange of views with experts _

     * Update provided on the status of outreach to external experts (see
https://community.icann.org/download/attachments/79431895/CCWG%20AP%20-%2011%20March%202018%20updated.pptx?version=1&modificationDate=1520888233000&api=v2[community.icann.org]<https://urldefense.proofpoint.com/v2/url?u=https-3A__community.icann.org_download_attachments_79431895_CCWG-2520AP-2520-2D-252011-2520March-25202018-2520updated.pptx-3Fversion-3D1-26modificationDate-3D1520888233000-26api-3Dv2&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=7_PQAir-9nJQ2uB2cWiTDDDo5Hfy5HL9rSTe65iXLVM&m=mosCdjTbbTQRBdP5yPfB4QAtYQXbqjLw1_b0pPU3P8M&s=hoHTz4s-aEf5_gkBYfIZpGImor8bpNmLVcsbJ7SfAV0&e=>
[3])
    * See input provided by Sam & Xavier. General reflection: some of the
questions may need more specifics in order to provide helpful answers.
ICANN will always have an obligation to exercise its oversight and
respect its fiduciary duties.

Q & A

     * SEVF mentioned as an example for how auction proceeds could be
invested and give continued returns. Out of scope for CCWG to consider
venture funds, should be moved to bottom of list.
    * Coordination should be important feature of any mechanism chosen.
Would appreciate further input on that. Agreement and details on
division of roles & responsibilities is also key.
    * Input provided seems to support favoring model #1. Don’t judge
too early - need to make sure that all external input is reviewed and
considered.
    * Community involvement / ICANN is important, especially when you
look at allocation of auction proceeds and the need for those to be in
service of the mission. Difficult to see how external evaluations with
no relationship to ICANN would be able to make a definite assessment.

    * To reduce overhead / staff costs, you may need to look into
increasing funds allocated per project.

_Nominet input _

     * Nominet trust was set up over 10 years ago to put excess funds to
good use. Appropriate funds on a yearly basis, which resulted in to
tax benefit. Managed independently by a Board of trustees. Nominet did
not sit on the Board of trustees but did provide oversight to ensure
good corporate governance. Leading social tech fund in the UK. Are now
re-evaluation how to deliver public benefit - trust now ready for
attracting external investors. Nominet now takes the public benefit
approach in-house - hiring a team to direct the profits accordingly.
Part of the reason for bringing it in house is because Nominet
purpose, to be able to be more directive how to support Nominet
objectives. Key question is what is the purpose? Could result in
putting it in different posts, for example. What is the ambition?

Questions: what were the decisions that led to creating the trust and
what guided the decision to spin of the trust and bring the public
benefit work into Nominet? Initially no expertise in-house so trust
was deemed best approach. Now after many years of experience able to
carry out this role in-house and make sure that profits are directed
in line with Nominet’s objective.

ACTION ITEM: Invite Nominet to join future new gTLD Auction Proceeds
CCWG meeting to provide further insights and allow for additional Q &
A.

_Next meeting_

Next meeting has been scheduled for THURSDAY 29 MARCH AT 14.00 UTC.
The co-chairs expect to share a revised timeline for CCWG
consideration shortly.

_MARIKA KONINGS_

_Vice President, Policy Development Support – GNSO, Internet
Corporation for Assigned Names and Numbers (ICANN) _

_Email: marika.konings at icann.org<mailto:marika.konings at icann.org>  _

_ _

_Follow the GNSO via Twitter @ICANN_GNSO_

_Find out more about the GNSO by taking our interactive courses [4]
and visiting the GNSO Newcomer pages [5]. _

Links:
------
[1] https://61.schedule.icann.org/meetings/647691[61.schedule.icann.org]<https://urldefense.proofpoint.com/v2/url?u=https-3A__61.schedule.icann.org_meetings_647691&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=7_PQAir-9nJQ2uB2cWiTDDDo5Hfy5HL9rSTe65iXLVM&m=mosCdjTbbTQRBdP5yPfB4QAtYQXbqjLw1_b0pPU3P8M&s=m3Dldi6OygkbpA67Bqe9FM4iPHdqIkHxIAXF4DNlRME&e=>
[2]
https://urldefense.proofpoint.com/v2/url?u=https-3A__community.icann.org_x_DLHDAw&d=DwMGaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=7_PQAir-9nJQ2uB2cWiTDDDo5Hfy5HL9rSTe65iXLVM&m=4zHolvsBo6lsC2fsFnhbQd0l8fVzyqdj0t9oV6_NWjM&s=-vuUpZTVZXrpFcq3-nA--Ltl_ESCT71X4cBhx3axkEY&e=
[3]
https://community.icann.org/download/attachments/79431895/CCWG%20AP%20-%2011%20March%202018%20updated.pptx?version=1&modificationDate=1520888233000&api=v2[community.icann.org]<https://urldefense.proofpoint.com/v2/url?u=https-3A__community.icann.org_download_attachments_79431895_CCWG-2520AP-2520-2D-252011-2520March-25202018-2520updated.pptx-3Fversion-3D1-26amp-3BmodificationDate-3D1520888233000-26amp-3Bapi-3Dv2&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=7_PQAir-9nJQ2uB2cWiTDDDo5Hfy5HL9rSTe65iXLVM&m=mosCdjTbbTQRBdP5yPfB4QAtYQXbqjLw1_b0pPU3P8M&s=jsiG84ONo6_UIJUNXjYU5CZ8MRZoVzYzkZERShC8jWs&e=>
[4] http://learn.icann.org/courses/gnso[learn.icann.org]<https://urldefense.proofpoint.com/v2/url?u=http-3A__learn.icann.org_courses_gnso&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=7_PQAir-9nJQ2uB2cWiTDDDo5Hfy5HL9rSTe65iXLVM&m=mosCdjTbbTQRBdP5yPfB4QAtYQXbqjLw1_b0pPU3P8M&s=-xivwoywYE78UHOe-nCz4TdSZr3EKBwhpk_GCQtKbzA&e=>
[5]
http://gnso.icann.org/sites/gnso.icann.org/files/gnso/presentations/policy-efforts.htm#newcomers[gnso.icann.org]<https://urldefense.proofpoint.com/v2/url?u=http-3A__gnso.icann.org_sites_gnso.icann.org_files_gnso_presentations_policy-2Defforts.htm-23newcomers&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=7_PQAir-9nJQ2uB2cWiTDDDo5Hfy5HL9rSTe65iXLVM&m=mosCdjTbbTQRBdP5yPfB4QAtYQXbqjLw1_b0pPU3P8M&s=hk2WI5xV8pmkg_6z9gfUd7Bey6uEy2cKoFiNNxU0n1c&e=>
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