[Ccwg-auctionproceeds] IMPORTANT: INFORMATION CONCERNING THE RESERVE FUND

[Erika Mann]

*Dear CCWG AP colleagues - *

*Cherine Chalaby asked for a meeting this morning, October 24, to inform me
as CCWG AP Co-Chair about a resolution the Board will pass tomorrow
morning, October 25, concerning the replenishment of the Reserve Fund.
Maarten Botterman attended the meeting and Chris Disspain was present for a
short period at the beginning of the meeting.*

*To replenish the Reserve Fund, the Board resolution will request a
contribution from ICANN ORG on an annual basis (8 years), total $32
Million, and an immediate contribution from Auction Proceed, total $36
Million. These two amounts seen together would replenish the Reserve Fund
(in 8 years) to the agreed height. *

*Cherine was interested in informing us ahead of the decision and I
mentioned, that we were expecting such a move and, as far as this is
concerned, we're not surprised to see the Board passing this resolution
tomorrow and that we do appreciate his approach in informing us ahead of
passing the resolution. *


Reminder:* The* '*Document for Public comment – Replenishment Strategy for
the ICANN Reserve Fund' (open date, March 6th, 2018/closed April 25th,
2018) mentioned the following about the replenishment of the fund in
relation to the topics mentioned above: *
*https://www.icann.org/en/system/files/files/proposed-reserve-fund-replenishment-strategy-06mar18-en.pdf
<https://www.icann.org/en/system/files/files/proposed-reserve-fund-replenishment-strategy-06mar18-en.pdf>*

*§ Contribution from ICANN Org: Future adopted budgets could be made to
provide a contribution to the Reserve Fund on an annual basis. This would
require ICANN Org to plan each fiscal year for expenses to be lower than
funding by an amount explicitly designated for the purpose of replenishing
the Reserve Fund. Given ICANN’s funding constraints, contributions from
ICANN org to the Reserve Fund replenishment result from a reduced
allocation of ICANN’s resources to its on-going activities, in order to
produce a surplus that is allocated to the Reserve Fund. Such allocation is
and needs to continue being the subject of community engagement and input. *

*§ Auction Proceeds: ICANN currently has US$ 104 million collected from
auctions that were held as the mechanism of last resort to resolve string
contention in the new gTLD program (including investment returns). This
amount excludes US$ 132 million relating to the auction of the .WEB string
net of auction fees *

*Kind regards, *
*Erika *

*Barcelona, October 24, 2018*
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