[Ccwg-auctionproceeds] Auction Proceeds Mechanisms

Sam Lanfranco sam at lanfranco.net
Thu Nov 21 21:15:30 UTC 2019

/First a little humor. /As U.S. actor-turned-President Ronald Reagan 
liked to say: “/There you [I] go again/”.

I would like to approach the issue of Mechanisms and Costs in a reverse 
order. If we start from the deliverables, they are the same for each 
Mechanism, and baring different Mechanisms facing different prices for 
similar skills, the overall dollar costs should be about the same. Thus, 
costs probably should not be a deciding factor in ranking preferences 
for Mechanisms A, B, and C. All three options will be approached of 
course with “…a best practice approach with a prudent and modest 
administrative cost allocation.”

There may be some cost savings from Mechanism B depending on how partner 
expertise is costed out, and there may be some one-time additional cost 
to set up a Foundation for Mechanism C. ICANN services and staff 
provided for Mechanism A (and B) would probably be costed competitively 
to those provided by others within Mechanisms B and C.

In my view a best practice approach to making the Mechanism choice is to 
complete this Work Phase focused on the complicated issues we have 
explored, what we want the Mechanism to do, and how we want it to work. 
This is then handed off to the Implementation Phase, along with comments 
(and questions) about the issues relevant for ranking A, B and C. These 
might include elapsed time to implementation (i.e., how long to the 
first round of grant applications), prospects for receiving additional 
funds from other sources, (to do more things or do things longer) and 
the like.

In this scenario the Implementation Phase would be where the Mechanism 
choice was identified, and then subject to whatever ICANN stakeholder 
approval process is appropriate. If we are to make that choice at this 
Work Phase, we need to make a list of the factors, other than costs, 
about what evidence we need to assess, and what decisions (e.g. open to 
supplemental funding) need to be made before ranking the Mechanisms.

Sam L.

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