[registrars] Proposed short term solution to registry content ion

[Paul Stahura]

Bruce

A few questions:

1) What happens to the funds in the escrow account that are over and above
the $6 the registry gets?  This would be a huge number pretty quickly. 
1a) Do registrants get a cut?  (if so how does it flow to them?)
1b) ICANN? 
1c) Registrars? (if so in what proportion, or based on what, and why?)

2) What happens if some registrars decide not to participate and do the
NSI/Tucows model unilaterally? In effect pre-empting whatever the registry
does? By suggesting your model below, you seem to be implying that that
activity not be allowed, or they would somehow be forced to participate.
2a) I notice that currently there are a variety of models, for example,
godaddy is fixed-fee (not an auction model).  There are even differences on
the type of auctions from one to another. There are benefits to each model
to both the registrar and to consumers.  What happens to these other models
if we impose one?

3) What happens in the meantime?

It may turn out that one system is the best, but I'm not sure we can just
"jump to the end".  What if we are wrong again?

I support the "ratio" model, not only because I know it will efficiently fix
the "tragedy of the commons" problem now, but also because once that is in
place, the market can calmly and prudently take care of the rest, including
consumers.  

If consumers choose to go to one place with many auctions, then more
auctions will happen in one place.  Natural cooperation will occur.  If
pool.com or VeriSign or SnapNames or Joeschmoe has a great auction model or
provides whatever benefit, then we'll naturally clump to one or two of them
to do the back-end or front-end or whatever they are doing.  If consumers do
not want "islands", then to attract more business, the back-ends for example
will, over time, naturally and efficiently clump together.


Paul


-----Original Message-----
From: owner-registrars at gnso.icann.org
[mailto:owner-registrars at gnso.icann.org] On Behalf Of Bruce Tonkin
Sent: Tuesday, October 12, 2004 5:28 PM
To: Registrars Constituency
Subject: [registrars] Proposed short term solution to registry contention

Hello All,

I didn't get much response on alternative solutions to resolve
contention for names at the registry.   Contention typically either
occurs when a new registry starts operation, or when a previously
registered name is made available for another entity to register.

The solution I proposed was based on auction, and I pointed out that the
more controversial debate will really be how to distribute the funds.

Here is a proposed way forward, that allows the debate on how to
allocate the funds to take a little longer.

(1) Registry implement auction mode for deleted names where there is
more than one registrar wishing to register the same name

(2) Auction funds to be placed in an escrow account that can only be
accessed with the agreement of ICANN and the registry.   The registry
would be permitted to take $6 for each registration transaction
(preserving their current registration revenue).  The costs of
implementing the auction system would likely be covered by the saving in
resources needed to support hundreds of registrars slamming the batch
pool.

(3) Registrars will be able to add their own margin onto any fee (base
or auction) paid to the registry as they do now

Regards,
Bruce