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Seems Dynadot want to force you to pay a renewal on a domain that has just expired before letting you transfer it out, even if you had already unlocked it and obtained authcode before expiry.
In the account it says:
And Dynadot themself say on their site https://www.dynadot.com/community/help/question/transfer-away
But ICANN say:
https://www.icann.org/resources/pages/transfer-policy-2016-06-01-en
In the account it says:
Transfer Lock & Auth Code
Please renew domain name first.
And Dynadot themself say on their site https://www.dynadot.com/community/help/question/transfer-away
So they want you to renew before starting transfer.You should also make sure your domain is not close to expiring by checking its expiration date on our "Manage" page in the "Domains" drop-down. Your transfer may still go through even if it expires during the process, but this is not guaranteed, so we recommend starting the transfer process at least 2 weeks before the domain's expiration date.
But ICANN say:
https://www.icann.org/resources/pages/transfer-policy-2016-06-01-en
3.9 Instances when the requested change of Registrar may not be denied include, but are not limited to:
3.9.1 Nonpayment for a pending or future registration period.
3.9.2 No response from the Registered Name Holder or Administrative Contact.
3.9.3 Domain name in Registrar Lock Status, unless the Registered Name Holder is provided with the reasonable opportunity and ability to unlock the domain name prior to the Transfer Request.
3.9.4 Domain name registration period time constraints, other than during the first 60 days of initial registration, during the first 60 days after a registrar transfer, or during the 60-day lock following a Change of Registrant pursuant to Section II.C.2.
3.9.5 General payment defaults between Registrar and business partners / affiliates in cases where the Registered Name Holder for the domain in question has paid for the registration.