discuss Domain Name Tokenization

[garptrader]

Recently Nike announced a patent to tokenize limited edition shoes on the Ethereum blockchain. While it might not be practical to tokenize low-value individual domains, perhaps with domain portfolios or higher-value domains it might be a means of providing liquidity without depending on one unique buyer desiring to limit their risk on an individual domain.

Challenges:
-assurance all domains are controlled by a trustee / administrator (i.e. Godaddy, Epik, Uniregistry)
-renewal and administrative costs would need to be covered by a reserve from proceeds for some period beyond token sale date
-should limits be placed on the percentage of tokens any individual buyer can purchase (i.e. 10%) to minimize the risk of two or three related holders controlling pricing and renewal decisions
-legal - would SEC declare these as securities which need to go through an expensive registration process?
-administrative costs of managing might make it impractical
-who would want the role of administrating portfolios?
-how can administrative processes be automated?
-why would sellers consider this option rather than auctioning at Namejet or other existing options?
-would buyers be willing to participate?
-what rules would need to be in place regarding frequency of price changes, sales negotiations, ability for seller to retain an interest in the portfolio, token holders extending offers on domains within portfolio (conflict of interest), etc?I
-over what period would tokens be sold? Imagine a domain portfolio where seller wants $500k and 1000 tokens are issued but no investors are willing to pay $500 per token. What rules are set to bring token prices down to a point where buyers begin to appear? At what point is seller allowed to buy tokens?
-beyond token sale date, a marketplace would be needed allowing trading
-would a secondary market for these tokens materialize?
-what portion of sales proceeds would be distributed to token holders given need to cover future renewals?

Just some random thoughts...

 

[Silentptnr]

I think we would also have to consider comparable asset classes that present less risk.

Lets say fractional ownership and tokenization worked for domains, why would one invest in it versus stocks, crypto, etc?

I agree with the position of investing in a profitable domain mgmt co stock.

I am still waiting for a publically traded domain portfolio management and monetization company to emerge. One that a domain investor can engage to manage, sell, buy, auction, etc. on behalf of a portfolio owner.

If a trusted company could take control of my portfolio and deliver returns I would pay for that.

Like real estate, I wish for management companies for domains.

They would also develop the domains, handle leasing, etc.

 

[Internet.Domains]

These are not domains, they are payment addresses.

Technically, by definition, they are a domain. They just run on different protocols than what your used to seeing.

"A domain name is an identification string that defines a realm of administrative autonomy, authority or control within the Internet. Domain names are used in various networking contexts and for application-specific naming and addressing purposes. In general, a domain name identifies a network domain, or it represents an Internet Protocol (IP) resource, such as a personal computer used to access the Internet, a server computer hosting a web site, or the web site itself or any other service communicated via the Internet."

 

[equity78]

I think we would also have to consider comparable asset classes that present less risk.

Lets say fractional ownership and tokenization worked for domains, why would one invest in it versus stocks, crypto, etc?

I agree with the position of investing in a profitable domain mgmt co stock.

I am still waiting for a publically traded domain portfolio management and monetization company to emerge. One that a domain investor can engage to manage, sell, buy, auction, etc. on behalf of a portfolio owner.

If a trusted company could take control of my portfolio and deliver returns I would pay for that.

Like real estate, I wish for management companies for domains.

They would also develop the domains, handle leasing, etc.

Interesting thought. Do you own GoDaddy or Verisign shares?