- This is a very useful one, regarding why ENS’s dutch auction matrix is the best ever rule for re-allocation of an expired domain, AKA, why I as a ENS delegate voted yes in: [EP9] [Executable] Change to Exponential Premium Price Oracle. I think you will all enjoy this thread.
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First of all, all domains will expire.(Don’t tell me about .crypto, I never believe the permanent registration will ever work) How do we normally handle domains’ drop and catch? The way traditional domain use is English auction, on the platform who firstly catches the domain.
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For example, if a very good domain like http://coin.com is expired, and namejet catches it, it will be auctioned(low to high) on namejet, the final profit taken by namejet. It is a good business for namejet, and everyone wants to become them right? Wait, not that easy.
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There are a lot of ways of catching dropped domains among different registrars, manually apply, online submit form, EDI. EDI must be the quickest, but unfortunately not all the registrars have that access, which requires relationship and secret payment to parent company.
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Someone enjoys the English Auction, I don’t. Why? The “trust issue”. In English Auction, two fighting competitors might raise the final price 10x, while that competitor could be a fake buyer who works for the registrar to make you pay more, or just someone have fun with you.
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If a winner of auction fail to pay within required time, he will be fined or banned, but not for “inside people”. When we put a proxy bid(say, $2000), “inside people” will also be visible, then he can simplely bid a $1990 to max your pay out.
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Then what is Dutch auction and why that is great? The auction starts from a very high number and decays by time. You have patience, you pay less, but someone else who willing to pay more might take it any second before you do. There is no cheating in this game, the most fair.
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ENS team originally setup the start price to be $2000, and with the growth of project, increasing value of domains, we found $2000 is a steal price for most good domains, people starting to use bots and setup 3000+ gas to compete, which is definitely not the right direction.
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Recently the start price has been set to $100K, while lots of domains still got sniped by day one, as long as there is sniping(gas competing), that start price is still too low. The plan is to put the price as 100M, and decay real quick in linear curve, that should fix it.
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Someone hates that start price is too high and “money all go into project team’s pocket”, my question is: do you prefer to pay centralized firm like namejet who secures their business via exclusive EDI and relationship, or to ENS who has DAO to control all the proposals?
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Do you prefer all the dropped names to be caught by the bot users, the second he got it he list it 100ETH on opensea(squatters), or you prefer some giant directly pays 100ETH to acquire it at first place, then he use it, inspire and influence the people & business around him?
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Current 100K’s price is indeed too low, I always say, that we should aim at .com’s price for all .eth, and someday .eth will even surpass .com. That’s all my sharing about why tulip.eth voted yes in EP9. Thanks for all your time in reading.
By Master.eth