Breakdown of the Namebase Registry

In the next few weeks, Namebase will open up the registry program to the public. That means anyone with an account and a TLD can sell SLDs!

Gateway.io will accept all names while 101Domain & Encirca will be more selective.

There’s a few important things to note before we continue too far into other details:

The program is 100% custodial. Your name(s) will not be in your wallet & once someone registers an SLD, you must keep the TLD in their custody for the duration of the longest registered term. Registration is currently set for 1 year but that may change.

Namebase withholds 30% of your list price as commission & registrars will mark up the price, often by double, from there. So, I listed .gin names for $225, they’re sold for $450, & I receive $157.50 worth of $HNS for each sale. Some of those sales have now doubled in value.

For the opportunity to be among the first listed HNS TLDs in legacy markets that otherwise charge a 6 figure entry fee, while stacking $HNS, I consider these acceptable terms.

Marketing kits are not required, but it sounds like they will be accepted. These consist of a logo for the domain, banner image, & a description for the name. I would strongly suggest creating a brand, your own terms of service, & setting up a site to market your domains from.

Premium pricing for specific domains will not be in the form but can be accommodated by emailing Namebase.

SLDs are rented, not owned by registrants, & UDRP does apply here. Special requirements for registration (KYC) are not possible within the program, so hang on to those for later developments.

So, what’s a great fit for the program?

IMHO, the big winners will be around personal identity. It’s still too early for rapid brand adoption, but if you have something that could make a fun handle or email address that people identify with, it will be much easier to market & sell, especially with moderate pricing to discourage mass speculation, while still being reasonable. I think $10-25 (sold for $20-$50) depending on quality, would be a good range here.

If you want to list a category defining brandable, I would recommend listing them for no less than $50 (selling for $100+) and have some of the top brands in the category listed with premium pricing to maintain the integrity of your namespace.

While it sounds counterintuitive, a rush of registrations may not be a good thing. Sales drive entrepreneurs, but active end users that draw more attention are what drive network effects into ecosystems & reduce churn. Quality > Quantity.

A quick test for whether you should list a name or to gauge the probability of it being accepted by 101Domain or Encirca, is to type it into Google with a space and .com

The results should show you all the .coms that end with your term. If there’s at least a few pages of decent results, you probably have a good candidate for SLDs.

Overall, I’ve had a great experience with the program & can tell you that waking up to “Subdomain sold” is one of the greatest feelings imaginable. It never loses its luster & when you realize it’s doubled in value & use it to buy new domains, it’s pure bliss!

My hope with this post is that you, the community, understanding the terms & strategy laid out here, will take a long look at your domains, figure out which you want to flip, which you want to hold on to for ETH or other developments, and which premium names you want to submit to debut your registry.

I can’t wait to see what you do and look forward to buying some domains.

Cheers!

Comments
28
albundy/
1 points

Really interesting Mark, thanks for the tips. Can't wait to use this feature but i think you're right no need to rush. I'm french and i have won some good TLD's i keep to sell. Do you think i should wait for non english words cause i know it's maybe a niche for now. Oh and last thing, when you said type on Google with space and. com you mean like that : finance. com for example ? Have a good day sir

marksmith/
0 points

Thanks, albundy! Hard to say. 101Domain is international and may be interested in listing those ASAP. If you have several it couldn’t hurt to list one and see how it does. An example search would be “finance .com”

skyinclude/
1 points

thanks for the explanation Mark! considering submitting

mastermind/
- but I am using it for a few SLDs - can I still use those SLDs, or I need to buy them from the marketplace?

marksmith/
1 points

Unclear at this point but I think you would need to work with Namebase on that.

johnnywu/
0 points

You'd need to know ahead of time which SLDs you want to use, point those out, and then buy from at $1/each

skyinclude/
0 points

thanks for that insight! is that fee yearly or one time?

johnnywu/
0 points

I think it depends on whether you pay for multiple years upfront, in which case it'd just be one time

j.sats/
4 points

Great to get inside your mind on this one Mark. I must admit, I'm having second thoughts. Or perhaps just considering things in a new light.

Mainly, that once committed to this way of doing it, there's little recourse. There might be more decentralised, more powerful ways of issuing subdomains in the near future. Particularly ways where the original owner is compensated for ongoing resales. Or where the NFTLD is fractionalised and auctioned so it makes owned and governed by a community.

With everything there are trade offs and what the current method has in its favour is being early to market and put in the path of millions of people looking to register domains.

What are your thoughts about locking an unquantifiable asset up so early?

marksmith/
3 points

Thanks, j.sats! Yes, there are always trade offs. The way I see it, if you have several premium names, I would submit at least 1 to the program to get early exposure. You could probably sell rights to the name, which is to say selling the revenue stream, down the line. Ultimately, that’s a choice only you can make but if you have a name many people would want SLDs of, this is a great way to stack Dollarydoos early!

j.sats/
0 points

all good points, sir!

bennett.namebase/
0 points

There are definitely multiple parties working on more decentralized approaches, but they will take some time to mature and carry unknown risks. I think Mark's breakdown of the tradeoffs is a good one.

If you're curious about an initial version of a more decentralized approach, check out

j.sats/
0 points

Thanks for linking the article. I started reading Mike's article a while back but I couldn't follow some of the technical elements. I think this is my prompt to have another go!

balas/
1 points

what about tax implications, how is the current system handling it all? is every SLD a taxable event (on both the registrar and TLD owner)?

marksmith/
0 points

Good question. I believe that depends on where you live. It’s my understanding a CSV of sales will be available.

dees/
1 points

Thanks for the breakdown

marksmith/
really appreciate it.

I know you're big on the marketing-forward angle, but I'm still curious what's your take on generating purely passive sales just by getting them listed? Do you think there's enough organic registrar browsing market to drive meaningful sales or does it really NEED to be pushed through other channels before you can expect any demand? Let's presume in advance that the TLD is something that can be expected to have some general interest audience and not a narrow vertical.

marksmith/
1 points

I have done zero marketing for .gin and have made my HNS back several times over. This may be because I’m very active on Twitter & Clubhouse which indirectly markets it. You may very well get a few passive sales just from searches on registrars, but it really depends on the name and how well it fits into the narrative of the moment e.g. .finance and .club

Only one way to find out 😄

faltrum/
0 points

Thank you Mark for explanations about it. I have a question. How can the clients resolve the SLD with a TLD that need to be config your DNS?. Thnks

marksmith/
0 points

Yes they will need to configure their DNS at this time. Hdns.io works great!

faltrum/
0 points

Thank you Mark.

valparaiso/
0 points

great write up thanks for the inputs

paulwebb/
0 points

Thanks for this write-up, it's good to learn how it's like. I may enter `adults/` in this program but I'm also working on my own registrar (slowly).

It'd be pretty cool to have the only place where you could register `.👽/`.

r27/
0 points

Thanks for the info Mark.

You mentioned above that UDRP (cybersquatting rules) are applicable to Handshake SLDs.

Can you elaborate more on this?
For example, who is deciding on the UDRP outcome? And who is enforcing it?

Thanks!

marksmith/
2 points

Same as the current state. I don’t know a ton about it myself but basically the names in the program operate more like legacy names than immutable web3 names, which in many instances isn’t bad, it just is. So, it’s something to be mindful of.

sndbtc/
1 points

wow this is so exciting.

shamanth/
0 points

Hi

marksmith/

Thank you for this awesome write up and those two videos. Impressive.
I have a question:
How to make the dLinks work with the SLD that is purchased on gateway.io ?

scottostby/
0 points

I threw a few names up to get an idea of how this works. Where do I find them? If I want to change pricing how do I do that?