[NA-Discuss] [Fwd: Re: [registrars] OUTCOMES REPORT OF THE GNSO AD HOC GROUP ON DOMAIN NAME TASTING]

[Ross Rader]

John L wrote:

> The other reason I doubt that you'll find registrars adding large 
> numbers of unpaid domains is that they are in the same situation with 
> the registries, so they'd be putting their own real money at risk.

Close.

Registrars have to fund a balance account that they use to fund their 
registration activity - some allow for a balance to be carried if the 
registrar files a surety instrument as you pointed out. For the most 
part, $6m deposit gets you 1m registrations (until Oct. 15 when the 
price goes up).

Registrars also control the delete.

This allows the registrar to take what is essentially a highly leveraged 
request with very little real risk. If the registrant fails to delete a 
large amount of the unpaid registrations, the registrar can simply 
delete the whole batch within the 5 day window with no problem or undue 
exposure.

This is why I'm lead to believe that there has been no reasonable 
assurance of a payment. There's no incentive for a registrant or 
registrar to require the full amount to be on deposit.


-r