Yesterday, I’ve put three options on the table so as to try a bit of a collective brainstorming experiment. Today, I’d like to analyze the first option in more detail, which is having ICANN bail out the failed extensions.
There already is a mechanism in place for scenarios which involve failed extensions but it’s not an actual permanent bailout. At the end of the day, one might argue that ICANN can afford to bail out lots and lots of extensions if need to be. This is because, as mentioned yesterday, ICANN made a lot of money from the entire process. The initial fees have been very high and the $25,000 a year that need to be paid for each string each year are nothing to sneeze at.
What would the bailout involve?
Well, in the most optimistic scenario for registries, it might even involve direct injections of capital in the form of a refund. Another words, registries could receive perhaps a significant chunk of their initial investment back on the one hand and on the other hand, ICANN could also eliminate the yearly $25,000 fee.
The second option wouldn’t involve any direct financial injection but it would...