DRAFT: Halt the Sale of 1-Character and 2-Character Domains and Realign Strategy for Long-Term Success

Governance Proposals
1

Voting period: 7 Days

Categories:

Social Proposal
Request for Action
Constitution Amendment

Abstract:

This proposal calls for the immediate suspension of ongoing sales of unsold 1-character and 2-character domains on the Tezos Domains platform. Current sales have failed to generate meaningful revenue, signaling poor demand for these premium assets under current market conditions. Continuing these sales risks undermining the value of not only the premium assets but the entire Tezos Domains ecosystem.

Instead, this proposal seeks to halt the sales and reposition the DAO to revisit these assets at a more favorable time. By preserving these domains and leveraging improved market conditions in the future, we can maximize revenue, engagement, and excitement for the platform—realizing the original intent behind preserving these high-value assets for years. With cashflow challenges no longer an immediate concern, this proposal realigns the DAO to a forward-looking strategy that prioritizes the long-term integrity and growth of the Tezos Domains platform.

Rationale:

The ongoing sale of 1-character and 2-character domains has demonstrated little to no uptake, revealing poor market demand for these premium assets under current conditions. Continuing with this strategy risks devaluing the perception of the Tezos Domains platform and undermining confidence in its broader asset ecosystem. Lowering prices to force sales would only exacerbate this damage by devaluing not just these premium domains but, by proxy, the perception of all domains and products associated with Tezos Domains.

These premium assets were preserved for years with the intent of maximizing their revenue and engagement potential when the conditions were right. Unfortunately, due to prior cashflow challenges, the assets were rushed to market prematurely. With these financial pressures now alleviated, it is time to halt the sales, refocus, and reposition the platform for a more successful and impactful relaunch of these domains.

The market is moving in a positive direction, with increased transaction volumes, ecosystem activity, and sentiment showing signs of improvement. By pausing these sales now, the DAO can revisit the assets at a better time, ensuring they generate the worthy revenue and excitement originally intended. This step will not only prevent further harm but will also realign the DAO to a forward-thinking strategy that enhances the platform’s integrity and reputation.

##Details: ##

  • Current Sales Are Ineffective: The ongoing sale of 1-character and 2-character domains has failed to generate meaningful revenue or interest. Continuing with this approach signals weak demand for these premium assets and risks damaging the platform’s overall perception.

  • Lowering Prices Would Cause Broader Harm: Reducing prices to force sales would devalue not only these domains but also the entire Tezos Domains ecosystem. By proxy, this would harm the perception and value of associated products, including higher-character domains that have demonstrated more stable demand.

  • Preserving Platform Integrity: Halting the sale now allows the DAO to cut losses, protect the platform’s reputation, and prevent cascading damage to its broader asset ecosystem.

  • Enabling a Strong Future Relaunch: Pausing the sales now sets the stage for an optimized relaunch when market conditions are favorable. With the right strategy, these premium assets can generate not only significant revenue but also broader engagement that positively impacts demand for other Tezos Domains products. This strategic alignment ensures the assets achieve their intended value and strengthen the platform’s overall success.

[If the proposal is a Request for Action] Specification:

Action #1: Immediate Suspension of Sales
Effective immediately, halt the sale of all unsold 1-character and 2-character domains on the Tezos Domains platform.

Action #2: Strategic Review and Planning
Conduct a strategic review to evaluate the optimal timing and approach for relaunching these assets. This includes exploring rebranding, improved marketing, and premium pricing strategies under better market conditions.

Action #3: Focus on Products with Proven Demand
Redirect marketing and development efforts toward higher-character domains and other products that have demonstrated consistent demand.

Action #4: Future Relaunch of Premium Domains
Revisit the sale of 1-character and 2-character domains under improved market conditions to maximize revenue and engagement potential.

2

This could make a good marketing endeavor if done right.

Action #1: Immediate Suspension of Sales
Effective immediately, halt the sale of all unsold 1-character and 2-character domains on the Tezos Domains platform

We could add a count down to the date of the halt creating a “limited time” event. This could seriously drive FOMO up, and wake up individuals who are taking the current pricing for granted.

Action #2: Strategic Review and Planning
Conduct a strategic review to evaluate the optimal timing and approach for relaunching these assets. This includes exploring rebranding, improved marketing, and premium pricing strategies under better market conditions.

I think Spring would be a great time to relaunch, as we will have a good idea of the bull around that time. Even if we stick to the current price structure, we can argue that consumers “missed the sale” during lower market conditions. Again, causing a sense of “I don’t want to miss out AGAIN” type FOMO.

Action #3: Focus on Products with Proven Demand
Redirect marketing and development efforts toward higher-character domains and other products that have demonstrated consistent demand.

I would like to return to the DRAFT submitted by @Kevin detailing a gradual increase in 5+ character domains. Even if we don’t change the price on anything else I think this would cause the most noise in the ecosystem.

3

Speaking outside of SoG currently; I think that if anything, they’re currently too expensive. There are far more opportunities out there for a fraction of the price of a 1 character domain, the price isn’t attractive enough for anyone.

I personally think a total overhaul of 3-5+ character pricing should be done, and experiment with the 1-2 character names. We are never going to get the pricing 100% right, however it clearly needs to change judging from the registrations & renewals.

I do understand @Kevin’s ideas of holding onto the 1 character domains as they’re pretty much top tier, and agree they would sell well in the right circumstances, however, the right circumstances wont come naturally and ultimately the project will more than likely run out of funds before they would be considered to be worth more than 3k XTZ.

Lowering pricing for 3c-4c (even 1c-2c) isn’t going to damage anything when its clear that nobody wants to renew or purchase names at current market price.

4

The 2D names are now available for sale on app.tezos.domains.