DRAFT: Phased Implementation and Refinement of Premium Domain Rollout

Governance Proposals
1

Voting period: 7 Days

Categories:

Social Proposal
Request for Action
Constitution Amendment

Abstract:

This proposal, P-017, builds upon the foundational work and dedication of the Tezos Domains community and developers who enabled the adoption of P-014, which outlined the release of 1-character and 2-character domains. While honoring the vision and progress established by P-014, this proposal introduces a phased rollout strategy to maximize revenue potential, ensure accurate pricing, and avoid market saturation. Specifically, it proposes beginning with the release of 2-character domains aligned with the four-year anniversary of Tezos Domains in April 2025, followed by an evaluation period before rolling out 1-character domains in October 2025. Additionally, it emphasizes the importance of refining pricing strategies, avoiding Dutch auctions, and finalizing price elasticity testing for 5-character domain adjustments before the premium domain release. This approach seeks to honor past efforts while enhancing the long-term sustainability and success of Tezos Domains.

Rationale:

Releasing 1-character and 2-character domains simultaneously risks suppressing their value, causing market confusion, and undermining their long-term revenue potential. A phased rollout allows the platform to focus on maximizing the value of each category while learning from each stage. Aligning the 2-character domain release with the Tezos Domains anniversary fosters community excitement, while delaying the 1-character domains ensures a data-driven pricing strategy informed by real-world elasticity testing. Additionally, reevaluation and potentially avoiding Dutch auctions protects against artificially low price caps and better leverages speculative enthusiasm.

Details:

  1. Phased Rollout:

  • 2-Character Domains: Released first, on April 2025, aligned with the platform’s four-year anniversary.

  • 1-Character Domains: Rolled out October 2025, six months after the 2-character domain release to allow for evaluation and strategic refinement

  1. Pricing Strategy Refinement:

  • Finalize 5-character domain price adjustments as outlined in the Revenue Surge and Sustainable Growth Plan in subsequent proposals before premium domain rollouts.

  • Evaluate optimality of Dutch auctions for premium domains to prevent price caps that undervalue the assets.

  1. Data-Informed Adjustments:
  • Use insights from price elasticity testing and the 2-character rollout to optimize the 1-character domain release strategy.

Specification:

  • Action #1: Implement the release of 2-character domains on April 2025.
  • Action #2: Conduct analysis of the 2-character rollout between July and September 2025.
  • Action #3: Release 1-character domains in October 2025 after refining pricing strategies.
  • Action #4: Finalize 5-character domain pricing adjustments via subsequent proposals before March 2025.
  • Action #5: Reevaluate optimality of Dutch auctions for premium domains and design pricing to maximize speculative enthusiasm.