DRAFT: Pricing structure change

Voting period: 21 days

Categories:

Social Proposal
Request for Action
Constitution Amendment

Abstract:

Change pricing structure to 3/2/1 or 1/1/1 for 3D/4D/5D+ name registrations.

Rationale:

We need a price structure change to better theoretically be able to address bull and bear market scenarios. For example: currently in a bull scenario (XTZ = 10USD) it would cost 1000 USD/yr to keep up with a 3D name; conversely in a bear scenario (XTZ = 0.7 USD), the inactivity of the market causes the velocity of the 3D/4D registrations and renewals to drop by not being low enough.

Most people agree that some kind of pricing model change is needed

Details:

At our peak we had somewhere around 130K actively registered domains and now we’re slowly bleeding domains, down to 62K (check out ⁠📊stats). I think as long as we consider domain squatting issues (i.e. too cheap, can take all the desirable names without enough personal expense to prevent it), we can somewhat lower all the costs. This plan addresses both the scenarios of tez price increase and decrease.

The solution to the price structure is to change it to one where domains are affordable in both bull and bear markets but for different reasons. To that end both 3/2/1 and 1/1/1 pricing structures fit the bill.

Long term, a change that prices domains in a stablecoin or some other similar method makes sense. Currently we don’t have the resources to take on a big redesign for this but we have the resources necessary to change the current 3 tier pricing structure in order to start trending in the right direction, which is: domain name registrations are going up. Whether that’s because Tezos is popular or because we’re “giving them away” (by being so cheap) is immaterial. The end goal for us is to keep the Tezos Domains project going.

To keep the Tezos Domains project going we have to fund the Tezos Domains project. This is where market existence and velocity come into play. By pricing down our premium domains we ensure that there develops an independent secondary market of dedicated Tezos Domains supporters (i.e. sellers)

I originally suggested 25/5/1 but the 3/2/1 and 1/1/1 options have proven to be more popular with core Discord supporters. I think I can kind of understand this factor, in that the popular pricing structures are complete departures from the same model as currently, the one I scaled down slightly.

All 3 structures are equally popular with the Twitter poll with over 150 participants.

To get this proposal passed we have to agree on the necessity for change and to converge to a single popular choice of change.

I’m hoping to hear from other delegates about this subject and also hope to see your own DRAFT submissions for other approaches on how we should turn the tide of domain registrations into the positive.

Specification:

Action #1: Price out and plan cost of pricing relaunch (Core Dev, Treasurer & CM)
Action #2: Proposal vote approve pricing relaunch plan
Action #3: Launch new price as agreed upon in Action #1

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