Voting period:
14 days
Categories:
Social Proposal
Request for Action
Constitution Amendment
Abstract:
This proposal aims to establish consensus on the subject of changing the pricing structure of Tezos Domains.
It further outlines the plan for further changes via future proposals that:
- Change the price structure of Tezos Domains
- Establish month-long sale window
This proposal is meant to dovetail with P-014, which opens up registration of 1 character (1D) and 2 character (2D) names. This proposal is not required to pass for P-014 to proceed.
Rationale:
Community feedback has expressed that renewing 3D and 4D names is too costly during the current market conditions, where the XTZ token price is not high (sub $1). Considering that some parts of the current price structure is not working for the community, we have to also think about the cost of domains during a potentially high performing XTZ token. If that condition should ever come, we will also probably observe that the cost of 3D and 4D names is also not attractive.
The solution is to change the price of 3D/4D names (currently 100/25 tez) by lowering them and by doubling the price of 5D names (currently 1 tez). 5D+ names have always been the main income source of the project.
The change of the pricing structure should also dovetail with the release of the 1D/2D names, as proposed in P-014. This will ensure that more people engage with the project, boosting DAU metrics, due to a succession of project releases and changes with vested user interest.
Once this proposal passes, a further proposal will be presented which will have the top 2 or top 3 most popular price structure proposed changes, to make effective going forward.
Details:
The TzC.tez delegate working on this proposal suggests the following permanent price structure for consideration by the Tezos Domains community:
Suggested Price Structure
- 1 Character: 1000 tez (if P-014 passes)
- 2 Characters: 500 tez (if P-014 passes)
- 3 Characters: 50 tez
- 4 Characters: 10 tez
- 5 Characters+: 3 tez
This structure ensures that 5D+ names can’t be hoarded as easily as before, while still providing an affordable option for all regular users who have and use 1-5 names.
This structure also ensures that 3D and 4D (and 1D/2D if P-014 passes) names are more affordable to register and to renew. The better affordability will allow domain name sellers on the secondary market to perform more activity
Price Structure Future Proofing
The Dev team would like to reserve the right to change the suggested price structure above, if approved, to follow the current XTZ/USD exchange rate. In other words, currently 1 XTZ = ~0.7 USD; the USD cost of the domains would be as follows:
- 1 Character: 700 USD
- 2 Characters: 350 USD
- 3 Characters: 35 USD
- 4 Characters: 7 USD
- 5 Characters+: ~1.5 USD
In the event that the price of XTZ goes up by at least 200% and holds that level for a few months, the Dev team will put out an announcement across all mediums that the Tezos Domains price structure will be changed in accordance with the formula above in 30 days time. If there is any substantial dissent to this change at the time, all delegates reserve the right to put in a 7 day proposal designed to block the change via simple majority (assuming quorum is met).
Example
The price of XTZ goes up to 3 USD in a relatively short amount of time, around 2-3 months, and holds steady for 3 months. The Dev team puts out the announcement that the Price Structure will be changed in accordance to the formula, 30 days from the time of the announcement. The announcement will make sure to seek feedback from the community and instruct delegates on how to block the change.
The price structure is changed to:
- 1 Character: 333 tez
- 2 Characters: 167 tez
- 3 Characters: 17 tez
- 4 Characters: 3 tez
- 5 Characters+: 1 tez
The price structure for each type of domain will either be rounded up or down to the nearest whole number.
Desirable Domains
Here’s a summary of how many domains that are desired can be purchased of each length:
1-Letter Domains
- Letters: 26 (A to Z)
- Numbers: 10 (0 to 9)
- Total: 36
2-Letter Domains
- Scrabble Words: 107
- Nicknames/Handles: ~20
- Total: ~127
3-Letter Domains
- Scrabble Words: ~1,065
- Actual Names: ~100
- Nicknames/Handles: ~300
- Special Numbers: ~15
- Total: ~1,480
4-Letter Domains
- Scrabble Words: ~3,985
- Actual Names: ~500
- Nicknames/Handles: ~1,000
- Special Numbers: ~30
- Total: ~5,515
5-Letter Domains
- Scrabble Words: ~8,996
- Actual Names: ~1,500
- Nicknames/Handles: ~2,000
- Special Numbers: ~50
- Total: ~12,546
6-Letter Domains
- Scrabble Words: ~15,000
- Actual Names: ~3,000
- Nicknames/Handles: ~4,000
- Special Numbers: ~100
- Total: ~22,100
7-Letter Domains
- Scrabble Words: ~25,000
- Actual Names: ~5,000
- Nicknames/Handles: ~6,000
- Special Numbers: ~200
- Total: ~36,200
8-Letter Domains
- Scrabble Words: ~40,000
- Actual Names: ~8,000
- Nicknames/Handles: ~10,000
- Special Numbers: ~300
- Total: ~58,300
Projected DAO Income
If half of all the desirable names of just 1D/2D/3D/4D length sell out, that will give the DAO a yearly income of ~114,000 tez. The rest of the DAO income will come from 5D+ names, which currently represents around 50% of the overall income.
Current DAO Income
Shown below is the Tezos Domains quarterly income for all years based on domain length.
Current Project Costs
To keep the project running and to maintain all the software, including middleware, in lockstep with Tezos protocol upgrades (3X year), a professional team of developers and server operators is needed. Maintaining dozens of servers with various housekeeping needs across Mainnet and Ghostnet requires time and vigilance from the Dev team.
Common sense infrastructure optimizations and operational cuts will be made where possible over the coming months to ensure the long term viability of the project.
The operation of the Tezos Domains service has been uninterrupted for years, so the goal is to cut where possible but ensure that the quality and stability of the Dapp is preserved.
Specification:
Confirm commitment by DAO vote for the plan to change the price structure in some way.