Release allows domain registrants to add web3 capabilities to their domains.
Domain name and web3 company D3 Global launched its Doma Protocol mainnet today.
With the launch, domain registrants can add web3 capabilities to their domain names, including tokenization to fractionalize domain names.
D3 Global has signed up numerous registrars at launch, including InterNetX and ConnectReseller. Encirca announced today that it’s operational with the Doma Protocol, allowing its customers to add web3 functionality to domains in 450 top level domains.
A key idea behind Doma is to give domain name owners more liquidity. Registrants might get more liquidity by attracting cryptocurrency enthusiasts on web3 exchanges.
But perhaps the most interesting thing to watch is fractionalization, which could help registrants unlock value in their domains without selling them.
As a launch example, tokens will soon be available for software.ai.
Each domain has three values before launch:
- Min Buyout – minimum price to purchase 100% of the domain outright. This prevents the domain from selling at a lower price.
- Starting FDV – “Fully Diluted Valuation” is the total market value of the domain based on the initial starting token price. Software.ai launches at a $25,000 starting FDV, so early participants can obtain tokens at a favorable valuation.
- Bonding FDV – the bonding curve is an automated pricing mechanism that gradually increases the token price as more people buy. In the case of software.ai, after starting at $25,000, each purchase automatically pushes the price slightly higher along a predetermined curve until it reaches $250,000.
Once the curve reaches $250,000, tokens move to open-market trading, where prices are determined by supply and demand.
It will be interesting to see how software.ai performs. Getting a share of the domain at $25,000 would be a good value. However, a $2.5 million sale is a stretch.
Source: https://domainnamewire.com/
