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    Auerbach Weighs in for gTLD Lotteries | Log in/Create an Account | Top | 49 comments | Search Discussion
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    Re:It's A Huge Problem
    by Anonymous on Wednesday April 09 2003, @09:04AM (#11472)
    Mystified??

    Why is there a market need for a Wait List Service?

    Why is there a robust aftermarket for domain names selling at multiples of retail?

    Why do many registrars practice blocking domain name transfer requests?

    Why do registrars invest their resources into obtaining deleted domain names at the very instant these become available?

    Where does the consumer sit in the ICANN-Registry-Registrar contract agreements?

    "In generic form, a pyramid scheme is an organization in which the members obtain their monetary benefits primarily from the recruitment of new members rather than selling goods and services to the public."

    Rather than selling the goods and services to the public (in this case increasing supply), the current DNS system looks to attract new members to the status quo...that's a pyramid scheme.
    [ Reply to This | Parent ]
    Re:It's A Huge Problem by Anonymous
    Pyramid Schemes
    by lsolum on Wednesday April 09 2003, @10:58AM (#11474)
    User #3416 Info | http://lsolum.blogspot.com/
    The argument is that the DNS is a pyramid scheme. I am not quite sure how to take this comment. Consider two possibilities:

    First, the comment is intended to be taken literally. This is suggested by the following remark:
      Rather than selling the goods and services to the public (in this case increasing supply), the current DNS system looks to attract new members to the status quo...that's a pyramid scheme.

    In this sense, the comment is obviously and demonstrably false. Domain name service is a service sold to the public. Expansion of the root involves either the sale of new SLDs or the creation of closed or sponsored TLDS. This is not a pyramid scheme as defined. If the comment asserts otherwise, then it is based on a misunderstanding of the definition of a pyramid scheme or is a deliberate falsehood.

    Second, the comment might be intended to suggest that root expansion is a pyramid scheme is a metaphorical sense. If there really is no economic benefit to be derived from root expansion, because there is no real economic demand for new TLDs, then an auction is the best way to demonstrate this. The auction results signal the market as the the value of new TLDs, and would be strong evidence that further expansions is unnecessary.Lawrence Solum
    [ Reply to This | Parent ]


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