ether ETH/USD Creator Vitalik Buterin believes that a market-based approach should be used to determine the prices of Ethereum Name Service (ENS) domains.
What happened: The cost of registering an ENS domain today is “a very reasonable” $5, Buterin said in a blog entry on Thursday.
“That sounds reasonable from the perspective of a person trying to register a single domain, but it’s very different when you look at the situation globally,” he wrote.
See also: HOW TO BUY AN ENS DOMAIN
Why it matters: The fact that a user can pay a small amount upfront for an extended ownership – a hundred years – has led to a situation where domain squatters are sitting on ENS domains waiting for people to sell them at a much higher rate Buy price, Buterin explained.
“By selling these domains cheaply, ENS DAO is almost certainly making far less revenue than it could, limiting its ability to act to improve the ecosystem,” he said.
A better way to award domains, according to Buterin, would be demand-based recurring pricing, where the fee depends on market demand.
These proposals would maintain a totally credible neutrality and provide a high level of ownership guarantee, but also increase the cost of domain occupation.
That would generate more revenue for the ENS DAO to work on important public goods and improve people’s chances of getting the exact domain they need, Buterin said.
Price promotion: At press time, ETH is trading at $1,666, up 2.3% in 24 hours, according to data from Gasoline Pro.
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