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===2021 Assignment Controversy===
 
===2021 Assignment Controversy===
 
Uniregistry announced its intention to auction its new gTLD portfolio in January 2021<ref>[https://goldsteinreport.com/uniregistry-offload-23-new-gtlds-auction/ Goldstein Report - Uniregistry to Offload 23 New gTLDs via Auction on 28 April], January 29, 2021</ref> UNR subsequently announced that it intended to also transfer [[Ethereum Name Service]] (ENS) non-fungible tokens (NFTs) associated with each gTLD to the successful bidders for each TLD.<ref name="nftpr">[https://www.prnewswire.com/news-releases/nfts-of-25-unr-top-level-domains-minted-on-the-ethereum-name-service-301259715.html PR Newswire - NFTs of 25 UNR Top Level Domains Minted on the Ethereum Name Service], March 31, 2021</ref> The object of creating ENS tokens was to create ENS "domains" for cryptocurrency transactions and human-readable wallet IDs:
 
Uniregistry announced its intention to auction its new gTLD portfolio in January 2021<ref>[https://goldsteinreport.com/uniregistry-offload-23-new-gtlds-auction/ Goldstein Report - Uniregistry to Offload 23 New gTLDs via Auction on 28 April], January 29, 2021</ref> UNR subsequently announced that it intended to also transfer [[Ethereum Name Service]] (ENS) non-fungible tokens (NFTs) associated with each gTLD to the successful bidders for each TLD.<ref name="nftpr">[https://www.prnewswire.com/news-releases/nfts-of-25-unr-top-level-domains-minted-on-the-ethereum-name-service-301259715.html PR Newswire - NFTs of 25 UNR Top Level Domains Minted on the Ethereum Name Service], March 31, 2021</ref> The object of creating ENS tokens was to create ENS "domains" for cryptocurrency transactions and human-readable wallet IDs:
<blockquote>The auction winners of these rare internet assets not only collect subscription revenue by selling their domain names through ICANN-accredited registrars but could also sell domains on ENS directly to Ethereum owners.
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<blockquote>The auction winners of these rare Internet assets not only collect subscription revenue by selling their domain names through ICANN-accredited registrars but could also sell domains on ENS directly to Ethereum owners.
    
"UNR is opening the scarce asset class of Top Level Domains to the public, which brings existing cash flow and numerous new monetization models to future owners, including control of the NFTs on the blockchain," said Shayan Rostam, Chief Growth Officer of UNR. "We are on the cutting edge; it's unlikely that these assets will ever take part in the event of this magnitude again."<ref name="nftpr" /></blockquote>
 
"UNR is opening the scarce asset class of Top Level Domains to the public, which brings existing cash flow and numerous new monetization models to future owners, including control of the NFTs on the blockchain," said Shayan Rostam, Chief Growth Officer of UNR. "We are on the cutting edge; it's unlikely that these assets will ever take part in the event of this magnitude again."<ref name="nftpr" /></blockquote>
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Despite the .hiphop domain originally being advertised as part of UNR's April auction, Dot Hip Hop LLC (DHH) separately negotiated the purchase of the TLD in an arms-length transaction.<ref name="annex">[https://www.icann.org/en/system/files/files/reconsideration-21-3-dot-hip-hop-annex-1-14dec21-en.pdf Annex 1 to Dot Hip Hop LLC's Reconsideration Request 21-3], December 14, 2021</ref> UNR submitted the assignment request for .hiphop to ICANN in August 2021.<ref name="annex" /> The assignment was delayed for the same reasons as the other, auctioned TLDs.<ref name="annex" />  
 
Despite the .hiphop domain originally being advertised as part of UNR's April auction, Dot Hip Hop LLC (DHH) separately negotiated the purchase of the TLD in an arms-length transaction.<ref name="annex">[https://www.icann.org/en/system/files/files/reconsideration-21-3-dot-hip-hop-annex-1-14dec21-en.pdf Annex 1 to Dot Hip Hop LLC's Reconsideration Request 21-3], December 14, 2021</ref> UNR submitted the assignment request for .hiphop to ICANN in August 2021.<ref name="annex" /> The assignment was delayed for the same reasons as the other, auctioned TLDs.<ref name="annex" />  
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In December, DHH submitted an urgent [[Reconsideration|reconsideration request]] regarding ICANN's inaction on the assignment request for the .hiphop TLD.<ref name="record">[https://www.icann.org/resources/pages/reconsideration-21-3-dot-hip-hop-request-2021-12-16-en Reconsideration Request 21-3: Dot Hip Hop, LLC], filed December 14, 2021</ref> In its request, DHH noted that it had spent considerable time explaining, and re-explaining, its position on the NFT associated with .hiphop, which was transferred as part of DHH's purchase agreement with UNR.<ref name="annex" /> The Board Accountability Mechanisms Committee denied the request for urgent action, because only Board inaction could be subject to such a request.<ref>[https://www.icann.org/en/system/files/files/reconsideration-21-3-dot-hip-hop-bamc-recommendation-request-16dec21-en.pdf BAMC Determination re: Urgent Reconsideration], December 16, 2021</ref> ICANN posted a blog in January 2022 regarding the .hiphop situation and the Uniregistry assignments more broadly.<ref>[https://www.icann.org/en/blogs/details/relying-on-icann-community-developed-processes-for-a-safe-secure-internet-5-1-2022-en ICANN.org Blog - Relying on Community Developed Process for a Safe & Secure Internet]January 5, 2022</ref>  
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In December, DHH submitted an urgent [[Reconsideration|reconsideration request]] regarding ICANN's inaction on the assignment request for the .hiphop TLD.<ref name="record">[https://www.icann.org/resources/pages/reconsideration-21-3-dot-hip-hop-request-2021-12-16-en Reconsideration Request 21-3: Dot Hip Hop, LLC], filed December 14, 2021</ref> In its request, DHH noted that it had spent considerable time explaining, and re-explaining, its position on the NFT associated with .hiphop, which was transferred as part of DHH's purchase agreement with UNR.<ref name="annex" /> The Board Accountability Mechanisms Committee denied the request for urgent action, because only Board inaction could be subject to such a request.<ref>[https://www.icann.org/en/system/files/files/reconsideration-21-3-dot-hip-hop-bamc-recommendation-request-16dec21-en.pdf BAMC Determination re: Urgent Reconsideration], December 16, 2021</ref> ICANN posted a blog in January 2022 regarding the .hiphop situation and the Uniregistry assignments more broadly.<ref>[https://www.icann.org/en/blogs/details/relying-on-icann-community-developed-processes-for-a-safe-secure-Internet-5-1-2022-en ICANN.org Blog - Relying on Community Developed Process for a Safe & Secure Internet]January 5, 2022</ref>  
    
On January 13, DHH withdrew its reconsideration request, due in part to the additional delay that would be incurred if ICANN suspended consideration of the assignment request to evaluate the merits of the reconsideration request on the normal timeline for such proceedings.<ref name="DHHletter">[https://www.jjnsolutions.com/post/dot-hip-hop-withdraws-icann-reconsideration-request-and-corrects-the-record Jeff Neumann letter to ICANN], January 13, 2022</ref> The letter withdrawing the request again attempted to correct the record regarding DHH's expectation of "ownership" of the TLD and other concerns raised in ICANN's blog post.<ref name="DHHletter" />
 
On January 13, DHH withdrew its reconsideration request, due in part to the additional delay that would be incurred if ICANN suspended consideration of the assignment request to evaluate the merits of the reconsideration request on the normal timeline for such proceedings.<ref name="DHHletter">[https://www.jjnsolutions.com/post/dot-hip-hop-withdraws-icann-reconsideration-request-and-corrects-the-record Jeff Neumann letter to ICANN], January 13, 2022</ref> The letter withdrawing the request again attempted to correct the record regarding DHH's expectation of "ownership" of the TLD and other concerns raised in ICANN's blog post.<ref name="DHHletter" />

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