Changes

Cramton's original model proposed to run auctions during the first quarter of 2013, before ICANN announced the results of their Initial Evaluation. Such a model would allow losing bidders to receive 70% back from their ICANN application fee, but would pose difficulties if winning applicants later discovered their applications were rejected as other applicants would have withdrawn already, and the new gTLD would be left without an owner. The former model also lumped all TLDs that an individual applicant had applied for in one package. Criticisms stating that such a model would benefit larger companies led to a change, so that auctions will now proceed on a TLD-by-TLD basis, with all auctions being simultaneously resolved at the same time.<ref name="domainincite"></ref>

Cramton's original model proposed to run auctions during the first quarter of 2013, before ICANN announced the results of their Initial Evaluation. Such a model would allow losing bidders to receive 70% back from their ICANN application fee, but would pose difficulties if winning applicants later discovered their applications were rejected as other applicants would have withdrawn already, and the new gTLD would be left without an owner. The former model also lumped all TLDs that an individual applicant had applied for in one package. Criticisms stating that such a model would benefit larger companies led to a change, so that auctions will now proceed on a TLD-by-TLD basis, with all auctions being simultaneously resolved at the same time.<ref name="domainincite"></ref>

The new proposal is to hold one set of auctions before Initial Evaluations are posted, with a commitment made before the end of February 2013 and the auction happening in March. The second auction would come after Initial Evaluations are posted with commitment made before the end of August, 2013 and auctions taking place in September. Mock auctions are held before the actual auctions.<ref name="Cramton Draw Proposal"></ref> [[Cramton Associates]] has subsequently planned for a third auction to be held around June 2013 for those contention sets that complete their Initial Evaluation early.<ref>[http://www.cramton.umd.edu/aa/cramton-draw-and-applicant-auction.pdf Draw and Applicant Auction, Cramton.umd.edu]Published 4 Dec 2012 Retrieved Jan 7 2013</ref><ref name="CircleID Faq"></ref>

The new proposal is to hold one set of auctions before Initial Evaluations are posted, with a commitment made before the end of February 2013 and the auction happening in March. The second auction would come after Initial Evaluations are posted with commitment made before the end of August, 2013 and auctions taking place in September. Mock auctions are held before the actual auctions.<ref name="Cramton Draw Proposal"></ref> [[Cramton Associates]] has subsequently planned for a third auction to be held around June 2013 for those contention sets that complete their Initial Evaluation early.<ref>[http://www.cramton.umd.edu/aa/cramton-draw-and-applicant-auction.pdf Draw and Applicant Auction, Cramton.umd.edu]Published 4 Dec 2012 Retrieved Jan 7 2013</ref><ref name="CircleID Faq"></ref> This plan is currently in flux given that ICANN announced in mid-January that the results of the [[String Similarity Panel]] would not be done until March 8th, a significant delay, and would thus the first Cramton auction may not be available until the end of March.<ref>[http://www.circleid.com/posts/20130112_more_on_private_auctions_for_new_gtlds/ More on Private Auctions For New gTLDs, CircleID.com]Retrieved 16 Jan 2013, Published 12 Jan 2013</ref>

Cramton and Associates have secured their fees at 1% for the first round, 2% for the second round, and 4% for the third round. There is a floor of $1 million USD and a ceiling of $5 million on the third round. The escalation of prices helps account for the higher cost of expenses due to offering multiple application rounds.<ref>[http://www.circleid.com/posts/20130107_rationale_for_tld_applicant_auctions_to_resolve_string_contentions/ Rationale for TLD Applicant Auctions to Resolve String Contention, CircleID.com]</ref>

Cramton and Associates have secured their fees at 1% for the first round, 2% for the second round, and 4% for the third round. There is a floor of $1 million USD and a ceiling of $5 million on the third round. The escalation of prices helps account for the higher cost of expenses due to offering multiple application rounds.<ref>[http://www.circleid.com/posts/20130107_rationale_for_tld_applicant_auctions_to_resolve_string_contentions/ Rationale for TLD Applicant Auctions to Resolve String Contention, CircleID.com]</ref>