Anti-Squatting Fund

In an ode to consistently improve the Solana Name Service ecosystem, Bonfida has allocated more than 500K USD to help buy back squatted domains.

For complete transparency, the vault can be tracked here for the amount and transactions. The entirety of the funds in this vault will be dedicated to this purpose.

What is domain name squatting?

Last week we announced the anti-squatting campaign. Within this, we detailed what it means to be a squatter.

“Domain squatting is the practice of registering, buying and/or using domain names with the intent of victimizing, profiting or impersonating other people’s trademarks, projects or well-known identities. Furthermore, the squatter holds on to the domain, exploiting the victim to purchase the domain at a ridiculously inflated price. Some pay this, in fear that damage may be imposed on their reputation or their community. Inadvertently affecting the adoption of your favorite TLD if the squatter does not want to sell it to the “deserving” users. Never mind the other counterparties that may have lost funds or been fooled in the meantime.” - Anti-squatting blog

How will the funds be used?

In most instances, these domains have already been registered and subsequently have a legitimate owner. Should an opportunity arise where both parties can benefit, Bonfida would only try to work out a deal that's fair to everyone. This means remunerating squatters and redistributing the domains to the rightful owner.

The anti-squatting campaing is not intended to be a witch hunt nor a name-and-shame initiative but rather a common good program for SNS holders. If a domain only has one "true" owner the benefit lies in distributing it to them for various reasons;

• Domain name squatting inhibits the adoption of your favorite TLD. Allowing established personalities, trademarks and/or projects to use their domains is a big advantage for SNS recognition and stimulating future buyers.
• Squatters intend to exploit the true buyer by marking up the price ridiculously. However, if the single buyer doesn't opt into the deal we ultimately end up with two losers. A seller with a domain they can’t sell and a buyer without their rightful domain
• Domains are supposed to be used. If the intent of the domain is to hold onto it for no prevail and not sell it to the counterparty this domain is essentially useless.
• By distributing domains to the owners of trademarks, personalities and projects we prevent misrepresentation and scamming of users. The act of squatting is by no means punishable. However, we want to create a clear stance on our view (that is shared by many) and willingness to buy back these squatted domains. Throughout this process, hopefully, educate some people on the disadvantage of this act.

If you happen to realize that you are a squatter or are unsure of if you are, reach out to us! The same goes for squatting victims. This is hugely encouraged.

What we will do to start;

• Proper due diligence to determine the risk to the victim and users
• Guarantee it is in fact the deserving owner laying the claim
• Try in our best efforts to reach the current owner
• Place premium bids to buy the domains
• Distribute it to the victim On a final note, we hope the size of the funds allocated indicates that we are serious in our efforts to help. Let's make the SNS ecosystem better together.