Existing web3 namespace providers could face some of the toughest integration hurdles.
Organizations that already operate web3 naming systems and are considering applying for matching domains in ICANN’s new top-level domain (TLD) program are likely to face significant technical, legal, and operational obstacles. The potential for integration between decentralised naming platforms and the Internet’s DNS root introduces a complex set of requirements that could fundamentally change how some web3 namespaces are run.
This week, ICANN published a draft report from its Technical Study Group on gTLD Integrations with Alternative Naming Systems. The report offers preliminary findings and recommendations about how registry operators could offer TLDs that align with names already in alternative naming systems, such as blockchain-based domains. Although the group concluded that integration is feasible, the draft identifies several complications and constraints that applicants must consider.
One of the central issues the report highlights is the need for strict consistency between names in the alternative naming system and their counterparts in the ICANN root. The draft suggests that any name that exists in an alt-root would need to be reserved in the DNS namespace so that only the alt-root registrant could obtain the corresponding DNS domain. In practice, this would require registries to ensure that a single entity controls both the alt-root name and the DNS domain.
That requirement has important consequences. It reduces the anonymity that some web3 name systems provide today, since registries would need reliable mechanisms to verify and maintain control alignment between the two namespaces. For alt-root systems that have already issued large numbers of names, this rule could mean many names—possibly including high-value or desirable names—would be withheld from general registration during the ICANN application and delegation process.
The draft also points to complications for industry-standard processes such as sunrise periods. Sunrise rules give trademark holders priority to register domain names before general availability. If names in an alternative naming system are reserved or subject to special eligibility rules because of their prior issuance, implementing a fair and effective sunrise process becomes more difficult. Registry operators would need to reconcile trademark protections in the DNS with preexisting use in the alt-root, creating administrative complexity and potential disputes.
Operationally, the draft envisions that registry operators would need direct control over the alternative namespace or robust technical integration with it. That includes the ability to synchronize registrations and enforcement actions: if a DNS-root domain is suspended, the corresponding alt-root name should be suspended as well, and vice versa. This bidirectional control and synchronization requirement raises challenges for systems designed around decentralised control, tokenized ownership, or user-held private keys. Ensuring reliable, auditable control across two different naming infrastructures will demand significant engineering effort and could increase costs substantially.
Compliance would not be limited to technical measures. The report notes that any TLD operator seeking integration with an alt-root system would be required to file under ICANN’s Registry Services Evaluation Policy (RSEP), and might also need to engage with a Registry Service Technical Evaluation Panel. Those additional review steps introduce regulatory overhead and lengthen the path to deployment.
For established web3 namespace providers, the combined effect of reservation rules, control requirements, synchronization mandates, and evaluation procedures could be onerous. The draft acknowledges that meeting these conditions may be prohibitively expensive for some operators, and that the requirement for registry-level control over names may clash with the principles behind non-fungible tokens and decentralised ownership models.
ICANN’s senior vice president responsible for policy communication emphasized the purpose of the draft: to inform both the ICANN organisation and applicants for the 2026 gTLD round about the TSG’s preliminary recommendations. The draft is intended to guide future evaluations and to help current or prospective registry operators understand the expectations and potential constraints associated with offering integrated services.
The TSG’s initial draft report is intended to provide advice and analysis to the ICANN organization and to update applicants for the New gTLD Program: 2026 Round about the group’s preliminary recommendations which, once finalized, could be used in the ICANN organization’s evaluation of such services in the future. Any current or prospective registry operator hoping to run an integrated service is urged to read the initial draft report and provide comment.
Time is a practical factor for applicants as well. New top-level domain applications are due by 23:59 UTC today, leaving little room for late-stage deliberation about whether to apply or how to structure an integration strategy. Applicants that have been following the TSG’s work and viewing its meeting recordings will be better positioned to prepare compliant proposals, but operators that have not engaged previously may find the requirements difficult to satisfy on short notice.
In summary, while ICANN’s draft report makes clear that integration between the DNS and alternative naming systems is technically possible, it also sets out a series of rules and safeguards that could fundamentally alter the operational model of existing web3 namespaces. Registry operators and web3 providers considering participation in the gTLD program should carefully review the draft, assess the costs and legal implications of compliance, and prepare to document strong control and synchronization mechanisms if they intend to pursue integrated TLD solutions.