How gTLD Registries Operate

## The Registry Business Model A registry operator sits at the wholesale layer of the domain name industry. Unlike registrars, which sell domains directly to end users, registries maintain the authoritative database of all registered names under their extension and sell access to that database exclusively through accredited registrars. This separation between wholesale (registry) and retail (registrar) is a deliberate structural choice enforced by ICANN through Registry Agreements. The business model is straightforward in theory: the registry charges registrars a wholesale fee per registered domain (typically $5–$25 per year depending on the extension), registrars mark up that fee when selling to end users, and the registry earns revenue proportional to its total registration base. The challenge is that this model requires scale. A registry with 10,000 registrations generating $10 per registration earns $100,000 annually — far below the cost of operating secure, redundant DNS infrastructure. Industry estimates suggest most new gTLD registries need at least 100,000–200,000 registrations to approach operational sustainability. ## Technical Infrastructure Requirements Running a TLD registry requires considerably more technical infrastructure than running a registrar. The IANA and ICANN mandate minimum technical standards that all registries must meet: **DNS Hosting**: The registry must operate authoritative DNS servers for its extension. ICANN requires at least two nameservers in geographically and topologically diverse locations. Major registries operate dozens of servers globally via anycast routing for resilience and performance. **Shared Registry System (SRS)**: The core database where registrations are recorded, updated, and queried. All accredited registrars access the SRS via the EPP (Extensible Provisioning Protocol) to register, renew, transfer, and delete domain names. The SRS must maintain 99.9%+ uptime. **WHOIS/RDAP**: The registry must provide public query access to registration data via WHOIS and the newer RDAP standard. ICANN mandates response time standards and data format specifications. **Data Escrow**: Registries must maintain daily escrow deposits of all registration data with ICANN-approved escrow providers. This ensures continuity if the registry fails. **DNSSEC**: New gTLD registries are required to support DNSSEC signing for their zone. ## The Registry Back-End Market Operating all this infrastructure from scratch is expensive. This created a market for registry back-end service providers — companies that operate the technical stack on behalf of registry operators who bring the brand and business development. Major back-end providers include Afilias (now part of Identity Digital), CentralNic, Nominet, Donuts (now Identity Digital), and Verisign's back-end services division. A new gTLD applicant in 2026 can contract with one of these providers for a monthly fee, avoiding the need to build and operate infrastructure independently. This back-end market has consolidated significantly. Identity Digital (formed by the merger of Afilias and Donuts) now operates the back-end for a large fraction of the new gTLD universe, alongside managing hundreds of extensions under its own portfolio. ## Registry Agreements and ICANN Compliance Every registry operator operates under a Registry Agreement with ICANN. The current Base Registry Agreement — the contract template used for new gTLDs — runs to hundreds of pages and specifies obligations across dozens of domains: - **Abuse handling**: Registries must maintain an abuse contact and act on credible abuse reports (phishing, malware, spam) - **Pricing transparency**: Public notice requirements before fee increases - **Registrar relations**: Non-discrimination in registrar accreditation and wholesale pricing - **Data access**: Maintaining WHOIS/RDAP services per technical specifications - **Consensus policies**: Implementing ICANN consensus policies as adopted by the community ICANN's Contractual Compliance team monitors adherence. Sustained non-compliance can lead to formal breach notices, remediation requirements, and ultimately Registry Agreement termination. ## How Registries Set Pricing Registry pricing decisions directly affect adoption. Too high, and registrants choose alternatives; too low, and revenue cannot cover costs. Most registries use a tiered approach: **Standard pricing**: The wholesale fee for most available names, typically passed through at retail for $10–$50 per year. **Premium names**: High-value dictionary words, short strings, and category-defining names are designated as premium domains at launch, commanding higher one-time registration fees and often higher annual renewal prices. Premiums generate early revenue at the cost of blocking some desirable registrations from casual buyers. **Reserved names**: Some names are held back entirely — registry operator's own brands, ICANN-required reserved strings, and names the operator intends to use for official purposes. Use Domain Cost Calculator to compare registration and renewal costs across extensions, and see New gTLD Pricing Guide for a detailed breakdown of pricing structures. ## Consolidation in the Registry Industry The new gTLD era accelerated consolidation among registry operators. Identity Digital is the most dramatic example — formed through the merger of Afilias (a legacy back-end provider) and Donuts (the most prolific new gTLD applicant, with over 200 extensions). The combined entity operates several hundred extensions. Smaller operators found that owning a single extension with modest registrations is difficult to sustain. Portfolio operators with dozens of extensions can spread fixed costs across multiple revenue streams, improving unit economics considerably. This dynamic explains why independent single-extension operators have largely been acquired or exited, while portfolio operators have grown.