Previous launches worked (sometimes not well) on a first-come, first-served basis. For example, sex.eu had over 280 potential applications but only the first was even considered. Yet, today, nearly 2 years later, the domain application is still being reviewed.
This made it more likely that companies with advanced technological ability were more likely to acquire the domains even as buyers were encouraged to "purchase" queue positions from multiple vendors in hopes of improving their chances without guarantee to even being able to participate in a purchase.
The auction process to be run by Pool.com will still require buyers to be validated against published criteria, but all participants will be treated equally with the "winner" decided based on their own sense of the value of the domain. May the best business plan win!
The process is intended to discourage speculators who would simply warehouse domains for sale at a later date and encourage immediate deployment by users who want a return on the investment.
By John Berard, Founder, Credible Context
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