D3 Global, the a decentralized domain name company, has raised $25 million to modernize the way that internet domain names operate.
D3 is building what it calls the world’s first DomainFi network on the Doma Protocol, a new blockchain that transforms existing and future domains into a modern form of digital real estate. By announcing the launch of Doma Protocol, D3 aims to unlock new liquidity, innovation, and financial opportunities for the internet domain industry as well as major crypto communities.
D3’s DomainFi network will offer participants substantial benefits such as asset appreciation, fractional ownership, domain-based lending, and enhanced digital identity and branding.
“Internet domains have long been a valuable asset class,” said Fred Hsu, CEO of D3, in a statement. “And for the first time in nearly three decades, we have the opportunity to modernize and transform the technologies and processes currently used by the domain industry through the Doma Protocol. The DomainFi economy will usher in a new era of innovation and financial opportunity as every domain, community, and user comes on-chain.”
The DomainFi infrastructure leader said Paradigm led the round with other investors including Coinbase Ventures, Sandeep Naiwhal, co-founder of Polygon Labs, Dharmesh Shah, the founder of HubSpot, and Richard Kirkendall, CEO of Namecheap.
The company said it has support from Web2 and Web3 leaders for DomainFi, a decentralized finance layer to accelerate the growth of domains as a $340 billion real-world asset class.
The Doma Protocol: Decentralized infrastructure for DomainFi
Doma Protocol is an Ethereum Virtual Machine (EVM)-based blockchain purpose-built for the internet’s stakeholders and designed to meet ICANN’s (Internet Corporation for Assigned Names and Numbers) stringent compliance requirements and industry standards, the company said. This ensures that the blockchain is fully compatible with the internet’s Domain Name System (DNS) and can be easily integrated with domain industry tools and processes.
Doma also creates a futureproof bridge between the DNS and Web3 name systems, ensuring both domain state, as well as streamlined operations across registries, registrars, and crypto communities, are all mapped correctly on-chain.
Doma abstracts underlying infrastructure complexities including ICANN compliance and other DNS-specific requirements within the domain value chain (renew, manage, transfer, etc.) allowing for tokenization of existing and future domains on a verified basis.
Via verified tokenization, Doma enhances the composability, liquidity, and interoperability of domains, representing a paradigm shift in how domains are registered, traded, and utilized across both Web2 and Web3 ecosystems. Developers can request early access to Doma today at https://www.doma.xyz.
Alongside Doma’s launch, D3 also unveiled an initial cohort of DomainFi network partners at the company’s Dominion conference.
- Solana: Tokenization of domains like .com, .xyz, .ai, and .sol onto Solana will enable the next-generation of PayFi opportunities on the protocol. Through DomainFi, traditional domains will become real-world assets that can be traded, collateralized, and utilized across Solana’s decentralized high-performance network.
- Avalanche: As a D3 partner, Avalanche plans to apply for and launch the .AVAX Top-Level Domain (TLD). As a flagship DomainFi partner, Avalanche will provide DeFi utility and liquidity for the $340B+ domain industry through its interoperable network and vast ecosystem of developers.
- OneFootball: By partnering with D3 and Identity Digital, OneFootball plans to use .football domains as the fan identity infrastructure for their worldwide community of over 180 million active monthly users.
- Plume: By integrating DomainFi as a new vault category with its newly-launched Nest Protocol, Plume will enable tokenized domains to generate institutional-grade yields and democratize access to traditionally restricted assets and opportunities.
- Hockey.com: DomainFi democratizes access to premium domains through fractional ownership of tokenized assets like Hockey.com while providing liquidity options for current owners.
“Domains were the first digitally native asset class and are still one of the largest,” said Charlie Noyes, general partner at Paradigm, in a statement. “Bringing domains on-chain will make them more liquid and enable innovative new types of financial products, while giving crypto ecosystems like Solana access to names that work with the rest of the existing internet. The D3 team is uniquely suited to rebuilding domain infrastructure for the future of digital markets, and we’re excited to back them.”
Funds raised from this round will accelerate D3’s commitment to building the DomainFi economy, including technologies to expand domain functionality as composable assets and programs to onboard domain name system operators—such as registrars and registries—to utilize DomainFi for their operations. Through strategic partnerships within the traditional domain industry and top Web3 communities, D3 will pave the way for DomainFi to democratize digital asset ownership for over 5 billion connected Internet users, transforming the domain industry on a global scale.
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