Halfway Through the Decaying Price Premium After Releasing 280k Names: Analysis

Two weeks have passed since nearly 280k names have been released and made available with a 28 day decaying price premium.

So far 86 names have been re-registered with a premium with a total registration cost of 381 ETH ($162k). You can see the full list here.

We introduced the decaying premium over 28 days for two reasons:

  • Prevent gas competition
  • Prevent mass squatting

For the first point, there was one person who really wanted to get 4 names — they set a gas price of 2,021 gwei ($95 per name) to snap up the names opensea.eth, singapore.eth, nakamoto.eth, and lottery.eth

Even though we went through the crazy yield farming week of average gas price getting as high as 300 gwei, 2000 gwei is still too high and we are glad we prevented more of that.

For the second point, the first 44 bids spent nearly $100k. If we didn’t have any premium, those people could have registered 20k names for the same price, which is equivalent to 7% of the released names.

We went through one of the craziest gas surges in the history of Ethereum for the last one month, and the gas price to register new names has increased from $8 to $30 USD (now back to around $11).

From https://etherscan.io/chart/gasprice

Now that the gas price has gone slightly lower (though still too high) and the premium price is half what it was when it started, the number of registrations is slowly picking up.

We expect that the number will pick up significantly a few days before the premium goes to zero. I recommend that you set a reminder using our tool in the ENS Manager so that you can register at the price you feel comfortable registering.

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