Recently ICANN changed the rules for grace deletions of new domains. For every domain registered, Domain Registrars pay a $0.20 fee to ICANN. Previously, this fee was refunded to us if the domain was grace deleted in the 5 day window. However, ICANN will now charge the fee even if the domain is deleted.
This 5 day grace deletion has been exploited by the big domain traders from the beginning. Domain traders used to register domain names in bulk and park them or try to sell them quickly. And if the domain name proved to be not worth the reg fee, they simply delete the domain and get back all the money from the registrar. This is also known as Domain Tasting. In January 2007 the top 10 domain tasters accounted for 95% of all deleted .com and .net domain names [Source].
Now, ICANN has changed the rules of the game. Domain tasting is still allowed but the domain registrar won’t be getting the $0.20 ICANN fee per domain refunded. So, this will discourage the registrar’s to let there users delete the domains and get back the refund Or at-least registrar;s would deduct that fee for deletion of the domain names(Domain Tasting).
I think it is a good move for the freedom of the Internet. I’ve been deleting the domain names, which I registered by mistake or the client simply changed his/her mind and asked me if I could get them another domain. Still I support the new rule. I don’t mind paying extra fee for grace deleting of the unwanted domains. At-least, this will now discourage the bulk registration of the domain names and leave some nice domain names for those who want them for genuine reasons.