ICANN is seeking advice from entities experienced in developing and managing auction processes. ICANN has become aware of many areas where auctions might be an appropriate tool, for example the efficient disposition of data from terminated registrars and registries, the allocation of single-character second-level domain names, and perhaps, resolution of contention between competing commercial applicants for identical strings in the application process for new generic Top Level Domains.

A number of people have recommended auctions as the preferred method of allocating unique and scarce resources such as a popular second-level domain name or gTLD strings. ICANN also received huge public comment in the discussion on allocation of single-character second-level names that the names should be allocated through an auction model.

ICANN is I global non-profit organization that is responsible for administrating certain features of the Internet for example unique identifiers. As a private-public partnership, ICANN is dedicated to preserving the operational stability of the Internet; to promoting competition; to achieving broad representation of global Internet communities; and to developing policy appropriate to its mission through bottom-up, consensus-based processes