Tokenizing the Internet: Unlocking 364M Domains for a New Era of DeFi Growth

The internet's foundational infrastructure is about to get a blockchain upgrade. In a landmark announcement at Breakpoint 2024, D3 and InternetX revealed plans to bring nearly 50 million traditional domain names onto Solana as tokenized real-world assets, opening up unprecedented DeFi possibilities for a $350 billion industry that has remained largely unchanged for four decades.

Summary

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The partnership between D3, builders of the DOMA Protocol, and InternetX, part of Europe's largest hosting provider IONOS Group, represents one of the most significant real-world asset tokenization efforts to date. The collaboration aims to bridge traditional internet infrastructure with Web3 technology, allowing domain owners to leverage their digital properties in entirely new ways through DeFi applications.

InternetX brings substantial credibility and scale to this venture. As part of the IONOS group, they serve approximately 6 million customers and manage over 22 million domains. Their aftermarket business, Sedo, holds an additional 24 million domains. This massive inventory—approaching 50 million domains combined—will soon be accessible through the DOMA Protocol on Solana.

The choice of Solana as the underlying blockchain was deliberate and strategic. According to Elias Rendón Benger, CEO of InternetX, Solana provides the ideal combination of regulatory compliance capabilities and Web3 functionality. The protocol can handle the complex lifecycle management requirements of traditional domain systems while enabling the permissionless, programmable features that blockchain technology offers.

What makes this announcement particularly noteworthy is that it's not merely a concept or demo—the team confirmed that development is already underway and the system is live, with full launch expected early next year. This positions Solana at the forefront of tokenizing one of the internet's oldest and most valuable asset classes.

Key Points:

The Scale of the Domain Name Industry

The domain name industry represents a $350 billion asset class that most people interact with daily but rarely think about as an investment vehicle. With approximately 370 million registered domains worldwide—including familiar extensions like .com and .ai—these digital properties form the backbone of internet navigation and online identity. The industry has existed for 35-40 years and powers the online experience for over 5 billion people globally. According to the presentation, domains will continue to be essential infrastructure for the next century, making them a compelling candidate for tokenization and modern financial innovation.

DOMA Protocol: Bringing Domains On-Chain

The DOMA Protocol, developed by D3, serves as the critical infrastructure layer enabling domain tokenization on Solana. The protocol addresses the unique challenges of bringing traditional domains on-chain, including regulatory compliance, lifecycle management, and ownership verification. By tokenizing domains, owners gain the ability to interact with their assets in ways previously impossible: fractionalizing ownership, leasing domains, using them as collateral for loans, and trading them on decentralized marketplaces. This transforms static digital property into dynamic, programmable assets that can participate in the broader DeFi ecosystem.

InternetX and the IONOS Group Partnership

InternetX's involvement lends significant institutional weight to this initiative. As part of the IONOS group—Europe's largest hosting provider with over 25 years in the industry—the company brings both technical expertise and a massive customer base. Managing 22 million domains for roughly 6 million customers, plus 24 million additional domains through their Sedo aftermarket platform, InternetX provides immediate scale to the tokenization effort. This partnership represents a major traditional tech company embracing blockchain technology, potentially paving the way for similar moves across the industry.

New DeFi Use Cases for Domain Owners

The tokenization of domains unlocks a range of financial applications that could revolutionize how people think about their digital properties. Domain owners will be able to fractionalize ownership, allowing multiple parties to invest in premium domains. Collateralization enables domain owners to access liquidity without selling their assets—particularly valuable for businesses whose domains represent significant brand equity. Leasing capabilities create new income streams, while seamless trading on major Solana marketplaces increases liquidity and price discovery. For businesses, this means their domain—which may represent their entire company identity—becomes a productive asset rather than a static expense.

Facts + Figures

• The domain name industry represents a $350 billion asset class globally

• Approximately 370 million domains are currently registered worldwide

• InternetX manages over 22 million domains for approximately 6 million customers

• The Sedo aftermarket platform holds an additional 24 million domains for sale

• Combined, nearly 50 million domains will be accessible through this tokenization effort

• The IONOS group is Europe's largest hosting provider

• InternetX has been operating in the domain industry for over 25 years

• Domain names have existed as an asset class for approximately 35-40 years

• The internet currently serves over 5 billion people worldwide

• The DOMA Protocol is already live and under active development

• Full launch is expected in early 2024

• Solana was chosen for its combination of regulatory compliance capabilities and Web3 features

Top quotes

• "It's a $350 billion asset class. There's about 370 million domains... This is a multi-billion dollar industry about to come on chain."

• "I'm a strong believer that if you're bridging traditional business with innovative technology, that really has a history of success."

• "The future of the Internet is going to be in Web3. So it would be really a shame to have those almost 50 million domains being started."

• "DOMA is the one blockchain for us that combines the two worlds perfectly."

• "This is the fabric of the Internet. It powers 5 billion plus people, and it's going to be around for the next 100 years."

• "It's not a demo, right? So as we speak, the team is already building it, it's live, it's there."

• "What does owning and trading that Internet mean on Solana? It means owning a piece, fractionalizing, leasing, borrowing, collateralizing your domain name."

Questions Answered

What is the DOMA Protocol and what does it do?

The DOMA Protocol is a blockchain infrastructure layer built on Solana that enables the tokenization of traditional domain names. Developed by D3, the protocol handles the complex requirements of bringing real-world domain assets on-chain, including regulatory compliance, ownership verification, and lifecycle management. By converting domains into tokens, the protocol allows these assets to interact with DeFi applications, enabling activities like fractional ownership, collateralized loans, and decentralized trading that weren't previously possible with traditional domain registration systems.

Why did InternetX and D3 choose Solana for domain tokenization?

Solana was selected because it uniquely combines regulatory compliance capabilities with full Web3 functionality. Traditional domain management involves complex regulations and lifecycle requirements that must be maintained even when domains move on-chain. Solana's architecture allows the DOMA Protocol to honor these traditional requirements while simultaneously enabling the permissionless, programmable features that make blockchain technology valuable. This dual capability makes the transition frictionless for traditional domain companies and their customers.

What new things can domain owners do with tokenized domains?

Tokenized domains unlock several new financial capabilities for owners. Fractionalization allows multiple parties to co-own premium domains, lowering the barrier to entry for valuable digital real estate. Owners can collateralize their domains to access loans without selling the asset—particularly useful for businesses whose domains represent core brand identity. Leasing arrangements create passive income opportunities, while access to Solana's decentralized marketplaces increases liquidity and enables more efficient price discovery. Domain owners can also potentially integrate their assets into other DeFi protocols for additional yield opportunities.

How many domains will be available through this tokenization effort?

The initial launch will provide access to nearly 50 million domains. InternetX directly manages over 22 million domains for their approximately 6 million customers. Additionally, their aftermarket platform Sedo holds roughly 24 million domains available for sale. This combined inventory represents a substantial portion of the global domain market and provides immediate scale to the tokenization initiative, making it one of the largest real-world asset tokenization projects in the cryptocurrency space.

When will tokenized domains be available on Solana?

According to the announcement at Breakpoint, the system is already live and under active development. The teams from D3 and InternetX confirmed that this is not merely a demo or concept—they are actively building the infrastructure. Full launch is expected in early 2024, meaning domain owners and DeFi users could begin interacting with tokenized domains within months of the announcement. Those interested in the project are encouraged to follow DOMA Protocol on social media for updates on the launch timeline.

Why should people care about domain tokenization?

Domain names represent fundamental internet infrastructure that affects nearly every online interaction. As a $350 billion asset class, they've remained largely static in how they can be owned and traded for decades. Tokenization transforms domains from simple digital addresses into programmable financial assets, creating new investment opportunities, liquidity options, and income streams. For businesses, this means their primary online identity—often their most recognizable digital asset—can become productive rather than being just an expense. For investors, it opens access to a previously illiquid market with transparent, decentralized trading.