IANA decided to include the .ONION gTLD in the list of domains for exclusive use which can't be delegated in the framework of new gTLD program. This decision, which was made because of the IETF's recommendation, caused an extremely ambiguous reaction in domain community, as Domain Incite reports.
On the one hand, the step seems to be logical enough. .ONION names are automatically generated by a popular Tor software for creation an anonymous network of the same name for "onion" routing. The existence of .ONION gTLD can lead to serious technical problems in this situation. On the same basis, for example, such domains as .EXAMPLE and .LOCALHOST, constantly used in local networks, were previously included in the list of domains for exclusive use.
However, on the other hand, numerous LANs naturally have no single "owner". A developer and distributor of Tor software is a concrete Tor Project Inc. Thanks to IANA's solution, Tor Project actually receives the new gTLD for free, without making any efforts for that. The organization didn't apply for the new domain, didn't pass a long and difficult procedure of its statement, at last, it didn't pay a required contribution in the sum of $185K to ICANN. The registries of new domains which passed this hard way are unlikely to get off on the precedent created by the decision .ONION.
