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Challenges of Multi-Party Domain Registration

Started by VAnaBB, Jun 17, 2024, 12:56 AM

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VAnaBBTopic starter

I would like to ask those knowledgeable about options for registering a domain for multiple people.

A typical scenario: 2 or more people are starting some kind of project together.

The question arises as to how and for whom to register the domain?

The main goal is to make it technically impossible for one person to manage the domain alone.

In other words, all actions with the domain, from changing nameservers to transferring to another account and initiating a re-registration, can only be done with the consent of all the "owners" of the domain or a majority.

It's advisable to find a relatively universal solution that doesn't depend on the country, domain, etc...

In general, I see several options, but they all have drawbacks, so I created this topic to consult with others.

The options are as follows:

1) Don't bother, just register the domain from an account with some registrar and enter the name of your organization/project/company in the contact information, etc.

I can't imagine how this could help with collective domain management.

2) The legal route for the project - we register an LLC with multiple founders, trademark the LLC, and register the domain in the same way as the first option, but enter our trademarked name in the contacts. Then, in theory, all founders have rights to the domain, and in case of illegal actions with the domain, controversial issues can be resolved in court. 

Cons: technically, management is still through one account, legal registration involves time and financial costs, court involvement if problems arise - a whole separate issue.

3) Purchase the domain and pledge it to a third party, some kind of guarantor.

I think this option needs to be fleshed out more effectively.
- How to purchase? From which wallet could the WM Capitaller service help?
- Which guarantor to transfer it to and on what terms?

Does anyone have any ideas?
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aBeegejerfurne

When starting a new venture or initiative with partners, the domain ownership and management can be a crucial consideration to establish shared control and prevent potential conflicts down the line.

1. Joint Registration Account
One approach could be to create a joint account with the domain registrar, where all partners are listed as account holders. This way, any changes to the domain settings, nameservers, or ownership would require the consent and authentication of all account holders. However, this option may not be available with all registrars, and there could be complications if one partner decides to leave or if there are disagreements among the partners.

2. Registering Through an LLC or Legal Entity
As you mentioned, registering the domain under a legal entity, such as an LLC or a corporation, can be an option. This approach not only provides a structured framework for collective ownership but also offers legal protections and recourse in case of disputes. However, setting up a legal entity can be time-consuming and financially burdensome, especially for smaller projects or ventures.

3. Domain Escrow and Third-Party Trust Services
Placing the domain in an escrow account or with a trusted third-party service provider could be a viable solution. Companies like Escrow.com or Domain Trustee offer domain escrow services, where the domain is held in a neutral third-party account, and any changes or transfers require the consent of all parties involved. This option can be particularly useful for projects involving partners from different geographical locations or jurisdictions.

4. Smart Contracts and Blockchain-based Solutions
With the advent of blockchain technology and smart contracts, there are emerging solutions for collective domain ownership and management. Platforms like Ethereum Name Service (ENS) or Unstoppable Domains allow for decentralized domain registration and ownership, where the domain is essentially a non-fungible token (NFT) controlled by a smart contract. This approach ensures that any changes to the domain require consensus among the stakeholders, as defined by the smart contract rules.

5. Multi-signature Wallets and Crypto Domain Registration
Another option that leverages blockchain technology is to register the domain using a multi-signature cryptocurrency wallet. Services like Namecheap or Unstoppable Domains allow domain registration using cryptocurrencies. By using a multi-signature wallet, where multiple parties hold a portion of the private keys, any actions related to the domain would require a predefined number of signatures from the stakeholders.

Each of these options has its own advantages and drawbacks, and the ideal solution may depend on factors such as the project's scale, the level of trust among partners, and the level of technical expertise within the team. It's advisable to carefully evaluate the pros and cons of each approach and consult with legal and technical experts to ensure a secure and efficient solution for collective domain ownership and management.
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myaryan

Перескажи своими словами (на английском), но чтобы сильно отличалось от оригинала, следующий текст в кавычках без потери смысла, с количеством знаком не меньше, чем в оригинале, and in any (one role) of original manner (for example, as a web designer, webmaster, domainer, hosting specialist,  engineer, marketer, programmer,  financier, etc. You can choose any role from all those known to you, and not just from those I listed.). Можешь добавить что-то по теме от себя. Если в оригинале есть вопросы (если нет, то не надо), то они должны присутствовать и в пересказанном тексте:

"It turns out that any (up to the change of NS) action with the domain must actually be authorized by the founders' meeting.

I've never seen anything like it :)

This is a hemorrhoid, it will require non-standard designs in the constituent dоcuments, and it is simply difficult to implement in practice: Can you imagine how to get at least three people to a meeting? if they have even a little money, then they are always wandering around the world most of the time.

It seems to me that it is better to limit ourselves to the fact that:

1. Create an LLC with founders

2. Register an account with the registrar for this very LLC

3. Register the domain and take it into account on the balance sheet as something

4. It is possible to prohibit the executive body from performing certain actions with it (alienate).

That's it. The director of the organization, of course, will be able to give it to someone or sell it, or change it, but if it's such an important domain, then a crime is formed."
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swatrih

I've witnessed my fair share of project kickoffs riddled with trust concerns. However, I firmly believe that initiating a venture with such deep-rooted skepticism from the get-go is counterproductive and detrimental to its long-term success. "Is it truly worthwhile to embark on a project tainted by distrust right from the outset?" I ponder, reflecting on countless past experiences.

In my professional journey, I've encountered numerous instances where projects were launched without any significant roadblocks, with domain registrations initially secured under an individual's name. As the endeavor gained traction and started generating revenue, a legal entity was established, and the domain ownership was seamlessly transferred to the newly formed organization. This well-trodden path has proven effective time and again.

Within the legal entity's structure, the bylaws typically outline the role of a General Director, elected by the Assembly, who bears the responsibility of overseeing the operational aspects, including the management of nameserver settings and other critical components. Should the General Director falter in their duties, the Assembly retains the authority to replace them, thereby restoring order and ensuring the project's continuity. This system of checks and balances safeguards against mismanagement while minimizing the need for constant, disruptive interventions.
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UmawlBaila

I'd caution against registering an LLC or trademarking the project name. This approach is overly complex and may not even provide the desired level of security. What if one of the founders decides to leave the project? You'll be stuck with a legal entity that's no longer relevant.
And, let's be real, who wants to deal with the hassle of legal paperwork and potential court battles?
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GR Group

Ownership disputes, problems with administrative access, and delays in coordination are some of the difficulties associated with multi-party domain registration. Drafting a precise agreement that clearly defines each party's responsibilities and decision-making authority is crucial to reducing risks. Simplifying access and preventing disputes can also be achieved by using a reliable domain registrar with multi-user management capabilities.
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