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  • Use Cases
    • Sell Name Tokens to Users in your App
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  • Possible Future Use Cases
    • Fractional Ownership of Names
    • Liquidity Pool for Trading Strategies
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  • Fractional Ownership for Names
  • Overview
  • How to Build This
  • Benefits
  1. Possible Future Use Cases

Fractional Ownership of Names

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Last updated 8 months ago

Fractional Ownership for Names

With , you can enable fractional ownership of highly valuable domain names. This use case allows users to pool liquidity together, acquire premium top-level domains (TLDs), and build a diversified portfolio of domains that can be traded or reserved. Developers can set up decentralized governance using DAOs (e.g., Maker or Aave), where governance tokens are used to decide on domain acquisitions and management.

Overview

Fractional ownership makes it easier for groups of users to own costly assets by splitting ownership through a DAO structure. By pooling liquidity and using governance mechanisms, multiple individuals can collectively invest in high-value domains. The DAO can also choose to reserve certain names, holding them back from sale if the group sees long-term potential.

How to Build This

With D3’s Sales API, fractional ownership models can be seamlessly integrated into your DAO framework, allowing domains to be bought, sold, and reserved as a group.

Key API Endpoints:

  • Search for Premium Domains: Discover high-value domains to add to the DAO’s portfolio.

    GET /v1/partner/search
  • Purchase Domains as a Group: Use the pooled liquidity to make purchases.

    POST /v1/partner/purchase
  • Mint Names: Allows minting of names on primary sale

    POST /v1/partner/mint

Example Flow

  1. Create a DAO: Set up a DAO using a protocol like Maker or Aave. Pool liquidity from members and distribute governance tokens that represent each member’s voting power.

  2. Acquire Domains: The DAO can acquire valuable domain names. Decisions about purchases are made collectively through governance token voting.

  3. Hold or Trade Domains: The DAO manages the portfolio, choosing whether to sell domains for profit or hold them for future appreciation.

  4. Distribute Returns: Profits from sold domains are distributed proportionally to the liquidity providers based on their initial investments and governance token holdings.

Benefits

  • Democratize Domain Ownership: Allow multiple individuals to invest in premium domains that would be cost prohibitive for one person to acquire.

  • DAO Governance: The use of governance tokens enables fair decision-making and participation in the management of the domain portfolio.

  • Diversified Portfolio: Build a diversified portfolio of domains that can be traded or reserved for future gains, ensuring a stable and sustainable model for profit.

Why Use D3?

provides the perfect infrastructure for enabling fractional ownership models. With robust integration offerings, D3 is the ideal platform to power decentralized domain acquisition and management.

D3’s APIs
D3's API