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In response to community comment and interest, ICANN has developed a proposed allocation framework and use of funds from the allocation of single-character second-level domain names (SC SLDs) in existing gTLDs. ICANN is proposing an auction mechanism and disbursement of funds toward areas of public good for the Internet community. Discussion of proposed allocation methods will involve consultation with gTLD registries.

ICANN invites public comments on the Allocation Framework through 13 July 2008 23:59 UTC. Comments can be submitted to allocation-framework@icann.org, and viewed at http://forum.icann.org/lists/allocation-framework/.

ICANN is also announcing the selection of Power Auctions LLC (www.powerauction.com) as ICANN's auction design consultant for various auction needs, including 1) the development of models for the resolution of contention among applicants for new generic TLD strings, 2) for the disposition of data from failed registrars or registries, and 3) for the allocation of SC SLDs.

Power Auctions has an international team composed of noted experts in auction design and implementation. Power Auctions and its affiliate, Market Design Inc. (see http://www.marketdesign.com/), have implemented auctions for electricity (Belgium, France, Germany, Spain, US), natural gas (Denmark, France, Germany, Hungary) and greenhouse gas emission reductions (UK). They have also implemented a prototype auction for airport landing slots (for the FAA in the United States) and have assisted governments in auctions of telecommunications spectrum (in Canada, Singapore, and Trinidad and Tobago).