Shared Ownership: Liquid Domains

The Doma Launchpad exemplifies the power of combining programmable DNS with tokenization, enabling shared ownership and subdomain access through staking. The Launchpad transforms how domains come to market, introducing true market pricing and fractional accessibility.

Why Liquid Domains?

The Liquid Domains concept addresses fundamental limitations:

1. True Market Pricing: Valuations through transparent on-chain price discovery, not opaque negotiations

2. Decomposed Value: Premium domain value broken into accessible units

3. Expanded Market Access: New ways to own, trade, and access domains

Key Features

• Configurable: Not all domains are created equal. This allows owners to configure how they bring their names onchain.

• Transparent: Every parameter is on-chain and immutable

• Fair Price Discovery: Market participants determine pricing through bonding curve mechanisms

• Immediate Liquidity: Seamless transition from price discovery to AMM trading

Criteria

1. Ensure market participates in initial pricing. The domain shouldn’t come on the market if there is not enough demand.

2. Align people who provide initial liquidity with longer-term success (lower entry price). This means early participants, who take the most risk, get the best pricing.

3. The owner must seed liquidity to value the market pricing. This ensures given the market participation, there is a liquid market post bonding.

Launch Mechanism

The Launchpad consists of integrated components:

• Token Factory: Creates ERC-20 tokens (OFT compliant) representing fractional ownership

• Distribution Manager: Configures launch parameters, manages fees, orchestrates AMM and vesting

• Asset Vault: Holds locked domain NFT and manages buyout mechanisms

• Rights Access Manager: Handles rule-based issuance of domain capabilities like subdomains

• AMM: Continuous Market Pricing and Liquidity

Launch Process

Phase 1: Domain Locking

The domain owner locks their NFT into the Launchpad contract and proposes a buyout price as a show of good faith. The domain cannot be unlocked unless this price is paid. This creates three token tranches:

• Initial Sale Supply: Sold during the bonding curve auction

• Migration to AMM Supply: Deployed to the liquidity pool

• Vested Supply: Released over time to the domain owner

The domain owner can configure most params including supply pricing, vesting etc during this step.

Phase 2: Initial Price Discovery

The owner proposes a pricing range for initial price discovery. The Initial Sale Supply is offered at this range, which can be flat or follow a curve where early participants receive better pricing for taking early risk. Buyers purchase with USDC.

If the entire Initial Sale Supply sells within the specified range, the domain is considered "bonded”, proving sufficient market demand. If bonding fails within the required timeframe, the domain returns to the owner, and buyers receive refunds.

Phase 3: AMM Migration

Upon successful bonding, at least 50% of the raised liquidity plus the Migration Supply is deployed to a Uniswap V3 pool. The position uses a full spread to allow continued price discovery and is locked for a minimum of three months. Domain owners can choose to migrate more supply or provide a longer lock-up on their LP to build trust. The AMM enables continuous market pricing, with trading fees flowing to the domain owner and liquidity providers.

Phase 4: Vesting and Continuous Trading

Vesting begins for the Vested Supply, typically following a 7 day cliff and daily vesting over one year. This ensures the domain owner has access to their tokens, while also protecting initial buyers.

Buyer and Seller Success

• Better Pricing: Domain must successfully "bond" (sell all initial supply) to proceed. This ensures a poorly priced domain isn’t brought on the market. This ensures the seller proposes good initial pricing, and enough buyers agree to that pricing.

• Seed Liquidity: 50% of initial liquidity automatically migrates to AMM with Migration Supply. This ensures a healthy liqudity pool, which kick starts trading.

• Protect Buyers: Seller’s LP position locked for at least 3 months to ensure initial liquidity stability

• Controlled Growth: Vesting starts after bonding with typically a 7-day cliff + 1-year daily schedule. This means more supply can come on the market without large tranches being unlocked.

• Skin in the game: Buyout always protected by floor price or current market FDV. This means everyone who owns tokens has skin in the game to make the domain succeed.

The Buyout Mechanism

Because the domain is continuously priced on the market, a transparent buyout mechanism exists.

Features

• Dynamic Buyout Price: MAX(Original Floor Price, TWAP, Current AMM Price) allows the domains to increase in value based onchain activity, while still providing a floor

• Simple Acquisition: Buyer deposits buyout amount in USDC, domain transfers to buyer. There is no voting or wait period.

• Shared Upside: Exit funds distributed proportionally to all token holders. If you own 1% of supply, you get 1% of the buyout.

• Token Credit: If the buyer already holds tokens, buyout costs are reduced by the percentage owned. But the other holders must be paid the fair buyout price.

Shared Ownership via Staking

A unique feature of Liquid Domains is the ability to access subdomains through token staking. Token holders lock tokens to receive synthetic NFTs, granting subdomain rights:

1. Token holder requests specific subdomain (e.g., user.premium.com)

2. Required token amount staked in Rights Access Manager

3. Synthetic NFT representing subdomain rights minted to holder

4. Holder gains DNS control over their subdomain

5. Tokens remain staked for the duration of subdomain ownership

This mechanism aligns subdomain usage with token ownership, creating utility value beyond speculative trading while maintaining fractional ownership integrity.