18(c) What operating rules will you adopt to eliminate or minimize social costs?

Prototypical answer:

What operating rules will you adopt to eliminate or minimize social costs (e.g., time or financial resource costs, as well as various types of consumer vulnerabilities)? What other steps will you take to
minimize negative consequences⁄costs imposed upon consumers?

dotStrategy’s vision of creating new, family-friendly online spaces under .fun carries with it the goal of surpassing traditional social costs to establish the new TLDs within the minds of registrants and
Internet users. In order to do so, we have developed registry policies that guarantee a reputable, trustworthy, and safe online space. .fun second level domain names will be subject to malicious
monitoring to maintain a clean online neighborhood. In addition, we will hold back any names deemed vulgar, set by a list that will be established by our company in our partnership with Neustar. In the
end, dotStrategy’s TLDs will set the bar for high industry standards of a family-friendly space for amusing and fun content.

i. How will multiple applications for a particular domain name be resolved, for example, by auction or on a first-come⁄first serve basis?

In the event of multiple applications for a particular domain name, dotStrategy will resolve the contention through an auction. After launch, non-reserved names will be available on a first-come, first
-served basis.

ii. Explain any cost benefits for registrants you intend to implement (e.g., advantageous pricing, introductory discounts, bulk registration discounts).

As a family-friendly space, we seek to offer SLDs in .fun at beneficial introductory cost rates to registrants. We intend to offer a deep introductory discount for the first year when a registrant
purchases the same name under both TLDs operated by dotStrategy (.fun and .buzz.). Further, we also encourage the registration of personal full names in both .fun and .buzz and will offer discount
registrations under such circumstances.

Some of the more traditional cost benefits to registrations include scheduled price breaks for multi-year registrations and a marketing rebate of approximately 20% to registrars that work with the company in the
initial offerings. These financial incentives are further developed in our responses to the financial questions.

iii. Note that the Registry Agreement requires that registrars be offered the option to obtain initial domain name registrations for periods of one to ten years at the discretion of the registrar, but no
greater than ten years. Additionally, the Registry Agreement requires advance written notice of price increases. Do you intend to make contractual commitments to registrants regarding the magnitude of price
escalation? If so, please describe your plans.

dotStrategy does not envision any material price increases after launch and has based its financial projections on flat-rate pricing for the foreseeable future. Given the number of new top-level domains
launching at about the same time and the expected competitive landscape in which .fun will launch, dotStrategy expects that competition will keep prices flat for the foreseeable future.

Similar gTLD applications: (1)