Web3 naming systems have largely developed outside the traditional Domain Name System (DNS). But that separation may not last forever.
ICANN’s 2026 New gTLD round closed on 12 August, opening the door to another wave of traditional domain extensions. At the same time, ICANN is exploring how gTLDs could potentially interact with alternative naming systems, including blockchain-based namespaces.
For investors focused on traditional DNS domains, this could have important implications.
Could One Name Have Two Owners?
One of the biggest issues is the possibility of the same domain string existing in both systems.
A Web3 namespace may already have a name registered while an identical string could later exist within an ICANN-approved TLD. If the systems operate independently, different parties could potentially control each version.
That raises questions about scarcity, brand protection, ownership, and domain value.
ICANN’s Technical Study Group is examining how integration could work, including whether ownership, transfers, suspensions and other lifecycle events could be synchronised.
Importantly, this work is still under development, rather than being a final policy.
What Should DNS Investors Watch?
For traditional domain investors, the key issue isn’t necessarily whether to invest in Web3 domains. It’s understanding whether alternative naming systems could influence the value and demand for conventional domains.
Investors should watch:
- Name collisions between DNS and alternative namespaces
- Whether consumers understand the difference between the systems
- Brand protection and potential confusion
- The adoption and commercial strength of competing namespaces
- How ICANN’s proposed integration framework develops
- Whether certain domain names become more or less scarce as a result
The convergence of Web3 and DNS could create new opportunities but also introduce another layer of competition and complexity. For domain investors, understanding what happens next could be just as important as owning the right domain today.
