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Why Blind Auctions the Best Way to Release Expiring .ee Domains

Using an auction to release expiring domains ensures that everyone has an equal opportunity to acquire a .ee domain they value. Fairness has been a central priority in designing the solution.

Previously, expiring domains were released back into the system at an unpredictable, random moment and became immediately available on a “first come, first served” basis. This system gave a clear advantage to those with higher technical capacity, who could register a domain within seconds using automated tools.

Because this problem exists in many domain registries worldwide, we worked closely with our accredited registrars to find a fairer and more balanced solution. The answer was the blind auction.

How a Blind Auction Works

A blind auction is an auction format where all bids and their amounts remain hidden. Participants submit their bid based purely on their own valuation without being influenced by the actions of others or driven into last-second bidding wars.

The higher someone values a domain, the higher their bid is likely to be. The winner receives the priority right to register the domain, which comes in the form of a token that can be used with any registrar.

All auctions run for 24 hours. To support user convenience, the auction platform includes tools such as a personal watchlist and an automatic bidder, helping ensure no important domain slips through. Because bids aren’t visible, there is no need to spend the entire day monitoring others or making reactive bids.

If two identical bids are submitted, the winner is the participant whose bid was placed earlier.

If no successful bid is made, the domain is released to the public and becomes available on a “first come, first served” basis. If a winning bidder does not pay their invoice or does not register the domain in time, the domain returns to auction and the process restarts.

Why Not Use an Open Auction?

Because blind auctions may be unfamiliar to some users, the natural question is: Why not use an open auction instead?

Before launching the system, we conducted extensive discussions and analysis with our stakeholder community. We concluded that open-bid auctions would likely recreate the same issues we wanted to avoid: last-second “sniping” and a competitive advantage for technically advanced participants.

Open auctions also carry a high risk of artificially inflated prices, driving the final sale price far beyond the domain’s true market value.

What About the Open Auctions Used for Reserved and Blocked Domains?

A knowledgeable reader may wonder: If open auctions are not ideal, why were they used for reserved and blocked domains some years ago?

The reason is significant public interest. Single-character names, geographic names, and country names have substantially higher value than regular domains. In that unique situation, transparency and global visibility were crucial.

Those auctions:

• lasted 7 days instead of 24 hours,

• were with public bids,

• and included usability tools such as automatic bidding and an extended ending mechanism (the auction extended by 15 minutes if a bid was placed in the final 15 minutes).

These safeguards ensured that neither speed nor technical tools determined the outcome.

It is important to note that the release of reserved and blocked domains was a one-time historical event, not a recurring process. A different approach was justified due to the global interest and the exceptional nature of the release.

Conclusion

When bringing domains back to the market, our decisions are guided by what best serves the community. For everyday expiring .ee domains, the blind auction is the fairest and most balanced solution.

It ensures:

• equal opportunities for everyone,

• protection against technical advantages,

• and prices based on genuine user valuation, not bidding wars or automation.

For these reasons, blind auctions are the most reliable and community-friendly way to release expiring .ee domains.