As tokenization continues to expand into real-world asset classes, blockchain developers are now turning to one of the internet’s most established markets: domain names. Today, Doma Protocol launched its mainnet and introduced what it calls the first DNS-compliant blockchain infrastructure to transform traditional Web2 domains into programmable DeFi assets.
This deployment aims to modernize the $360 billion secondary domain ecosystem through fractional ownership, ERC-20 trading, and cross-chain liquidity while preserving DNS resolution and adhering to existing regulatory frameworks.
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The convergence of internet real estate and DeFi infrastructure
Operating as Layer 2 on the OP stack, Doma leverages LayerZero for cross-chain operability and integrates with Base, Solana, Avalanche, and ENS. At mainnet launch, users will be able to tokenize and trade premium Web2 domains such as .com and .ai names as ERC-20 tokens, enabling programmability and market access for traditional illiquid assets.
“Domains have always been one of the most undervalued Internet assets. Historically they have been illiquid, slow to transfer, and only accessible to deep-pocketed buyers,” said Michael Ho, CBO at D3 Global. “Doma makes these assets programmable and tradable, turning static digital real estate into a liquid market.”
Testnet data tips as requested by developers
The mainnet rollout follows a five-month testnet phase that recorded more than 35 million transactions and 1.45 million addresses, according to project data. Over 200,000 domains were tokenized across test environments, and use cases such as software.ai demonstrated on-chain fractional trading while maintaining full DNS resolution.
A $1 million developer fund launched under the Doma Forge initiative aims to accelerate protocol integration and DeFi experimentation.
Market Conditions: Domain Industry Size Addresses Liquidity Gap
The domain name ecosystem is large, with over 368 million domains registered worldwide as of early 2025, according to Hostinger. However, despite its size, the secondary market remains highly fragmented and illiquid.
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According to public data from NamePros, only about $185 million in domain resales were recorded in 144,700 transactions in 2024, with most high-value domains requiring weeks of escrow or brokerage. The Global Domain Report 2025 (InterNetX/Sedo) confirms these patterns, noting that although registration volumes continue to grow, resale activity remains largely inaccessible to small investors.
This mismatch between domain market size and liquidity is gaining increasing attention among cryptocurrency builders looking to tokenize real-world assets (RWA), with domain infrastructure emerging as a potential new category within the DeFi environment.
ICANN Compliance, Not Another Alt-Root
Unlike alt-root systems like Unstoppable Domains and Handshake, Doma’s infrastructure is fully DNS compliant and works with registrars representing over 30 million domains. This architecture introduces two new token standards, Domain Ownership Token (DOT) and Domain Service Token (DST), to maintain utility while increasing liquidity.
“The difference is that this is not a namespace experiment,” Ho said. “This is a liquidity solution for an existing regulated asset class.”
What’s next for tokenized domains?
At launch, Doma reports that there are approximately 2,700+ mainnet addresses already activated. Initial infrastructure indicates a Total Value Lock (TVL) of approximately $183,000, with integration underway via the Doma app. This introduces revenue opportunities, financing, and liquidity pools for domain tokens.
Success now depends on whether domain owners see this as a viable outlet or income avenue, and whether DeFi users accept domains as real-world assets that generate income rather than speculative collectibles.
