ICANN has set a level of bid credit for supported applicants at a maximum of 35%*, not to exceed a monetary value of 1.75 million USD per application.
The bid credit allows supported applicants to bid up to 35% higher than maximum cash on hand requirements for the ASP. The bid credit provides up to a 35% discount applied to the amount due to be paid by the winning supported applicant, as well as to any deposit that may be required according to the final auction rules.
In the case that the winning price (second highest price) auction dues exceed 5 million USD (the threshold indicating Financial Need to qualify for support), the bid credit applied will be reduced in a phased approach.
For example:
Example 1: A supported applicant submits the highest bid of 1 million USD. Another application submits the second highest bid of 900,000 USD. The winning supported applicant pays 585,000 USD (35% bid credit applied to the second highest bid of 900,000 USD).
Example 2: A supported applicant submits the highest bid of 7 million USD. Another application submits the second highest bid of 6 million USD. The winning supported applicant pays 4.8 million USD (based on the phased approach indicated a 20% bid credit applied to the second highest bid of 6 million USD).
Phased-out bid credit for Supported gTLD applicants for winning bids >5 million USD
| Winning price (second highest bid) | Bid Credit Applied | Cash equivalent of bid credit | Payment due by supported applicant |
|---|---|---|---|
| ≤5m USD | 35% | ≤1.75m USD | ≤3.25m USD |
| >5m-7m USD | 20% | >1m-1.5m USD | 4m-5.5m USD |
| >7-9m USD | 10% | >0.7m-0.9m USD | 6.3m-8.1m USD |
| >9m USD | 0% | 0 | >9m USD |
Please see the New gTLD Program: Next Round Applicant Guidebook for more information. Full details of the bid credit procedures for eligible auction participants will be included in the ICANN New gTLD Auction rules and procedures.
*Please note that the New gTLD Program: Next Round Applicant Guidebook is currently under development, therefore this could be subject to change. The draft version is expected to be published for Public Comment by the end of May 2025. The final version is expected to be published by December 2025.