[arin-ppml] Policy Proposal: IPv4 Recovery Fund - Revised
IPv4 Recovery Fund
This proposal is in the first stage of the ARIN Policy Development
The proposal originator submitted a revised version of the proposal.
ARIN staff will perform the Clarity and Understanding step of the Policy
Development Process. Staff does not evaluate the proposal itself at this
time, their only aim is to make sure that they understand the proposal
and believe that the community will as well. Staff will report the
results of this step to the ARIN Advisory Council (AC) within 10 days.
The AC will review this proposal at their next regularly scheduled
meeting (if the period before the next regularly scheduled meeting is
less than 10 days, then the period may be extended to the subsequent
regularly scheduled meeting). The AC will decide how to utilize the
proposal. The decision will be announced to the PPML.
In the meantime, the AC invites everyone to comment on this proposal on
the PPML, particularly their support or non-support and the reasoning
behind their opinion. Such participation contributes to a thorough
vetting and provides important guidance to the AC in their deliberations.
The ARIN Policy Development Process can be found at:
Mailing list subscription information can be found at:
American Registry for Internet Numbers (ARIN)
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Policy Proposal Name: IPv4 Recovery Fund
Proposal originator: Leo Bicknell
Proposal Version: 4.0
Proposal type: New
Policy term: Permanent
(Create new section in section 4, represented by "4.X".)
4.X IPv4 Recovery Fund
4.X.1 Implementation Timing
Upon receiving a valid request for a block larger than ARIN
can satisfy from its existing free pool, or, by obtaining
additional space from IANA, ARIN shall begin offering financial
incentives for returned IP blocks according to this policy.
4.X.2 Recovery of IPv4 Space
ARIN believes that organizations should voluntarily return
unused and/or unneeded IP resources to the community. However,
upon implementation of this policy, ARIN will offer financial
incentives for the return of IPv4 resources to ARIN
relinquishment of any future claims to those resources. ARIN
will continue to accept voluntary returns.
4.X.3 Allocation of Recovered Space
Once approved for IPv4 space ARIN will ask the requester to
specify a bid of how much they are willing to pay for
reclamation of address space. ARIN will use this bid in
determining what incentives to offer for return of space.
The requester may make a higher bid at any time, which is
treated as a brand new bid replacing their old bid.
If ARIN recovers space and offers it to requester at or below
the specified bid within 60 days of the time the bid was
made then the bid shall be binding on requester at the price
ARIN offers the space.
4.X.4 Address Block Management
ARIN may not offer a partial fill, that is provide a block
smaller than the one for which the requester was approved.
ARIN may split recovered blocks into multiple smaller blocks
at the staff's discretion using the following principals:
- It is unlikely a request will be made for the address
block size involved in the next 60 days.
- The block is divided into as few parts as practical.
- There are enough bids to allow the entire block to be
ARIN staff shall make public the current and historical
prices of asks, bids, and executed transactions in a manor
that facilitates the bidding process. ARIN staff must
regularly report on the amount of address space obtained and
distributed via this mechanism, number of blocks subdivided,
as well as aggregate financial numbers.
4.X.6 Cost Recovery
ARIN shall manage the address space recovery program with a
goal of cost recovery.
- Use ARIN funds to reclaim blocks when there is no specific
demand; if such reclamation is deemed in the best interest
of the community and there is a significant likelyhood of
- Use a portion of the funds collected under this program
to pay for the implementation of this program.
Many have recognized that in order for unused or poorly used IPv4
resources to be returned to the free pool that financial compensation
will be required. This is particularly the case in poorly used
assets where the current holder may have to expend time and money
to renumber in order to free the blocks.
This proposal sets up a fund administered by ARIN to encourage the
return of space. Effectively ARIN will offer financial incentives to
return unused or poorly used IPv4 resources and place them back into the
IPv4 free pool.
The intention is for this activity to be revenue neutral to ARIN. To
achieve that goal those requesting IPv4 resources will be requested to
bid on a one-time payment to the recovery fund to cover the cost of the
resources they have received.
The proposal is intentionally vague on the exact implementation details
to staff because:
- Transactions with those returning space and obtaining space may
occur in any order.
- The bidding process may need to evolve over time, and may not
be as simple as highest bidder wins. It may include aspects such
as a dutch auction style format (all winners pay the lowest winning
price), or may include other factors such as which size blocks
ARIN has free in an effort to limit deaggregation.
- ARIN will have to develop contracts and procedures around this
activity that are better suited for staff and legal than the
Compared to other "transfer proposals", this proposal has the following
- Maintains that IP addresses are not property.
- Maintains the concept that unused addresses should be returned to
the free pool.
- Maintains need based addressing.
- Removes the need for those with excess resources to find those
without resources. There is no need for any sort of listing
service, eBay, etc.
- All transactions are two party transactions with ARIN as one of
the parties. The potential for multi-party legal disputes is
- ARIN can absorb spikes in supply or demand, creating more level
prices over time.
- ARIN can provide transparency across all transactions in this
- Reduces confusion to new entrants over where they should go to
receive address space.
- Changed "monetary" to "financial" to allow for the possibility
of ARIN offering things other than direct payment (like fee
credits). Credit: Robert Bonomi.
- Updated numbering so there were not two 4.10.2's. Also changed
to using a place holder for section. Credit: Robert Bonomi
- Changed the cost recovery language to be more clear and provide
some additional flexibility.
- Clarified 4.10.2 about future claims. Credit: Ted Mittelstaedt
- Split 10.X.3 into 10.X.3 and 10.X.3 with better titles.
- Left the exact algorithm to staff. Removed examples as a result.
Timetable for implementation:
Staff should begin developing procedures and updated templates
immediately. Policy would not go into effect until the criteria