[arin-discuss] SPAM-WARN:Re: ARIN Fee discussion

[Bill Woodcock]

On Oct 10, 2007, at 8:38 AM, Andrew Dul wrote:
> One can see how the use of an endowment to fund the overhead costs  
> would be desirable from a long-term perspective.

Particularly as we move to an IPv6 world, in which there will be far  
fewer transactions per resource recipient.

> ...over time the expenses increased such that the endowment was  
> unable to support the expenses that it was originally intended to  
> be used for.

Another model is to define the operating budget of the organization  
as that which can be supported by the interest earnings of the  
endowment, and no more.  One way of preventing organizational bloat.

> One way that one maybe could help prevent endowment decay would be  
> for the ongoing transactional costs to contain a portion which was  
> earmarked for the endowment during the initial years of endowment  
> funding.

Yep, that was my thought.

> As you noted above separating the overhead from the transactional  
> costs can be complex and I think it would be hard to separate the  
> overhead vs. transactional costs.  I believe it could be done though.

And ultimately, it doesn't need to be done exactly...  All that's  
needed is a figure that's close enough that most people are happier  
to believe it fair than to waste their time arguing about tweaking it.

> One other concern about this funding model would be the perception  
> if someday ARIN had a "huge" endowment that was constantly growing  
> such that the annual return from the endowment greatly exceeded  
> ARIN's overhead expenses.

I think this question falls squarely within the category of solving- 
the-problems-we-wish-we-had-rather-than-the-ones-we-actually-have.

                                 -Bill



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