[arin-ppml] Why are v4 and ASN transfers so cheap? Was: Re: {Spam?} Re: Open Letter Regarding 650% Rate-Hike for Legacy Users

Martin Hannigan hannigan at gmail.com
Tue Sep 21 16:27:56 EDT 2021

On Mon, Sep 20, 2021 at 9:18 PM Martin Hannigan <hannigan at gmail.com> wrote:

> On Sun, Sep 19, 2021 at 11:51 AM Steve Noble <snoble at sonn.com> wrote:
>> Your and my view of rich are obviously different but let's put that
>> aside.
>> But my point was very specific, if people are talking about ARIN running
>> a deficit and having to raise rates, you should look at the costs of the
>> organization.
> They are here.
> https://www.arin.net/vault/about_us/corp_docs/annual/2020_2019_restated_audited_financials.pdf
> [ clip ]
>> If you don't agree, than let's have a productive discussion.
> Something that stood out to me was network transfers income, the cost to
> transfer addresses. Seems low in contrast to the benefit that the transfer
> users are receiving.

To take that a step further after viewing the report entirely:

If you transfer a /10 @ $50 per address it nets the transferor $200M before
tax and commissions. A broker charging a 5% commission is looking at a $10M
commission. ARIN gets $500 in 2022. In 2020 there appeared to be about 3300
transactions. Instinct tells me ARIN didn't break even on transfer cost
recovery (it keeps rising year over year more than a little).

Considering the importance of the transfer market, how much of our time it
takes up and the fact that the only people getting addresses these days (in
volume) are using the transfer market there should be a strong argument for
a much greater fee recovery and community subsidy than what I'm currently
reading. Of course, I can be reading it all wrong.

Warm regards,

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