Formal introduction on PPML on 23 March 2009
Draft Policy - 23 March 2009 (with staff assessment)
Policy Revision - 9 April 2009
AC Notice to Abandon - 4 May 2009Public Policy Mailing List
ARIN Advisory Council:
Cathy Aronson and Bill Darte
19 February 2009
19 March 2009
ARIN Board of Trustees:
2009 -4: IPv4 Recovery Fund
Date: 9 April 2009
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
ARIN shall begin offering financial incentives for the return
of IPv4 number resources as specified in section 4.X when
IANA announces that the last full /8's in the IANA free pool
have been allocated to RIR(s).
4.X.2 Recovery of IPv4 Resources
Organizations should voluntarily return unused and/or unneeded
number resources to ARIN based on ARIN's current utilization
guidelines. ARIN will provide instructions on how to
voluntarily return number resources on the ARIN web site.
After the conditions in section 4.x.1 are met, ARIN will
offer financial incentives for the return of IPv4 number
resources to ARIN and relinquishment of any future claims
to those resources. ARIN will use the bids from section
4.X.3 to determine the value of returned resources.
4.X.3 Allocation of Recovered IPv4 Resources
After a requester has been approved for IPv4 number resources
via any policy in section 4 or section 11 of the NRPM, ARIN
will ask the requester to specify a binding bid of how much
they are willing to pay for reclamation of number resources
to satisfy their request. The requester may make a higher
bid at any time, which is treated as a brand new bid replacing
their old bid.
Requesters may choose to bid $0, in which case they would
only be eligible for number resources that were voluntarily
returned to ARIN.
IPv4 number resources recovered by ARIN under section 4.X.2
will be offered to those who have been waiting the longest
with bids high enough to cover ARIN's cost to recover the
resource. If ARIN offers IPv4 number resources at or below
the requesters bid the requester will be required to take
the space at the offered price.
4.X.4 Management of Recovered IPv4 Resources
ARIN may not fill a request with multiple smaller blocks.
ARIN must offer recovered number resources in the largest
possible contiguous blocks. Recovered IPv4 number resources
should be broken into smaller blocks only if there are no
bidders for the larger sized blocks, and ARIN believes there
are unlikely to be bidders for the larger sized block in the
next 30 days. When sub-diving the block ARIN shall divide it
into as few pieces as possible to satisfy existing bids.
ARIN should take all practical steps to aggregate returned
ARIN must post statistics updated as frequently as practical
but not less than monthly on the ARIN web site regarding all
activity taking place under section 4.X. ARIN must report
the following items at a minimum, and is encouraged to report
as much additional data as is practical and useful:
- The amount of number resources recovered under 4.X.3.
- The amount of number resources allocated under 4.X.4.
- The min, max, median, and average prices for number resources
recovered under 4.x.3.
- The min, max, median, and average prices for number resources
allocated under 4.x.4.
- The min, max, median, and average prices for all bids received
under 4.x.4, as well as the number of outstanding bids not
- How many address blocks were de-aggregated, and the resulting number
- How many address blocks were aggregated, and the resulting number
4.X.6 Cost Recovery
ARIN shall use the payments made in 4.X.4 to pay for any
work done under section 4.X as well as for any payments made
in section 4.X.3. ARIN must base payment offers made under
4.X.3 on the binding bids made in section 4.X.4.
The Board may set aside a portion of ARIN's general funds
to provide financial liquidity to the activities taking place
under section 4.X, provided there is a clear mechanism and
time frame to return those funds to the general fund.
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 number 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 number 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 de-aggregation.
- ARIN will have to develop contracts and procedures around this
activity that are better suited for staff and legal than the policy process.
Compared to other "transfer proposals", this proposal has the following benefits:
- 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 listed occurs.