Tokenised domain names might seem like a niche use case, but D3 founder Inder Singh believes they could unlock a trillion-dollar opportunity in decentralised finance. By bridging the traditional domain name system (DNS) with onchain programmability, Singh envisions a future where domains become liquid, secure, and programmable digital assets fuelling a new wave of innovation in Web3.
From Web Addresses to Onchain Assets
“Everyone knows there’s a non-zero value to a domain,” Singh told DL Research. “It’s the first thing you get when you start a company or launch a project.” D3’s mission is to transform that inherent value into a tradable, composable asset onchain without disconnecting it from the web2 ecosystem.
The D3 protocol allows domains to be sent, received, and managed entirely onchain, while keeping ownership tethered to traditional registrars like GoDaddy or Namecheap. This DNS compatibility is not just a technical choice but a strategic one. By ensuring regulatory alignment and backward compatibility, D3 paves the way for adoption from both web2 users and web3 builders.
“The domain industry is already a $360 billion market,” Singh said. “If we can bring that onchain and make it programmable, there’s no reason it couldn’t grow to $1 trillion.”
Programmability Unlocks New Use Cases
Domains have long been traded, leased, and hoarded but always through clunky, centralised channels. Web3 changes that by enabling smart contracts to automate, secure, and expand how domain names are used.
“Buying or selling a domain today is still a pain,” Singh noted. “But once you get a spot trading market going, you unlock lending, leasing, fractional ownership, even REIT-style domain baskets.”
He also emphasised the enhanced security of programmable domains. Features like automated SSL renewals, trustless payments, and programmatic DNS access can dramatically reduce phishing and spoofing risks. For example, Singh imagines a world where you can not only visit Amazon.com but also send crypto directly to that domain with full onchain verification.
“You’d never doubt where you’re going when you type Amazon.com,” he said. “Now imagine you could send money to it with confidence. That level of trust should extend to crypto.”
Supporting Builders Through D3 Forge
To grow its ecosystem, D3 recently launched Forge, a builder programme designed to empower developers with the tools, support, and funding needed to create domain-based decentralised apps. The initiative includes smart contract SDKs for order books and fractionalisation, design and engineering support, and pre-vetted idea packs based on D3’s domain industry experience.
Over 300 developers have already applied.
“We’re not just handing out grants,” Singh said. “We’re offering decades of industry insight, real pain points and business models that work.”
This structured, problem-first approach is designed to accelerate innovation and lower the barrier for new builders. D3 believes that the most creative and valuable applications will come from the community, once the right infrastructure is in place.
Bridging Compliance with Decentralisation
Unlike many Web3 protocols that attempt to circumvent regulation, D3 has chosen to build with compliance in mind from day one. Its integration with existing DNS systems ensures that registrars, registries, and users remain protected under familiar ICANN rules.
“Everything we do is DNS-compliant,” Singh said. “That gives builders and users peace of mind.”
The protocol includes built-in dispute resolution mechanisms like UDRP, helping it align with global legal standards. D3 collaborated directly with traditional domain providers to co-design the protocol, making sure both sides can operate seamlessly on a shared infrastructure.
“We didn’t build in a vacuum,” Singh explained. “We sat with customers and partners to understand what the protocol needed to be, not just for crypto, but for the real world too.”
Fractional Ownership Could Drive Explosive Growth
Perhaps the most ambitious part of D3’s vision is fractional ownership, enabling anyone to own a share of a high-value domain name. While fractionalisation has been attempted in Web2, Singh argues it was too manual and fragmented to gain traction. Onchain, he believes it’s finally viable.
“If you could invest in a premium domain for $10 or $10,000, you suddenly unlock a massive pool of investors,” he said. “Fractionalisation brings liquidity, access, and innovation.”
This democratisation of domain investing, combined with lending and leasing features, could transform domains into a core DeFi asset class. Singh believes that the domain industry’s current $360 billion valuation could easily triple with onchain programmability and financial infrastructure.
“There’s no real-time trading, no DeFi, no innovation in the current system,” he concluded. “Crypto will be that step-function upgrade.”
As the crypto industry searches for real-world assets that can be effectively tokenised, domain names stand out as uniquely well-suited. They already carry real value, are widely understood, and benefit from global regulatory frameworks. D3 is betting that by bringing them onchain without breaking compatibility with Web2, it can unlock a trillion-dollar asset class ready to power the next generation of decentralised applications.
