A New Approach to Domain Liquidity
Doma Protocol has officially launched its mainnet, introducing what might be the first DNS-compliant blockchain infrastructure designed specifically for transforming traditional Web2 domains into programmable DeFi assets. This rollout comes at a time when tokenization is expanding into various real-world asset classes, and domain names represent one of the internet’s most established markets.
The protocol aims to address what many see as a fundamental mismatch in the domain industry. While there are over 368 million domains registered globally according to recent Hostinger data, the secondary market remains surprisingly illiquid. Public data from NamePros shows that in 2024, only about $185 million in domain resales were recorded across 144,700 transactions. Most high-value domains still require weeks-long escrow processes or brokerage arrangements.
How Doma’s Infrastructure Works
Operating as a Layer 2 on the OP Stack, Doma leverages LayerZero for cross-chain operability and integrates with Base, Solana, Avalanche, and ENS. The architecture introduces two new token standards: Domain Ownership Tokens (DOTs) and Domain Service Tokens (DSTs). These are designed to preserve domain utility while adding much-needed liquidity.
What sets Doma apart from other blockchain domain projects is its DNS compliance. Unlike alternative root systems like Unstoppable Domains or Handshake, Doma’s infrastructure works in partnership with registrars representing over 30 million domains. This approach means tokenized domains maintain their traditional DNS resolution while gaining new DeFi capabilities.
Michael Ho, CBO at D3 Global, explained the thinking behind this approach: “Domains have always been among the most undervalued internet assets — historically illiquid, slow to transfer, and only accessible to well-capitalized buyers. Doma makes these assets programmable and tradable, turning static digital real estate into a liquid market.”
Testnet Results and Current Status
The mainnet launch follows a 5-month testnet phase that saw significant activity — over 35 million transactions and 1.45 million addresses according to project data. More than 200,000 domains were tokenized across the test environment, with use cases like software.ai demonstrating onchain fractional trading while maintaining full DNS resolution.
At launch, Doma reports roughly 2,700+ mainnet addresses already activated. Early infrastructure shows about $183,000 in total value locked (TVL), with integration underway through the Mizu Launchpad. This platform will introduce yield opportunities, lending, and liquidity pools for domain tokens.
Future Prospects and Challenges
A $1 million developer fund, launched under the Doma Forge initiative, is designed to accelerate integrations and DeFi experimentation on the protocol. The success of this approach now depends on whether domain holders see tokenization as a viable exit or income path — and whether DeFi users embrace domains as yield-generating real-world assets rather than speculative collectibles.
Ho emphasized that this isn’t just another namespace experiment: “It’s a liquidity solution for an existing, regulated asset class.” The protocol’s focus on working within existing regulatory frameworks while adding programmability could potentially unlock value in the $360 billion secondary domain market.
As the DeFi landscape continues to explore real-world asset tokenization, domain infrastructure appears to be emerging as a new category. Whether this approach gains traction will depend on adoption by both the traditional domain industry and the crypto community — two groups that haven’t always seen eye to eye.
