Domain Kiting is the repeated registration and cancellation of a domain name within the five-day grace period to avoid paying registration fees. This allows a domain to be used indefinitely without cost by cycling through registrar refunds.

Detailed Explanation of Domain Kiting

Domain Kiting is a deceptive practice where a registrant repeatedly registers a domain name and cancels it within the five-day Add Grace Period (AGP) allowed by ICANN. This loophole enables the user to avoid paying registration fees while still maintaining control over the domain. By cycling this process, the registrant can keep a domain active without cost, indefinitely. This tactic was often used to monetize high-traffic domains temporarily with ads or to block competitors from obtaining the name. Domain kiting caused loss of revenue for registries and created an uneven playing field. ICANN and registry operators later imposed transaction fees and restrictions on repeated AGP usage to reduce abuse.

Key Facts About Domain Kiting

• User registers and cancels domain repeatedly: Registrants exploit the five-day grace period.
• No registration fee is paid: Fees are refunded before the cancellation deadline.
• Domain remains in user control: Cycling registrations prevent expiration.
• Often used for profit or blocking rivals: Traffic is monetized or domains are hoarded.
• ICANN policies now limit abuse: Regulatory changes discourage kiting.

Summary

Domain Kiting is a registration abuse method that uses the ICANN grace period to keep domains without payment. It undermines fair access and exploits registrar refund policies. Though now largely curbed by updated rules and fees, understanding domain kiting is critical for domain name governance and fair usage oversight.