Top-Level Domains (TLDs) are staked on the Handshake root zone and then bridged over to the registry protocol on the Optimism blockchain. After staking at Namebase.io the TLD owner is able to claim a new TLD NFT which grants the ability to create subdomains. The holder of the TLD NFT receives 95% of all subdomain registration fees. The remaining 5% is collected for the Handshake Dev Fund to be put towards further ecosystem development. The TLD NFT can be traded on any NFT marketplace, which then conveys the future earning potential of subdomain registrations.
There are many pricing options available to TLD owners. Subdomains can be priced differently based on the number of characters, i.e. shorter names can be made more expensive. Individual discounts can be applied by domain or by wallet. Highly valuable names can be protected with premium pricing. Domains can be reserved for a particular buyer, or reserved completely. The pricing can be discounted based on the number of years, allowing bulk discounts for longer registrations. All of these options provide the ultimate flexibility for building the pricing strategy of the TLD owner.