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ICANN has made an announcement that they were looking for comments on the proposed framework [PDF, 73K, opens in new window] for the allocation of single-character domain names, which ICANN has developed. In addition, ICANN is asking for comments on the best use of funds from the allocation.

ICANN is proposing an auction mechanism, which might be the best solution as everybody will have a chance to place a bid and get his desired one-character domain, such as A.COM, G.COM, Y.COM and so on. These domains are extremely sought-after and other companies have proposed allocation frameworks to ICANN in the past, including European domain aftermarket Sedo.

As for the use of funds, ICANN is proposing a disbursement towards “areas of public good for the Internet community”. Not sure about the exact value of a single-letter domain, but considering how rare and brandable they are I’d say they could quite possibly attract offers higher than $1 million each, which would result in a total outcome of more than $25 million.

ICANN has also announced that they selected Power Auctions LLC as their auction design consultant, which means the company could get the green light to manage the one-letter domain auctions.