Hello Mike,

Why are you using John's "waiting list IPv4 blocks transferred" numbers as a 
baseline for the /19 numbers? This is completely arbitrary and doesn't give any 
scale as to the problem with fraud. See my earlier reply to John's email in the 
other thread:

"Thanks for sharing. I'd like to note that it can be dangerous to use the 
blocks transferred via 8.2/8.3/9.4 as a metric for abuse. A fraudster that gets 
past ARIN's scrutiny and obtains IPs with fraudulent information is probably 
smart enough to lease their IPs as opposed to selling the space outright. There 
is a huge market for leased space, and those deals happen behind closed doors 
with no oversight from ARIN. IP addresses go for $0.2-0.5/mo depending on 
term/IP reputation/size which could lead to $XX,XXX in illicit revenue with no 
risk of ARIN's scrutiny which would normally occur during the transfer process."

Thanks,

Robert Clarke

> On May 29, 2019, at 8:13 AM, Mike Burns <[email protected]> wrote:
> 
> Hi Fernando,
>  
> Thanks for the discussion.
> Many feel as you do, that unused addresses should be returned to ARIN for 
> subsequent distribution to those in need.
> Unfortunately, that policy was not successful in bringing unused addresses 
> into actual use by those in need.
> The community decided to harness the profit motive to incentive this process, 
> and by all accounts it is working.
>  
> Unfortunately the profit motive also incentivizes fraudulent plundering of 
> the waiting list pool.
>  
> So I am happy to discuss the correct balancing of things to prevent fraud but 
> allow the market to continue to drive us towards the desirable ends of 
> accurate registration and efficient use.
>  
> Since the /19 is the threshold number of sorts for flipping, I could accept a 
> /20 as the maximum size.
> I think a 2 year wait is reasonable, but I don’t see the additional benefit 
> as worth the distinction of ARIN space into more classes.
> And making it more complicated with multiple waiting periods is even less 
> desirable, IMO.
>  
> Regards,
> Mike
>  
>  
>  
>  
> From: ARIN-PPML <[email protected]> On Behalf Of Fernando Frediani
> Sent: Wednesday, May 29, 2019 10:50 AM
> To: [email protected]
> Subject: Re: [arin-ppml] Waiting List IPv4 blocks transferred after issuance
>  
> On 29/05/2019 11:31, Mike Burns wrote:
>> Orgs will wait out any period, sitting with unused addresses until they 
>> reach the resale date. Not efficient use.
> If it's not a legacy resource and if ARIN gets to know about it, it may just 
> recover this addresses even if the resource holder is paying it correctly. 
> That's how it should work.
>> 
>> 
>> People will lease unused addresses to others and Whois accuracy will suffer 
>> if they can’t resell them. Not accurate registration.
> If people lease they prove they have no use for the addresses and again ARIN 
> should recover them at any time. If whois is inaccurate, well it is their 
> fault and not policies fault. They must bind to the current rules not the 
> other way round.
>> 
>> 
>> I think we should give everybody currently on the list up to a /19 and then 
>> restrict new entries to a /22.
> Fair to discuss this scenario, although I still think /19 is too much. Agree 
> on /22 for new entries.
> 
>> I think a 5 year resale wait is too long, based on the paltry resales of 
>> prior waiting-list subnets smaller than /19.
> It may be long, but 2 years seems a little short and 'acceptable' for a 
> fraudster. Perhaps something in between.
> 
> 
>> I support a /22 restriction for new entrants, a /19 max for current list 
>> members, and maintenance of the 12 month wait for simplicity’s sake.
> What about discuss /22 for new entrants, /20 for current list members and 36, 
> 42 or 48 months for transfers ? Seems more reasonable in my view and cover 
> most aspects of this discussion.
> 
>> 
>> 
>>  
>> Regards,
>> Mike
>>  
>>  
>>  
>>  
>> From: ARIN-PPML <[email protected]> 
>> <mailto:[email protected]> On Behalf Of Fernando Frediani
>> Sent: Wednesday, May 29, 2019 8:51 AM
>> To: [email protected] <mailto:[email protected]>
>> Subject: Re: [arin-ppml] Waiting List IPv4 blocks transferred after issuance
>>  
>> +1
>> On 28/05/2019 23:52, Owen DeLong wrote:
>>> Mike, 
>>>  
>>> Yes and no. I believe that the lack of legacy holders for any blocks issued 
>>> under 4.1.8 reduces the need for the market.
>>>  
>>> Defunct organizations can easily be reclaimed in this space because they 
>>> stop paying their ARIN bill.
>>>  
>>> Eliminating the resale value of these addresses won’t really encourage 
>>> squatting on them and limiting the size of organization and size of block 
>>> that can benefit from 4.1.8 further helps to reduce the potential for 
>>> hoarding.
>>>  
>>> I realize that as a broker, any address that can’t be monetized is a lost 
>>> opportunity for your organization, but I think there’s plenty of addresses 
>>> out there that haven’t been processed through 4.1.8, so I don’t think 
>>> limiting the resale potential of such blocks to reduce fraud is a bad idea.
>>>  
>>> Owen
>>>  
>>> 
>>> 
>>> 
>>>> On May 28, 2019, at 12:46 , Mike Burns <[email protected] 
>>>> <mailto:[email protected]>> wrote:
>>>>  
>>>> The percentages of blocks transferred takes a significant leap at the /19 
>>>> size.
>>>> Below that, the percentages are all below 7%.
>>>> At /19 and above, the percentages are all above 21%.
>>>> Seems like a natural demarcation for maximum block size, but prices do 
>>>> continue to rise.
>>>> While we want to fight fraud, we should still remember the underlying 
>>>> reasons for the Ipv4 transfer market apply to these addresses as well.
>>>> That is, the market provides incentives for efficient use and accurate 
>>>> registration.
>>>>  
>>>> Regards,
>>>> Mike
>>>>  
>>>>  
>>>>  
>>>>  
>>>> From: ARIN-PPML <[email protected] 
>>>> <mailto:[email protected]>> On Behalf Of John Curran
>>>> Sent: Tuesday, May 28, 2019 1:53 PM
>>>> To: ARIN-PPML List <[email protected] <mailto:[email protected]>>
>>>> Subject: [arin-ppml] Waiting List IPv4 blocks transferred after issuance
>>>> Importance: High
>>>>  
>>>> Folks - 
>>>>  
>>>> It occurred to me that it might be useful to have a quick summary of 
>>>> waiting list blocks issued and subsequently transferred. 
>>>>  
>>>> Attached is the distribution (count per prefix size) of all blocks that 
>>>> have been issued via ARIN's waiting list policy and subsequently 
>>>> transferred via NRPM 8.2/8.3/8.4 policy.
>>>>  
>>>> FYI,
>>>> /John
>>>>  
>>>> John Curran
>>>> President and CEO
>>>> American Registry for Internet Numbers
>>>>  
>>>>  
>>>>  
>>>> <image001.png>
>>>> _______________________________________________
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>>> 
>>>  
>>> 
>>> 
>>> 
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