FYI 4.10 space can only be transferred under NRPM section 8.2 Mergers, 
Acquisitions and Reorganizations. When being transferred under 8.2 the 
recipient organization must submit a notarized affidavit that the space will 
continue to be used in compliance with section 4.10 or return the space. 

Sent from my iPhone

> On Jan 31, 2025, at 3:00 PM, scott <[email protected]> wrote:
> 
> Hi Brian,
> 
> My take on this is that folks may want to abuse 4.10 if they can then 
> transfer the resources to another entity.  The cost of organizing an entity 
> is far less than the "market value" of a /24, which will encourage gaming 
> this system.  IMHO, 4.10 is for "I am building a network, and I need these 
> resources to transition or support my v6 deployment."  As such, M&A is 
> problably the only legit reason to want to transfer these resources, but that 
> can be gamed too... IIRC John Sweeting reported the recovery of some 7M 
> addresses from a similar scheme a couple of years ago.
> 
> In summary, we should restrict the transfer of 4.10, IMHO.
> 
> Scott
> 
> 
> 
>> On Fri, 31 Jan 2025, Jones, Brian wrote:
>> 
>> As shepherds of Draft Policy ARIN-2024-11 Kaitlyn and I would very much like
>> to refocus the discussion surrounding it. When this was circulated to the
>> PPML last October there was some discussion, but much of it was not directed
>> at the root issues associated with these proposed changes.  
>>  
>> My very unofficial hallway discussions indicate the space that gets
>> allocated from section 4.10 of the Number Resource Policy Manual is a large
>> target for those wishing to do other things with that space than convert
>> their organization to IPv6.  
>>  
>> This section was never intended to allocate resources that would then be
>> reallocated to another entity or used for any other purpose than to allow
>> for the conversion of the applicant to IPv6. 
>>  
>> The policy experience report given by John Sweeting at ARIN 54 indicated
>> that at the current rate of allocations from section 4.10 of the NRPM there
>> should be enough to last through the year 2050 or approximately 25 years.
>> Keep in mind that the 4.10 dedicated pool has a mandate to be replenished
>> when it gets down below a 3 year supply. This would mean any ARIN recovered
>> IPv4 address space would come back into this pool for replenishment instead
>> of the waitlist once this threshold is reached.
>>  
>> So with these things in mind my question to the community is do we really
>> need to allow reallocations from applicants of this dedicated space as this
>> policy is suggesting or should each entity that needs IPv4 space to
>> facilitate their transition to IPv6 continue to apply for their own /24 as
>> the policy is currently written?
>> Thank you in advance for your input and feedback.
>> ---------------------------------------------------------------------------
>> ----------------------------------
>> On 25 October 2024, the ARIN Advisory Council (AC) accepted “ARIN-prop-338:
>> IPv4 Transition Efficiency Reallocation Policy (ITERP)” as a Draft Policy.
>>  
>> *Draft Policy ARIN-2024-11 is below and can be found at:
>>  
>> https://www.arin.net/participate/policy/drafts/2024_11
>>  
>> You are encouraged to discuss all Draft Policies on PPML. The AC will
>> evaluate the discussion to assess the conformance of this draft policy with
>> ARIN's Principles of Internet number resource policy as stated in the Policy
>> Development Process (PDP). Specifically, these principles are:
>>  
>> * Enabling Fair and Impartial Number Resource Administration
>> * Technically Sound
>> * Supported by the Community
>>  
>> The PDP can be found at:
>>  
>> https://www.arin.net/participate/policy/pdp/ 
>>  
>> Draft Policies and Proposals under discussion can be found at:
>>  
>> https://www.arin.net/participate/policy/drafts/
>> Draft Policy ARIN-2024-11: IPv4 Transition Efficiency Reallocation Policy
>> (ITERP)
>>  
>> Problem Statement:
>>  
>> As the exhaustion of IPv4 addresses continues, ISPs and end-users face
>> increasing challenges in managing their transition to IPv6. Many end-users
>> require small amounts of IPv4 space to implement technologies like
>> Carrier-Grade NAT (CG-NAT) or dual-stack environments, which are critical
>> for their own IPv6 deployment efforts. Under the current NRPM 4.10 policy,
>> ISPs are prohibited from reallocating portions of their IPv4 blocks to
>> end-users, forcing these organizations to request larger, inefficiently used
>> blocks (e.g., /24s) from ARIN.
>>  
>> This practice contributes to the unnecessary consumption of scarce IPv4
>> resources, as many end-users only need small blocks (e.g., /29s or /28s) for
>> their CG-NAT and IPv6 transition processes. The inability to reallocate
>> these smaller blocks results in wasteful allocations and hampers the overall
>> efficiency of IPv4 address management.
>>  
>> Without a mechanism to allow ISPs to reallocate small portions of their NRPM
>> 4.10 space to qualified end-users, the current policy inadvertently
>> encourages inefficient IPv4 address utilization, which conflicts with ARIN’s
>> goal of maximizing the use of remaining IPv4 resources while facilitating
>> the widespread adoption of IPv6.
>>  
>> The problem is twofold:
>>  
>> 1. End-users are forced to request larger, underutilized IPv4 blocks for
>> their IPv6 transition needs.
>>  
>> 2. ISPs are unable to efficiently manage and reallocate their IPv4 resources
>> under NRPM 4.10 to meet end-user demands for small-scale CG-NAT and IPv6
>> transition deployments.
>>  
>> Policy Statement:
>>  
>> Add these bullets to section 4.10 of the NRPM to facilitate ARIN approved
>> reallocation of 4.10 resources.
>>  
>> * ISPs may reassign a /29 or /28 for their direct downstream customers for
>> IPv6 transition only. ARIN reserves the right to validate any downstream
>> allocations from ISPs to direct customers.
>>  
>> * Anyone wishing to perform a reassignment of a 4.10 allocation must be
>> approved through ARIN and meet all the justification requirements of this
>> policy.
>>  
>> Comments:
>>  
>> IPv4 Transition Efficiency Reallocation Policy (ITERP) and Its Impact on
>> CG-NAT, IPv6, and Efficient Resource Use
>>  
>> Utilization of Reallocated IP Space by End-Users and Small ISPs for CG-NAT
>>  
>> Under the IPv4 Transition Efficiency Reallocation Policy (ITERP), end-users
>> and even small ISPs can efficiently use reallocated IPv4 space for CG-NAT
>> (Carrier-Grade NAT) while leveraging their IPv6 deployments. Many smaller
>> ISPs, particularly those that only have NRPM 4.10 space and limited IPv4
>> allocations, could benefit from this policy by reallocating IPv4 subnets
>> (e.g., /29 or /28) to their customers or other ISPs who require minimal IPv4
>> addresses for CG-NAT in dual-stack environments.
>>  
>> Through the use of BGP for IPv6, along with alternative IPv4 multi-homing
>> technologies like source and policy based routing combined with CG-NAT,
>> end-users or small ISPs could even connect to multiple providers utilizing
>> IPv6 natively while performing CG-NAT towards multiple providers over IPv4.
>> This approach helps balance traffic, increase redundancy, and achieve better
>> failover capabilities. By employing IPv6 for outward-facing traffic and
>> CG-NAT for IPv4 communication, smaller networks can provide their customers
>> a seamless experience without consuming large amounts of IPv4 space.
>>  
>> Eligibility and Address Space Efficiency
>>  
>> This policy amendment is strictly intended for organizations that would
>> otherwise be eligible for a /24 under NRPM 4.10. Instead of receiving an
>> entire /24 (256 addresses) that may go largely underutilized, these
>> end-users could now request smaller blocks (e.g., /29s or /28s) from
>> multiple providers that only hold NRPM 4.10 space. This allows for much more
>> efficient use of IPv4 resources, as the smaller allocations can directly
>> serve CG-NAT needs without wasting a significant portion of the address
>> space.
>>  
>> Such end-users are typically transitioning to IPv6 and need small amounts of
>> IPv4 space only for backward compatibility and legacy systems. This policy
>> ensures that they don’t have to unnecessarily consume large blocks of IPv4
>> addresses that are rapidly depleting, especially since most of their traffic
>> will run over IPv6.
>>  
>> Incentivizing IPv6 Deployment by ISPs
>>  
>> This policy can also incentivize ISPs to evangelize IPv6 deployment to their
>> customers. As the ISPs are held accountable for monitoring and reporting the
>> usage of reallocated space, they are motivated to actively assist their
>> customers in migrating to IPv6 to ensure compliance with ARIN’s policies. By
>> reallocating IPv4 space under the NRPM 4.10 policy, ISPs will naturally push
>> for greater IPv6 adoption and encourage their end-users to take advantage of
>> the superior capabilities and scalability of IPv6.
>>  
>> In many cases, ISPs can act as trusted technology advocates, guiding their
>> customers through the transition process, offering resources, and providing
>> technical support for deploying dual-stack environments. This not only
>> supports IPv6 growth but also fosters stronger partnerships between ISPs and
>> their customers as they collectively work toward the next generation of
>> networking technologies.
>>  
>> Supporting ISPs with Only NRPM 4.10 Space and IPv6
>>  
>> Many ISPs, particularly newer or smaller ones, may only have access to NRPM
>> 4.10 IPv4 space and IPv6 allocations. These ISPs often lack sufficient
>> general-purpose IPv4 space but are fully invested in deploying IPv6 to their
>> customers. The IPv4 Transition Efficiency Reallocation Policy provides an
>> efficient and pragmatic way for these ISPs to serve end-users with
>> small-scale CG-NAT needs, helping them facilitate IPv6 adoption without
>> having to apply for entire /24s of IPv4 space that they don’t require.
>>  
>> By allowing the reallocation of small IPv4 blocks to end-users for CG-NAT
>> and IPv6 dual-stack environments, IPv4 exhaustion can be minimized, and
>> numbering resources can be more efficiently utilized. These ISPs can push
>> their customers toward IPv6 while offering minimal IPv4 resources needed for
>> NAT and legacy services. This policy, therefore, promotes responsible IPv4
>> stewardship and accelerates the migration to IPv6.
>>  
>> Conclusion: Efficient Use of Resources and Push for IPv6 Adoption
>>  
>> The IPv4 Transition Efficiency Reallocation Policy (ITERP) ensures that IPv4
>> address space is used efficiently by allowing small allocations to end-users
>> for specific transitional technologies like CG-NAT. By utilizing BGP for
>> IPv6 and multi-homing technologies, end-users can effectively route traffic
>> while minimizing their reliance on IPv4. This policy enables ISPs,
>> particularly those that only have NRPM 4.10 space, to act as leaders in the
>> push for IPv6, ensuring that numbering resources are preserved while
>> advancing the deployment of the next generation of Internet technology.
>>  
>> Other technologies are also available, such as routing IPv4 space over IPv6,
>> which is supported in many modern routing systems, meaning a /32 of IPv4
>> space could be routed to an end-user over a native IPv6 network with no
>> other space involved. This policy would encourage ISPs to evangelize and
>> accelerate the deployment of an IPv6 Internet by making deploying IPv6 even
>> more beneficial to end users, while also preserving the precious remaining
>> IPv4 address space.
>>  
>> By embracing this approach, ARIN can foster greater IPv6 adoption, prevent
>> IPv4 depletion, and empower ISPs and end-users alike to move forward with
>> innovative, future-proof network architectures.
>>  
>> This policy provides a more efficient and responsible approach to achieving
>> the goals initially intended by ARIN-2008-5, which aimed to allow the use of
>> longer prefixes than /24s without causing the complications associated with
>> ARIN allocating such longer prefixes directly.
>>  
>> When ARIN-2008-5 was introduced, the idea was to allow networks to receive
>> smaller allocations than /24, recognizing that many organizations,
>> particularly those transitioning to IPv6, do not require a full /24 for
>> their IPv4 needs. However, allocating smaller prefixes directly from ARIN
>> would have created routing and administrative challenges, including concerns
>> about route fragmentation and maintaining the integrity of the global
>> routing table.
>>  
>> The IPv4 Transition Efficiency Reallocation Policy (ITERP) resolves these
>> issues by enabling ISPs to handle the reallocation of small IPv4 blocks
>> (such as /29 or /28) from their NRPM 4.10 space, instead of ARIN directly
>> assigning longer prefixes. This allows for more granular and flexible use of
>> address space without fragmenting ARIN’s allocations, ensuring that the
>> allocations remain efficient and manageable.
>>  
>> Furthermore, by placing responsibility on the ISPs to ensure proper
>> utilization, ITERP:
>>  
>> • Minimizes the risk of route table bloat, as ISPs manage these smaller
>> blocks within their own infrastructure.
>> • Ensures IPv4 allocations are tied to specific, justified use cases (such
>> as CG-NAT and IPv6 transition), aligning with the original intent of
>> ARIN-2008-5 to avoid wasteful consumption of IPv4 addresses.
>>  
>> In doing so, this policy not only promotes efficient use of IPv4 space but
>> also strengthens the transition to IPv6 by encouraging ISPs to work closely
>> with their customers on deploying dual-stack environments, thus driving
>> greater IPv6 adoption. This policy balances the need for flexibility in
>> smaller allocations while preventing the complications that could arise from
>> direct ARIN allocations of smaller prefixes.
>>  
>> Timetable for implementation: Immediate
>> ---------------------------------------------------------------------------
>> ----------------------------------
>> _
>> Brian Jones
>> ARIN Advisory Council
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