ICANN has put the final nail in the coffin of domain tasting by imposing limits on the number of domains registrars can return within the five-day grace period.
Registrars will only be able to return ten percent of registered domains or fifty, whichever is greater, per month within the five day grace period for a full refund. A registrar purchasing 1,000 domains at $6 a piece, then, would only be allowed to return 100 of them in a month and would receive a maximum $600 refund. 
Earlier this year, ICANN imposed a 20-cent transaction fee for returned domains to curb the practice of domain speculators registering mass numbers of domains and “tasting” them for four days to see if they would turn a profit from advertising clicks. If not, the domains were returned on day five for a full refund.
Gaming the system like this caused a large number of domains to be unavailable in perpetuity and deprived ICANN of registration fees. If ICANN is anything, it’s thorough, public, deliberate, and slow. Public debates/inquiries about the subject were held a year ago, first resulting in the transaction fee this summer, and now limits on registrar refunds.
Registrars will be expected to be in compliance with the new policy by the end of March 2009, and are offered a special exemption process if they exceed the limits. ICANN will review the exemption applications and judge accordingly whether the registrar will be refunded beyond the 10 percent.
