Tutorial: How to tokenize your Domain using ENS app: https://www.loom.com/share/991b55eb55bc41c29210fa1e01b013ad

Domain names are native digital assets, comparable to real estate, that provide a unique online presence on the World Wide Web. Their only drawback is centralization. Fret not, because domains are also among the first non-crypto assets that can be tokenized on the blockchain. 

Tokenization is the process of converting both physical and digital assets into digital tokens, effectively transforming ownership rights into blockchain-based tokens. It represents a modern approach to financing through blockchain technology.

In the context of domains, tokenization is the process of minting an NFT on the blockchain that is connected to a specific traditional domain, effectively moving and reinforcing ownership rights on the blockchain.

If you own a traditional domain like .com, .io, .gg, .net, or .org, you can tokenize it and use it as a Web3 identity. By tokenizing your domain, you can associate it with an Ethereum Name Service (ENS) address, allowing you to receive crypto payments, simplify wallet addresses, and fully control your domain onchain.

Why Tokenize Your Domain?

Domain tokenization will unify digital identities across Web2 and Web3, creating a single, verifiable identity that represents a person, an asset, or a business website.

Amongst other benefits, this means you can add your crypto addresses to your .com domain to simplify sending and receiving crypto, eliminating the need for complex wallet addresses. 

• Full Ownership: Tokenizing your domain means you own it onchain as an NFT, reducing reliance on traditional registrars.
• Web3 Integration: A tokenized domain can be linked to crypto wallets, decentralized apps, and smart contracts.
• Easy Transfers & Trading: Since tokenized domains are NFTs, they can be easily bought, sold, or transferred on blockchain marketplaces.

Step-by-Step Guide to Tokenizing Your Domain

Tokenizing your domain is a simple three-step process that grants you full control, security, and Web3 functionality:

1. Enable DNSSEC
2. Add a TXT Record
3. Claim Your Tokenized Domain

Let’s dive in!

Step 1: Enable DNSSEC

Before you start, ensure you own the domain you want to tokenize.

1. Log in to your domain registrar (e.g., Namecheap, GoDaddy, Google Domains, etc.).
2. Locate your domain and go to Advanced DNS Settings.
3. Find the option to enable DNSSEC and activate it.

💡 Important: DNSSEC activation may take anywhere from a few minutes to 24 hours to propagate but generally speaking it’s usually around 30 minutes. If you don’t see it enabled right away, keep refreshing. But this doesn’t stop you from adding TXT Record in the next step!

Step 2: Add a TXT Record

Once DNSSEC is enabled:

• Navigate back to Advanced DNS Settings.
• Find the option to add a new record.
• Select TXT Record and fill in the fields:
  
  • Host/Name: _ens
  • Value: A=<your-wallet-address>
• Click Save and wait for the record to propagate (10–20 minutes).

Step 3: Claim Your Domain and Mint Onchain

Once your TXT record is verified, follow these steps to complete the process:

1. Go to the ENS app and type the domain you’re tokenizing
2. Choose whether you want to tokenize it onchain or import it offchain
3. If enough time has passed since you updated your DNSSEC and TXT record, you will see a claiming window.
4. Click Claim to start the minting process.
5. Open your wallet and approve the transaction fee.
6. Wait for the transaction to be confirmed.

After the transaction is completed, your domain will be successfully tokenized. 

🔹 If you’re tokenizing on behalf of someone else, you can enter their wallet address instead in the TXT record. However, it’s best to use the same wallet that’s connected to the ENS manager app for a smooth process.

Onchain vs. Offchain ENS Names

ENS names can exist either on-chain or off-chain, each serving different purposes:

• Onchain ENS Names: These names are fully recorded on the Ethereum blockchain. They provide decentralized, trustless ownership and can be used across dApps and wallets. However, registering and updating onchain ENS names requires gas fees.
• Offchain ENS Names: These names are managed outside the Ethereum blockchain, typically stored in a centralized or Layer 2 solution. Offchain ENS names can be more cost-effective, as they avoid gas fees, and they are useful for organizations issuing subdomains at scale. 

What can you do with your tokenized domain?

Once tokenized, your domain is a fully functional Web3 identity. 

• Use it as a crypto wallet address: Send and receive funds using your domain instead of a long Ethereum address.
• Set it as your ENS name: Associate it with your blockchain identity.
• Customize it: Add an avatar, update social records, and integrate with dApps.
• Trade or transfer it: Your tokenized domain is an NFT, making it easy to sell or gift.
• Issue Subnames: Launch your ENS Subname minting page in minutes to activate, engage, and reward your community.

Tokenize your domain and get your community involved 

Whether you want to engage your community, monetize your ENS, or simplify subname distribution, Namespace Subpage provides a turnkey solution to activate, reward, and connect with your audience.

If you’re looking to create a Subpage for yourself or your brand (whether it’s a community, DAO, group, or users), you can easily do so using our Subpage Template. The template includes a built-in Subname minting feature. If you have any questions or need assistance while building your page, feel free to join our Builder Chat.

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