Sure it definitely cuts down on the abuse, but that isn’t good enough. I don’t 
think we should support a policy that cuts out “most” of the abuse. 

If there are other community members interested in co-authoring a policy for 
ARIN auctioning space, please give me a ping.

Best Regards,

Robert Clarke
CubeMotion LLC
[email protected]
M: +1 (844) 244-8140 ex. 512
300 Lenora Street #454, Seattle, WA, 98121

> On Mar 2, 2019, at 10:16 AM, [email protected] wrote:
> 
> This proposal is to lower the maximum to a /22.  I believe that this is 
> justified to make the waiting list process serve mainly smaller players. 
> While the /22 size will still allow abuse, it clearly does make it harder on 
> the abusers versus the current policy.  Changing the waiting list process to 
> an auction process is something that I think will require drafting a 
> different Draft Policy, and may have to address many other related matters 
> that have been discussed.
> 
> When a Draft Policy to auction the waiting list space is proposed and appears 
> on the list, I will likely support it.  However it is much out of scope for 
> this Draft Policy, whose main feature is to make the maximum waiting list 
> block size a /22.
> 
> If you think an auction is best, draft a policy and lets see how that idea is 
> accepted.
> 
> Albert Erdmann
> Network Administrator
> Paradise On Line Inc.
> 
> On Sat, 2 Mar 2019, Robert Clarke wrote:
> 
>> Hi Albert,
>> 
>> As has been discussed previously in this thread, /22 requests still leave a 
>> serious disincentive problem on the table which is counter-productive in the 
>> community. Bad actors are incentivized to create multiple shell companies to 
>> hoard space. In my opinion we should work to come up with an alternative 
>> solution that puts the incentives back in alignment such as allowing ARIN to 
>> auction off the space for market rates.
>> 
>> While ARIN hands out free money in the form of IPv4 under existing policies 
>> there will always be a problem with fraud in this community.
>> 
>> Best Regards,
>> 
>> Robert Clarke
>> CubeMotion LLC
>> [email protected]
>> M: +1 (844) 244-8140 ex. 512
>> 300 Lenora Street #454, Seattle, WA, 98121
>> 
>>> On Mar 2, 2019, at 9:27 AM, [email protected] wrote:
>>> 
>>> I think that changing the waiting list limit to a /22 has merit, even when 
>>> NOT considering those gaming the system and support the proposal.
>>> 
>>> I think of the waiting list process is more for the benefit of the smaller 
>>> player, and making the limit a /22 is consistent with this.
>>> 
>>> Those that are larger and seeking larger blocks can more aptly afford to 
>>> hire a broker, or exert internal resources to finding IPv4 space.
>>> 
>>> I was looking thru the recent transaction list, and I can see that 
>>> people/brokers have been quite creative in finding space.  I found a couple 
>>> of instances of smaller colleges who received a class B who have decided to 
>>> sell off the top half of that space. Since they were likely already behind 
>>> NAT with the student network and may have never actually used that upper 
>>> block of numbers, this allows them to make some needed cash for other 
>>> needs.  Even some of the class A networks like the US Postal Service do not 
>>> seem to have exposed to the internet anything except the lowest ranges of 
>>> their allocation, and I guess once the "Price is Right" some of this space 
>>> may move as well.
>>> 
>>> Since it has been over 8 years since the official exhaust of IPv4 at the 
>>> meeting in Miami, I believe that new actors should be instead of using the 
>>> transfer list to get space should be using the IPv6 deployment block. Since 
>>> every major OS already has IPv6 support baked in for many years, those 
>>> setting up new are fools not to be using IPv6 as well. ARIN should do all 
>>> it can in its policies to promote IPv6.
>>> 
>>> Setting the waiting list to a /22 is a good start to eventually putting all 
>>> returns into the IPv6 deployment block.  I also think that the time is soon 
>>> near to REQUIRE the receiver of transfered IPv4 space to have IPv6 in place 
>>> as a condition of receiving space.
>>> 
>>> When we were talking about the use of passive theft detectors like at 
>>> supermarkets, I think ARIN has a very good one which is questioning why 
>>> those who just received numbers a year ago suddenly want to get rid of 
>>> them.  This is such an unusual condition and should automatically trigger a 
>>> number review.  As long as this is being done, we may not need to do these 
>>> other things to prevent abuse.
>>> 
>>> The market is still bringing out IPv4 numbers to their highest and best 
>>> use, but eventually this will not be enough.  Not starting to move toward 
>>> IPv6 is foolish in todays world, where most commercial circuits will 
>>> include it without extra charge, and the need for tunnel brokers have 
>>> therefore been greatly reduced.  I have been doing IPv6 for 12 years, due 
>>> to a 2008 US Federal Government requirement, and it really is not that 
>>> hard.  Even this mailing list is nearly always dispatched to me over IPv6 
>>> protocol without any issue.  Same with Gmail and other large email 
>>> providers.  I do think we are close to the tipping point for IPv6. After 
>>> that point, the value of IPv4 numbers will began to drop.
>>> 
>>> Albert Erdmann
>>> Network Administrator
>>> Paradise On Line Inc.
>>> 
>>> On Fri, 1 Mar 2019, Robert Clarke wrote:
>>> 
>>>> Hi Tom,
>>>> 
>>>> I agree with your point that the transfer market has been an excellent 
>>>> vehicle for moving space around the ARIN community. If people want to lose 
>>>> 15% of their money to a broker vs. finding a buyer themselves, that is up 
>>>> to them. I don’t think this constitutes bad behavior to any parties 
>>>> involved and I am definitely for brokerage services operating in the space.
>>>> 
>>>>> Furthermore, even within the waiting list, the problem appears with only 
>>>>> a small percentage of recipients (25 re-transfers out of 682 total), 
>>>>> although this does impact a high percentage of the waiting list block 
>>>>> space since the abusers are almost entirely doing this with larger blocks.
>>>> 
>>>> 
>>>>> Yes, it’s possible there is abuse with the small blocks off the waiting 
>>>>> list as well, but so far we aren’t seeing it (only 3% of smaller blocks 
>>>>> have been re-transferred vs. 42% of the larger blocks).  Now, perhaps if 
>>>>> we restrict the waiting list block size to a /22 these bad actors will 
>>>>> start playing the same game with /22s, but we don’t have any evidence 
>>>>> that will occur.
>>>> 
>>>> 
>>>> As I have mentioned on at least 2 occasions in the past few days; the 
>>>> re-transfers statistics are not an indication of the actual scale of the 
>>>> fraud problem we have here in the community. It is in ARIN’s policies that 
>>>> re-transfers are under careful supervision, and I’m sure any smart 
>>>> criminal wouldn’t think to transfer it out immediately but rather 
>>>> sub-lease the space in the meantime. Why are you clinging to the 
>>>> re-transfer stats and not acknowledging the basic misalignment of 
>>>> incentives with the current system?
>>>> 
>>>> Best Regards,
>>>> 
>>>> Robert Clarke
>>>> CubeMotion LLC
>>>> [email protected]
>>>> M: +1 (844) 244-8140 ex. 512
>>>> 300 Lenora Street #454, Seattle, WA, 98121
>>>> 
>>>>> On Mar 1, 2019, at 10:26 AM, Tom Fantacone <[email protected]> wrote:
>>>>> 
>>>>> Hi Bill,
>>>>> 
>>>>> At 06:35 PM 2/28/2019, William Herrin wrote:
>>>>>> On Tue, Feb 26, 2019 at 9:49 AM ARIN <[email protected]> wrote:
>>>>>>> A significant percentage of organizations that receive blocks
>>>>>>> from the waiting list subsequently issue these blocks to other
>>>>>>> organizations via 8.3 or 8.4 transfers shortly after the one year
>>>>>>> waiting period required before engaging in such outbound transfers.
>>>>>> 
>>>>>> I'm shocked to learn that people are playing arbitrage with the
>>>>>> transfer process. Oh wait, no I'm not. I may have even expressed my
>>>>>> expectation that we'd see this sort of behavior back when we debated
>>>>>> the transfer policies. If I had the time, I might dig out my old
>>>>>> emails just so I could say I told you so.
>>>>> 
>>>>> While we have a problem with the waiting list that we’re trying to 
>>>>> address here, I think it's important to point out that the transfer 
>>>>> market as a whole has proven an excellent vehicle for moving number 
>>>>> resources from those who no longer need them to those who do.  This 
>>>>> “gaming of the system” is restricted to a subset of the waiting list, and 
>>>>> the number of blocks issued on the waiting list is less than 10% of the 
>>>>> blocks transferred in the ARIN region during the same time period.  (682 
>>>>> blocks have been issued via the waiting list, and a quick look at ARIN’s 
>>>>> transfer stats indicates roughly 8,000 blocks transferred in the same 
>>>>> time frame since 2015 if I’m reading it correctly).  If we look at the 
>>>>> ratio in terms of total address space, I suspect the waiting list 
>>>>> comprises an even smaller percentage, though I can’t readily find those 
>>>>> figures.
>>>>> 
>>>>> Furthermore, even within the waiting list, the problem appears with only 
>>>>> a small percentage of recipients (25 re-transfers out of 682 total), 
>>>>> although this does impact a high percentage of the waiting list block 
>>>>> space since the abusers are almost entirely doing this with larger blocks.
>>>>> 
>>>>> The point is that while “The problem statement is pretty damning
>>>>> ” (quoting Kevin Blumberg), the sky is not falling due to the transfer 
>>>>> markets.  It’s damning within the small subset of re-transfers of blocks 
>>>>> received off the waiting list.
>>>>> 
>>>>>>> the organization will be provided the option to be placed on
>>>>>>> a waiting list of pre-qualified recipients, listing both the block size
>>>>>>> qualified for or a /22, whichever is smaller, and the smallest block
>>>>>>> size acceptable, not to exceed a /22.
>>>>>> 
>>>>>> I fail to see how this solves the problem. For $20k a pop, I can clear
>>>>>> a tidy profit on a year, a shell company and some paperwork. Sure I'd
>>>>>> rather get $200k a pop but the change doesn't make the effort
>>>>>> unattractive. I really just need to create more shell companies.
>>>>>> 
>>>>>> This approach is reactive. Oh, the fraud is mostly on the big blocks
>>>>>> so stop that. Oh, now the fraud is on the smaller blocks, what do we
>>>>>> do? Don't react. Get ahead of the problem. That's what you do.
>>>>> 
>>>>> Yes, it’s possible there is abuse with the small blocks off the waiting 
>>>>> list as well, but so far we aren’t seeing it (only 3% of smaller blocks 
>>>>> have been re-transferred vs. 42% of the larger blocks).  Now, perhaps if 
>>>>> we restrict the waiting list block size to a /22 these bad actors will 
>>>>> start playing the same game with /22s, but we don’t have any evidence 
>>>>> that will occur.
>>>>> 
>>>>> Others have pointed out issues of abuse in RIPE where LIRs are spun up to 
>>>>> grab /22s from the final /8, but the 2 environments are different.  
>>>>> First, there is no justification requirement in RIPE.  Form a corp, have 
>>>>> a presence in the RIPE region, and you get a /22 whether you can justify 
>>>>> it or not.  That may not exactly be a noble action in support of the 
>>>>> spirit of the RIPE community, but for the most part, it is 
>>>>> policy-compliant.  In ARIN, you have to justify your need and sign an 
>>>>> affidavit affirming your justification which makes willful 
>>>>> misrepresentation fraudulent.   That’s a much higher disincentive to go 
>>>>> through for a /22 than in RIPE, where basically it’s just frowned upon.  
>>>>> And per John Curran’s remarks, ARIN has revoked address space when 
>>>>> investigating why some of these actors are selling their waiting list 
>>>>> space shortly after receiving it.  So these gamers could risk an audit of 
>>>>> their full address holdings in order to con ARIN out of a /22.  The 
>>>>> “abuse” in RIPE regarding the final /8 is also heavily concentrated in a 
>>>>> few member nations and, suffice it to say, those same nations are not 
>>>>> ARIN members.
>>>>> 
>>>>> Regards,
>>>>> 
>>>>> Tom
>>>>> 
>>>>> 
>>>>> _______________________________________________
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>>>> 
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