I support Draft Policy ARIN-2019-2. IMO limiting waiting list recipients to a 
/22 is a reasonable approach that somewhat reduces the gains for fraudulent 
activity, and ensures that ARIN can serve more legitimate requests for each 
block it reclaims/receives. Organizations needing more than a /22 should be 
getting it from the transfer market anyway, so I don’t see much downside to 
such a restriction on waiting list allocations. 

Scott

> On Feb 26, 2019, at 9:49 AM, ARIN <[email protected]> wrote:
> 
> On 21 February 2019, the ARIN Advisory Council (AC) accepted "ARIN-prop-261: 
> Waiting List Block Size Restriction" as a Draft Policy.
> 
> Draft Policy ARIN-2019-2 is below and can be found at:
> https://www.arin.net/policy/proposals/2019_2.html
> 
> You are encouraged to discuss all Draft Policies on PPML. The AC will 
> evaluate the discussion in order 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/policy/pdp.html
> 
> Draft Policies and Proposals under discussion can be found at:
> https://www.arin.net/policy/proposals/index.html
> 
> Regards,
> 
> Sean Hopkins
> Policy Analyst
> American Registry for Internet Numbers (ARIN)
> 
> 
> 
> Draft Policy ARIN-2019-2: Waiting List Block Size Restriction
> 
> Problem Statement:
> 
> A substantial amount of misuse of the waiting list is suspected by ARIN 
> staff. 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. Most of these cases involve larger-sized 
> blocks, and many involve organizations that already have large IPv4 holdings. 
> Some organizations engage in this practice multiple times, rejoining the 
> waiting list shortly after transferring out blocks previously received on the 
> waiting list. There are even cases of multiple startup organizations 
> requesting approval to be placed on the waiting list where these 
> organizations' requests can all be tracked originating from the same IP 
> address. While it is possible that some of these cases are legitimate, and 
> while it is difficult for ARIN to prove fraud in most individual cases, the 
> large number of cases like these indicates a high likelihood that there is 
> significant misuse of the waiting list. Specifically, some organizations are 
> likely being dishonest in projecting their need for IPv4 space with the 
> intent of receiving blocks off the waiting list so that they can sell them 
> one year after receiving them. In the case of multiple startups, some 
> organizations that receive blocks on the waiting list subsequently perform a 
> 8.2 merger/acquisition, allowing them to sell the blocks even before the one 
> year waiting period.
> 
> The problem is serious enough that the ARIN Board of Trustees has suspended 
> issuance of number resources while a solution to this problem is found, and 
> it is unfair to organizations with legitimate need on the waiting list that 
> they are being crowded out and delayed by those looking to game the system.
> 
> Policy Statement:
> 
> Actual Text:
> 
> 4.1.8. Unmet requests
> 
> In the event that ARIN does not have a contiguous block of addresses of 
> sufficient size to fulfill a qualified request, ARIN will provide the 
> requesting organization with the option to specify the smallest block size 
> they'd be willing to accept, equal to or larger than the applicable minimum 
> size specified elsewhere in ARIN policy. If such a smaller block is 
> available, ARIN will fulfill the request with the largest single block 
> available that fulfills the request. If no such block is available, 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 and the 
> smallest block size acceptable.
> 
> New Text:
> 
> 4.1.8. Unmet requests
> 
> In the event that ARIN does not have a contiguous block of addresses of 
> sufficient size to fulfill a qualified request, ARIN will provide the 
> requesting organization with the option to specify the smallest block size 
> they'd be willing to accept, equal to or larger than the applicable minimum 
> size specified elsewhere in ARIN policy. If such a smaller block is 
> available, ARIN will fulfill the request with the largest single block 
> available that fulfills the request. If no such block is available, 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.
> 
> Comments:
> 
> Timeframe for Implementation: Immediate
> 
> Anything Else: By limiting the maximum block size for waiting list recipients 
> to a /22, the financial incentive to misuse the waiting list to receive 
> blocks with the intent to sell them will be drastically reduced. The majority 
> of waiting list requests are for smaller block sizes, and these requests will 
> be more readily met as the abusers will no longer be crowding out the 
> legitimate organizations with need. The original intent of the waiting list 
> to help smaller organizations and new entrants will be realized. RIPE, APNIC 
> and LACNIC do not have waiting lists, but they each have an emergency pool 
> geared toward new recipients with a /22 limit which has largely curtailed 
> abuse. Organizations that genuinely qualify for larger blocks can still 
> obtain these in the marketplace through 8.3 transfers.
> _______________________________________________
> ARIN-PPML
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