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Marsh and I were discussing the need to file a technical brief with ICANN about our use of .onion. He suggests the root probably also sees queries for .onion hostnames, so they should most certainly not sell this tld to anyone as it would seriously harm our users (who are probably misconfigured).

In an ideal world, we'd acquire .onion and use it for a PET name system but at the very least, we should show that it could harm us if someone else uses it without taking these issues into account.