Domain names have been a quiet but profitable area of the internet for many years. Astute investors purchased short, memorable domains, such as hotels.net or cars.com, and sold them for six or seven figures. However, the domain game is now changing as Web3 gains popularity. These days, it’s more than just buying and selling names; it’s about generating revenue through ownership in previously unattainable ways.
Welcome to the world of user-owned digital real estate, or decentralized Web3.0 domains, which are revolutionizing online identity, accessibility, and revenue potential.
So, how precisely can Web3 domains generate revenue? And what distinguishes this opportunity from conventional domain investing? Let’s examine it more closely.
What Are Web3 Domains, Really?
Web3 domains are domain names that live on a blockchain instead of a centralized DNS system. That means no middlemen like GoDaddy, no renewal fees (in most cases), and no risk of seizure or censorship.
They usually come with unique extensions like:
- .eth (Ethereum Name Service)
- .crypto, .nft, .x (Unstoppable Domains)
- .bit (Namecoin)
- custom TLDs on platforms like Handshake
But the real kicker? These domains often act as more than just website addresses. They can also serve as wallet identifiers, logins for dApps, and digital identities across the Web3 ecosystem.
And here’s where the money-making potential kicks in.
1. Reselling Valuable Web3 Domains
Just like with traditional domains, the most obvious way to earn is through buying low and selling high.
People are already flipping domains like:
- “defi.eth”
- “music.crypto”
- “vr.nft”
As demand rises, early adopters are snatching up short, brandable names and reselling them for hundreds or thousands of dollars. Web3 domains can be freely listed and traded on marketplaces such as OpenSea, Unstoppable Domains, and ENS’s native auctions.
The benefit? Many of these domains have no annual renewal fees, so holding costs are almost zero.
2. Earning Royalties with Your Own TLD
Web3 really steps up the income game at this point. Some ecosystems allow users to create and own their own top-level domain (TLD), such as Handshake or more recent decentralized naming protocols. Consider “.game,” “.dao,” or “.dancer.”
Once you have a TLD, you can allow other people to register subdomains under it and get paid royalties or registration fees each time. It’s similar to owning the land as opposed to just the house.
For example:
- You own “.verse”
- A musician registers “sound.verse”
- A DAO launches “members.verse”
- You earn a portion of each sale — automatically, through smart contracts
It’s passive, scalable income. And in a growing Web3 world, demand is only increasing.
3. Leasing Web3 Domains
Don’t want to part with your finest domain? You are not required to.
Some platforms are looking into domain leasing, which allows you to lease a Web3 domain to a startup, creator, or brand and still maintain ownership while receiving recurring payments.
Consider renting “crypto.store” to a new wallet provider or “music.eth” to a music NFT platform. Everyone benefits: they get the branding and traffic, you keep the asset.
4. Affiliate and Service Integration
Web3 domains aren’t just digital names — they can become active revenue channels. Here’s how:
- Use your domain to build a dApp, NFT gallery, or DeFi portal
- Integrate affiliate links for products or services
- Earn through on-site transactions, subscriptions, or ad placements
For example, some cryptocurrency influencers now showcase sponsors, host portfolios, and accept payments using domains like “mywallet.crypto”—all of which are connected to a decentralized identity.
Web3 domains are being used by industries such as the entertainment sector and Australia’s top online casinos to generate referral revenue and provide decentralized crypto-based gaming services.
5. Identity-Linked Monetization
As Web3 matures, domains tied to personal identity will grow in value. Think usernames that are also:
- Wallets
- Login credentials
- Reputation systems
If you own a popular name — like a celebrity alias or a common first name — that asset could one day carry value not just for branding, but for identity in the metaverse. Platforms may pay to license or verify those domains, or they might be essential for joining DAOs, games, or digital social spaces.
Closing Thoughts
Web3 domains are not just a fad in technology. They represent a fundamental shift in our understanding of the internet as a place to own and profit from, rather than merely a place to visit.
There is a lot of potential in this market, regardless of whether you are integrating monetized services, leasing domains, launching your own TLD, or flipping names. Meaningful, secure, and distinctive Web3 domains will only become more valuable as decentralization grows and more people connect to the internet.
Therefore, instead of just purchasing a domain, use it to create a revenue stream if you want to make a claim on the digital frontier.
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