This immediately stuck out to me as a really bad deal.
Rising with inflation, somewhere between 1 and 4% per year, would essentially keep prices stable. This is tricky when selling internationally, but roughly possible.
Rising by 10% each year is significantly faster than inflation, and would result in a $20 domain name doubling in price in 7 years, or 6x in 20 years.
This is the internet we're talking about, 20 year time horizons are important and yet still short sighted. In 100 years we're talking $275,000 rather than the $400 that inflation would get us to.
> Ethos has said that their plan is to "live within the spirit of historic practice,"
This is not what Private Equity does. It cuts costs and quality, raises prices, strips assets, and seeks to significantly increase profits. I think it's naive and short-sighted to take them at their word, as this article admits they are doing.