I've never seen a legit unicode domain personally, but, is this not compatible with whitelisting specific domains? (in pihole, anyways...)
You probably don't want to remove the dots on that one.
Similarly for a power company, http://xn--rsted-uua.dk, just a redirect, but they do use it on adverts and my electricity bill.
Some that don't redirect: http://xn--mgk--jra.dk/ https://www.xn---strm-uuae.dk/ https://xn--magnusbrth-85a.se/
(HN has converted the displayed URLs to Punycode, presumably as a quick security measure without reference to the reasonable characters for each TLD.)