This decision hurts the consumer/registrant in the end, making future registrations and renewal costs less accessible to a lot of markets.
For clarity, this $8.39 amount will become the wholesale cost to the registrar — we of course need to markup on top of that to cover our processing costs, overhead to offer great support, mitigate abuse, etc. Registrars do the heavy lifting in delivering the core user experience — we see none of this margin and the consumer does not see any incremental value from this hike by the registry.
Namecheap stands against removing price caps and allowing these incremental price hikes that only hurt the consumer.
-Ted from Namecheap