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The duties of the new ICANN (NOVAM)
Here is the minimal set of duties the new ICANN (called NOVAM here) would perform, as overseer of the DNS root.
Approve new TLDs based on simple rules
The board would, by vote, approve a new TLD, certifying that:
Review complaints about TLD policy violations
Board members, with the assistance of staff, would review complaints that a TLD is violating the covenants it made. If it were decided that a TLD has broken the covenants and the situation can't be rectified after a period of notice, the board could vote to remove the TLD or transfer it to the highest bidder.
Provide funds for maintenance of root servers
The board would accept long-term bids for the operation of root servers, and maintain relationships with the operators of those servers and control over their TLD lists. It would provide funding for the operation as per the negotiated price.
Defend itself and its board members from attack
NOVAM would aggressively defend its status as independent from TLD owners, and argue it should not be a party to any legal actions arising from the actions of TLD owners or relating to domains within those TLDs.
Recognize the national TLDs
For legacy reasons, NOVAM would recognize the proper national authorities which should control a national TLD, and allow them control of it. In the event of a dispute which can't be resolved in the courts of the nation involved, the national TLD would be delisted, in favour of branded TLDs with a focus on the nation in question. No new national TLDS shall be created.
Deal with the legacy TLDs
How this is done is still a matter to be resolved. Ideally they should be deprecated and slowly vanish.