its 3 days old news already
and this is from icanns website
Quote:
ICM Registry sTLD Application
Whereas, on 1 June 2005, the ICANN Board authorized the President and General Counsel to enter into negotiations with ICM Registry LLC relating to proposed commercial and technical terms for the .XXX sponsored top-level domain.
Whereas, on 9 August 2005, the proposed .XXX sponsored TLD registry agreement was posted on the ICANN website <http://www.icann.org/tlds/agreements/xxx/proposed-xxx-agmt-09aug05.pdf> and submitted to the ICANN Board for approval.
Whereas, on 15 September 2005, the ICANN Board directed staff to discuss possible additional contractual provisions or modifications for inclusion in the .XXX Registry Agreement, to ensure that there are effective provisions requiring development and implementation of policies consistent with the principles in the ICM application, and to return to the board for additional approval, disapproval or advice.
Whereas, discussions between ICANN and ICM Registry have continued, and additional public input has been received concerning the terms of the proposed sTLD agreement.
Whereas, on 30 March 2006, ICANN's Governmental Advisory Committee issued a communiqué identifying public policy issues relating to the ICM Registry application <http://gac.icann.org/web/communiques/gac24com.pdf>.
Resolved (06.12), the President and the General Counsel are directed to analyze all publicly received inputs, to continue negotiations with ICM Registry, and to return to the Board with any recommendations regarding amendments to the proposed sTLD registry agreement, particularly to ensure that the TLD sponsor will have in place adequate mechanisms to address any potential registrant violations of the sponsor's policies.
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from ^
http://icann.org/minutes/resolutions-31mar06.html
so its not completely dead, but its good to see its being heavily opposed, not only by the adult industry ;)
http://gac.icann.org/web/communiques/gac24com.pdf