.io Domains Could be Retired in the Next Five Years: Should Startups Be Worried?

Last week, the UK government announced that it was handing over control of the Chagos Islands to Mauritius.

While it’s an important geopolitical move, the tech world has been focused on one thing—the fate of the .io domain. For years, .io has been synonymous with tech startups and developers, but its roots lie in the British Indian Ocean Territory.

With the UK stepping back, it raises a serious question: Is the .io domain on its way out?

A Look Back: When Domain Extensions Disappear

This isn’t the first time we’ve seen a country code domain vanish.

The .su domain, tied to the Soviet Union, and .yu, associated with Yugoslavia, both disappeared with the collapse of those regions. The difference, though, is that .io has serious value in today's tech landscape.

Companies like GitHub use it, and it's widely adopted across the tech startup world.

There’s a good argument that ICANN, the body in charge of domain names, might be hesitant to let it go because—let’s be honest—.io domains are big business. The Soviet Union and Yugoslavia domains didn’t have anywhere near the same commercial appeal, which makes this situation different.

What Happens After the Transfer?

It’s possible that Mauritius might keep the .io domain running to generate revenue.

If you look at the example of the .tv domain, tied to the tiny island nation of Tuvalu, it makes up a significant portion of their GDP. Mauritius could very well see the .io domain as a cash cow, a way to bring in income after the territory transfer.

That said, domain squatters are likely already on the move, snapping up any available .io domains they think might become valuable. It’s a short-term game, but worth keeping an eye on.

Should Startups Be Worried?

There’s no immediate cause for panic, but it’s a good idea for startups to plan ahead.

Domains are a huge part of a company's identity, and while it's still possible to use .io for now, it might be worth exploring alternatives. The truth is, there’s too much money involved to make this a straightforward case of retirement. But, if the UK stepping away means .io eventually becomes obsolete, companies that rely on the domain will need to make moves sooner rather than later.

In the end, it’s a reminder that even the most popular tech tools and trends are at the mercy of politics and geography.

The internet is global, but domain names are still tied to specific places, and changes in control can ripple across industries. The .io saga is far from over, but it’s clear that startups should start thinking about life after .io—just in case.