X is gearing up to monetize its dormant usernames by auctioning them off to Verified Organizations, a move that could generate a significant new revenue stream for the platform. According to recent changes spotted in X's web application, the company is setting up a "handle inquiry" process that will allow companies and organizations with a $1,000 per month X subscription to bid on abandoned X handles.

The bidding process, which is not yet live to the public, will start at $10,000 and may range up to over $500,000, according to an FAQ discovered in the web app. The updates were first spotted by reverse engineer Nima Owji, who told TechCrunch that he saw the changes to the web app go live on Wednesday.

This is not the first time X has considered selling off dormant usernames. In January 2023, The New York Times reported that the company, then still called Twitter, was considering setting up an online auction process for bidding on handles. Elon Musk, who has been a long-time proponent of freeing up X's namespace for active users, has already purged a number of inactive accounts on the service back in May 2023.

In November 2023, Forbes reported that X was actively soliciting buyers who may be interested in acquiring unused handles, but a formal announcement was not made. X's documentation on inactive accounts states that the company "cannot release inactive usernames at this time," although there have been some reports of people buying usernames on X outside of an official process.

By allowing companies to officially buy their desired usernames, X could generate another revenue stream outside of subscriptions, ads, and developer access. The move could also encourage other X users to keep posting if they don't want their handle to become dormant and then go up for sale.

The FAQ details the answers to a handful of common questions X users may have about the process, including how to start a handle inquiry, what the sales process is like, and how the transfer will work. Interested users will work with an automated support bot to start an inquiry about a username they want to purchase, and X will respond if the handle is available within three business days. After the handle is purchased, it will be transferred to the new owner within one or two days, or it can be moved to another account the business already owns, the FAQ states.

Discounts may also be available for those purchasing multiple handles at once, depending on the number and size of the quote, the website notes. X was asked for comment on its plans around handles but did not respond.

The move could have significant implications for X's revenue and user engagement. By monetizing dormant usernames, X can tap into a new revenue stream that could help offset declining ad revenue. Additionally, the threat of having their handle sold off could encourage users to remain active on the platform, which could help boost user engagement and retention.

It remains to be seen how X's users will react to the new policy, but one thing is clear: X is serious about finding new ways to generate revenue and stay competitive in the social media landscape.