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Does cancelling renewal of a domain now automatically pass ownership to the registrar, rather than make it available again?
No, they have to buy it, like everyone else (altough they may have a better rate)!
The domains are selected on previous performance and because most registrars are also the hosters, they have first hand information and while they register on behalf of the client, they know when it is abandoned and can then continue the domain without possible interference from others at the end date.
As long as people will pay extra for such domains, the practice will remain.
If you cancel a domain, cancel with no regrets, otherwise pay for it to keep. (Check also that the name is registered on you and not on the registrar.)
