According to multiple reports, ICANN officials told people at a public meeting in Brussels that it intends to allow adult businesses to register .xxx domains, which have been the subject of controversy for several years. An ICANN attorney said that due diligence and contract negotiations must still be carried out; if those are successful, Internet porn could have its own distinct TLD.
The .xxx domain has been criticized by everyone from pornographers -- some of whom see the TLD as a form of digital segregation -- to conservative American activists, who would probably prefer a porn-free Internet altogether.
This development has been spearheaded by the ICM Registry, who could end up selling .xxx domains as soon as this year if ICANN negotiations go smoothly. ICM states on its website that the idea of the .xxx domain is that responsible pornographers will be able to self-identify and web users will more easily be able to identify adult content online.
There is no indication that the .xxx domain would be mandatory for all or any adult websites, however.
Here's a recent video interview about the domain and surrounding issues: