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Not exactly. There are already IDN TLDs in existence. More specifically, the "." is still a separator. Any component of the domain name can independently have

by squeed 15y ago

Not exactly. There are already IDN TLDs in existence. More specifically, the "." is still a separator. Any component of the domain name can independently have xn-- and it will be interpreted as Punycode. Today you could register ujjvala.السعودية and it would be completely valid.