I have always thought nip 05 would be better if you just put npubs in txt records.

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Yup. Already thinking about that with service record.

RFC 2782 (1999) — SRV Records

• Defines the format _service._proto.name.

• Example: _sip._tcp.example.com points to the host/port handling SIP over TCP.

• This is the canonical RFC that legitimized underscores in DNS labels for service discovery.