At least I learned my lesson not to pay in advance to service providers of that kind. Since I do not expect getting anything back, drawing the line now, I have payed them $30 / year on average for a simple .COM domain. Pretty sure I am not the only one so that also explain how they were able to give domains for $5 or even for free to others.
These guys tried really hard to disrupt the domain business, even if they didn't always succeed perfectly. They made mistakes, but this kind of thing is how growth happens for entrepreneurs. I wish them good luck.