In more detail
münchen.de is stored as xn--mnchen-3ya.de. Lookalike characters from other scripts can be used to imitate a real domain, so a suspicious link whose hostname starts with xn-- deserves a decoding check.
Punycode is the encoding that lets domain names with non-ASCII characters be stored in the ASCII-only DNS, marked by the prefix `xn--`.
Last reviewed:
münchen.de is stored as xn--mnchen-3ya.de. Lookalike characters from other scripts can be used to imitate a real domain, so a suspicious link whose hostname starts with xn-- deserves a decoding check.