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Description
DID Parameters
https://www.w3.org/TR/did-resolution/#did-parameters
A relative URI reference according to RFC3986 Section 4.2 that identifies a resource at a service endpoint, which is selected from a DID document by using the service parameter. If present, the associated value MUST be an ASCII string and MUST use percent-encoding for certain characters as specified in RFC3986 Section 2.1.
The above requirement doesn't specify a specific character encoding to be used when percent-encoding URI-disallowed characters. Specifying that UTF-8 must be used would help interoperability. If the goal is to allow any octets to be transmitted, this should be made clear.
Note that the text does not say what the "certain characters" are. 3986 2.1 only specifies the percent-encoding mechanism, not what the characters are. A casual reader might assume that only ASCII characters are permitted, with the percent encoding reserved for problem characters like = that are also ASCII.
Note
An example later in the spec shows a relative reference that includes text that non-English users might reasonably
expect to include non-ASCII data.
https://www.w3.org/TR/did-resolution/#example-5
did:example:1234?service=files&relativeRef=%2Fmyresume%2Fdoc%3Fversion%3Dlatest
... wheremyresume,doc,version, andlatestpath elements might very reasonably use localized representations