Canceling a domain name is a matter of setting it to not automatically renew, so that it expires on the expiration date.
To set a domain to not auto-renew, follow these steps:
1. Log in to the domain name area of your account here. (You will be prompted to log in if necessary.)
2. Click the "Manage Domain" button to the right of the domain you wish to cancel.
3. Click the "Auto Renew" tab and click the "Disable Auto Renew" button.
At this point you should see "Status: Disabled" in the Auto Renew tab, and the domain name will become inactive on the expiration date, unless manually renewed.