Selfhosted
A place to share alternatives to popular online services that can be self-hosted without giving up privacy or locking you into a service you don't control.
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I'm not an economics major, but maybe something like a blind auction every year, and if you owned the domain last year, you also have the option of matching the highest bidder to keep the domain.
The biggest flaw with a system like that is that it would still discourage trying to buy an already owned domain, since you could pay for it, but not actually get it if the owner exercises their matching right. But it would definitely discourage domain squatting since the more other people want your domain, the more you have to pay to keep it.
So your solution to capitalism running its dirty fingers into the domain name system is… enabling corporate style hostile domain takeovers? Good lord no.
This would turn the Internet into a hell scape if only because corporations could throw huge amounts of money around.
There would be incentive for the Pizza Huts and the Walmarts of the world to just assume control of the websites for any local competitors.
That sounds ripe for abuse. Say someone has a problem with me - if they wait long enough, they can now pay over the odds and effectively take over my website. Or get their friends to enter a bidding war and potentially cost me a lot of money.