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> The much simpler way to avoid squatting is to make .com domains cost $200 a year

A monopolist hiking prices to this extent will likely see legal action against them. That's a 20x increase you're proposing.

It's also unlikely to have a material effect. .com used to cost $75 a year back in the day, and that didn't stop squatters, and high value domain transfer sales. $75 in 1990s dollars is about $150-$190 today.

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How does this lend itself to self-hosting then? I think few people will pay that much to self host.
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I don't get it. How do you handle 10k people wanting, say, garden.com, without a free market?
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the most fair distribution for limited sought-after resources that are inconsequential (like domain names) are raffles. let people apply in a 4-week window and then randomly assign it to one of the applicants.

then don't allow reselling, just allow giving it back and do a raffle again

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how about make it round-robin, so all 10k of them get a fair slice of traffic? ;)
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first served or random from a waitlist are other options.
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