I don't think you need a $500 buy in. Most register for less than a dollar, so maybe a fee in the $20-50 range? You won't discourage everyone but the number o

I don't think you need a $500 buy in. Most register for less than a dollar, so maybe a fee in the $20-50 range? You won't discourage everyone but the number of domains squatted will be a fraction of the current number (something like 80% of the new TLD domains registered are for squatting) The amount people can pay to get a business domain off of a squatter won't increase (since this is all artificial anyway) but you cut into the profit margin of maintaining millions of registrations pretty quickly.