The problem of allocating scarce resources is hardly unique to domain names. Here are some ways of doing it: - Let the market set the price. - Recurring fee f

The problem of allocating scarce resources is hardly unique to domain names. Here are some ways of doing it: - Let the market set the price. - Recurring fee for holding it to discourage unproductive speculation. - An authority decides who deserves it and gives and takes according to their rules. The 3rd option is particularly nasty. Usually, it's very hard and is what communists hope to do on a broader scale. It would certainly result in seizures whenever the authority decided somebody isn't fully utilizing their domain name. Maybe you spent too long setting up your business and right before launch, you get branded a squatter and your domain is taken after you've already used it in all your marketing material, registered a corresponding trademark, and everything. You might imagine the authority would be fair and not kick out a genuine owner like that, but it's unlikely to have the resources or incentive to investigate every case properly.