One potential solution is capping how much you can sell a domain name for. That reduces the incentives for squatting. That might cause other problems though, li

One potential solution is capping how much you can sell a domain name for. That reduces the incentives for squatting. That might cause other problems though, like making it more difficult to acquire a domain that someone else is already using, even if you are willing to pay a lot for it (but maybe that is a good thing?). Something that might specifically help with squatters buying lapsed domains is making it significantly more expensive to purchase a domain for some period of time (say a year) after the domain expires if you aren't the original owner.