Name auction mechanism
Creating a new ticket to keep track of the discussions around how to effectively implement a name auction mechanism when a domain name is 1) registered, 2) up for renewal & 3) forced to go into auction phase (by a third party).
At the current stage we are adapting a version of auctions modeled after a Harberger tax system, whereby an auction is triggered for a domain name at the point of renewal or one year from the last renewal period. The winning bid will own the domain name with the bid amount being sent to the current owner. Subsequent domain name renewal price every year will be X% of the winning bid. We are proposing to keep this annual renewal rate to 10% of the last bid amount but this variable might change. To be clear, the current prevailing thought of implementing such a system is to ensure names are not subject to massive first-day-of-registration speculation/squatting.
Another important point to take note of would be to list down clearly the various scenarios in which an auction can be triggered, and more importantly the various notification methods which the domain owner will be communicated to so that they can respond in time.