Hi I like the idea of BitsharesDNS a lot. These new Dacs really make me realise the value of still sending in funds to AGS.
Apologies for the long post, (it's predicated on the idea that once you own a domain you could just sell the private key to someone else without the BitsharesDNS network benefitting from the future value of the domain, if this is wrong ignore below.)
BitsharesDNS seems to only solve 1/2 the problem. Problem:
Not all pieces of land are worth the same.Solution:
Auction the pieces of land so that they achieve closer to their current market value.
However another real problem is...Problem:
Pieces of land are worth vastly different prices at different times. Example:
If BItsharesDNS becomes popular then the network would have been vastly underpaid for the domains, if BitsharesDNS fails, then the network would have been vastly overpaid for those domains.
(Edit: Also once most of the valuable land has been sold off where is the future value for BitsharesDNS holders? Won't the current model decrease it's value over time, once most of the desirable land has been sold?) Solution:
Some form of leasing.
The Native Indians for example sold Manhatten for roughly $24. That was probably more than they got for other parcels of land but still vastly undervalued relative to Manhatten's future value. Currently BitsharesDNS seems to make shareholders Native Indians?
Contrast this for example to the third richest British man, he is the 6th Duke of Westminster, worth $8 billion. http://en.wikipedia.org/wiki/Gerald_Grosvenor,_6th_Duke_of_WestminsterHow?
He owns 300 acres of Mayfair and Belgravia (The priciest areas in London) People can still buy and sell properties, but he owns the freehold so they pay a small annual ground rent to him. (The next richest landowner in the London is the Royal family.)
So I think the key to maintianing the value of Bitshares DNS is to create a fair lease system of some sort. This may negatively impact the sale prices in the beginning as the market will adjust to the additional cost but it will ensure the long term success of BitsharesDNS holders (The Royals and Dukes etc. have maintained their wealth over 100's of years by owning the freehold of underlying lands.) Possible solution:
Every two years for example, each domain is automatically auctioned again. The current owner has 30 days in which he has the option to either sell the domain to the winning bidder or keep his domain for another 2 years by paying 1% of the winning bids price. (1/2 of it may go to final bidder and 1/2 to the network, maybe even a bit to a maintenance and development fund. Thus ensuring BitsharesDNS has long term value and can extract a little bit of value from Domains that go on to be very succesful.)