can domainshares take advantage of prediction markets to punish squatters?

[bytemaster]

Someone who wants to register a domain name gives up squatting rights on all other names and other players have financial incentive to bid up the name at auction. 

I think it would be very rare for a single name to out perform the whole network.

[toast]

to register a domain your domain's "worth" has to beat a certain growth curve up to a certain point (simplest case: if your domain does not trade at X at time T you lose your collateral)

you would not expect google to trade at a high price unless google comes in to actually buy it up and then you can expect it to trade at a very high price. so lots of space for shorts to push the price down to 0 (de-register the domain) unless the market decides *this* is the T time units in which google will want to buy rights to the name

so the squatter problem is replaced with a more sophisticated domain registration ninja-ing