I cant get my head arround the economics of domain auction proposed in the video. Why should anybody not actually winning the auction get half of profits? Why this is applicable only to the second highest bid? At least I see the following problem:

I can always use two different identities to make two subsequent highest bids: for example 1000 and 1001 immediately one after another. If 1001 wins I will get the domain for half of that price. If not somebody else will win it doing 1002 and 1003 effectively eliminating true second highest bidder.

Intuitively I don't think this gives any good incentives. In auction we only want bidders who actually want to buy the domain, not profit seeking bidders-speculators, so shareholder could get more profit from true market auction:

If the highest bidder for "domain.bit" is willing to pay maximum 1000 because of his economic calculation and the market for this domain is dense, then the final price will be near this price, so we don't need to pay any bidder to speculate the price higher.

Do we have any real world example of proposed type of "sponsored" auction anyway?