3. The upkeep of the BitDNS network should be paid for either by every domain name owner paying a sort of rent to miners that produce BitDNS blocks, or through DNS transaction fees. Whenever a BitDNS transaction occurs, the recipient will be required to supply a Bitcoin address. Each miner on the BitDNS network will set a block solving fee they feel comfortable with. When a miner works on solving a BitDNS block, he will check the main bitcoin network to verify that domain owners have paid sufficient rent or transaction fees to miners of previous blocks. Any domains that have not paid, the miner will be entitled to make themselves owners of it.
Rents should be due at specific bitcoin block #s so that any temporary forks on the bitcoin chain won't result in permanent forks on the BitDNS chain. Once all miners see the same rent payment / non-payment at the said bitcoin block #, the fork will heal by global acceptance or rejection of the take-over block. Might even want to have a "look-back" of a few hours in the bitcoin chain to eliminate this source of instability.