So basically this will be a Name Squatting Battlefield Paradise (NSBP).
Because either you get outbid by someone else and thus win some small profit, or you win the bid and plan to make a even greater profit by reselling it.
Your only hope as a developer is that the squatters will fight each other so much that it won't be profitable for the last one, or that it will be expansive to squat a lot of domain names.
My prediction is that it will be a big bubble rush and then people will end up with names that they don't even use.
I agree with you about the rush at the start. I think you will see names "bubble up" and then bounce around their perceived market price until someone who can actually make use of that name at that price comes along and snatch it up. The hope is that squatters and ninjas (grabbing expired domains) are faced with a high, concrete opportunity cost.
Question 1 : How will you redistribute the paid money to the network, is it by destroying the coins ?
Correct. The DAC's unit of account is one BIP, or one billionth of the total share supply. So the share supply would be constantly decreasing while your functional balance would be constantly increasing.
Question 2 : Will you register a TLD (Top level domain) so that people just have to type the address in their browser ? Because otherwise it's prone to failure ! Unfortunately a TLD is quite expansive and is regulated.
No, we will bypass the existing system entirely. Adoption phases are roughly: manual configuration, friendly browser extension (some 3rd party "killer app"), native browser support.
Great questions, thanks for your post.