Could just move to support resolution of https://handshake.org/ domains, you can buy one on https://www.namebase.io/ or even on namecheap if you are ok with an extension they own (namebase by contrast lets you get your own extension).
There are already systems to prevent squatting (automatic Vickrey auction for new registrations, etc.) and these work well enough. The NIP-05 system would remain the same, still pop a json same place, just allow for resolution of handshake. So it wouldn't break the design of the current NIP-05 system.
As for bitcoin there are some that at first glance seem to be like what you mean, like https://www.namecoin.org/dot-bit/ , but these actually are forks of bitcoin and don't require any bitcoin ownership, so it's the same concept as handshake more or less (another chain), but handshake is the one with traction and ease.
yea, i overall like the approach of running a naming system parallel to NIP-05 versus a replacement. let people choose what they want.
i worry about the HNS airdrop schemes and an alternative proof of work network. i also don’t know how you run auctions without a centralized order book. does this mean a centralized issuers is required?
Also handshake for relays. The .lol domain is owned by GoDaddy (they paid for the rights to administer it). If GoDaddy decides that the nos.lol relay can't control the worst kinds of spam they can terminate the agreement for nos.lol. That relay is like a load-bearing pillar for Nostr at the moment, and that termination could happen any morning.
