There are already projects like Handshake, ENS, Unstoppable domains that try to do this. Honestly I like the need for renewal fees for domains personally, since it means you can't just buy a domain once and squat on it forever.
> Handshake appears to burn the money paid. So that's fine.
That's not necessarily fine if the fee is in custom tokens. By burning they are just reducing supply, locking in the amount paid and increasing the value of their huge holding. It's pretty terrible.
Well true, I don't know what a good way to deal with this would be, blockchain based solutions also suffer from same problem, where early adopters squat on domains and offer to sell them for 10000x markup