There is no merit to this proposal because there are no impacts on technical stability of the net.
This issue is purely one of economic and business regulation.There is no issue here that relates to the technical stability of the internet as measured in terms of the ability of the upper layers of DNS to quickly, efficiently, and accurately transform DNS query packets into DNS reply packets without prejudice against any query source or query name.
In other words, what is being discussed here is an imposition on the marketplace of domain names for no purpose other than manipulation of that marketplace.
There is no technical reason why ICANN should have any policy on this matter.
For ICANN to impose regulation in this area would be for ICANN, once agin, to engage in social and economic regulation that is not warranted by any risk to the technical infrastructure of the net and DNS.
We all know that Overstock will turn heaven and earth to buy "o.com" for whatever price is asked.
The only question is what should Verisign, the .com registry, do with the proceeds?
Should the registry be allowed to retain those proceeds as a windfall profit?
Or should the registry be required to use those proceeds to buy down the outrageous, fiat $7+ registry fee (using .com as an example of registry fees) and thus spreading the benefit to all registrants?
The latter approach is more in keeping with the original idea that registries were to be largely nothing more than a cost+ service provider.
--karl-- Karl Auerbach Former, and only, publicly elected ICANN Director for North America