I dont know.  But I guess so you can sell subdomains?  Handshake does something similar.

There is a reasonable amount of trust in the system, I think.  But bitcoin provides a level playing field.

We need something for nostr.  I was happy to go with nomen, it seems no longer active.

I what might be best is to use runes for names, it's at 12 characters now, and reduces every 4 months.  It has a big eco system and is widely publicized as a level playing field.  But you really want it down to 8 characters for a TLD.  Which is another 16 months away.

https://m.primal.net/KEhA.png 

Also take a look at:

https://en.wikipedia.org/wiki/Resource-oriented_computing