Comment by prickledpear

This scheme has the advantage of it not mattering if something is active. Instead you pay fees based on what it's worth to you.

If someone is squatting on a high-value domain, they will have to pay high fees or sell the domain to someone who can make better use of it.

This prevents someone else from squatting on google-search.com and allows it to go to the highest value use -- protecting Google's brand.