That’s closer to our initial model between 2017-2019 (but locking $ETH than $ENS). This didn’t prevent people from squatting tons of names they don’t use as there is no penalty doing so
And I think there is a penalty in having something staked (that can be very valuated) with limited use (in the case of $ENS, only the intended purpose of governance)…
but again you’re removing the penalty for squatters. they “pay” the first year, and then just squat for the rest of eternity on $5 worth of $ENS.