@Seneca has already found a decentralized solution to the squatting problem:
This system reduces incentives to squat a name because you are not sure to keep eternally the lead for a name. Your version of the name will lose its rank when someone pays a higher bid (either the legitimate owner of the associated brand name or another, more greedy, squatter).
As safecoins paid for increasing names rank are recycled, this system helps the network sustainability. I foresee fierce battles to get control of names like google, amazon, facebook, … They will be costly for the contenders, but healthy for the network.