The domains are an interesting asset because the annual renewal fee.

If business A owns the domain and becomes insolvent, then dissolves, the registrant of the domain no longer exists and there is no longer a business bank account to pay the renewal. This likely leads to what you’ve described, the registrar or a domainer/squatter benefiting.

But you can at least buy the domain from the squatter afterwards, so the deadweight loss is limited. This is analogous to proposals for Harberger taxes on IP, or requiring copyright registration/fees for renewal after a few decades - if the rights are lost or so low value, then this elegantly restores it to the public domain, rather than locking it up for the next 100+ years.

I’m strongly against Harberger Taxes - I see them as an attack vector by market incumbents - but you just made them sound as non-objectionable as I’ve ever seen.

On the domain side I’d like to see a small extension of ICANN UDRP to cover trademark owners against unused/forwarded domains irrespective of the domain being registered prior to the trademark registration.