There are also protective mechanisms to prevent your domain from expiring. You can pay a balance in advance. Pay for "renewal insurance", etc. As more people use the system, it will grow even more safety rails.
Replace 'domain' with 'identity' and you have a very scary proposition. This is just another form of 'code is law' and doomed for all the same reasons. Bugs and exploits become severe threats to your wealth and well being. As much as we hate to depend on institutions and 'other people', depending on computers program is inherently worse.
This problem isn't new at all.
Would you rather have a situation of ownership with responsibility or no ownership at all?
You're in trouble if you forget to renew your domain.
And you're in much bigger trouble if your identity is tied to ownership of that domain.
Where I live domain contracts auto-renew. And have reclaim processes.
The Doctor's advice I don't get the reference¹, but for deprecating a device this could be a concern if your phone or similar device suddenly stops working² and that is required to prove who you are.
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[1] perhaps searching for some officially, erm, unsupported medication resulting in getting blocked by a service that list closely enough linked to an identity provider that the ID account is locked also? — seems a stretch
[2] or is lost/stolen – a potential problem with any physical security token or virtual token if you only have it associated with a single device
Or there is this munich company whose employee visited it's parents and immediately the company github account got locked. Parents happened to live in Iran.
The tip of the iceberg, however.
It’s not like ICANN is guaranteed to not kick you out for “hosting illegal child pornography and advocating organized violence”. It will happen once enough individuals starts relying on DNS.
ICANN also cannot boot your domain directly - they only control the root zone and delegate responsibilities. Maybe for gTLDs they have some say but if you get a ccTLD then the only one who can kick you off is the corresponding country - and if it is your country then that greatly improves your chances of pursuing legal action if your domain is taken away without due process.
If anything, I think having a domain tied to multiple services that break when the domain expires will help people notice so they can redeem within the grace period.
Impersonation via an expired domain might be an issue, but that's already a problem we have to deal with and I don't see how it could get significantly worse, especially since services could put up warnings when domains move between accounts.