Handshake has built-in mechanisms to prevent squatting. All TLDs are won through an open vickrey auction (if you win you pay the second-highest bid for the TLD). This prevents squatters from being able to easily buy up all the good names at once.

There is an issue though — the auction system gives early advantage in buying names for cheap. If only 100 people are buying names on day 1, they’ll be able to buy a lot of the names without competition. Handshake has a mechanism to prevent this. Names are released for bidding over the first year so that people who learn about it six months late can still register good names. The release schedule is basically a hash(name) % 52 to determine which week you can start registering any name.