I think it would actually be (pseudo-)decentralized and you'd have to mine a blockchain node containing each domain, where its creators will have reserved at least 10% of its node pool to make sure they became billionaires if it took off.

Plus micropayments, of course :-)

Nono, it would run decentralized in blockchain with a mircropayment rent seeking solution to update records.

You’re right that it would run on a block chain, but that fact would primarily exist to power some marketing. Everybody would end up interacting with it through a single centralized web site and API because it’s the only usable way to get it to work.

{txid:"7abde7838e8db8ba98bf8b74be77a9e787be7b8bfb7b893", gas: 0.00015, query: "A", domain: "blabla.com", actual-dns-that-will-resolve-the-query: "8.8.8.8"}

I laughed at first, then I cried, because sadly, it's true.