I believe that is how the country code TLDs do work, but most nations (who are given ownership of them) they just hire a corporation to sell domains and make rent seeking gross revenue off a few characters of a URL.
But those are eclipsed by the generic TLDs where its just a happy accident registrars and rent seekers are making fortunes off of words with com or net at the end of them.
But those are eclipsed by the generic TLDs where its just a happy accident registrars and rent seekers are making fortunes off of words with com or net at the end of them.