Registering (or buying) is a way to get a domain.
I don’t know why the term squatting is used instead. “Normal” people buy or register and the so-called squatters do the same (only more efficiently because they specialize in that).
It’s impossible that all people who want the same domain can get. There’s always one winner and everyone else is not.
If SAFE users are anonymous, then SAFE domain owners will be anonymous too.
Do you want to ID users who want to register a domain?
If not, how do you plan to prioritize?
Without interference in domain ownership matters, the free market ensures that anonymous user who most wants the domain gets it (by paying more than all other users). I don’t see how you can outsmart that. I also question the idea from the privacy perspective.