"Selling equity in domains" suggests that they're devising a domain securitization system where anyone could invest, say, $1000 and buy 1% of a domain they valued @ $100,000.
Right now, the only way to invest in premium domains is to buy the entire domain. This would allow for people to invest in portions of them. Say I believed that there was enormous future in carbon fiber. I already own a number of related domains, but ideally, I'd like carbonfiber.com. Unfortunately, the owner isn't selling, or even if he was, I couldn't afford it.
The owner of carbonfiber.com could issue shares in his name and in turn, I and other investors could purchase these shares, becoming fractional owners of the domain. The rate of return would probably be contingent on a future sale, or on whatever returns the name generates via direct development, leasing, or whatever.
It's actually a brilliant idea and if it catches, may serve to inflate the value of ultra-primo names even further. Kinda suggests that domains might be reaching maniacal pricing levels- where the prices they're commanding are getting too far in advance of their actual ability to earn- but a good idea for the future, none the less. If the idea takes causing issuers get greedy and ignore dilution factors- as far as actual value/shares issued ratio- we could see a very painful bubble where $10,000,000 worth of shares are issued and purchased for a domain that might only have $1,000,000 worth of realistic value. If the share prices aren't predicated on open-market valuation (meaning, priced in real time by some sort of exchange) but rather fixed by the issuers, it's a 100% certainty this will happen.