We will be making a change in the next few days that will allow creatives to continue to submit their premium domains to contests if the name previously won a contest but was not purchased. So if your premium domain is selected as a winner and the CH decides to not purchase that name, you can still continue to submit that domain to future naming contests.
@Betslogan The name will always stay in the marketplace, unless the CH actually decides to buy it. So there is really no time allotted to the CH to purchase the domain. Also, since the names are already in our premium domain marketplace, it means they are already registered. So if the CH wants to use that domain name for their business, their only option would be to purchase it from the Marketplace - they can’t register it.
Same thing with split awards - the domain always stays in the Marketplace. The creative who submitted the domain to the contest may receive their portion of the split award if they received the highest rating in the contest, and the contest was later abandoned.
If the CH likes this name as a secondary name in the example you described, their only option would be to purchase the domain (since the domain is no longer available for open registration).
If you actively participate in contests yourself, we do not recommend enabling this option for your domains. This will ensure that the names that you wanted to submit to a contest are not submitted by another creative before you had the opportunity to do so.
Hopefully this answers your questions. Since this is a Beta feature, it is likely some new scenarios come up that we haven’t thought about - and we would certainly address them as they come up.