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One thing I want to make clear! If you set your username to a domain, you can change it later without any loss to your account. Let me step through some scenarios:

It's a form of verification. You have to control the domain (or get permission from the owner) and your account here to set it as your username. If you have a website, it shows that you're connected with that website. If it's, say, a domain for an organization you're associated with, it shows that.

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But of course, you can also just have fun with it. Like there's nothing (currently) hosted at nonbinary.computer, but it was a cheap domain and (I felt) a really good username, so I got the domain and set it up as my handle. Way than [something].bsky.social anyway.