Yes, this is a great question!
TON DNS is a decentralized domain name system that lets you assign a human-readable name to crypto wallets, smart contracts, and websites.
Domain names are NFTs that can be stored, gifted, or sold. Auctions for domain names last for one week, and bids must be at least 5% higher than the previous bid. The highest bidder at the end of the auction period wins the domain name.
In addition, the .ton domain can be used as a multi-support gate to store different data, including wallet addresses, DNS/ADSL routing, and smart contract logic. To participate in dns.ton.org, simply search for your desired name and see how it looks with the .ton subprefix.
*More detail: https://dns.ton.org/about.html#claim-your-ton-domain
From the code execution side, you can find the detail in code for auction, and the conversation about DNS standard here in TEP81
By the way, for best practice, you should try out in test-net in your own!