I've been discussing ideas to simplify/streamline free agent compensation. Here is a proposal that I'd like to hear the league's opinion on.
The qualifying offer is eliminated. The top ten free agents according to OSA are designated as compensation free agents. Immediately after free agents file, the former teams for the top five free agents are given a compensation pick after the first round (and before the competitive balance round, if any). The former teams for the top six to ten free agents are given a compensation pick after the second round (and before the competitive balance round, if any). Teams signing free agents will still lose a first round pick (or a second round pick if they have no first round pick or have a protected pick [worst ten records], etc.).
The biggest changes are a flat number of comp free agents, and compensation that is handled entirely out of game.