I think at the end of the free agent draft, the commish could create a "waiver list" of INN players to pick from. Subsequently, cuts could be made to the waiver list if a team picks up a waiver player. That is...to draft from the waiver list, an owner has to cut a player back to the waiver list.
The free agent list would be separate from the waiver list, and completely off limits during the season. The next year the free agent pool is accessible just as currently...during the free agent draft.
I think an owner would have the option to cut players to either the free agent pool, or the waiver pool. Obviously, if they are cut to the free agent pool during the season, the player is unavailable until the next season free agent draft. If they are cut into the waiver pool, they can be picked up by any team.
The commish can stock the waiver list at the start of the season with leftover pickings of his choice from the left over free agent pool.
I would favor some type of waiver pick order related to winning Pct. each week. That is...when the waiver picks open each week, the team with the worst record has first pick. The commish would have to make some deadline, then review the waiver claims, and award the picks in order of worst record. For example...after Tuesday's games are completed, waiver claims have to be in by Wed, 10PM ET...then the commish (or the league commish) can award claims by Thurs for the upcoming games. Might be too clumsy, but just an idea.
Gary