Ted Dibiase Jr. should go nowhere near that belt. The belt was invented as a consolation prize and in that time, it seemed legit. But when you think about it, a heel is sitting there bragging about a belt he created because he couldn't capture the real belt.
But Jr wouldn't have to exactly duplicate what Sr did with the belt. I'd say that the belt would be a decent gimmick, right after Ted Jr achieves something of note.
Let's say that Ted wins a match for the US title, but the decision is immediately reversed for any of a half-dozen reasons. Or he wins the US title and then loses it "controversially."
That gives an opening for Ted Sr to come out the next week, talk about how Jr was denied what was rightfully his, and Daddy is going to make it right. The MDB would be a consolation prize for getting shafted out of the US title/Royal Rumble win/MITB case.
Another point to consider is that the constant suggesting that Ted Jr. incorporate parts of his father's career and gimmick into his is basically concession that Ted Jr. is not very good on his own. If he was, you wouldn't ever think to make those suggestions.
Well, yeah. If his name were Ted Jones Jr he'd be Chuck Palumbo or Bob Holly or Chris Masters without dancing pecs. However......
....Ted Jr. is still very green.
So he has plenty of time to work with. Carrying around his father's old belt like it was the European or TV title for six months or a year won't stop him from becoming a huge star when he's 32. When Stone Cold was on top of the world, no one remembered the Ringmaster.
BTW, Steve Austin carrying the belt around didn't work, I think, because he was just Dibiase's hireling. No one else wanted the belt, and it probably wasn't too clear why Austin wanted the belt. Dibiase's son, on the other hand, is carrying on a legacy, a tradition, and that's something you can build a story around. That's something that Dibiase would legitimately wear with pride, and care about if someone came to take it from him.