ENS Labs Ends Namechain Project Citing Ethereum Scaling and Low Fees

TLDR

• ENS Labs canceled its Namechain L2 project and will launch ENSv2 on Ethereum’s mainnet.
• Ethereum’s registration gas fees have dropped by over 99% since 2025 upgrades.
• Vitalik Buterin said L2s may become obsolete as Ethereum base layer scales.
• ENSv2 will offer enhanced ownership and flexibility without moving users to another chain.
• ENS remains interoperable with L2s like Optimism and Arbitrum for broader access.

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ENS Labs has confirmed that it will no longer proceed with launching its Namechain Layer 2 blockchain. Instead, the team will deploy the upcoming ENSv2 protocol directly on the Ethereum mainnet. The decision comes after Ethereum upgrades led to reduced gas fees, removing the need for a separate Layer 2 solution for name registrations.

This move reflects a broader change in strategy within the Ethereum ecosystem, where improved base-layer performance is reshaping development priorities.

Ethereum Upgrades Change ENS Strategy

ENS Labs began planning Namechain in 2024 to reduce the high transaction costs users faced on Ethereum’s mainnet. At the time, gas fees for basic ENS operations often exceeded $50. Namechain was expected to serve as a rollup, providing a cheaper and faster alternative.

However, recent base-layer upgrades, including the Fusaka update and gas limit increases, have cut ENS registration fees by over 99%. Co-founder Nick Johnson said,

Vitalik Buterin, Ethereum’s co-founder, also addressed the shift in scaling strategy. He noted that many Layer 2 solutions are struggling with decentralization, while Ethereum’s base layer is scaling better than previously expected.

ENSv2 Will Launch Fully on Ethereum Mainnet

ENSv2 is an upgrade to the Ethereum Name Service that introduces new architecture for registry systems and user ownership. Instead of launching alongside a new blockchain, ENSv2 will now run entirely on Ethereum’s mainnet. This decision eliminates the need for users to bridge assets to another network.

Nick.eth, the lead developer, explained that the technical complexity and operational burden of launching a new chain outweighed the benefits. He said the team is now focused on building core features that improve user experience without requiring extra infrastructure.

ENS COO Katherine Wu said ENSv2 will still maintain interoperability with major Layer 2s, allowing .eth names to be registered from any EVM-compatible chain.

Work on Namechain Influences ENSv2 Development

Though Namechain will not launch, ENS Labs said the development effort was not wasted. Learnings from the Namechain project are being used to enhance ENSv2’s interoperability and technical design. This includes features that allow smoother interaction with external L2s and reduce the need for multiple accounts.

Ethereum’s lower gas fees have renewed interest in building directly on Layer 1, reversing the trend that pushed many projects to adopt Layer 2 solutions.

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