ENS Labs Scraps Namechain L2: ENSv2 Fully Shifts to Ethereum Mainnet

ENS Labs announced a major strategic decision: development of its custom Layer 2 solution Namechain is being discontinued, and the ENSv2 protocol upgrade will be deployed exclusively on Ethereum mainnet (L1). This means the popular.eth naming service will remain directly on Ethereum’s base layer.

The move comes as Ethereum’s own scaling has advanced much faster than expected. Over the past year, gas costs for ENS name registrations have dropped by approximately 99%, thanks to the gas limit increase from 30 million to 60 million in 2025 (with targets of 200 million in 2026). Basic registrations now cost less than 5 cents, making it cheaper to subsidize all ENS transactions on L1 than to maintain a dedicated rollup.Translated with DeepL.com (free version)

Quotes from the team

“When we started planning ENSv2 and Namechain two years ago, building our own L2 felt inevitable. Gas on L1 was prohibitively expensive, with transactions often costing tens of dollars. Today, the situation has changed dramatically,” saidENS co-founder and lead developer Nick Johnson (nick.eth).

He added: “By staying on L1, we’re aligning ENS with the strongest possible infrastructure guarantees - Ethereum itself.”

The team emphasized that the work on Namechain was not wasted. The architectural insights gained will be used to improve ENS interoperability with various Layer 2 networks and simplify the user experience.

What ENSv2 brings

ENSv2 introduces significant improvements, including:

• Hierarchical registries (each name gets its own registry)
• More flexible ownership models and subnames
• Single-step registration
• Ability to pay with stablecoins from any EVM chain without bridging

Name resolution remains simple, only one chain needs to be queried. ENS will continue supporting over 60 blockchains, including Bitcoin, Solana, and others.

Context and community reaction

The announcement aligns with shifting views across the Ethereum ecosystem. Vitalik Buterin recently noted that the base layer is scaling faster than anticipated, while many L2s struggle with decentralization.

The community response has been largely positive, with many welcoming the simplified architecture and stronger L1 security. The official @ensdomains account posted a series of updates, highlighting that ENSv2 is still on track for release this year and that upgrading names will be even easier.

This decision demonstrates the maturity of the ENS team, the willingness to pivot away from an ambitious project when market and technological realities have changed. For.eth users, it means more reliable infrastructure, lower costs, and a better overall experience without the added complexity of a custom L2.