ENS Labs Halts Namechain Project Owing to Ethereum Scaling and Low Fees

Posted on by

TLDR

  • ENS Labs has called off its Namechain Layer 2 project and will roll out ENSv2 directly on Ethereum’s mainnet.
  • Ethereum’s registration gas fees have plummeted by more than 99% following upgrades in 2025.
  • Vitalik Buterin stated that Layer 2 solutions might become outdated as Ethereum’s base layer scales.
  • ENSv2 will provide enhanced ownership and flexibility without requiring users to switch to another chain.
  • ENS will still be interoperable with Layer 2s such as Optimism and Arbitrum to ensure broader accessibility.

ENS Labs has confirmed it will abandon the launch of its Namechain Layer 2 blockchain. Instead, the team will deploy the upcoming ENSv2 protocol directly on Ethereum’s mainnet. This decision follows Ethereum upgrades that have cut gas fees, eliminating the need for a separate Layer 2 solution for name registrations.

This action mirrors a broader strategic shift within the Ethereum ecosystem, where enhanced base-layer performance is redefining development priorities.

Ethereum Upgrades Change ENS Strategy

ENS Labs was planning Namechain in 2024 to reduce the high transaction costs users encountered on Ethereum’s mainnet. At that time, gas fees for basic ENS operations frequently surpassed $50. Namechain was intended to function as a rollup, offering a more cost-effective and quicker alternative.

However, recent base-layer upgrades, including the Fusaka update and increased gas limits, have slashed ENS registration fees by more than 99%. Co-founder Nick Johnson stated,

“Ethereum is scaling faster than nearly everyone anticipated… By remaining on L1, we’re aligning ENS with the most robust infrastructure guarantees—Ethereum itself.”

Ethereum’s co-founder also commented on the shift in scaling strategy. He noted that many Layer 2 solutions are grappling with decentralization, whereas Ethereum’s base layer is scaling better than previously projected.

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 operate entirely on Ethereum’s mainnet. This decision eliminates the requirement 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 were greater than the benefits. He mentioned the team is now concentrating on developing core features that enhance user experience without needing additional infrastructure.

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

Work on Namechain Influences ENSv2 Development

Although Namechain will not be launched, ENS Labs stated that the development efforts were not in vain. Insights from the Namechain project are being applied to enhance ENSv2’s interoperability and technical design. This includes features that enable smoother interaction with external Layer 2s and reduce the need for multiple accounts.

“Many people view ENSv2 and Namechain as interchangeable,” Johnson stated. “We’re applying our learnings about Layer 2 architecture to make ENS more interoperable and user-friendly.”

Ethereum’s lower gas fees have reignited interest in building directly on Layer 1, going against the trend that drove many projects to adopt Layer 2 solutions.