Ethereum domain provider Ethereum Name Service has abandoned plans to launch its own layer-2 network, Namechain, citing major improvements in Ethereum’s base-layer scaling. Instead, ENS will deploy its upcoming ENSv2 upgrade directly on Ethereum.
Lead developer nick.eth said gas costs for ENS registrations have fallen by about 99% over the past year due to network upgrades. The recent Fusaka upgrade doubled Ethereum’s gas limit, while further increases are expected in 2026, making layer-1 far more scalable than previously anticipated.
ENS first announced Namechain in late 2024, when layer-2 solutions were seen as essential for reducing costs. However, the rapid progress of Ethereum has changed that calculation. According to the team, it is now practical to stay on layer-1 while maintaining affordability.
ENSv2 will still bring major improvements, including a new registry architecture, better ownership management, and smoother name expiration handling. The protocol will also remain interoperable with layer-2 networks, keeping future expansion options open.
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