- Main event: ENS drops Namechain, shifts to Ethereum mainnet.
- Registrations costs reduce by 99% over past year.
- EIP-4844 and Fusaka upgrades drive Ethereum scaling.
ENS Labs discontinued its Namechain Layer 2 project, focusing solely on deploying ENSv2 on Ethereum, confirmed via their Twitter account on February 6, 2026, due to reduced registration gas costs.
The decision signifies Ethereum’s enhanced scalability rendered Namechain obsolete, affecting ENS and ETH tokens, with potential boosts in user affordability and protocol development focus on Ethereum’s mainnet.
ENS Labs’ decision reflects the unprecedented pace at which Ethereum’s capacity has improved, eliminating the need for a second-layer solution.
ENS Moves to Ethereum Mainnet
ENS Labs has decided to cease the development of Namechain L2 following a 99% reduction in registration gas costs. ENSv2 will now be exclusively deployed on the Ethereum mainnet. This makes Namechain obsolete due to Ethereum’s rapid scaling improvements.
Nick Johnson, lead developer, stated that Ethereum’s unforeseeable scaling has been faster than anticipated. The expansion includes a doubled gas limit to 60 million with the Fusaka upgrade, further supporting the decision to focus on the mainnet. Vitalik Buterin endorsed this move, acknowledging the scalability of L1 blockchains.
“Ethereum is scaling faster than almost anyone predicted a couple of years ago. Over the past year, we have seen a 99% reduction in the cost of ENS registration, coinciding with an increase in the gas limit from 30 million to 60 million.” — Nick Johnson, Lead Developer, ENS Labs
Impact on ENS and Ethereum Ecosystem
This decision will likely affect the market dynamics of the ENS token and Ethereum. The bypassed need for a separate Namechain L2 aims to keep transactions streamlined. The new focus promises better efficiency and lower operational costs for users.
With development funds shifting from Namechain L2, engineering efforts will prioritize ENSv2. This focus may result in gas fee subsidies, benefiting domain holders. The Ethereum ecosystem stands to gain from core protocols utilizing L1 over L2 solutions.
Path Forward for ENS Labs
Ethereum co-founder Vitalik Buterin endorses the decision, as L1 blockchains improve scaling. This move could decrease dependency on L2 solutions for future ENS developments.
Historical precedents show high costs spurred the Namechain project in 2024, but improvements like EIP-4844 change the landscape. ENS Labs plans further innovations within the Ethereum framework, enhancing scalability and reducing registration costs.
