The Ethereum Name Service (ENS) has decided to scrap its plans for the Namechain Layer-2 solution, opting instead to directly implement its ENSv2 upgrade on the Ethereum mainnet. This decision comes on the heels of a remarkable 99% drop in gas fees, attributed to various upgrades within the Ethereum ecosystem. ENS lead developer, nick.eth, highlighted that Ethereum's Layer-1 is scaling faster than anticipated, making the need for an L2 solution less critical than initially thought.

In a blog post, nick.eth elaborated on the significant transformations within the Ethereum network. The recent Fusaka upgrade has raised the gas limit to 60 million, effectively doubling it since the beginning of 2025. Looking ahead, Ethereum core developers are eyeing a target of 200 million gas limits by 2026, which would further enhance scalability and reduce costs for users. This rapid evolution in Ethereum’s capabilities has prompted ENS to pivot its strategy.

Originally, ENS announced its intention to develop the Namechain L2 solution back in November 2024. The aim was to facilitate easier and cheaper domain name registrations through rollups. However, the dramatic change in Ethereum's scalability landscape has reshaped that vision. Nick.eth emphasized that the substantial improvements in Layer-1 scalability were not part of the original Ethereum roadmap and that the focus was intended to be on Layer-2s.

The decision to abandon Namechain was not made lightly. ENS recognizes the importance of adapting to the evolving needs of its users. By transitioning to an L1-focused approach, ENS aims to enhance the utility and performance of its services through the ENSv2 upgrade. This new direction does not completely close the door on Layer-2 solutions; rather, it ensures that ENS remains compatible and interoperable with them.

Nick.eth pointed out that the majority of the engineering efforts have been directed toward enhancing ENSv2 itself. This includes improvements in the new registry architecture, ownership models, and name expiration handling. The new system is designed to give each name its own registry, allowing for greater flexibility and efficiency in transactions.

In summary, the abandonment of the Namechain project signals an important shift in ENS's strategy, focusing on harnessing the capabilities of Ethereum's Layer-1. As the Ethereum network continues to evolve, ENS is committed to providing a robust and user-friendly service that meets the demands of its community. While the focus is now on L1, ENS remains open to the possibilities that Layer-2 solutions may bring in the future, ensuring that its offerings are both innovative and aligned with the broader Ethereum ecosystem.