In a market where every major protocol is racing to launch its own Layer 2 blockchain, Ethereum Name Service (ENS) just made a shocking contrarian bet. After two years of development, ENS Labs has officially canceled "Namechain" to deploy the massive ENSv2 upgrade exclusively on Ethereum Mainnet.
Why scrap an entire blockchain? Because Ethereum changed the math.
The Death of the L2 Thesis for ENS
The narrative has always been that "Mainnet is too expensive." ENS just proved that narrative outdated. Thanks to EIP-4844 and the rapid scaling of Ethereum’s base layer, gas costs for registering domains have plummeted by 99%.
We are talking about a drop from ~$5 to under 5 cents per registration.
ENS Labs realized a crucial financial truth: It is now cheaper to subsidize Mainnet transactions than to build, secure, and maintain a complex Layer 2 network.
Security Over Complexity
This isn't just about money; it's about trust. By staying on L1, ENS avoids the "trust assumptions" that come with L2s—centralized sequencers, bridge risks, and upgrade keys. ENS is the identity layer of Web3; it belongs on the most secure, decentralized blockspace in the world.
Even Vitalik Buterin endorsed the move, reinforcing that core infrastructure like ENS should remain accessible on the base layer rather than fragmenting into specialized chains.
What to Expect in ENSv2
The roadmap remains aggressive. The upcoming upgrade leverages the Mainnet focus to deliver:
Single-Step Registration: No more clunky, multi-transaction flows.Cross-Chain Power: Support for payments and interoperability across 60+ chains, including Bitcoin and Solana.Per-Name Registries: Enhanced flexibility for domain management.
The Big Picture
This is a signal to the rest of the market. While the "Appchain" thesis (every app gets a chain) is popular, ENS is betting on a "Fat L1" future where Ethereum scales enough to host high-value applications directly.
If the OG of Ethereum utility doesn't need an L2 anymore, who else might cancel their chain plans?
Is the rush to launch L2s officially over-saturated? 👀
#ENS #Ethereum