Ethereum Name Service Plans 'ENSv2' Overhaul
The Ethereum Name Service is planning a complete architectural overhaul called ENSv2, which will move the protocol from a flat registry to a hierarchical one. This change will allow every name to function as its own registry and resolver. The new structure is intended to unlock more flexible and composable use cases for subdomains, decentralized identity, and on-chain applications.
- The plan to migrate to a Layer 2 network, initially codenamed "Namechain," was canceled in early 2026. The decision was made after Ethereum's "Fusaka" upgrade and other scaling improvements led to a 99% reduction in registration gas costs on the mainnet, making a separate L2 economically unnecessary. - Governance of the protocol is managed by the ENS DAO, a decentralized autonomous organization. Proposals, such as the ENSv2 update, are voted on by holders of the $ENS token, with each token representing one vote. - To submit a formal, on-chain "Executable Proposal," a delegate must have at least 100,000 $ENS tokens delegated to their address. These proposals have a seven-day voting period. - The ENS DAO's treasury, which funds development and community initiatives, is allocated 50% of the total 100 million $ENS token supply. As of December 2022, the treasury held approximately $1 billion. - Revenue is generated from the annual registration and renewal fees for `.eth` domains. These fees are set with the goal of covering operational costs rather than maximizing profit, with a baseline price of $5 per year for names with five or more characters. - As of July 2025, the Ethereum Name Service had surpassed 2 million registered `.eth` names, with over 85,000 new domains created in that month alone. - Despite remaining on the Ethereum mainnet, ENSv2 will still support multi-chain interoperability, allowing for the resolution of names across more than 60 different blockchains, including Bitcoin and Solana. - New user-facing features planned for the ENSv2 launch include an updated ENS App and Explorer, single-step registration, and the ability to pay for names using stablecoins from any supported chain.
