ENS (Ethereum Name Service) is crypto's answer to internet domain names. Wallet addresses are long, unreadable strings of letters and numbers; ENS lets you replace them with a simple, human-readable name ending in '.eth' (like 'alice.eth') that points to your wallet and Web3 identity. It works like the internet's domain system (DNS) but for crypto — you register a name, pay an annual fee, and use it across wallets and apps. It's become a de-facto identity standard in Ethereum, used by individuals, brands and projects. ENS is the governance token: holders vote on the protocol, its fees and its treasury. Revenue from domain registrations and renewals (paid in ETH) flows to the ENS DAO treasury to fund the protocol's development — it does not currently buy back or burn the ENS token.
Where it stands today: ENS is widely adopted as the naming/identity layer for Ethereum, integrated across many wallets and increasingly across other chains. A notable 2026 decision: ENS Labs scrapped its plan to launch its own dedicated Layer 2 ('Namechain') and is instead building its next version ('ENSv2') directly on Ethereum — a shift driven by Ethereum's own fees dropping so far (thanks to network upgrades) that a separate chain became unnecessary, echoing Ethereum's renewed focus on scaling its base layer. The upgrade aims for lower costs, better control over subnames, and smoother multi-chain use. So today it's an established, genuinely useful identity standard with real recurring revenue, streamlining onto Ethereum rather than spinning off its own chain.