Top 5 Mistakes People Make When Buying ENS or Web3 Domains and How to Avoid Them

Quick primer: how ENS & Web3 domains work (2025)

At a high level, a Web3 naming system maps a human-readable label (e.g., you.eth) to on-chain records (addresses, text keys, avatar, contenthash). For ENS, the core standard is the ENS Registry and per-name Resolvers, specified by EIP-137. When you “resolve” a name, your wallet or dapp queries the registry for the name’s resolver contract, then asks that resolver for the specific record (addr, text, avatar, etc.).

ENS also offers the Name Wrapper, which turns names into ERC-1155 tokens and lets you apply Fuses (permissions you can burn to restrict future actions) critical for handing out subdomains safely. References you’ll see in this guide: the ENS docs, docs.ens.domains; text record spec (EIP-634); reverse resolution (EIP-2304); and off-chain resolution (EIP-3668 / CCIP-Read).

Mistake #1: Buying legally risky names (trademarks & brands)

The fastest way to turn a “deal” into a liability is to buy domains that infringe trademarks or impersonate public figures/companies. Even if a name is technically available on-chain, trademark law still applies in the US and globally. Many newcomers think “it’s decentralized so it’s free speech”; what actually happens is platforms, wallets, and marketplaces de-list infringing names and you end up with an illiquid asset at best or legal risk at worst.

What to check before you buy

• US & global trademark search: Start at the USPTO’s TESS database (tmsearch.uspto.gov) and your target jurisdiction(s). For EU: TMview. For WIPO: Global Brand DB.
• Risky patterns: adding “official”, “support”, “pay”, “wallet”, “portal”, or brand suffixes that imply affiliation (brand-support.eth).
• Impersonation: personal names and government agencies are high-risk (and harmful).

But I just want a brandable name for a project…

Great — choose descriptive names or unique neologisms. Check their availability in both ENS and DNS (ICANN-managed TLDs like .com). For DNS background and policy, see ICANN and the IANA root zone database at iana.org. If you’re serious about brand protection, register the DNS .com (or strong alternative) and the ENS name, then link them via DNSSEC + ENS or CCIP-Read so you can prove ownership across worlds (ENS docs cover both).

Mistake #2: Misconfiguring records (resolver, reverse, avatar, contenthash)

Most user-visible failures are simple configuration errors: funds go to the wrong address because addr points at an old EOA; your name doesn’t appear in apps because you never set the reverse record; or your profile breaks because your avatar points to a centralized URL that changed.

[you.eth] → Resolver → addr: 0xOLD...
                    ↑ You migrated wallets but forgot to update addr.
Result: funds go to the wrong address. Fix: update addr + set reverse record to the new account.
    

Avatar safety and permanence

Use ipfs:// or Arweave links for avatar. Apps often fetch and cache images; centralized HTTPS URLs can break or be maliciously swapped. Learn IPFS basics at docs.ipfs.tech and Arweave at docs.arweave.org. If you prefer “avatars from NFTs,” point your ENS avatar to an ERC-721 token image (supported by many wallets), but remember royalties/licensing differ per collection.

For off-chain data needs (large profiles, dynamic updates), explore CCIP-Read (EIP-3668) to serve signed responses off-chain with on-chain verifiability. Cloudflare has guides for bridging DNS + ENS, and gateways like eth.limo and Cloudflare Web3 help serve contenthash sites securely.

Mistake #3: Skipping Name Wrapper, Fuses & safe subdomain delegation

If you plan to hand out subdomains (to teammates, community, or app users), skipping the ENS Name Wrapper is a recipe for pain. The wrapper converts names into ERC-1155 tokens and lets you burn Fuses (permissions) to lock rules at the contract level — not just “social promises.” Without fuses, a parent can claw back subdomains or change resolvers; with fuses, you can enforce predictable behavior and protect users.

Which fuses matter most?

• CANNOT_UNWRAP: prevents unwrapping the name (keeping fuse policy intact).
• CANNOT_SET_RESOLVER and CANNOT_SET_TTL: stabilize resolution behavior.
• CANNOT_CREATE_SUBDOMAIN / PARENT_CANNOT_CONTROL: depending on your model, lock parent from taking arbitrary control.

For the authoritative description, see the ENS Name Wrapper documentation (under docs.ens.domains). If you’re running a commercial subdomain service, audit your wrapper logic and write a clear, public policy: what you can and cannot change, and which fuse bits you guarantee to burn.

Mistake #4: Forgetting renewals (expiry, grace, and auctions)

ENS names (second-level .eth) are rented for a term, not “owned forever.” If you forget to renew, there’s a grace period, then someone else can register it, often via auction bots. Companies have lost brand equity overnight by letting renewals lapse. Learn the lifecycle in the ENS docs and automate reminders.

Best practices for renewals

• Calendar + automation: put two reminders: 60 and 30 days before expiry.
• Gas-aware timing: renew during calm gas periods; ENS supports multi-year renewals (read pricing in the app).
• Treasury process: if a team holds the name, make renewal part of quarterly ops with a named owner and fallback signer.

If you also operate DNS names (like brand.com), ensure both your DNS and ENS renewals are on the same maintenance checklist. ICANN’s registrar reminders aren’t enough, add your own controls. See ICANN basics at icann.org.

Mistake #5: Confusing ENS, DNS, sidechains & alt “Web3 domains”

“Web3 domain” is a marketing umbrella. Not all systems are interoperable. ENS is native to Ethereum and widely resolved by wallets/dapps. DNS is the traditional Internet naming governed by ICANN/IANA and resolved by browsers. You can bridge them (ENS + DNSSEC, or CCIP-Read), but they are distinct systems with different trust models.

Common confusions

• “My Web3 domain should work in every browser.” Browsers resolve DNS first. For ENS contenthash sites, you need gateways (e.g., eth.limo) or browser integrations. See ENS websites guide.
• “Any TLD in Web3 is valid everywhere.” Not true. Wallets/dapps choose which systems they resolve. Some alt naming systems are app-specific. Do your integration homework.
• “L2 resolution equals L1 resolution.” Many ENS writes/reads are on Ethereum L1, while projects also experiment with L2s for cost. Make sure the wallet/dapp you care about resolves the records you’re setting.

Bonus mistakes to avoid (pricing, gas spikes, phishing, vanity traps)

Overpaying during gas spikes

ENS registrations and record updates are regular Ethereum transactions. If you register during a mega-mint or market event, you pay the premium. Check a gas tracker (e.g., Etherscan Gas Tracker) and schedule during off-peak windows. If your wallet supports EIP-1559, set reasonable maxFee/maxPriorityFee.

Falling for phishing & “drainer” kits

Only use the official ENS app (linked from docs.ens.domains). Bookmark it. Beware sponsored search results and “support” DMs. Learn how wallets present EIP-712 typed-data prompts and never blind-sign. Revoke stale approvals at revoke.cash.

Vanity tunnel vision

Numeric, emoji, and short names trade at premiums. That doesn’t mean they serve your users. For a product or community, clarity beats cleverness. Choose names that are easy to say, type, and verify in a crowded social feed or mobile wallet UI.

Ignoring multi-account hygiene

If you use a smart account (EIP-4337), map you.eth to that contract and set the reverse record from the same address. Keep a “public persona” name and a separate private spending account. If you change your primary, audit and update: addr, reverse record, and your public link pages.

Not verifying before you publish

Before you tweet “send to you.eth,” run a checklist: confirm resolver, addr, reverse record, and avatar from at least two independent resolvers (e.g., a wallet + a block explorer). Small mistakes get amplified at scale.

Copy-paste checklists & decision trees

A) Pre-purchase due diligence (legal + strategic)

• Trademark search (USPTO TESS, TMview, WIPO Global Brand DB)
• DNS check: is the .com/.org/ccTLD available? Does it conflict?
• Social handles: can you align Twitter/X, GitHub, Farcaster, Lens?
• Future proof: easy to pronounce/spell; not tied to fleeting memes
• If risky: pick a brand-new coined word; register both ENS + DNS

B) Initial ENS setup (technical)

• Register name.eth via official app (from docs.ens.domains)
• Set resolver to Public Resolver (or your audited custom resolver)
• Set addr to your primary account (prefer a smart account)
• Set reverse record from that same address (EIP-2304)
• Add text records: url, avatar (ipfs:// or NFT), socials you truly control
• Optionally set contenthash to a minimal IPFS/Arweave site

C) Name Wrapper & subdomain policy

• Wrap name.eth (ENS Name Wrapper)
• Burn fuses: at least CANNOT_UNWRAP, possibly resolver/TTL locks
• Document subdomain terms (what you can/can’t change)
• Automate issuance; test revocation; audit the flow

D) Renewal ops

• Put 60- and 30-day calendar reminders
• Renew multi-year during low gas windows
• Quarterly review: records, reverse, avatar pinning, site health

Goal = Web3-native identity only → ENS is sufficient.
Goal = Mainstream web presence → Buy DNS (.com or strong TLD) + ENS.
Need cross-proof? → Use DNSSEC with ENS or CCIP-Read bridging.
Distributing subdomains? → Wrap + fuses before issuing.
      

FAQ

Official docs & further reading

• ENS Documentation — docs.ens.domains
• EIP-137 (ENS) — eips.ethereum.org/EIPS/eip-137
• EIP-634 (Text Records) — eips.ethereum.org/EIPS/eip-634
• EIP-2304 (Reverse Records) — eips.ethereum.org/EIPS/eip-2304
• EIP-3668 (CCIP-Read) — eips.ethereum.org/EIPS/eip-3668
• IPFS Docs — docs.ipfs.tech
• Arweave Docs — docs.arweave.org
• Etherscan Gas Tracker — etherscan.io/gastracker
• Cloudflare Web3 (Gateways & ENS guidance) — docs.cloudflare.com/web3
• eth.limo Gateway — eth.limo
• ICANN — icann.org
• IANA Root Zone Database — iana.org/domains/root/db
• USPTO TESS — tmsearch.uspto.gov
• EU TMview — tmdn.org/tmview
• WIPO Global Brand DB — wipo.int/branddb
• Revoke.cash — revoke.cash

Recap

• Do your legal due diligence before minting: trademark, DNS, and social availability checks.
• Correctly configure resolver, addr, reverse, and avatar; prefer IPFS/Arweave for permanence.
• Wrap names and burn fuses before issuing subdomains; publish a policy your users can trust.
• Automate renewals with multi-year terms and calendar reminders; review records quarterly.
• Understand the ENS vs DNS boundary; use DNSSEC/CCIP-Read when you need cross-domain proof.

Want a hands-on ENS hardening pass (wrapper, fuses, subdomain policy, renewal automation) for your org?