Method and system for dynamically activating virtual networks in a distributed tunnel fabric

A computer system, comprising:

• a processor;
• a non-transitory computer-readable storage medium storing instructions, which when executed by the processor causes the processor to perform a method, the method comprising:
• operating the computer system as a tunnel endpoint of a tunnel in conjunction with a remote computer system, which operates as another tunnel endpoint of the tunnel, wherein the tunnel facilitates a virtual private network (VPN) coupling the computer system and the remote computer system;
• maintaining an inactive state for a virtual local area network (VLAN) and a corresponding tunnel network identifier identifying the VLAN for the tunnel, wherein the inactive state precludes the computer system from using the tunnel network identifier for a routing process of the VPN;
• in response to receiving a notification indicating activation of the VLAN at a downstream switch, activating the VLAN at the computer system;
• and
• activating the tunnel network identifier in the routing process of the VPN, thereby allowing sharing of a respective media access control (MAC) address associated with the VLAN via the tunnel for the VPN.