A dynamic binding protocol has three tasks that run in parallel: discovery, association, and operation. During discovery, control elements (CEs) and forwarding elements (FEs) learn about immediate neighbors and CEs in a SoftRouter network that has separate control and data planes. During association, FEs associate with CEs and are configured with basic parameters, such as IP interface addresses, hostnames, and the like. During operation, failover and packet tunneling between CEs and FEs is handled.