Sophon Shuts L2 Chain, Pivots to Base Consumer Apps

Sophon is shutting down its ZK-powered Layer-2 blockchain and reinventing itself as a consumer product studio on Coinbase's Base network. The first app, Pyre, is a gamified daily payments tool scheduled for early July.

The project announced the move on June 25, citing the cost of running its own chain. Sophon was spending roughly $3.4 million per year on blockchain infrastructure, the team said. By moving applications to Base and retiring its L2, Sophon expects to cut about $3 million from its annual burn rate.

Sophon raised $60 million in 2024, with total funding potentially reaching $70 million, according to the announcement. The node sale was one of the largest in the industry. Mainnet went live in December 2024. Leadership concluded that maintaining a general-purpose blockchain was a commoditized expense that did not justify the cost relative to the value being generated at the application layer.

The rebrand from Sophon to SOPH, sometimes styled as Soph(+), signals a full strategic reorientation. The team described Pyre as a gamified payments app sitting at the intersection of fintech and crypto. The early July launch timeline is aggressive, suggesting the team had been building this product while still running the L2.

Pyre is not the only project in the pipeline. Sophon disclosed several additional apps in varying stages: XP, SophEarn, SophPlay, and SophAI. Specific functionality for each has not been detailed.

For holders of the $SOPH token, the leaner operation could create more sustainable value than an underutilized chain. The $3 million in annual savings extends runway and allows more capital to flow into product development. The early July launch of Pyre is the first real test of whether this pivot is strategic clarity or a desperate course correction.