Sophon shuts down its own Layer 2 and migrates to Base, pivoting to consumer application development

Odaily reported that Sophon, which has raised a total of $70 million, announced it will shut down its own Layer 2 blockchain and migrate to Base, shifting its focus to consumer-grade application development. Sophon stated that spending millions of dollars annually to maintain its own chain is no longer justifiable.

Sebastien, co-founder of Sophon, said the project's assessment is that the real value lies not in "who runs the underlying rails," but in the products built on top of them. Therefore, Sophon will no longer maintain the infrastructure and will instead concentrate resources on the application layer.

According to reports, Sophon previously spent approximately $3.4 million per year to maintain its blockchain, covering expenditures on chain infrastructure, RaaS, data, analytics, and development tools. After shutting down its own chain, it is expected to reduce around $3 million in annual spending, thereby extending its cash runway and allocating more capital to application development.