Sophon Drops Own Blockchain to Build Consumer Apps on Base

Layer 2 blockchain project Sophon has announced a major strategic shift by discontinuing its proprietary blockchain and migrating to Base, the Ethereum Layer 2 network incubated by Coinbase. The move marks a significant change in the company’s priorities, as it seeks to redirect resources from blockchain infrastructure management toward the development of consumer-focused applications.

Having raised a total of $70 million in funding, Sophon stated that operating its own blockchain required substantial annual spending. By transitioning to Base, the company expects to significantly reduce infrastructure costs while allocating more capital to application development and user-facing products.

Sophon will discontinue its proprietary Layer 2 blockchain and migrate to Base, allowing the company to redirect resources toward building consumer applications instead of maintaining blockchain infrastructure.

Infrastructure Costs Prompt Strategic Realignment

Sophon co-founder Seb explained that the company’s long-term vision had evolved to prioritize applications rather than blockchain infrastructure. He indicated that the greatest value in the blockchain ecosystem comes from products developed on top of existing networks rather than from operating the underlying infrastructure itself. Based on this strategy, Sophon concluded that focusing on product development would create greater long-term value than continuing to maintain its own Layer 2 chain.

The company disclosed that maintaining its blockchain infrastructure required approximately $3.4 million in annual expenses. Following the migration to Base, Sophon expects to reduce those costs by roughly $3 million each year. The resulting savings will be directed toward expanding its portfolio of consumer applications and accelerating product development.

The migration reflects a broader trend within the blockchain industry, where some projects are choosing to leverage established Layer 2 networks instead of investing heavily in maintaining independent blockchain infrastructure. By utilizing Base’s existing ecosystem, Sophon aims to concentrate on user adoption and application innovation while benefiting from an established scaling solution built on Ethereum.

SOPH Token to Be Linked With Product Revenue

The strategic transition will also alter the role of Sophon’s native SOPH token. Previously, the token functioned primarily as the gas asset used to pay transaction fees on the Sophon blockchain. Under the new model, its utility will shift toward representing the performance of the company’s consumer application ecosystem.

The SOPH token will transition from serving as a gas token to becoming directly linked with product-generated revenue through planned buyback and token burn mechanisms.

According to the company, a significant portion of revenue generated by upcoming applications will be allocated toward repurchasing and burning SOPH tokens. This approach is intended to establish a closer relationship between token value and the commercial success of Sophon’s products.

The company identified several applications expected to contribute to this strategy, including Fire, XP, Sophon, SophPlay, and SophAI. At present, SOPH is trading at approximately $0.0048 after declining about 86% over the past year.

Fire App Leads Consumer Product Expansion

Among Sophon’s upcoming offerings, Fire is expected to become the first application released under the revised strategy. Scheduled to launch next month, Fire combines financial transactions with gamified experiences by allowing users to participate in games whenever they make qualifying payments.

Users will receive one game entry for each payment of at least $1. Initially, the platform will feature two games: Inferno, a coin-collection obstacle challenge, and Splash, a timing-based game. Participants will have opportunities to earn cashback rewards through gameplay.

Additionally, Fire will include artificial intelligence capabilities that allow an AI agent to participate in games on behalf of users, introducing an automated gaming experience alongside the payment platform.

By migrating to Base and reinvesting infrastructure savings into applications such as Fire, Sophon aims to strengthen product development while tying ecosystem growth more closely to user adoption and commercial revenue.

The post Sophon Drops Own Blockchain to Build Consumer Apps on Base appeared first on CoinTrust.