Sophon sunsets its Layer 2 blockchain, moves to Base to build consumer apps
Sophon, which has raised $70 million in total funding, is shutting down its Layer 2 blockchain and moving to Base to build consumer apps, claiming the infrastructure era of crypto is over.
"The bet is that the value has never been in who runs the rails, but rather always been in the products built on top," Sebastien (Seb), Sophon's semi-anonymous co-founder, told The Block. "Sophon is choosing to go deep on those products rather than maintain infrastructure."
Notably, Sophon spent about $3.4 million per year maintaining its blockchain, Seb said, covering the full stack of chain infrastructure, rollup-as-a-service, data, analytics, and tooling vendors. Sunsetting the chain cuts annual burn by an estimated $3 million, Seb noted, extending runway and freeing capital to go directly into app development.
As part of its new strategy, the role of the Sophon (SOPH) token will also change. Seb said the token's previous role was as the gas token for the Sophon blockchain. As the chain sunsets, the focus shifts to direct value accrual from product revenue.
"The new strategy centres on buyback and burn," Seb said. "Significant portions of revenues generated by Pyre, XP, SophEarn, SophPlay, SophAI will be used to buy back SOPH on the open market and burn it — tying the token directly to the commercial success of a growing portfolio of consumer products. The more the products win, the more value flows back to SOPH holders."
The SOPH token is currently trading at around $0.0048, down about 86% over the past year, according to CoinGecko data.
Sophon's planned consumer apps on Base
Pyre, XP, SophEarn, SophPlay, and SophAI are the new apps Sophon plans to build on Base, an Ethereum Layer 2 blockchain incubated by crypto exchange Coinbase. Seb said Pyre is a DeFi-enabled, gamified neofinance app where every payment triggers a game that gives users a chance to win money back. The crypto infrastructure remains in the background, and users interact entirely in dollars, he said, adding that the app will launch early next month.
Every transaction above $1 earns a game entry inside the app. At launch, Pyre will include two games: Inferno, where users collect coins while avoiding obstacles, and Splash, a one-tap timing game that can be played against other users or the house. A third game, Scalp It, will launch shortly afterward. Seb said AI agents will also be able to play on behalf of users.
Beyond gamification, Seb said the Pyre app will offer DeFi yield vaults aggregating across leading protocols, fractional tokenized equities trading 24/5 through Dinari, leveraged perpetual futures through Avantis and Hyperliquid, and prediction markets through Polymarket for users outside the U.S. "An AI-powered quant signal system is also in development for paying subscribers," Seb said.
"Revenue streams are already built in: DeFi vault performance fees, trading fees, swap fees, and a subscription tier with premium perks," he added.
The Sophon Earn app also launches next month and is the standalone version of the vault infrastructure powering Pyre, Seb said. Sophon Play, expected in the third quarter, will make the gamification technology behind Pyre available to other developers through an API, Seb said. XP.app, planned for the third or fourth quarter, is a payments product aimed at high-net-worth users and will include custom payment hardware.
SophAI, currently under development, is an AI-focused product that Seb said is expected to enter alpha later this year.
"We've been quietly building in AI since before the pivot. The thesis is that the most interesting problems in AI right now aren't at the model layer, but elsewhere. We have something in development that we think is genuinely new. More soon," he said.
When asked how Sophon plans to attract users to these apps, Seb said the company is focusing on product design rather than crypto influencer marketing. He said the goal is to create products people naturally want to share, with gamification attracting users and the overall user experience keeping them engaged.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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