Sophon will shut down its Layer 2 blockchain and move operations to Base, redirecting its focus toward consumer-facing applications and aiming to cut costs while restructuring its token model.
The company, which has raised $70 million, expects to reduce annual expenses by about $3 million after previously spending roughly $3.4 million on infrastructure and maintenance. By building on Base, an Ethereum Layer 2 network with an established user base, Sophon is abandoning the cost and complexity of running its own chain.
Shift to application-driven model
The move marks a fundamental shift in strategy from infrastructure provider to application developer. Sophon plans to tie the value of its SOPH token directly to revenue generated by a suite of upcoming products.
Instead of functioning as a gas token, SOPH will be repurchased on the open market and permanently removed from circulation using income from applications including Pyre, XP, SophEarn, SophPlay, and SophAI. This approach links token performance to commercial activity rather than network usage.
SOPH currently trades near $0.0048, down about 86% over the past year.
Pyre to debut on Base
The first product, Pyre, is scheduled to launch early next month. It is designed as a gamified neofinance platform where payment activity triggers mini-games with potential cash rewards.
Transactions over $1 unlock gameplay, starting with two games, Inferno and Splash, with a third title, Scalp It, planned shortly after launch. The platform will also integrate artificial intelligence agents capable of playing on behalf of users.
Beyond gaming, Pyre will include decentralized finance features such as yield vaults, fractional equity trading during weekdays, leveraged perpetual futures, and prediction markets available outside the United States. An AI-driven quantitative signal system for paid subscribers is also under development.
Broader product rollout planned
Sophon plans to expand its ecosystem throughout the year. Sophon Earn, launching next month, will extend vault functionality beyond Pyre. Sophon Play, expected in the third quarter, will allow external developers to integrate gamification tools through application programming interfaces.
Two additional products are scheduled for later in the year. XP.app will target high-net-worth users with a payments solution that includes custom hardware, while SophAI is currently in its alpha stage.
Revenue streams across the ecosystem are expected to include trading fees, vault performance fees, swaps, and subscription services.
Market pressure and token supply concerns
The strategic pivot comes as SOPH faces continued market pressure. The token has declined sharply over the past year, with liquidity impacted by exchange actions including the removal of key trading pairs on Binance and the suspension of margin trading on KuCoin earlier in 2026.
Token supply dynamics may add further pressure. As of late June 2026, only about 34.5% of the total 10 billion SOPH supply has been unlocked. Large allocations remain scheduled for release over several years to core contributors, seed participants, and node operators, creating a potential overhang that could weigh on prices.
Sophon is betting that demand generated by its application ecosystem and token buyback mechanism will be enough to counterbalance that supply while driving adoption through product functionality rather than traditional promotional campaigns.
Explore how Bitcoin Layer 2s are evolving beyond infrastructure—read our guide on Bitcoin Layer 2 networks for deeper context.
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