Sophon Abandons L2 Blockchain, Migrates to Coinbase's Base Network

Sophon, a project that raised significant capital to build consumer-focused blockchain infrastructure, is shutting down its Layer 2 (L2) blockchain and moving to Coinbase's Base network. This marks one of the most high-profile retreats from the crowded L2 expansion cycle.

The decision comes after Sophon launched its mainnet in December 2024 and raised an estimated $60 million to $70 million in funding, including a notable node-sale campaign in 2024. However, the project's leadership concluded that maintaining a general-purpose blockchain was no longer justifiable due to costs exceeding value creation at the application layer.

The team cited annual maintenance costs of around $3.4 million and insufficient transaction growth as reasons for shutting down the chain. They also acknowledged that 'fast and cheap' blockchain infrastructure has become commoditized, making it less scarce. By moving to Base, Sophon is choosing distribution and ecosystem depth over owning its own chain.

The first product under the new strategy is expected to be Pyre, a gamified daily payments app planned for launch in early July. Reports also point to a broader consumer roadmap that could include Sophon Earn for yield, Sophon Play for developer tools, XP for payments, and SophAI, an AI-focused product.