Sophon, a blockchain platform led by former ZKsync DeFi head Sebastien A., officially announced on June 25, 2026, that it will sunset its Layer 2 blockchain to migrate its ecosystem to Base. The strategic pivot transforms Sophon from a dedicated network provider into a technology studio focused on building consumer finance and AI-driven applications using crypto infrastructure.
The decision to abandon its own ZK-powered Layer 2 chain stems from a desire to reduce operational overhead and find a clearer path toward product-market fit. By shifting to Base, Sophon plans to leverage existing liquidity and user distribution while integrating its $SOPH token into the Coinbase-led ecosystem as one of its largest project assets.
Sophon shifts focus to consumer apps and entertainment finance
According to Sophon contributor Seb, maintaining the standalone Layer 2 blockchain required approximately $3.4 million in annual expenditures. Sunsetting the network is expected to reduce the organization’s annual burn by an estimated $3 million, allowing the Sophon Foundation to reallocate its $70 million in total funding toward application development rather than infrastructure maintenance.
The pivot marks a fundamental change in how Sophon views the current blockchain market. Company leadership argues that on-chain markets are entering a consolidation phase, much like the early days of cloud computing or social media, where only a handful of dominant platforms eventually survive.
Oskari Tempakka, CMO of Sophon, explained that treating the chain itself as the primary product no longer feels like a viable strategy for growth. He noted that the goal has always been the most realistic path to product-market fit, which requires making hard decisions to stay competitive in a “post-chain” era.
Key details
By moving to Base, Sophon aims to tap into deep liquidity and a growing user base that is already comfortable with on-chain interactions. This transition comes as the Ethereum network outlook strengthens via scaling solutions that prioritize user experience and application diversity over raw network sovereignty.
Key details
With $70 million in backing and a leaner operational structure, Sophon is now positioned as a pure-play application developer. The team will retain its core staff and existing product pipeline, which includes a stablecoin payment card and a zkTLS-powered “Social Oracle” for digital reputation.
The sunsetting of the Layer 2 chain is a rare move for a project with such significant funding, but it reflects a growing pragmatism among crypto founders. Rather than fighting for developer mindshare on a proprietary chain, Sophon is betting that the real value lies in the interface where users interact with financial and entertainment services.
The industry will be watching closely as Sophon migrates its 60-million-transaction history and thousands of node operators into the Base ecosystem. If successful, this move could serve as a blueprint for other struggling Layer 2 projects looking to pivot away from infrastructure and toward sustainable consumer applications.