Svmuu News: Sophon has announced the shutdown of its Layer 2 and a shift toward developing consumer-grade applications on the Base chain. Sophon co-founder Seb stated that the annual cost of maintaining its own blockchain is approximately $3.4 million, and shutting down the chain is expected to reduce annual expenses by $3 million.
With the implementation of this new strategy, the role of Sophon’s native token, SOPH, will also evolve. Previously serving as the blockchain’s gas token, SOPH will now derive its value directly from product revenue. The majority of revenue generated by applications such as Pyre, XP, SophEarn, SophPlay, and SophAI will be used to repurchase and burn SOPH on the open market. Sophon plans to develop multiple applications on Base, including Pyre—a gamified new-finance app—and SophEarn—a yield vault app—both of which are scheduled to launch next month. (The Block)