Sophon, which has raised a cumulative $70 million, announced it will shut down its Layer 2 blockchain and migrate to Base, focusing on consumer application development in the future. Sophon stated that continuing to maintain an independent Layer 2 is no longer economical, with its blockchain infrastructure maintenance costs estimated at approximately $3.4 million per year. After the shutdown, it is expected to reduce expenses by about $3 million annually. With the cessation of the Layer 2, the SOPH token will no longer serve as a gas token but will instead shift to a model of repurchasing and burning tokens through product revenue to capture value. According to CoinGecko data, the SOPH token has fallen approximately 86% over the past year. (The Block)