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 going forward. Sophon stated that maintaining an independent Layer 2 is no longer economically viable, with blockchain infrastructure maintenance costs of approximately $3.4 million per year, and shutting down is expected to reduce expenses by about $3 million annually. With the Layer 2 decommissioning, the SOPH token will no longer serve as a gas token, but will instead shift to value capture through product revenue buybacks and token burns. According to CoinGecko data, the SOPH token has fallen approximately 86% over the past year. (The Block)