Sophon, which has raised a total of $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 economical, as its blockchain infrastructure maintenance costs approximately $3.4 million per year. After the shutdown, it is expected to reduce expenditures by about $3 million annually. With the Layer 2 ceasing operations, the SOPH token will no longer serve as a gas token, but will instead achieve value capture through product revenue buybacks and token burns. According to CoinGecko data, the SOPH token has declined approximately 86% over the past year.