Sophon Expects $3 Million in Annual Savings From Layer-2 Shutdown

Sophon expects to save about $3 million a year by retiring its Ethereum layer-2 network, shifting spending toward consumer applications after a 2024 investment round and node sale.

Sophon puts annual hard costs for the chain and its supporting services at about $3.4 million. That estimate includes network infrastructure, rollup services, data, analytics and developer tools. The projected savings reflect the planned wind-down; they are not a measured reduction in spending.

The project’s planned Nov. 30 mainnet shutdown follows its June decision to stop operating a separate chain and build consumer applications on Base. Its stated areas of focus include finance and artificial intelligence.

Sophon reported a roughly $10 million investment round in March 2024 and roughly $60 million from a node sale that May. Those were separate transactions, although their reported amounts add to about $70 million. A further investment in October 2024 had no disclosed amount.

The network launched its mainnet in December 2024. The scheduled Nov. 30 closure would bring its operation to an end less than two years after that launch. Sophon plans to direct resources previously used to maintain the network toward its applications.

The transition also changes the role of Sophon (SOPH). Its uses for network fees and staking are being phased out with the chain. Sophon plans to buy SOPH using revenue from its products and burn the purchased tokens. Those future buybacks depend on product revenue; its initial burn plan used unused staking rewards and node buybacks instead.

For holders, the earlier date is Nov. 25. Sophon has asked users to withdraw assets from the chain and claim outstanding rewards by then, ahead of the planned Nov. 30 mainnet shutdown.