Sophon Set to Pull Plug on Layer 2 Network After $70M Funding Push

Key Takeaways

Urgent Action Required for Asset Holders

Sophon Chain has officially set the final timeline for winding down its Layer 2 blockchain network in an announcement released to token holders and users on Oct. 20. According to the announcement, the Sophon mainnet will permanently shut down on Nov. 30, 2026.

However, users have been advised to take Nov. 25, 2026, as the hard deadline for all asset withdrawals, while key network infrastructure and associated websites will begin shutting down immediately after.

In a post on X, the Sophon team warned that any funds remaining on the chain after the deadline risk becoming permanently inaccessible once key services, bridges, and RPC nodes go dark.

“Withdraw liquid SOPH, ETH, USDC, and other assets using https://claim.sophon.com. Also claim any outstanding staking or Guardian rewards. If you have unclaimed Sophon farm assets, ensure you withdraw those as well from https://farm.sophon.xyz,” the team said.

The Sophon team emphasized that users must not leave withdrawals until the last day to prevent potential congestion or technical complications, warning holders to strictly use official links and beware of fraudulent migration websites attempting phishing scams.

Pivot Driven by High Operating Costs

The scheduling of the final shutdown follows a strategic rethink first announced in mid-2026. Sophon originally launched as an ambitious, entertainment- and lifestyle-focused Layer 2 network powered by Matter Labs’ Zksync ZK Stack. During its initial expansion phases in 2024, Sophon attracted widespread market attention and institutional backing.

The project raised approximately $70 million in funding, which included a $10 million seed round led by Paper Ventures and Maven 11, over $60 million from a node sale in April 2024, and subsequent strategic backing from Binance Labs. Despite its capital foundation, the team concluded earlier this year that maintaining a standalone Layer 2 infrastructure was economically unfeasible, citing annual operational overhead exceeding $3 million.

As part of a broader shift across the decentralized ecosystem, Sophon opted to sunset its dedicated chain and pivot toward developing consumer applications on the Coinbase-backed Base network, with revenues from these new applications earmarked for SOPH token buyback and burn models.

The price of SOPH has plunged in recent months, hitting a fresh all-time low of $0.001623 on Tuesday following the announcement. SOPH now sits more than 98% below its peak price above $0.11 set in May 2025.