Sophon launches mainnet blockchain with $500M in locked value

Sophon has launched its mainnet, introducing the first-ever Validium on the Avail network. It has over $500 million in Total Value Locked (TVL) through the Sophon farming program, and a growing ecosystem of established partners.

Sophon said it is paving the way for scalable, consumer-focused blockchain applications. The launch comes with significant community support: over 120,000 node licenses purchased by more than 5,800 unique participants are now open for claiming.

The SOPH token deploys today in a non-transferable state, with all transactions free for users during this initial phase. Node holders will begin earning rewards from January 1, with full token transferability and trading expected in Q1 2025.

What it means

Asked for more detail and some jargon translation, the company said Sophon is a platform for developers to build the next generation of consumer applications onto. Technically, it is a blockchain that leverages Validium technology, which means that transaction data is processed off the main Ethereum blockchain while still maintaining security.

This helps achieve higher speeds and lower costs compared to traditional blockchains. Sophon is the first project to implement this using Avail’s data availability network. In layman’s terms, this tech stack makes Sophon a platform that is optimized for high-throughput consumer applications. This is significant because it means Sophon can handle many more transactions (like game moves, social media interactions, ticket purchases, etc.) at much lower costs than traditional blockchain platforms.

The $500 million Total Value Locked represents digital assets that users have deposited into Sophon’s initial reward program. Participants can earn Sophon Points by providing liquidity, which will be convertible to SOPH tokens when they launch in Q1 2025. This large amount of deposits indicates significant trust in the platform, similar to how a new bank attracting $500 million in deposits would be seen as a strong sign of customer confidence.

In April 2024, Sophon sold what are essentially ‘licenses to operate’ parts of its network – similar to how taxi medallions give drivers the right to operate taxis. 5,800 different buyers purchased 120,000 of these licenses (called nodes) for a total of $60 million. These node operators will help run Sophon’s digital infrastructure. As compensation for their service, they’ll earn two types of rewards: a share of the network’s transaction fees (like how credit card companies earn a small fee on purchases), plus 20% of all SOPH tokens (Sophon’s native token) that will ever be created.

Sophon has created its token (SOPH), but it’s currently in a controlled launch phase, which means that users are not able to transfer or trade it. The full supply is controlled by Sophon. During this phase, Sophon is covering all transaction costs for users. Starting in Q1 2025, SOPH tokens will become freely transferable and tradeable (like any other digital currency), and node operators will begin earning their rewards. This gradual approach helps ensure a stable launch of the platform.

Launch partners driving adoption

Sophon’s consumer-first approach focuses on delivering user experiences that encourage mainstream crypto engagement.

The company is launch partners include industry leaders selected for their ability to bring blockchain benefits to everyday users. They include:

Mirai: A mobile game studio whose game Petopia introduces crypto to casual mobile gamers through familiar gameplay. Already #1 in casual gaming on both iOS and Android stores with 100,000+ players in alpha phase and a 4.8/5 rating, Petopia demonstrates how blockchain games can attract traditional gamers. When these players make in-game purchases or trade items, each transaction generates network fees that flow to node holders and stakeholders. Mirai Labs has a track record of onboarding 27 million new wallets to crypto via their game Pegaxy (on the Polygon network)

OPEN: Bringing mainstream event-goers into crypto through digital tickets. Having processed over 7 million NFT tickets for concerts and sports events, OPEN is introducing blockchain technology to people who may have never used crypto before. Each ticket sold and resold creates transaction volume on Sophon, with the US ticketing market representing over $12 billion in annual potential activity – all of which generates fees that reward network participants.

Rivalry: Onboarding sports fans to crypto through betting. Their two million active users, who place over $1 billion in annual bets, will interact with blockchain technology seamlessly through Sophon when placing bets and collecting winnings. Every bet and payout represents economic activity that benefits node holders and stakeholders through network fees.

NooN: Making crypto accessible to traditional savers by offering familiar savings account features backed by blockchain technology. Working with institutions managing $500 million in assets, NooN will help bring traditional finance users into crypto. User deposits, withdrawals, and yield distributions all generate network activity that rewards Sophon’s infrastructure providers.

Aethir: Introducing cloud computing users to decentralized alternatives through their GPU marketplace. Having processed 100,000+ GPU hours in testnet, they’re bringing Web2 developers and AI researchers into crypto. Each computation verification creates fee-generating activity that flows to Sophon’s network participants.

Together, these partners represent a gateway for millions of traditional internet users to enter crypto through familiar applications, while generating billions in potential annual transaction volume on Sophon (the platform that these applications are running on). This economic activity directly rewards node holders and stakeholders through network fees and increased platform usage. Rather than requiring users to understand blockchain technology, these applications make using crypto as simple as playing a game, buying a concert ticket, or placing a sports bet – while ensuring that those maintaining the network share in its success.

Additional gaming partners include Brutal Knights (50,000 pre-registered users) and Gamp ($3 million seed funded), both focused on bringing mainstream gamers into crypto through engaging gameplay. Many more to come

Pioneering consumer-first crypto

Sophon recognizes that mainstream users don’t care about blockchain technology — they care about experiences and value. By focusing on entertainment applications that naturally benefit from blockchain’s capabilities, Sophon is creating an ecosystem where the technology enhances rather than complicates the user experience.

This vision is reinforced through strategic collaborations with industry pioneers, like Beam, which is launching the first gaming-focused fund and accelerator in Abu Dhabi with a target size of $150 million.

Sophon is a strategic partner in this accelerator, supporting the advancement of blockchain-based gaming. Additionally, Sophon has seeded the $40 million Tactical Compute initiative (with Aethir), targeting projects building at the intersection of crypto and AI. These partnerships ensure Sophon is not just building infrastructure – it’s contributing to the growth of the entire ecosystem.

Making big moves

Sophon’s mainnet launch is the first-ever Validium utilizing Avail’s external data availability layer, bringing unmatched scalability, security, and savings. By using Avail’s modular application development stack to create its own Light Nodes, Sophon ensures high performance, maintaining full decentralization and data availability, setting a new standard for modular blockchain designs.

“Sophon embraces the full potential of the Avail Network, illustrating how blockchains can maintain provable decentralization even in high-volume use cases like entertainment,” said Anurag Arjun, cofounder of Avail, in a statement.

This modular architecture doesn’t just set a new standard in blockchain design but also makes Sophon ideal for high-throughput applications looking for mainstream adoption.

“We’re building the future of entertainment onchain,” said Sebastien, CEO of Sophon, in a statement. “Our integration with Avail enables us to deliver the scalability and performance that mainstream applications demand, while maintaining the security and decentralization that blockchain technology promises.”

Sophon wants to be the ultimate platform for next-gen entertainment applications, spanning everything from gaming to AI-powered experiences.

The Avail Network is a modular application development stack designed to establish blockchains as the verification system for the internet.

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