Through its node auction, Sophon, a zkSync Hyperchain with an entertainment focus, has raised $60 million in Wrapped Ether (wETH).The funds will be utilized to introduce Sophon, an ecosystem with a focus on gaming and artificial intelligence (AI) that is designed as a modular rollup using zero knowledge (ZK) technology. The ecosystem is scheduled to debut in the third quarter of 2024.For a fledgling initiative, the $60 million node sale is regarded as substantial. According to Sophon co-founder Seb, part of the reason for the node sale’s success is the requirement for dependable infrastructure for use cases that are entertainment-focused, including gaming and AI.
“Gaming and AI require their tech partners to be able to scale cheaply and with robust infrastructure. Choosing ZK tech here is the move that these folks are making since the TPS capacity is much larger than within optimistic setups, and especially within the zkSync codebase, the fees are much less dynamic — therefore gas does not fluctuate as much.”
To handle user demand and the significant volume of microtransactions connected to these use cases, gaming and AI protocols both depend on a strong infrastructure.Seb continued, saying
“Gaming or AI protocols generate millions of transactions, and running a zkEVM [zkEthereum Virtual Machine] in Validium mode guarantees the lowest fees as well as the most scalable infra, which doesn’t rupture when there are network surges.”
In addition to the $10 million fundraising round that Sophon recently completed with the involvement of Spartan, SevenX, and OKX Ventures, notable investors Paper Ventures and Maven 11 led the node sale, which made a total of 200,000 nodes available for purchase.
In addition to earning money, the recent node auctions sought to establish a core group of holders who will eventually get airdrops and other worthwhile benefits.Seb elaborated.
“The node sale is essentially creating a bag holder OG community of thousands of folks before we even launch the chain. We will strive to always deliver value to them, constantly in the forms of emission fees, airdrops and other projects.”
One common strategy used by early-stage decentralized finance (DeFI) protocols to draw in new users is airdrops.Tokens are reissued to early adopters who have already engaged with the protocol.In order to enhance the network effects of projects based on the protocol, Sophon hopes to develop a robust community of fans and builders through its upcoming incentives. Seb went on.“This is incredibly valuable and super attractive to builders. This accelerates a very positive flywheel effect that will grow the community and hence make it valuable for gaming or AI projects to pick Sophon over the other options.”