In a small bowl, combine warm water with sugar and yeast. Let sit for 10 minutes. In a large bowl, combine flour and salt. Add in yeast mixture and melted butter, mix until a dough forms.
Knead dough on a floured surface until smooth. Place dough into a large greased bowl, turning to coat. Cover and let rise in a warm place for 1-2 hours, or until the dough has doubled in size.
Preheat oven to 400 F. Deflate dough and divide into bite sized pieces. In a large saucepan over medium heat, bring water and baking soda to a boil. Drop pretzel bites in the water and let boil for 20-30 seconds. Remove from water with a slotted spoon.
Place pretzel bites onto a large greased baking sheet. Sprinkle with sea salt. Bake for 10-12 minutes.