Abstract Chain Panorama Interpretation: How to Build a Consumer-Friendly Public Chain Ecology?

TL;DR

• Abstract Chain is a consumer-oriented blockchain that will be launched in January 2025, dedicated to promoting the mainstream adoption of cryptographic technology and building an accessible and engaging platform.
• Abstract Chain provides a seamless user experience through native account abstraction and leverages the established Pudgy Penguins and PENGU fan community to offer differentiated value with a unique user structure.
• Abstract's growth strategy revolves around building a digital entertainment theme park: having its own portal platform, integrating live streaming and reward systems, and attracting application developers into the ecosystem.
• This live streaming platform has attracted over 10,000 broadcasters, with an average daily user engagement time of over 7 minutes and a 30-day retention rate of 40%. The live streaming feature has become one of the main competitive advantages.
• Abstract Chain has currently achieved large-scale application: the number of registered wallet users is approximately 2 million, daily active wallets are about 100,000, and the average daily on-chain transactions are around 700,000, reflecting the high activity level of the platform.

Introduction

Abstract Chain is an Ethereum Layer 2 blockchain established in March 2024, using zero-knowledge encryption ( zk) technology, dedicated to providing mainstream consumers with a seamless and differentiated Web3 experience. This chain employs an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, thus lowering the barriers to entry. Through zk-rollup technology, Abstract offers low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for consumer applications.

Although the blockchain ecosystem is highly competitive, there is still some distance to go before achieving true mass adoption by mainstream users. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to achieve what is known as "consumer-grade crypto," it is necessary to build a Web3 platform with low barriers to entry and high user engagement.

Early explorations like TON and Kaia aimed to reduce user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram and LINE. Although some progress has been made, this model, which relies on the openness of Web2 platform ecosystems, is still difficult to achieve in mature markets such as Europe and the United States.

Abstract Chain has chosen another path: embedding encryption technology directly into consumer applications, promoting users to use it directly without awareness.

The mainnet of Abstract will be launched in January 2025, along with the portal platform Portal, which serves as an entry point for games and application ecosystems. Portal is not just a simple content display window, but a highly interactive online destination that integrates sections such as live streaming, rewards, collectibles, and Spotlight( app recommendations), creating a sticky user experience. This strategy differentiates Abstract from other chains and becomes the core engine of growth.

The business flywheel of Abstract

The development of a new blockchain typically starts with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) by developing on-chain applications and introducing DeFi protocols. To attract users, projects incentivize participation through methods such as airdrops.

The network effects of this model primarily rely on the on-chain assets held by users. For example, Ethereum was initially led by the NFT boom, while Solana gained popularity recently due to meme coins. These native assets lock users onto the chain, while also guiding developers to build applications around trends. From a business perspective, this approach is similar to having customers use a specific payment card that can only be spent at certain stores.

Abstract Chain takes a different approach. It is not centered on asset accumulation but instead builds the portal platform (Portal) as a vibrant online hub, designed around the following three main functions:

• Basic Services: Provides tools such as wallets, fiat entry, token exchange, etc., empowering access to the ecosystem.
• User Interaction: Live streaming and reward center enhance user engagement.
• Project Discovery: The Spotlight section guides users to explore new content.

This system enables new users to quickly access Web3, while existing users are continuously attracted back by new content.

Metaphorically likened to a shopping mall, Abstract is similar to operating a thriving large shopping center: integrating multiple stores in one place, continuously hosting performance activities on a central stage, maintaining high traffic and activity levels, and encouraging customers to return for enjoyment.

The following analysis will focus on three core growth areas: user acquisition >> portal onboarding >> application ecosystem drive. Together, they form the core components of the Abstract platform's business flywheel.

A. User Guide

The initial user base of Abstract largely relies on its association with the Pudgy Penguins IP and its extremely simple and user-friendly design philosophy. While fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives the chain a significant advantage in converting interest into actual users.

Easy onboarding experience

Abstract Chain is committed to simplifying the user onboarding process by eliminating traditional barriers. With the native account abstraction feature, users can easily create an Abstract account and activate their wallet just like registering for a regular website account. Users do not need to manage private keys or frequently sign transactions. Account recovery and transfer operations are as intuitive as browsing the web or playing games. In addition, the chain employs zero-knowledge rollup technology, ensuring extremely low gas fees and high concurrent processing capabilities, significantly reducing the cost of on-chain interactions.

After users create an account, they can immediately use all basic cryptocurrency tools through the Portal. The wallet in the upper left corner supports real-time trading features and provides recharge options including bridging and fiat deposit services, enabling quick fund deposits. The trading section of the Portal supports native token swaps without the need to search for third-party services. These integrated features collectively lower the usage threshold, allowing users to seamlessly enter the on-chain world.

Taking Pudgy fans as the initial user base

Abstract leverages the large and active fan community of Pudgy Penguins. Pudgy Penguins has over 3 million followers on X(, Twitter), Instagram, and TikTok, as well as over 500,000 PENGU token holders, providing a ready-made user pool for the Abstract chain.

In the Abstract Portal, the image of Pudgy Penguins is everywhere, just like Mickey Mouse in Disneyland: appearing on marketing banners, user avatars, live streaming stickers, etc. For PENGU holders, the Portal also has practical uses---they can use PENGU tokens to tip during live broadcasts, which is one of the use cases for PENGU on Abstract.

The synergy between this IP and platform functionalities greatly promoted the growth of Portal—1.61 million wallets were activated within 2 months after the mainnet launch.

More importantly, due to the widespread distribution of Pudgy and PENGU fans, the user profile of Abstract is also different from other consumer-grade crypto ecosystems like TON and Kaia. Abstract attracts a large number of users in developed markets—17.4% of whom are from the United States, while the remaining users are mainly distributed across European and East Asian countries such as Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong. This user group is very valuable for consumer-oriented applications and provides a strong foundation for Abstract to build a high-quality consumer ecosystem.

( B. Portal Platform

The Abstract portal platform is called "Digital Theme Park of Fun)", which is not only a place for users to discover popular applications and creators but also the core interface for users to manage assets and rewards.

Early data shows that the performance of Portal is impressive. As of March 2025, Portal has over 600,000 monthly active users ### MAU ( and 100,000 daily active users ) DAU (, with users spending an average of over 7 minutes per day. Among users of the Abstract Global Wallet ) AGW (, 40% return to make at least one transaction within 30 days of creating their wallet, a retention rate that is well above the industry average.

Live Streaming Feature

Live streaming is a media format favored by young people around the world. Web2 platforms like Twitch attract 240 million unique users each month. For Abstract, live streaming is not only a reason for users to return but also enhances the platform's stickiness and profit potential. Live streaming has been proven to promote game and merchandise sales, aligning closely with Abstract's goal of building an entertainment ecosystem.

The "Watch-to-Earn ) Stream-to-Earn (" model introduced by Abstract encourages user participation through tipping, commenting, gifting, and other methods, allowing both streamers and viewers to earn tokens, rewards, or experience points ) XP (. Moreover, the "Follow" and "Recommend" features help build a community atmosphere, promoting ongoing user engagement and social sharing.

As of the end of April 2025, Portal has gathered over 1,000 streamers, with a total viewing time exceeding 500,000 hours. Some top streamers have received tips of up to 9 ETH in a single live broadcast. The top 100 streamers account for a significant portion of the platform's tip income, with individual monthly earnings ranging from $4,000 to $5,000, and having over 4,000 interactive users.

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Reward and Reputation System

Many crypto projects encourage early user participation through point systems, but a truly complete loyalty and reputation system in the on-chain ecosystem is still scarce. Abstract uses the XP and badge system )Badges( to build this infrastructure.

Abstract uses off-chain XP as the primary incentive tool to encourage participants who meet target behaviors. Content creators can earn XP through live interactions, developers can earn XP by completing user activity tasks, and regular users can earn XP by connecting social accounts or using recommended applications.

At the same time, through the badge feature, users can showcase their achievements. Different types of badges will be issued as on-chain NFTs or displayed within the app based on behavior and task levels, becoming a part of the user's identity and gradually forming a complete reputation system.

Currently, this system is still in its early stages, with functionality limited to within the Portal. However, in the future, the XP and badge system is expected to expand across the entire Abstract ecosystem, evolving into a comprehensive loyalty and reputation framework that covers both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. In the "Discovery" section, it showcases high-quality applications selected by user votes, categorized into: digital collectibles, games, NFTs, social, AI, trading, prediction markets, and more. Users can log into these applications directly using their Abstract ID, allowing them to start experiencing immediately without a complicated registration process.

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) C. Application Ecosystem

For any blockchain, ultimate success depends on the ability to cultivate a rich and diverse application ecosystem. For Abstract, its mission is to attract "interesting" consumer-facing applications from Web3 projects and mainstream institutions.

Web3 project

Abstract is fully compatible with the EVM( Ethereum Virtual Machine), supporting the migration of existing Ethereum smart contracts and facilitating cross-chain deployment. The platform has launched the "Builder-in-Residence Program"###, providing developers with market support, technical guidance, and monthly subsidies. Developers can earn monthly XP rewards based on user engagement, with outstanding performance.