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

TL;DR

• Abstract Chain is a consumer-centric blockchain that will be launched in January 2025, aimed at promoting the mainstream adoption of cryptographic technology and building a platform that is easy to access and participate in.
• Abstract Chain provides a seamless user experience through native account abstraction and leverages the established Pudgy Penguins and PENGU fan community to offer unique differentiated value in user composition.
• The growth strategy of Abstract 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 streamers, with an average daily user participation duration 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 about 2 million, daily active wallets are about 100,000, and the average daily on-chain transactions are about 700,000, reflecting the high activity of the platform.

Introduction

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

Despite the fierce competition in the blockchain ecosystem, there is still a distance to go for true large-scale mainstream user adoption. Early projects like Arbitrum and Optimism successfully addressed performance bottlenecks and attracted crypto-native users. However, achieving what is known as "consumer-grade crypto" requires the construction of a Web3 platform with a low entry barrier and high stickiness.

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

Abstract Chain has chosen a different path: by embedding cryptographic technology directly into consumer applications, it drives users to use it directly without realizing it.

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

The Business Flywheel of Abstract

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

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

Abstract Chain has taken a different approach. It does not revolve around asset accumulation, but instead builds the portal platform (Portal) as a dynamic online hub designed around three main functions:

• Basic services: Provide tools such as wallets, fiat on-ramps, and token exchanges, empowering the ability to enter the ecosystem.
• User Interaction: Live streaming and rewards center enhance user engagement.
• Project Discovery: The Spotlight section guides users to explore new content.

This system allows new users to quickly engage with Web3, while existing users are continually drawn back by new content.

If we compare it to a shopping mall, Abstract is similar to operating a thriving large shopping center: integrating multiple stores in one place, continuously hosting performances on a central stage, maintaining high traffic and activity levels, and encouraging customers to return and enjoy.

The following analysis revolves around three core growth areas: user acquisition >> portal hosting >> application ecosystem driving. Together, they form a key component 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 this chain a significant advantage in converting interest into actual users.

Easy Entry Experience

Abstract Chain is dedicated to simplifying the user onboarding process by removing 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. Additionally, this chain employs zero-knowledge rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly reducing the cost of on-chain interactions.

After users create an account, they can immediately use all basic crypto 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 coin exchanges 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.

Using Pudgy fans as the initial user base

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

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

The synergy between this IP and the platform's functionalities greatly promoted the growth of Portal—activating 1.61 million wallets within two months after the mainnet launch.

Moreover, due to the wide distribution of Pudgy and PENGU fans, Abstract's user profile is also different from other consumer-grade crypto ecosystems like TON and Kaia. Abstract has attracted a large number of users in developed markets—17.4% of whom are from the United States, while the remaining users are primarily located in European and East Asian countries such as Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong. This user base is highly valuable for consumer-oriented applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

( B. Portal Platform

The portal platform of Abstract is called "数字主题乐园)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.

According to initial data, Portal's performance is impressive. As of March 2025, Portal has over 600,000 monthly active users (MAU) and 100,000 daily active users (DAU), with an average user session duration of over 7 minutes. 40% of Abstract Global Wallet (AGW) users return at least once for a transaction within 30 days of creating their wallet, a retention rate that is significantly higher than the industry average.

Live streaming feature

Live streaming is a media favored by young people around the world. Web2 platforms like Twitch attract 240 million unique users globally each month. For Abstract, live streaming is not only a reason for user return visits, but it also enhances platform stickiness and monetization 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 and Earn ( Stream-to-Earn )" model introduced by Abstract encourages user participation through rewards, comments, gifts, and other means. Both streamers and viewers can earn tokens, rewards, or experience points ( XP ). In addition, the "Follow" and "Recommend" features help build a community atmosphere, promoting continuous user visits and social sharing.

By 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 up to 9 ETH in tips during a single live broadcast. The top 100 streamers account for a significant portion of the platform's tip revenue, with personal monthly incomes ranging from $4,000 to $5,000, and having over 4,000 interactive users.

Reward and Reputation System

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

Abstract uses off-chain XP as the main 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, the badge feature allows users to showcase their achievements. Various types of badges will be issued as on-chain NFTs or displayed within the app based on behavior and task levels, becoming 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, it is expected that the XP and badge system will expand to 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. The "Discover" section showcases high-quality applications selected by user votes, categorized into: digital collectibles, games, NFTs, social, AI, trading, prediction markets, and more. Users can log in to these applications directly using their Abstract ID, allowing them to start experiencing immediately without a complicated registration process.

( C. Application Ecosystem

For any blockchain, ultimate success depends on whether it can 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 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 participation, and outstanding projects have the opportunity to receive additional incentives. The live streaming platform also promotes featured games through embedded links to drive traffic to applications.

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