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

Overview

• Abstract Chain is a consumer-oriented blockchain launched in January 2025, dedicated to promoting the mainstream adoption of cryptocurrency technology and building a platform that is easy to access and participate in.
• Abstract Chain provides a seamless user experience through native account abstraction, leveraging the advantages of the established Pudgy Penguins and PENGU fan community to offer a unique user structure and differentiated value.
• Abstract's growth strategy revolves around building a digital entertainment theme park: owning 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 more than 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: approximately 2 million registered wallet users, about 100,000 daily active wallets, and around 700,000 daily on-chain transactions, reflecting the platform's high activity level.

Introduction

Abstract Chain is an Ethereum Layer 2 blockchain established in March 2024, utilizing zero-knowledge encryption ( zk ) technology, dedicated to providing a seamless and differentiated Web3 experience for mainstream consumers. The chain adopts an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, thereby lowering the entry barrier. Through zk-rollup technology, Abstract can offer 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 true large-scale mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted native crypto users. However, to achieve what is referred to as "consumer-grade cryptocurrency," it is necessary to build a Web3 platform with low barriers to entry and high user engagement.

Early exploratory attempts like TON and Kaia aim to integrate Web3 into mainstream social platforms such as Telegram and LINE to lower user acquisition costs. Although some results have been achieved, this model that relies on the openness of Web2 platform ecosystems still faces challenges in mature markets like Europe and the United States.

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

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

Business Flywheel of Abstract

The development of a new chain 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 encourage 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 driven early on by the NFT craze, while Solana recently gained popularity due to meme coins. These native assets lock users onto the chain, while also attracting developers to build applications around the 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 has taken a different approach. Rather than focusing on asset accumulation, it has built 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, and token exchange, 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.

The 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 managing a thriving large shopping center: integrating multiple stores together, continuously hosting performance events on the central stage, maintaining high foot traffic and activity, and encouraging customers to return for enjoyment.

The following analysis revolves around three core growth areas: user acquisition >> portal integration >> application ecosystem driving. 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, as well as 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 clear advantage in converting interest into actual users.

Easy Start 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 an ordinary 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 utilizes zero-knowledge rollup technology, ensuring extremely low gas fees and high concurrent processing capabilities, significantly reducing the cost of on-chain interactions.

Once 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 deposit options including bridging and fiat deposit services for 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 barrier to entry, 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, with 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: it appears 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 has greatly driven the growth of Portal—activating 1.61 million wallets within two months after the mainnet launch.

More importantly, due to the widespread distribution of fans for Pudgy and PENGU, 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 which come from the United States, with the remaining users primarily distributed in European and East Asian countries such as ( Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong ). This user group is highly valuable for consumer-oriented applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

B. Portal Platform

The Abstract portal platform is known as "Digital Theme Park" ( 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 early 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 retention time exceeding 7 minutes per day. 40% of Abstract global wallet ( AGW ) users return at least once to make a transaction within 30 days of creating their wallet, which is a retention rate much higher than the industry average.

Live streaming feature

Live streaming is a media favored by young people worldwide. Web2 platforms like Twitch attract 240 million unique users every month. For Abstract, live streaming is not only a reason for user return visits but also enhances platform stickiness and monetization potential. Live streaming has been proven to drive 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 rewards, comments, gifts, and more, allowing both hosts and viewers to earn tokens, rewards, or experience points ( XP ). In addition, the "Follow" and "Recommend" features help build a community atmosphere, promoting user retention 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 tipping revenue, with individual monthly incomes ranging from $4,000 to $5,000, and having more than 4,000 interactive users.

Reward and Reputation System

Many crypto projects encourage early user participation through point mechanisms, but in the on-chain ecosystem, a truly complete loyalty and reputation system is still scarce. Abstract uses 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, through the badge function, users can showcase their achievements. Different types of badges can 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 features limited to the Portal. However, in the future, the XP and badge system is expected to expand throughout the 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 excellent applications selected by user votes and categorizes them into: digital collectibles, games, NFTs, social, AI, trading, prediction markets, etc. 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 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