Abstract Chain Perspective: How to Build a Consumer-Oriented Public Chain Ecosystem?

TL;DR

• Abstract Chain is a consumer-centric blockchain that will launch in January 2025, dedicated to promoting the mainstream adoption of cryptographic technology and building an accessible and participatory platform.
• Abstract Chain provides a seamless user experience through native account abstraction and leverages the established Pudgy Penguins and PENGU fan communities to offer differentiated value with a unique user composition.
• 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 to join the ecosystem.
• This live streaming platform has attracted over 10,000 anchors, with an average daily user participation time exceeding 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 adoption: approximately 2 million registered wallet users, around 100,000 daily active wallets, and an average of 700,000 on-chain transactions per day, reflecting the platform's high activity level.

Introduction

Abstract Chain is a Layer 2 blockchain based on Ethereum that was established in March 2024. It employs zero-knowledge encryption ( zk ) technology and is dedicated to providing mainstream consumers with a seamless and differentiated Web3 experience. This chain adopts an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, thereby lowering the entry barrier. Through zk-rollup technology, Abstract is capable of offering 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 a distance to true mass mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is referred to as "consumer-grade cryptocurrency," it is still necessary to build a Web3 platform that has a low entry barrier and high stickiness.

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

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

The mainnet of Abstract will launch in January 2025, along with the introduction of the portal platform Portal, which serves as an entry point for games and application ecosystems. Portal is not just a 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 distinguishes Abstract from other chains and positions it as a core engine for growth.

The Business Flywheel of Abstract

The development of a new blockchain typically begins 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 effect of this model mainly relies on the on-chain assets held by users. For example, Ethereum was initially dominated by the NFT boom, while Solana has recently gained popularity due to meme coins. These native assets bind users to the blockchain, while attracting developers to build applications around trends. From a business perspective, this approach is similar to making customers use a specific payment card that can only be spent at certain stores.

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

• Basic services: Provide tools such as wallets, fiat entry, token swaps, 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 allows new users to quickly access Web3, while existing users are continuously attracted back by new content.

Metaphorically speaking, Abstract is similar to operating a thriving large shopping center: consolidating multiple stores in one place, continuously holding performance events on a central stage, maintaining high foot traffic and activity levels, ensuring that customers keep coming back to enjoy.

The following analysis revolves around three core growth areas: user acquisition >> portal hosting >> application ecosystem driving. Together, they form the key 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 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 dedicated to simplifying the user onboarding process by eliminating traditional barriers. With the native account abstraction feature, users can easily create Abstract accounts and activate their wallets 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. Moreover, the chain employs zero-knowledge rollup technology, ensuring extremely low gas fees and high parallel 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 top left corner supports real-time trading functionality and provides deposit options, including bridging and fiat deposit services, for quick fund availability. 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 barriers to entry, enabling 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 X(, Twitter), Instagram, and TikTok, 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, like Mickey Mouse in Disneyland: appearing on marketing banners, user avatars, live streaming 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 functionality has greatly driven the growth of Portal - 1.61 million wallets were activated within 2 months after the mainnet launch.

Moreover, due to the widespread 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 which 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, etc. This user group is very valuable for consumer-facing applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

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B. Portal Platform

The portal platform of Abstract 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.

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 users spending an average of over 7 minutes per day. 40% of Abstract Global Wallet ( AGW ) users return at least once to transact within 30 days of creating their wallets, a retention rate that is significantly higher than the industry average.

Live streaming feature

Live streaming is a media format favored by young people worldwide. 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 also enhances the platform's stickiness and monetization potential. Live streaming has been proven to boost 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.

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

Reward and Reputation System

Many cryptocurrency projects encourage early user participation through point mechanisms, but in on-chain ecosystems, truly complete loyalty and reputation systems remain 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 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 level, 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. In the "Discover" section, it showcases outstanding applications selected by user votes, categorized by: digital collectibles, games, NFTs, social, AI, trading, prediction markets, etc. Users can log in to these applications directly with their Abstract ID, enabling immediate access without a complicated registration process.

C. Application Ecosystem

The ultimate success of any blockchain depends on whether it can nurture 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 allowances. Developers can earn monthly XP rewards based on user engagement, and outstanding projects have the opportunity to receive additional incentives. The live streaming platform also promotes featured games through embedded links, driving traffic to applications.

Games are an important entry point for bringing Web2 users into the Web3 world. The most popular on Abstract