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

TL;DR

• Abstract Chain is a consumer-oriented blockchain launched in January 2025, dedicated to promoting the popularization of cryptographic technology and building an easy-to-use and participatory platform.
• Abstract Chain provides a seamless user experience through native account abstraction, leveraging the advantages of the established Pudgy Penguins and PENGU fan communities 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 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: the number of registered wallet users is around 2 million, daily active wallets are about 100,000, and the average daily on-chain transactions are approximately 700,000, reflecting the platform's high activity.

Introduction

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

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

Early explorations like TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram and LINE. This has been somewhat successful, but this model, which relies on the openness of Web2 platform ecosystems, remains difficult to achieve in mature markets such as Europe and America.

Abstract Chain has chosen a different path: to directly embed cryptographic technology 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 but a highly interactive online destination that integrates live broadcasts, 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 new chains usually 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 effects of this model mainly rely 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 lock users onto the chain while attracting developers to build applications around the trends. In business terms, this approach is similar to having customers use a specific payment card that can only be used at certain stores.

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

• Basic services: Provide 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 allows new users to quickly engage with Web3, while existing users are continually attracted back by new content.

Metaphorically likened to a shopping mall, Abstract is similar to running a prosperous large shopping center: integrating multiple stores in one place, continuously holding performances on the central stage, maintaining high foot traffic and activity, allowing customers to keep returning for enjoyment.

The following analysis will focus on three core growth areas: user acquisition >> portal hosting >> 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 and its extremely simple and user-friendly design concept. Although 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 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 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, 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 upper left corner supports real-time trading functions and provides recharge options, including cross-chain bridge and fiat deposit services, for quick fund transfers. The trading section of the Portal supports native token exchanges, eliminating the need to search for additional third-party services. These integrated features collectively lower the barriers to entry, allowing users to seamlessly enter the on-chain world.

Using Pudgy fans as the initial user base

Abstract leverages the large and active fan community owned by Pudgy Penguins. Pudgy Penguins has over 3 million followers on X(, Twitter), Instagram, and TikTok, with more than 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, 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 propelled the growth of Portal - within 2 months after the mainnet launch, 1.61 million wallets were activated.

More importantly, due to the widespread distribution of fans for Pudgy and PENGU, the user profile of Abstract 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, with the remaining users mainly 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 very valuable for consumer-facing 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###". It 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 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. Among the users of the Abstract Global Wallet ( AGW ), 40% returned to make at least one 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 also enhances platform stickiness and monetization potential. Live streaming has been proven to promote game and merchandise sales, which aligns 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 other means, allowing both streamers and viewers to earn tokens, rewards, or experience points(XP). In addition, the "Follow" and "Recommend" features help build a community atmosphere, promoting continuous 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 stream. The top 100 streamers account for a significant portion of the platform's tip revenue, with individual monthly incomes ranging between $4,000 and $5,000, and having over 4,000 interactive users.

Reward and Reputation System

Many crypto projects encourage early user participation through point mechanisms, but in on-chain ecosystems, truly complete loyalty and reputation systems are still scarce. 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 through actions such as 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 the internal Portal. However, in the future, it is expected that the XP and badge systems will expand to the entire Abstract ecosystem, developing into a comprehensive loyalty and reputation framework covering both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. In the "Discover" section, it showcases high-quality applications selected by user votes, categorized 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