Understanding the Abstract Chain Ecosystem: How to Build a Consumer-Grade Public Chain Ecosystem?

Summary

• Abstract Chain is a consumer-centric blockchain launched in January 2025, dedicated to promoting the mainstream adoption of cryptocurrency technology and building an accessible and participatory platform.
• Abstract Chain provides a smooth user experience through native account abstraction and leverages 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: having its own portal platform, integrating live streaming and reward systems, and attracting application developers into the ecosystem.
• The live streaming platform has attracted more than 10,000 streamers, 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 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 a Layer 2 blockchain based on Ethereum, established in March 2024, utilizing zero-knowledge encryption (zk) technology, 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 able to offer low-cost, high-throughput on-chain transaction capabilities, providing scalability and security guarantees for consumer applications.

Despite the intense competition in the blockchain ecosystem, there is still a distance to go for true mass market adoption. Early projects like Arbitrum and Optimism successfully addressed performance bottlenecks and attracted 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 retention.

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 success has been 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 another path: embedding cryptographic technology directly into consumer applications, enabling users to use it directly without awareness.

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

The Business Flywheel of Abstract

The development of a new chain usually starts 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 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 by the early NFT craze, while Solana has recently gained popularity due to meme coins. These native assets bind users to the chain while attracting developers to build applications around the trends. In business terms, this approach is similar to allowing customers to use a specific payment card only at certain stores.

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

• Basic Services: Providing tools such as wallets, fiat gateways, and token swaps, empowering access to the ecosystem.
• User Interaction: Live streaming and the rewards 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 like a shopping mall, Abstract is similar to running a prosperous large shopping center: integrating multiple stores in one place, continuously hosting performances on the central stage, maintaining high foot traffic and activity levels, and 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, these form the core components of the Abstract platform's business flywheel.

A. User Guide

The initial user base of Abstract heavily relies on its association with Pudgy Penguins IP and an extremely simple and user-friendly design concept. Fans of Pudgy and PENGU continue to flock to Abstract, but the chain has a clear advantage in converting interest into actual users due to its smooth onboarding experience.

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. Additionally, the chain employs zero-knowledge rollup technology, ensuring very 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 of the page supports real-time trading features and provides deposit options including bridging and fiat deposits, enabling quick fund inflows. 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.

Using Pudgy fans as the initial user base

Abstract utilizes the large and active fan community owned by Pudgy Penguins. Pudgy Penguins has over 3 million followers on X(, former Twitter), Instagram, and TikTok, and has 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 in 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 has greatly promoted the growth of Portal—activating 1.61 million wallets within 2 months after the mainnet launch.

Moreover, due to the widespread fan base of Pudgy and PENGU, the user profile of Abstract is 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 across European and East Asian countries such as Germany, the UK, 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 "数字娱乐主题公园)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.

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 an average daily user stay time of over 7 minutes. 40% of Abstract Global Wallet ( AGW ) users return to make at least one transaction within 30 days of creating their wallet, which 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 each month. For Abstract, live streaming is not only a reason for user retention but also enhances the platform's stickiness and monetization ability. Live streaming has been proven to promote game and merchandise sales, aligning highly 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). Additionally, the "Follow" and "Recommend" features help to build a community atmosphere, promoting ongoing user engagement and social sharing.

By 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 tip 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 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 application 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 the internal Portal. However, it is expected that the XP and badge system will expand to the entire Abstract ecosystem in the future, developing 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, etc. Users can log into 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 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 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.