Abstract Chain leads the mainstreaming of encryption: building a user-friendly ecosystem and a digital entertainment theme park.

Consumer-Led Ecosystem of Web3: How Abstract Chain Builds a User-Friendly Public Chain

Overview

• Abstract Chain is a consumer-oriented blockchain launched in January 2025, dedicated to promoting the mainstream adoption of cryptographic technology and building an easy-to-use and engaging 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 base.
• 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 hosts, 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 approximately 2 million, daily active wallets are about 100,000, and daily on-chain transactions are around 700,000, reflecting the high activity level of the platform.

Introduction

Abstract Chain is a Layer 2 blockchain based on Ethereum, established in March 2024, which employs zero-knowledge encryption (zk) technology and is dedicated to providing mainstream consumers with a seamless and differentiated Web3 experience. 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 offers low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for consumer applications.

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

Early exploration attempts like TON and Kaia aimed to reduce user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram and LINE. This has been somewhat successful, but relying on the open ecosystem model of these Web2 platforms remains difficult to achieve in mature markets like Europe and the United States.

Abstract Chain has chosen a different path: embedding cryptographic technology directly into consumer applications, driving 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 entry point for the gaming and application ecosystem. Portal is not just a content display window; it is 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 a core engine for growth.

Abstract's business flywheel

The development of new chains typically 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 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 driven by the NFT boom, 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. From a business analogy 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. It does not center around asset accumulation, but instead builds the portal platform (Portal) as a vibrant online hub designed around three main functions:

• Basic services: provide tools such as wallets, fiat entry, token exchange, etc., enabling 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 enables new users to quickly engage with Web3, while existing users are continuously drawn back by new content.

Metaphorically likened to a shopping center, Abstract is similar to managing a thriving large shopping mall: integrating multiple stores together, continuously hosting performance events on a central stage, maintaining high foot traffic and activity, allowing customers to return repeatedly to enjoy.

The following analysis focuses on three key 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 philosophy. Although fans of Pudgy and PENGU continue to flock to Abstract, its smooth guiding experience gives this chain a significant advantage in converting interest into actual users.

Simple startup 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 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. Additionally, the chain utilizes 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 functions and provides recharge options including bridging and fiat deposit services for quick fund inflow. The trading section of the Portal supports native token swaps without the need to search for third-party services. These integrated features lower the usage threshold, 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 Twitter(, Instagram, and TikTok before X), and boasts more than 500,000 PENGU token holders, providing a ready user base for the Abstract chain.

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

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

More importantly, due to the widespread distribution of Pudgy and PENGU fans, the user profile of Abstract also differs from other consumer-grade crypto ecosystems such as 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 primarily distributed across European and East Asian countries like Germany, the United Kingdom, France, Japan, South Korea, Singapore, Hong Kong, etc. 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 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.

Preliminary 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 Abstract global wallet ) AGW ( users, 40% returned to conduct 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 format 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 proven to promote 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 other means, allowing both streamers and viewers to earn tokens, rewards, or experience points)XP(. Additionally, the "Follow" and "Recommend" features help to foster 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 broadcast. 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.

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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 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 through actions such as linking social accounts or using recommended applications.

At the same time, through the badge function, users can showcase their achievements. Different types of badges will be issued as on-chain NFTs or displayed in 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, it is expected that the XP and badge system will expand to the entire Abstract ecosystem in the future, 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, high-quality applications selected by user votes are showcased and 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.

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) 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 consumer-facing "interesting" 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.