Web3 Field: How to Build a Consumer-Friendly Public Chain Ecosystem?

Summary

• Abstract Chain is a consumer-centric blockchain launched in January 2025, dedicated to promoting the popularization 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 and leverages the benefits 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: having 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 streamers, with an average user participation time of over 7 minutes per day 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 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 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 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 a long way to go before 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 known as "consumer-grade cryptocurrency," it is necessary to build a Web3 platform with low barriers to entry and high user retention.

Early explorations like TON and Kaia attempt to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram and LINE. While some success has been achieved, this model of relying on the openness of Web2 platform ecosystems remains difficult to implement in mature markets such as 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 even 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 its gaming and application ecosystem. 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 and becomes the core engine of growth.

The Business Flywheel of Abstract

The development of a new blockchain usually 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 primarily rely on the on-chain assets held by users. For example, Ethereum was initially driven by the 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. 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. Instead of focusing on asset accumulation, it has built 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., empowering access to the ecosystem.
• User Interaction: The live broadcast 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 continuously drawn back by new content.

Metaphorically likened to a shopping mall, Abstract is similar to operating a thriving large shopping center: integrating multiple stores in one place, continuously hosting performance events on a central stage, maintaining high traffic and activity, and ensuring customers keep returning to enjoy.

The following analysis revolves around three core growth areas: user acquisition >> portal support >> application ecosystem drive. 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. While fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives the chain a distinct advantage in converting interest into actual users.

Simple 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. Furthermore, this chain employs zero-knowledge rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly reducing the costs 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 functions and provides deposit options, including bridging and fiat deposits, 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 collectively lower the barriers to use, 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 of Pudgy Penguins. Pudgy Penguins has over 3 million followers on X( original Twitter), Instagram, and TikTok, as well as over 500,000 PENGU token holders, providing a ready user pool for 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 functions greatly facilitated the growth of Portal—activating 1.61 million wallets 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 many users in developed markets---with 17.4% coming from the United States, and 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 base is highly 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 "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 their 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 make a transaction within 30 days of creating their wallet, which is a retention rate significantly higher than the industry average.

Live streaming feature

Live streaming is a media format loved 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 return visits, but also enhances platform stickiness and profitability. Live streaming has been 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 users to participate 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 to build a community atmosphere and promote continuous user engagement and social sharing.

By the end of April 2025, Portal had gathered over 1,000 streamers, with total viewing hours exceeding 500,000. Some top streamers 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 earnings between $4,000 and $5,000, and more than 4,000 interactive users.

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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 interactive sessions, 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 are 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 functions limited to the Portal. However, in the future, the XP and badge systems are 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" of the Abstract ecosystem. In the "Discovery" section, high-quality applications selected by user votes are displayed, categorized into: digital collectibles, games, NFTs, social, AI, trading, prediction markets, and more. 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, the ultimate success depends on whether a rich and diverse application ecosystem can be cultivated. 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"### to support developers.