The number of users exceeded 1.3 million and the transaction volume exceeded 50 million. How did the "Penguin Chain" Abstract be implemented within 3 months?

Author: Stacy Muur

Compiled: Tim, PANews

In the field of infrastructure-first blockchain, Abstract made a strong debut on January 27, 2025, and its core strategy has been boldly adjusted: it is the first to focus on end users rather than developer test networks, aiming to promote the realization of large-scale applications.

Overview

• Start time: January 27, 2025
• Development history: Abstract is the first consumer-oriented Layer 2 expansion solution in the Ethereum ecosystem, developed by the Igloo team who once created the well-known NFT series "Pudgy Penguins".
• Core Value Proposition: Designed for popularization, Abstract eliminates key thresholds such as wallets, mnemonics and Gas fees
• Application areas: gaming, social, NFT and forecasting markets
• Technical architecture: built based on zkSync ZK Stack

Data as of April 22, 2025:

• 1.31 million+ independent wallet
• Total transaction volume exceeds 51.3 million
• The contract creation volume reached 2.26 million
• Total Guaranteed Value (TVS): US$46.66 million
• DeFi TVL: $16.86 million
• Average daily trading volume: 500,000 to 700,000 transactions
• Daily active wallets: 50,000 to 100,000

User Experience Revolution: Real Consumer Chain Practice

Unlike most L2 models where development tools are first launched to wait for the ecosystem to develop, Abstract reconstructs the user's full life cycle experience:

1. Registration step: Built-in smart contract wallet (AGW), no need to rely on external tools such as MetaMask
2. Discovery mechanism: integrate live viewing and XP task systems through embedded consumer portal aggregation applications to realize closed-loop interaction within the site
3. Retention system: streaming content + dynamic tasks + incentive mechanism combination punch

"Pudgy Effect": IP-driven large-scale issuance

Abstract's inbound process is not designed around incentives or airdrops, but is built around native IP distribution and real-life consumer drainage channels.

Pudgy's consumer IP and product distribution system is the core strategy for Abstract to achieve independent user growth before launching any tokens:

• Sorter release: The first-release nodes accurately connect to the Pudgy Penguins marketing cycle, reaching 700,000+ transaction volume on the first day
• On-chain reward system: bind the offline experience rights of Pudgy, and NFT holders can enjoy bonus rewards
• Native application matrix: core DApps such as Pudgy World and Pudgy Party are launched simultaneously
• Virtual and real linkage innovation: physical toys come with QR codes to directly reach the world on the chain, realizing the conversion of consumer goods to users on the chain
• Channel leverage effect: derived from Pudgy IP's existing sales of 1 million+ toys, revenue of 10 million US dollars and 1.7 million Instagram followers pool
• Customer acquisition cost optimization: Relying on IP assets to achieve low-cost cold start, quickly forming a network effect

Application usage: Where has the user spent his time?

Unlike most emerging blockchains, those chain usage behaviors are often concentrated in single fields such as cross-chain bridge, token exchange or test-based decentralized applications, Abstract blockchain has shown a broad and multi-level application ecosystem vitality, and its application scenarios cover multiple dimensions such as digital wallets, application frameworks, game entertainment, transaction services and social networks.

Top 7 applications

The wallet and core interface drive more than 27 million transactions and 700,000 users based on infrastructure alone. In addition to infrastructure, applications such as Gamblers, Myriad, and Reservoir continue to show user follow-up usage behavior.

On-chain activities: The revelation behind the data

• Number of active wallets: reached a daily peak of more than 150,000 in February, and then gradually stabilized, maintaining the range of 50,000 to 100,000
• Engagement drivers: The surge in activity is closely related to application releases, community activities and on-chain incentives.
• Retention Signal: A brief decline in March followed by a rebound – a sign that users have real stickiness rather than utilitarian behavior.

Total Locked Value (TVL) Trend Analysis

At present, the amount of the Abstract agreement locked up has reached US$46.66 million. Since its rapid growth in the early stages of its launch, TVS has always maintained above US$45 million, and it has seen a significant growth peak in early February. Despite a slight decline in early April (about 3%), the scale of funds rebounded rapidly, indicating that the agreement has stable fund retention and low risk of short-term volatility.

Trading trend analysis

• Initial growth period: After the launch, the transaction volume gradually climbed → reached its peak in February and exceeded one million daily average trading volume
• Operational stability period: From March to April, the average daily trading volume remains in the range of 500,000 to 700,000
• Cumulative processing volume: The total transaction volume of the platform has exceeded 40 million mark and shows a continuous growth trend

Infrastructure Technology Stack

Abstract is a vertically integrated blockchain designed for consumer user experience. Its infrastructure architecture combines zero-knowledge proof (ZK) scalability technology with embedded user-side tools.

Product Stack Overview:

Four-layer architecture:

1. Abstract ZK-rollup

2.Abstract Global Wallet

3. Panoramic Governance (PG)

4. Consumer Portal

Taking architectural design and performance as the framework, each level is deconstructed and analyzed.

AGW: No MetaMask required, no mnemonic words, no pop-up window

AGW will be released as the basic function to all Abstract platform users by default. This product replaces traditional browser plug-ins, external accounts (EOAs) and complex login interaction processes through a smart contract wallet native to blockchain.

Application Scale:

A total of 15.6 million transactions processed

The total number of registered users reached 315,000, of which 254,000 active users in the past 30 days were

Core functional features:

• Email/social account/pass key (using Privy) Quick registration
• Gas-free transaction (via paymasters)
• After the session key is authorized, the background allows silent operation to be performed
• Support batch transaction packaging submission, eliminating multi-step interactive process
• Social account recovery mechanism based on the Guardian module completely avoids the risk of traditional mnemonic words loss

Consumer Portal

The Consumer Portal is the default user interface for all Abstract wallets. It integrates application discovery, asset redemption, streaming services, XP task system and wallet management functions. It is the main entrance for users to use and retain applications.

Abstract App alone has processed a total of 11.7 million+ transactions from 588,000 users, of which 6.4 million transactions have been traded in the past 30 days and 447,000 active users.

Portal features:

• Discover applications through select app market
• Live broadcast center is embedded directly into the application
• Experience value and task system improve application activity
• Native support token swap and NFT minting
• One-stop integration of AGW wallet management, identity authentication and activity records

Panoramic Governance (PG)

PG is a value redistribution mechanism based on actual usage, the sorter fee + token release flow direction:

• Active users
• High traffic applications
• Voters participating in governance through pledge and use

Unlike most chains that adopt "passive governance" (weighting is determined only by the amount of currency holding), PG requires participants to actually contribute to network activities to unlock benefits.

Developers can provide "vote bribes" to compete for token releases based on voting weight (similar to the Aerodrome model), but the system size is driven by activity rather than simply relying on coin holding.

Motivation positive cycle:

• User: Benefit from use
• Application: Benefit from increasing participation
• Governors: Benefits from promoting ecological activity

This is a complete innovation of the traditional "locked + idle" token model.

Take live streaming as a growth engine

Most blockchain projects view live streaming and creator content as marketing layers outside the protocol. Abstract directly embeds it into the on-chain protocol through the consumer portal, making the live broadcast function a native component of user registration, ecological discovery and user growth.

What’s unique about the Abstract platform:

• The platform natively integrates Twitch-like live broadcast functions, not through external access.
• The anchor’s income adopts an on-chain payment mechanism, and its share is mainly based on the following indicators:
• Number of viewers
• Promotion effect on Abstract ecosystem applications
• User follow-up behavior (recorded through AGW tracking system)

The platform will actively recommend popular video clips and live broadcast content, thereby building a complete closed traffic loop between creators, application developers and users.

The flywheel effect is running

The anchors showcase new applications on the Abstract platform;

Audiences log in through AGW (Abstract Gateway) to experience these applications immediately;

The use of applications has increased, attracting more creators to join, and promoting funding for developers and anchors to cooperate with projects;

Abstract promotes high-quality content fragments to inject more potential users' attention traffic into the platform.

This closed loop internalizes the content → use → growth full link within the platform rather than spreading it across multiple platforms.

Conclusion: Abstract's current positioning

Abstract has proven how user-centric blockchain infrastructure looks in practical applications:

• Wallet function built-in: not external plug-ins, but deep integration
• Discovery and interaction native: Functions are native to the platform, not fragmented
• Content embedded ecosystem: Content grows independently on the platform without relying on external channels such as Twitter
• Behavioral incentive orientation: reward users for behavioral contributions, not simply token holders