Previously known as Frame, Abstract is Ethereum’s Layer 2 (L2) blockchain built with ZKsync’s ZK Stack and EigenLayer's EigenDA. Developed by EigenDAIgloo, a company behind the eminent NFT collection Pudgy Penguins, the new network is designed to support consumer decentralised apps (dapps) at scale.
A key element in Abstract’s strategy is the recent launch of the PENGU token by Pudgy Penguins, launched in December 2024. Boasting over 50 billion social media views and securing retail partnerships with Walmart and Target, the launch of PENGU was a significant step in extending the brand beyond its Ethereum NFT origins into new ecosystems, including Solana and Abstract.
Actively developing within the popular narrative of Consumer Crypto, PENGU places an emphasis on mainstream users, not familiar with blockchain usage. By introducing PENGU, Pudgy Penguins aims to onboard 5 million new members across diverse Web3 communities. The token broadens the brand’s reach and connects millions of fans with the ecosystem in an interactive, tokenised manner.
Ahead of the Abstract mainnet’s launch planned for later January 2025, we now take a closer look into some key developments and projects within this ecosystem.
Abstract Blockchain’s Key Features
Below are some of the standout features of the Abstract blockchain.
Native Chain Abstraction
A core technology, after which Abstract was named, Native Chain Abstraction aims to eliminate the technical complexities traditionally associated with using decentralised applications (dapps).
In other blockchains, users must manually switch between networks, manage varying gas fees, and handle multiple wallet addresses, creating significant barriers to entry for non-technical users. Abstract solves these challenges by offering a seamless, user-friendly experience that automates these processes, making them “invisible” for end-users, with the Abstract Global Wallet (AGW) playing a crucial role (read about AGW in detail below).
Beyond simplifying transactions, Abstract’s architecture enables automatic network routing, allowing users to interact with dapps without manually switching blockchains. The platform intelligently determines the best execution path, providing the cross-chain operations without requiring any technical knowledge from the user.
Developers benefit from this system by being able to build consumer-oriented dapps more efficiently, focusing on user experience rather than dealing with backend complexities. In essence, Native Chain Abstraction bridges the gap between blockchain technology and mainstream adoption.
Panoramic Governance
Panoramic Governance (PG) is a novel governance framework that aims to redistribute the fees structure from sequencers (special node operators that organise transactions in Ethereum L2s) back to the most valuable participants of the Abstract blockchain ecosystem: users and app developers.
The scheme of economic incentives in Abstract’s Panoramic Governance framework. Source: Jarrod Watts
Unlike traditional L2 solutions where sequencer profits are retained by the operating team, PG introduces an Activity Driven Loop, which rewards active participants who frequently engage with on-chain applications and meet a defined threshold. This mechanism ensures that only genuine users contributing to the ecosystem’s growth receive a share of the sequencer's earnings, fostering higher engagement and incentivising sustained network activity.
In addition to rewarding active users, PG incorporates an Emissions Driven Loop, which allocates a pre-determined set of tokens to the most successful applications based on user votes. This approach empowers the community to direct rewards toward the projects that generate the most value for the ecosystem, encouraging app developers to focus on delivering high-quality, engaging products.
Ultimately, Panoramic Governance seeks to align the interests of users, developers, and the network by creating a sustainable, user-driven incentive structure that fuels innovation and adoption on the Abstract blockchain.
Abstract Global Wallet (AGW)
Made with accelerating the mainstream adoption of blockchain in mind, the Abstract Global Wallet (AGW) simplifies most crypto-related operations, following the approach proposed by Vitalik Buterin. The app addresses common challenges, such as complicated crypto wallet setups and clunky user interfaces by introducing a user-friendly and feature-rich smart contract wallet, in particular, a one-click sign-in with Google Account or Apple ID.
Furthermore, AGW offers easier cross-chain transfers between various blockchains without the need to manually switch between them, configure multiple network settings, private keys, and gas fees, as the Abstract’s wallet routes transactions to the appropriate blockchain in the background using the Native Chain Abstraction we described above.
Another AGW’s feature is its gasless transaction mechanism, which allows users to perform blockchain operations without needing to hold native tokens for transaction fees. Instead, AGW leverages a built-in fee delegation system that optimises cost efficiency by covering fees on behalf of users through ecosystem incentives or bundled transaction models. This model enhances user engagement by removing financial and technical barriers, fostering higher adoption rates across dapps.
Abstract Ecosystem Highlight
The Abstract blockchain is designed to host a diverse range of consumer-facing applications, leveraging scalability, low fees, and fast transactions to cater to mainstream users. The focus is on expanding into the sectors of gaming and GameFi, SocialFi, DeFi and NFT-based activities, making blockchain accessible and engaging for a wider audience.
Here are some of the notable dapps:
- Monsters.fun: A Web3 gaming platform that allows users to design and launch their own AI monsters that battle and evolve, a gameplay that includes tokenised mechanics, where players can mint, trade, and upgrade their monsters, creating gaming experiences.
- Noodles.fun: A SocialFi app that offers trading of the social capital based on creators’ visibility on X and gain direct exposure to their accounts.
- Rey.xyz: An “attention marketplace” with multiple products aimed at empowering brands, creators, and consumers.
- Swipes: A DeFi protocol that can perform a swipe-based predictions market, allowing users to bet on short-term events and enabling unique markers and quick resolutions.
You can see a more complete list of crypto projects running on Abstract on the infographics below:
Future Developments
As Abstract moves closer to the mainnet launch, the platform has outlined some plans to deliver some exciting initiatives:
- Builder-in-Residence Program: This initiative aims at supporting dapp developers. Selected applicants will receive monthly allowances, marketing support, go-to-market (GTM) mentorship, opportunities to network and build meaningful connections with other builders, and the chance to deploy their protocol in the Abstract mainnet.
- Seedify Gem Factory: Seedify Gem Factory is a 10-week incubation and acceleration programme designed to support emerging Web3 projects. It offers participants access to top-tier resources such as solution partnerships for technology and design, tokenomics design that focuses on low Fully Diluted Valuation (FDV), product development and marketing support, as well as sessions by industry renowned guests.
Abstract (ABS) Token Airdrop
At the moment of publishing, Abstract has not officially announced an airdrop for its native coin, ABS. However, the project has initiated several testnet activities that could potentially lead to future airdrop eligibility. During the interview on December 31, 2024, Igloo’s co-founder Luca Netz also implied that the eligible PENGU holders will participate in the ABS airdrop.
Overall
The Abstract blockchain is well-positioned to complement the Consumer Crypto space with its native user-friendliness and drive mainstream adoption with its seamless cross-chain experiences and rewards for active participants. With its focus on scalability, low fees, and fast transactions, Abstract can support a wide range of consumer-facing applications across gaming, SocialFi, DeFi, and NFTs.
If you are building within the Abstract ecosystem, don’t hesitate to contact DWF Ventures to discuss the potential partnership and support from our crypto venture capital firm.
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