Abstract, an Ethereum L2 network backed by Pudgy Penguins, will shut down on December 15.

ChainCatcher report: Abstract, a consumer-focused Ethereum Layer 2 network backed by Igloo Inc., the parent company of Pudgy Penguins, has announced it will gradually shut down operations and officially deactivate its mainnet on December 15, 2026. The official reasons cited include stagnant growth, thin liquidity, limited DeFi ecosystem development, and insufficient institutional adoption. Abstract advises users to withdraw their assets via cross-chain transfers before the shutdown date, as failure to do so may result in permanent loss of access to funds. Abstract noted that over 144 applications have been deployed on the network, and more than 400,000 users have been onboarded through consumer partnerships with brands such as Red Bull Racing and Disney. However, the industry has undergone significant changes since the project’s inception, and the standalone chain model focused on consumer crypto has ultimately proven unsustainable. Igloo has consistently funded Abstract for the past 18 months; CEO Luca Netz revealed cumulative losses of tens of millions of dollars, and Igloo will now redirect its resources toward Pudgy Penguins and PENGU. In July 2024, Igloo completed a funding round exceeding $11 million led by Founders Fund to develop Abstract and leverage Pudgy Penguins’ distribution capabilities to bring consumers on-chain; the network launched its mainnet in January 2025. Netz stated that Igloo ultimately decided against issuing an Abstract token and will not continue funding the network at the expense of its Pudgy Penguins business.