The Ethereum L2 network Abstract supported by Pudgy Penguins will shut down on December 15

The consumer-grade Ethereum Layer 2 network Abstract, supported by Pudgy Penguins' parent company Igloo Inc., announced that it will gradually cease operations and officially shut down its mainnet on December 15, 2026. The official reasons given are stagnation in growth, thin liquidity, limitations in the DeFi ecosystem, and insufficient institutional adoption. Abstract warns users that they must transfer their assets across chains before the shutdown date, or they may lose access to their funds.

Abstract stated that the network has deployed over 144 applications and has attracted more than 400,000 users through consumer-grade collaborations with brands such as Red Bull Racing and Disney. However, significant changes have occurred in the industry since the project's conception, and the independent chain model focused on consumer-grade crypto has ultimately proven difficult to sustain. Igloo has continuously funded Abstract for the past 18 months, with CEO Luca Netz revealing that cumulative losses have reached tens of millions of dollars. Igloo is now redirecting resources towards Pudgy Penguins and PENGU.

In July 2024, Igloo completed a financing round of over $11 million led by Founders Fund, aimed at developing Abstract and leveraging Pudgy Penguins' distribution capabilities to bring consumers on-chain. The network launched its mainnet in January 2025. Netz stated that Igloo ultimately decided not to issue Abstract tokens and would not continue funding the network at the expense of Pudgy Penguins' business.