Abstract, the Ethereum L2 network backed by Pudgy Penguins, announced it will cease its on-chain operations on December 15, 2026, and urged users to bridge out their assets before this date to avoid potential loss of funds. Abstract cited stagnant growth, insufficient liquidity, a limited DeFi ecosystem, and restricted institutional adoption as reasons for the shutdown.
Abstract's parent company, Igloo Inc. (also the parent company of Pudgy Penguins), has injected "tens of millions of dollars" into the network over the past 18 months, incurring significant losses. Igloo CEO Luca Netz stated that the company ultimately decided against issuing an Abstract token or continuing to fund it to avoid harming the Pudgy Penguins business.