But this isn’t the only way to build an onchain distribution engine. Pudgy Penguins is taking a different approach by leveraging its strong community and brand to create a consumer-focused network called Abstract Chain. This is an interesting strategy because it relies heavily on community engagement and the power of brand loyalty rather than simply onboarding users from an existing Web2 base. The Pudgy Penguins community is being used as a seed to grow the network, and if successful, it could become a model for other brands to build blockchain ecosystems around their fanbases. However, it’s not yet clear if it will succeed. If it doesn’t, it could support the idea that having a large Web2 user base is key to success in the onchain world because those companies have the biggest distribution channels.
Attracting developers and building a strong ecosystem is even more important when we consider blockchain interoperability—the idea that different blockchains could work together seamlessly. If we move towards a future where blockchains are interoperable, the idea of a 'distribution moat' (something that keeps users locked into a specific platform) might change. In Web2, platforms tried to keep users locked in to maintain control, using proprietary systems and closed networks. But in the onchain world, distribution might be separate from the product itself. For example, a user could start their journey through a network like Base (from Coinbase) but then find and use completely different applications across other blockchain ecosystems. This flexibility changes how value is captured and shifts where the real power lies in these networks.
In an interoperable blockchain future, the value will come from providing the best user experience, the most engaging products, and the most accessible onboarding pathways, rather than simply locking users in. Users will be free to move across different blockchain networks with ease, and the platforms that can provide the most value, not just the best distribution moat, will be the ones that succeed. This could lead to a healthier ecosystem overall, where platforms compete on user experience and innovation rather than on their ability to control users.
