Airdrop farmers who participated in Abstract, an Ethereum Layer 2 blockchain backed by the Pudgy Penguins team, are calling for direct compensation in PENGU tokens following the announcement that the network will shut down by December.
Abstract rewarded early users with XP points over the past two years, which were intended to convert to PENGU tokens upon the platform's native token launch. With the shutdown decision, no token launch will occur, leaving farmers without their anticipated rewards.
The Pudgy Penguins team cited lack of competitiveness in key segments and failure to achieve product-market fit as reasons for winding down the L2.
Demand for Compensation
Charles Moscoe, founder of venture fund GM Capital, has emerged as a vocal advocate for the farmers. He questioned why the Pudgy Penguins team, which has already generated hundreds of millions in revenue from PENGU sales, should not distribute remaining locked tokens to XP earners.
Some community members have expressed support for the compensation push. One supporter of the campaign stated that users invested two years of effort and should not walk away empty-handed.
Locked Token Supply
PENGU has a total supply of 88.88 billion tokens. Currently, 70.7% is unlocked and in circulation. The remaining 29.3%—approximately 26 billion PENGU tokens—is valued at $212 million and is designated for distribution among the community, team, and liquidity operations.
Market Impact and Uncertainty
Following the controversy, PENGU declined approximately 2% in price. Market analysts noted the token could extend losses to around 9% and retest $0.0076.
It remains unclear whether the Pudgy Penguins team will accede to the compensation demands, with the broader NFT community reportedly opposed to the idea.
