In a significant move to streamline its blockchain infrastructure, Sei Labs has proposed transitioning the Sei blockchain to an EVM-only architecture, phasing out support for Cosmos transactions and CosmWasm smart contracts. The change, if approved, would simplify the network for users and developers while aligning Sei more closely with the broader Ethereum ecosystem.
SIP-3: A Lean Toward Ethereum Compatibility
The proposal, titled Sei Improvement Proposal-3 (SIP-3), is the second submission under Sei’s recently launched governance framework. It marks a pivotal moment in the chain’s evolution, shifting away from its current dual-account structure that supports both Ethereum Virtual Machine (EVM) and Cosmos SDK functionality.
“As EVM usage continues to dominate activity on Sei, this proposal reflects a clear path forward: a streamlined, EVM-first architecture designed to scale the next generation of DeFi, gaming, and real-world applications,”
— Jay Jog, Co-founder of Sei Labs
Under the proposed changes, only EVM-compatible addresses will be able to send transactions on the Sei blockchain. Cosmos message handling and CosmWasm smart contracts would be deprecated, although staking and governance will remain accessible via EVM precompiles, ensuring continuity for core network functions.
Key Implications for Users and Developers
If the community approves SIP-3, several important transitions will follow:
- Users must migrate assets to EVM-native wallets or use bridges to move Cosmos-based tokens out of Sei.
- Infrastructure providers will need to switch to EVM-only APIs, abandoning Cosmos-based endpoints.
- CosmWasm developers must port their applications to EVM, potentially rewriting or adapting smart contracts.
Sei Labs noted that the current dual architecture has led to friction in onboarding and development, requiring users to manage two separate address systems and introducing unnecessary complexity.
Strategic Positioning Within the EVM Ecosystem
According to Sei Labs, becoming an EVM-only chain will simplify development, reduce infrastructure overhead, and make Sei more attractive to the large pool of Ethereum-native developers and tooling providers.
By shedding Cosmos support, Sei is betting on deeper integration with the EVM ecosystem, which currently dominates the DeFi and Web3 application landscape. While no specific implementation timeline has been announced, the proposal’s passage could mark a major shift in Sei’s identity and future direction.
Market Reaction
The announcement was met with a modest market rally, as SEI token prices rose 6%, reaching $0.20, while trading volume increased by 17.27%, based on data from leading crypto analytics platforms.
Final Thoughts
Sei’s move toward an EVM-only architecture reflects a broader trend of chains consolidating around the Ethereum standard to enhance compatibility, user experience, and developer support. However, the proposal also raises questions about the future of Cosmos-based applications on Sei and whether the transition can be executed without alienating a segment of its current developer base.
As the community considers SIP-3, all eyes will be on how this decision shapes Sei’s long-term viability in the increasingly competitive Layer 1 ecosystem.
