The SEI Network has proposed abandoning support for CosmWasm and moving toward a 100% Ethereum Virtual Machine (EVM) architecture, seeking to simplify its infrastructure and boost its DeFi ecosystem.
SEI, a Layer 1 chain initially built on the Cosmos SDK and featuring dual support for smart contracts via CosmWasm and the Ethereum Virtual Machine (EVM), has announced a radical change to its technological architecture.
Recently, developers at SEI Labs have presented an improvement proposal called SIP-3, in which they propose Completely remove CosmWasm support to rely exclusively on the EVMAccording to the proposal, the decision responds to the need to simplify the complex dual infrastructure that has characterized SEI until now, and to the intention of align with the Ethereum ecosystem, which dominates more than 70% of DeFi transactions globally
BUY SEI ON BIT2MESince its launch, SEI has sought to combine the best of Cosmos and Ethereum, but the reality of usage has shown that more than 80% of the network's activity comes from the EVM environment. This has prompted a deep reflection on efficiency, user experience, and competitiveness in a market saturated with blockchains geared toward decentralized finance and trading. In this context, SEI is committed to a 100% EVM model that promises to accelerate development, reduce costs, and facilitate interoperability with the Ethereum ecosystem.
SEI abandons CosmWasm: The reasons and advantages of a 100% EVM model
The technological duality that SEI initially implemented, integrating both CosmWasm and EVM, was intended to offer flexibility and leverage the strengths of both blockchain ecosystems.
The Cosmos SDK provides high scalability and efficient cross-chain communication through IBC, while the Ethereum Virtual Machine is the dominant standard for smart contracts in the DeFi ecosystem. However, operational reality showed that the majority of volume and transactions were concentrated on the EVM layer, with over 80% of activity occurring since August 2024.
In view of this disparity, the network development team has proposed simplifying the Sei architecture, removing CosmWasm for concentrate all resources and developments on the EVM.
“Currently, Sei supports both EVM and native Cosmos accounts, along with interoperability between EVM and WasmVM-based applications. While this dual architecture has provided flexibility, it also introduces significant complexity and friction for both users and developers.”, reads the improvement proposal.
Jay Jog, co-founder of SEI, has highlighted that this proposal, which must be approved by the community for implementation, seeks to make life easier for developers, who will be able to work with established tools such as Solidity, Hardhat, and Metamask, widely known in the Ethereum ecosystem.
BOOST YOUR SUCCESS – INVITE AND WINDevelopers have emphasized that the transition to a unified EVM environment offers multiple technical and strategic benefits. Among them, the reduction of operating costs by eliminating duplication of infrastructure, as well as a greater interoperability with the Ethereum ecosystem, the undisputed leader in the DeFi environment.
Additionally, this transition simplifies the experience for users and developers, by eliminating the need to manage different addresses and smart contracts. It is also intended to increase attractiveness for projects and investors seeking speed, transparency and efficiency.
On the other hand, the initiative in question is also linked to the development of SEI Giga, a high-performance chain that seeks to consolidate the Sei ecosystem under a single standard, facilitating scalability and increasing transaction volume.
The complexities and challenges of maintaining a dual architecture
The coexistence of CosmWasm and EVM in SEI has generated a series of difficulties affecting both users and developers. For users, the need to manage two types of addresses—native Cosmos and EVM—complicates the experience and increases the possibility of errors when interacting with applications or making transactions.
Operate with SEI without complicationsFrom an infrastructure perspective, maintaining the nodes, browsers, and indexing services that support both environments represents a significant operational burden. Sei Labs emphasized that this complexity slows the implementation of updates, increases costs, and hinders agility in the development of new applications. Furthermore, it fragments the community, limiting the consolidation of solid projects and reducing the space for CosmWasm-based applications, while demand for EVM-compatible solutions is growing.
Amid this scenario, developers believe that the coexistence of CosmWasm and EVM is creating unnecessary friction for users and developers.
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Expected impact and benefits for the SEI ecosystem
For SEI, its commitment to the Ethereum Virtual Machine represents an opportunity for growth and consolidation in the competitive blockchain market. As mentioned above, this simplification of the ecosystem will eliminate technical barriers, improving the experience for developers and users by unifying addresses, contracts, and transactions under a single standard.
Developers will be able to take advantage of a consolidated set of tools and languages, accelerating development cycles and reducing risk. This, in turn, will facilitate the launch of new projects and integration with existing applications on Ethereum, boosting innovation and collaboration.
From a user perspective, the network will offer faster and cheaper transactions, with a more fluid and engaging experience. Furthermore, SEI's consolidation as an EVM chain will allow it to capture greater liquidity and increase its total value locked (TVL), strengthening its position in the DeFi market.
The proposal is innovative and generated great enthusiasm in the market, which was reflected in a more than 6% increase in the price of the SEI token following the announcement.
With this proposal, SEI is positioning itself to become a relevant player within the global DeFi ecosystem, supported by the power and versatility of the Ethereum Virtual Machine.
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