Sei proposes shift to EVM-only model to resolve complexity and boost adoption

Layer-1 network Sei has initiated a proposal to streamline its architecture and focus solely on the Ethereum Virtual Machine (EVM) model. The developer firm Sei Labs has submitted a Sei Improvement Proposal (SIP) for the community to vote on.

According to the SIP-3, the project will deprecate support for CosmWasm and native Cosmos accounts while it turns its attention to supporting EVM. This will mark a complete shift for the layer-1 blockchain.

Sei network was originally built using the Cosmos software development kit (SDK). However, it upgraded to include EVM support with the Sei v2, a move calculated to attract more DeFi developers, given that over 70% of all smart contracts were initially deployed on Ethereum.

The move has paid off, with the network offering flexibility through EVM and Cosmos accounts. However, the proposal noted that the dual architecture has also increased complexity for users and developers.

Users have to manage both EVM and native addresses and link the two to fully enjoy network functionality, while infrastructure providers and developers also have to deal with more overhead costs due to the complexities.

The network now seeks to address this problem and has chosen to focus on EVM because EVM has dominated network activity on Sei. According to the proposal, EVM addresses account for over 80% of transactions since August.

With the proposal, only EVM addresses can initiate transactions, and all Cosmos-based contracts will be deprecated and subsequently removed.

It said:

“The proposal recommends that Only EVM addresses be allowed to initiate transactions on Sei. The network will support EVM-only transactions going forward. CosmWasm contracts and native Cosmos message handling will be deprecated and removed.”

However, Sei native addresses will remain functional for internal protocol processes such as validator addresses. Core functionalities such as governance and staking will also remain available through precompiles.

Upgrade to EVM-only to happen in three phases

Meanwhile, the proposal noted that the upgrade’s simplicity will benefit users and network stakeholders in the long run. With the network already offering one of the fastest blockchain transactions, Sei Labs expects sole EVM functionality to improve adoption and developer experience.

The proposal also broke down the planned upgrade into three high-level milestones. In the first phase, developers will create EVM pointers to make Cosmos and CosmWasm assets accessible from the EVM side.

Once that is done, the developers will deprecate all new CosmWasm deployments and disable all legacy CosmWasm contracts and transaction support for non-EVM addresses.

Unsurprisingly, the upgrade will affect all network participants. Infrastructure teams on the network will have to ensure they interact only with EVM APIs, while users will also have to migrate their assets to EVM-compatible wallets by bridging, swapping, or withdrawing their assets.

Developers building on CosmWasm also need to transfer their applications to EVM and integrate EVM-compatible front ends.

So far, mixed reactions have trailed the proposal. Most users believe it is a positive development for Sei. However, developers are concerned about the difficulty of migrating apps and contracts built on Cosmos to EVM, with some projects saying they might quit if the proposal passes.

Others believe there should be a bridge that connects Cosmos to Sei so that builders using Cosmos can retain their stack while enjoying the benefits of EVM.

Sei is up 6% as interest increases

Meanwhile, the SEI token has been up 6.6% in the last 24 hours, hitting $0.21, according to CoinMarketCap. Its positive performance directly results from the general market sentiment that has seen Bitcoin near $100,000.

However, the Sei network has also seen increased user activity and interest. With its pitch as the fastest EVM chain, it has seen its total value locked (TVL) grow, peaking at $515 million in April. According to Artemis data, it is only second to Ethereum in net flow over the last 24 hours.

With interest in the network growing, digital assets firm Canary Capital recently filed an S-1 registration for the SEI spot exchange-traded fund with the Securities and Exchange Commission (SEC).

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