Sei Labs proposes SIP-3, converting Sei Network (SEI) into a pure EVM blockchain, removing CosmWasm and native Cosmos accounts, in order to simplify and attract developers. Could this be a major turning point for SEI? Let's analyze in detail.
SIP-3: Completely Transitioning to EVM
#SeiLabs , the Sei Network development team, proposes SIP-3 to remove support for CosmWasm – the smart contract module of Cosmos SDK – and Cosmos accounts, only keeping EVM. Currently, Sei supports both systems, but the two-layer model complicates things: users manage two addresses, developers face high maintenance costs and debugging difficulties. If approved, all transactions will use EVM addresses, CosmWasm and Cosmos functionality will be removed, although Cosmos addresses will still serve internal validators. Staking and governance will remain.
This move focuses on the parallel EVM from Sei v2 (July 2024), aiming to enhance performance to 100,000 transactions/second in the “Giga” release. Philip Su, the chief engineer, believes maintaining both systems is “unnecessary” and burdensome on the source code.
Foundation and Impact
Dune Analytics data shows that since the integration #EVM (May 2024), EVM users and developers have surged, prioritizing EVM over CosmWasm. The shift helps Sei compete in the Ethereum ecosystem, but it is a significant blow to CosmWasm – the core of Cosmos – in the context of blockchains competing for developers.
Users will have to transfer assets to EVM wallets or withdraw from Cosmos, and CosmWasm developers need to relocate dApps. The Sei Foundation will hold a community meeting on May 14th to discuss and vote via Snapshot.
Impact on the Crypto Market
This event brings many signals:
SEI Price Increase: After SIP-3, SEI rose 6% to $0.21, with a market cap of $1.1 billion, reflecting expectations.
Boosting EVM: SEI could compete with Ethereum and Solana, especially with the ETF$SEI spot with staking filed by Canary Capital with the SEC.
Long-term Growth: A fund flow of $3.4 billion in crypto last week and a forecast of accumulating $330 billion into Bitcoin by 2029 (Bernstein) supports the trend.
Future Prospects
If SIP-3 succeeds in the next 1-2 years, Sei could break through in the EVM ecosystem, attracting developers from $ETH . However, losing CosmWasm might cause Sei to lose part of the Cosmos community, requiring a strong expansion strategy.
Conclusion: Will SEI Become the “Star” of EVM?
Sei Labs proposes SIP-3 to convert Sei into a pure EVM blockchain, removing CosmWasm, in order to optimize and attract developers, causing the price of SEI to rise 6% to $0.21. With the SEI spot ETF and EVM potential, SEI promises to break through, although community approval is needed. Investors should closely monitor to seize the opportunity.
Risk Warning: Crypto investments carry high risks due to price volatility and legal uncertainties. Please consider carefully before participating.