Sei Labs Proposes to Eliminate Support for Cosmos Transactions and CosmWasm Contracts

Sei Labs, the core development team behind the Sei blockchain, has proposed a fundamental shift in the network’s architecture that would eliminate support for Cosmos transactions and CosmWasm contracts.

Instead, the team plans to transition fully to an Ethereum Virtual Machine (EVM)-compatible framework, arguing that this move would simplify the blockchain and improve the developer experience.

Most of the network’s activity already centers around EVM usage, noted Sei Labs co-founder Jay Jog. He pointed out that this proposal, known as SIP-3, is a step to align Sei with where its ecosystem is heading.

Considering this, Jog described the transition as a necessary step toward building Sei Giga, a scalable blockchain focused on performance and usability. Narrowing Sei’s focus to a single virtual machine will improve throughput and remove unnecessary architectural complexity.

Following the proposal’s announcement, SEI’s token price rose 7% to $0.20, indicating positive market sentiment toward the potential upgrade.

Sei’s EVM dream

SIP-3 will make Sei an EVM-only blockchain, phasing out all support for Cosmos-based features. This change would streamline the transaction system and consolidate smart contract development under a single standard.

Sei Labs maintains that this is a future-oriented move designed to reduce operational overhead and establish a more cohesive development environment.

The team expects that the move will allow Sei to better integrate into the broader Ethereum ecosystem and attract more developers seeking performance and simplicity.

Meanwhile, this architectural change will require adjustments from infrastructure providers and developers alike.

The blockchain network’s existing wallets, dApps, and services must shift to EVM-compatible formats, and applications built on CosmWasm must be redeployed.

Additionally, the network’s asset holders using Cosmos-native tools may need to migrate or off-ramp their holdings.

The team added:

“Sei addresses may still be used internally by the protocol (e.g. validator addresses), and core functionality such as staking and governance will remain available through precompiles.”