Sei Network Proposes Pivot to Ethereum: A Strategic Shift

In a bold move to streamline its blockchain operations, Sei Network has proposed dropping support for Cosmos in favor of focusing exclusively on Ethereum compatibility.

In a move that could streamline its blockchain operations and simplify development, Sei Network has proposed dropping support for Cosmos in favor of focusing exclusively on Ethereum compatibility.

The proposal, introduced by Philip Su, Engineering Lead at Sei Labs, aims to reduce infrastructure overhead and position Sei as a stronger player within the Ethereum ecosystem.

“This transition will lead to greater adoption, improved developer experience, and a more cohesive community,” Su stated in the proposal, highlighting the growing competition among blockchain platforms to attract developers and expand their ecosystems.

Why Ethereum? The Case for EVM Dominance

Ethereum’s infrastructure, powered by the Ethereum Virtual Machine (EVM), has become the backbone of decentralized finance (DeFi). Major blockchains like Coinbase’s Base and Binance’s BNB Chain also rely on EVM, making it the go-to choice for developers. In contrast, Cosmos operates on its own software, CosmWasm, which has seen slower adoption.

Sei initially set out to provide dual support for both EVM and CosmWasm, aiming to offer flexibility. However, according to Su, this dual architecture created “unnecessary overhead in the codebase and complicated debugging and testing.”

Data from Sei Labs shows that new users overwhelmingly prefer EVM over CosmWasm, further justifying the proposed shift.

“The goal is to make it clear that we are focused on building the best possible chain for the EVM ecosystem,” Su added.

The Impact on Cosmos and DeFi Growth

If the proposal is approved, it could deal a blow to CosmWasm’s adoption. However, Barry Plunkett, co-CEO of Interchain Labs, pointed out that Sei would still retain some Cosmos features, such as staking and governance.

“Even if they cut support for CosmWasm, they are still a Cosmos-based chain in terms of the commoncoin initiative and the close collaboration with the broader Cosmos ecosystem,” Plunkett stated.

Sei’s growth trajectory has been swift since its 2023 launch. Total deposits in DeFi apps on the network recently hit an all-time high of $1 billion, ranking it as the 15th largest blockchain by total value locked, according to DefiLlama. This growth was particularly driven by the introduction of EVM support in July 2024, which attracted a larger pool of developers and investors.

Community Reaction and Next Steps

The proposal has sparked debate within the Sei community. While some see it as a necessary step to enhance usability and adoption, others worry about the potential loss of flexibility.

To address these concerns and collect feedback from developers and users, the nonprofit Sei Foundation will host a community call on May 14 to discuss the proposal in detail.

The outcome of this decision could set a precedent for other blockchains navigating the trade-offs between flexibility and simplicity. As the blockchain space continues to evolve, Sei’s pivot to Ethereum could serve as a case study in strategic adaptation.