KEY TAKEAWAYS
- Sei community’s SIP-3 proposal aims to transition the network to an EVM-only chain, enhancing transaction speed to 200,000 TPS.
- The upgrade involves removing CosmWasm and Cosmos transactions, impacting infrastructure and user operations.
- Upcoming releases will disable IBC transfers and replace Sei’s oracle with providers like Chainlink, affecting DeFi users.
Last May, the Sei community accepted SIP-3, a proposal aimed at paving the way for Sei Giga by deprecating the network’s CosmWasm and native Cosmos transactions. This initiative marks a significant shift in the network’s architecture, setting the stage for achieving 200,000 transactions per second (TPS).
The SIP-3 upgrade is likened to reducing weight in a high-speed car, removing hundreds of thousands of lines of code from the Sei protocol. This transition involves a series of network upgrades and governance proposals, expected to be fully implemented on the mainnet by mid-2026.
Transition to EVM-Only Chain
Upon completion of the transition, Sei will operate as an Ethereum Virtual Machine (EVM)-only chain. This means that only EVM addresses will be able to initiate transactions, and all Cosmos message handling will be removed. These changes have significant implications for infrastructure providers, users, and developers within the Sei ecosystem.
In January and March, two network releases related to SIP-3 will be deployed to the Pacific testnet. The v6.3 release will enable stakers to access all staking functionalities via the EVM, while v6.4 will add the ability to disable inbound Inter-Blockchain Communication (IBC) transfers. IBC is Cosmos’ native interoperability protocol, and disabling inbound transfers will prevent users from bridging Cosmos-specific tokens like ATOM and USDC.n into the Sei Network.
Upcoming Changes and Recommendations
Additional releases will focus on disabling IBC outbound transfers and replacing Sei’s native oracle solution with established providers such as Chainlink, API3, and Pyth. These changes are expected to take effect by the end of Q1 2026.
Sei Labs advises users holding IBC assets to move them off the Sei Network as soon as possible. Users relying on these assets in decentralized finance (DeFi) protocols should consider winding down their reliance. A frontend like Skip:Go can facilitate this process, though users are encouraged to conduct their own research before using third-party services.
For more information on the SIP-3 upgrade and its implications, visit the official announcement here.
Why This Matters: Impact, Industry Trends & Expert Insights
The Sei Network’s SIP-3 upgrade represents a pivotal change, transitioning the network to an EVM-only chain and phasing out support for Cosmos-native assets. This strategic move aims to enhance transaction speed and align with Ethereum’s growing ecosystem.
Recent industry reports indicate that EVM chain transitions are becoming increasingly prevalent, emphasizing Ethereum’s dominance as the preferred platform for institutional adoption and tokenized assets. This aligns with Sei’s transition to an EVM-only architecture, which is expected to simplify development and boost performance.
As per insights from analysts at AInvest, the SIP-3 upgrade is seen as a strategic opportunity to position Sei as a high-performance chain, with enhanced interoperability and institutional appeal. This supports Sei’s goal of achieving 200,000 transactions per second and aligns with the broader industry trend towards EVM compatibility.
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