Sei (SEI)

• Sei is a Layer 1 optimized for the exchange of digital assets, a fully open source, general purpose blockchain.

• SEI is the native utility token. The current use cases for SEI include:

  • Network Fees: Pay for transaction fees on the Sei blockchain.

  • DPoS Validator Staking: SEI holders have the option to delegate their holdings with validators or stake SEI to run their own validator to secure the network.

  • Governance: SEI holders can engage in future governance of the protocol.

  • Native Collateral: SEI can be used as native asset liquidity or collateral to applications built on the Sei blockchain.

  • Fee markets: Users can paying a tip to validators to get their transactions prioritized, which can be shared with users that are delegating to that validator.

  • Trading Fees: SEI can be used as fees for exchanges built on Sei blockchain.

• The protocol consists of the following major components working in conjunction:

  • Twin-Turbo Consensus: Sei achieves 400ms time to finality (10x faster than Solana and other high performance blockchains).

    • Intelligent block propagation: Block proposals are sent with a digest of transactions, allowing validators to construct blocks locally. This results in faster response times for users.

    • Optimistic block processing: Blocks start being processed immediately after they are received by validators, enabling faster response times for users.

    • Single slot finality: Validators need consensus on a block before it can be added to the network. As a result, Sei is reorg resistant, leading to a seamless user experience.

  • Parallelization: Sei achieves 20,000 orders per second through parallelization. This allows Sei to process independent transactions at the same time to decrease transaction costs for users.

  • Front running prevention: Projects building on Sei can use a native matching engine to prevent negative MEV such as frontrunning.

  • Native price oracles: Validators give a trustless and decentralized price feeds for popular assets, leading to more reliable trading experiences for users.

  • Permissionless smart contracts: Sei is a permissionless blockchain that allows developers to deploy Rust-based smart contracts.

• The project has raised 35MM USD from three rounds of equity investment. A total of 2 billion SEI will be distributed to equity investors.

• As at August 1st 2023, the total supply of SEI is 10,000,000,000 and the circulating supply upon listing will be 1,800,000,000 (18.00% of the total token supply).

Key metrics (as at August 1st 2023)

1. What is Sei?

• Sei is a Layer 1 optimized for the exchange of digital assets, a fully open source, general purpose blockchain.

• The advancements Sei has made to the underlying consensus mechanism and transaction processing enables parallel execution, industry-leading finality, and a smooth user experience for apps built on the Sei blockchain.

• Sei is designed to address the scalability and user experience problems that stop Web3 apps from growing to mainstream adoption. The exchange of digital assets is a universal function across gaming, social, NFT and DeFi applications.

2. Project Key Highlights

• Trustless: Sei is a fully open source blockchain that is governed by a distributed set of stakeholders including individuals, validators, infrastructure providers, developers, applications, institutions and other entities.

• Sei Time to Finality: Sei’s consensus mechanism has single slot finality, which requires consensus amongst ⅔ of the voting power of the network before a block can be added to the network. This prevents reorgs and forks from unintentionally happening, giving users faster response times and preventing user transactions from being reverted.

Single slot finality and twin turbo consensus results in Sei having a magnitude better time to finality than every major chain.

Source: Sei

Source: Sei

• Intelligent block propagation: Rather than using normal block propagation (diagram on the left), Sei sends compressed block proposals that include hashes of all transactions that are in the block. This allows validators to construct blocks locally, resulting in a 40% improvement in performance. This gives users faster response times.

Source: Sei

• Optimistic Block Processing: Rather than processing blocks after consensus on the block (diagram on the left), the Sei blockchain starts processing blocks as soon as they are received. This results in a 33% improvement in performance and gives users faster response times.

Source: Sei

• Parallelization: Rather than executing transactions one after another, the Sei blockchain is able to identify which transactions are independent from one another. These independent transactions can be run at the same time which results in Sei processing 20,000 orders per second. This gives users faster response times.

Source: Sei

3. Existing Products

• Testnet Metrics to date (Jul 2023)

  • Sei-js packages on-chain: 28K

  • Total number of transactions processed: 400.2MM

  • Total number of wallets: 7.5MM

  • Peak daily active users: 984K

2. Token sales and economics

2.1 Token Distribution

SEI token allocation

SEI token release schedule

Disclaimer: The remaining Ecosystem Reserve (~5.63%) tokens will continue to vest beyond Aug 2030.

3. Roadmap and Updates

3.1 Completed Milestones

3.2 Current Roadmap

• Q3 2023:

  • Mainnet launch.

• Q4 2023 (subject governance):

  • Transient Data blob support.

  • State optimizations.

• H1 2024 (subject governance):

  • Optimistic parallelization.

  • Consensus improvements.

  • MEV Auctions.

  • Intra-validator sharding.

  • ZK Light clients.

3.3 Commercial and Business Development Progress

• Sushiswap to Launch Decentralized Perpetuals Exchange on Sei: DeFi blue chip protocol SushiSwap expands to their first non-EVM blockchain with Sei, Link.

• Tatami Joins Sei as a Leading Web3 Gaming Publisher: Tatami enables Web3 games to gain distribution across Sei users and integrate with other apps in the Sei ecosystem, Link.

• Sei Foundation to Host Bay Area Hackathon with OnePiece Labs: Over $200K in prizes are earmarked for winning teams, Link.

• Sei Foundation Sponsors Tokyo Web3 Summer Hackathon: Supported by leaders from Softbank, Keio University, Sony , Link.

4. Community

• Twitter | 519K followers

• Discord | 676K followers

5. Appendix

• Website

• Blog