Introduction
SEI is a specialized Layer 1 blockchain optimized for decentralized finance (DeFi) and trading applications. Its primary focus is on delivering high performance and scalability, with a particular emphasis on providing a seamless user experience for trading platforms. SEI utilizes a unique consensus mechanism, known as “Twin-Turbo Consensus,” which enhances transaction finality and throughput, making it an ideal choice for applications requiring fast and secure trade execution. The SEI token ($SEI) serves as the native utility token within the SEI ecosystem, facilitating network security through staking, governance, and transaction fee payments.
Components of the Ecosystem
| Component | Token 1 | Token 2 | Token 3 |
|---|---|---|---|
| Wallet | SEI Wallet (native) | Keplr (integration in progress) | Cosmos Station (integration in progress) |
| DEX | SEI DEX (native) | Sifchain (cross-chain) | Osmosis (potential integration) |
| Lending and Borrowing Platforms | SEI Lending (upcoming) | Mars Protocol (potential integration) | Kava (cross-chain integration) |
| Oracle | Band Protocol (integration) | Pyth Network (integration) | Chainlink (integration in development) |
| Bridges | SEI Bridge (native) | Gravity Bridge (integration) | Thorchain (potential future integration) |
| Stablecoins | USDC (USD Coin) | USDT (Tether) | DAI (Dai) |
| Decentralized Identity (DID) Solutions | SEI ID (native) | Civic (cross-chain potential) | SelfKey (future integration) |
| DAOs | SEI DAO (native) | Cosmos DAO (integration) | Osmosis DAO (cross-chain) |
| Data Storage Solutions | Arweave (integration) | Filecoin (cross-chain integration) | Storj (future integration) |
| NFT Marketplaces | SEI NFT Marketplace (native) | Sifchain NFT Marketplace (cross-chain) | Osmosis NFT Marketplace (potential future) |
| Layer 2 Solutions | SEI Layer 2 (native) | SEI Subnets (future development) | Optimistic Rollups (potential integration) |
| Explorers | SEI Explorer (native) | SEIscan | Cosmos Explorer (integration) |
Properties compared to Competitors
| Feature | SEI | Solana (SOL) | Ethereum (ETH) | Avalanche (AVAX) |
|---|---|---|---|---|
| Consensus Mechanism | Twin-Turbo Consensus | Proof of History (PoH) + PoS | Proof of Stake (PoS) (formerly PoW) | Avalanche Consensus + Snowman |
| Transaction Speed | 20,000 TPS | ~50,000 TPS | ~30 TPS | ~4,500 TPS |
| Finality Time | 600ms | ~400ms | ~6 minutes | ~1-2 seconds |
| Scalability | Highly scalable, optimized for DeFi and trading | Highly scalable but faces occasional downtime | Limited by current PoS model; scaling via Layer 2 solutions | Scalable with subnets for parallel execution |
| Language Support | Rust, Cosmos SDK | Rust, C | Solidity, Vyper | Solidity, Rust, Go |
| Energy Efficiency (kWh/tx) | ~0.0005 kWh/tx | ~0.00051 kWh/tx | ~0.03 kWh/tx (PoS) | ~0.0007 kWh/tx |
Performance Compared to Competitors
| Metric | SEI | Solana | Ethereum | Avalanche |
|---|---|---|---|---|
| Transaction Fees ($/Tx) | $0.001 | $0.00025 | $0.5 – $50 | $0.02 |
| Total Value Locked (TVL) | $300 million | $1.5 billion | $20 billion | $3.5 billion |
| Transaction Volume | 25 million Tx/day | 40 billion Tx/month | 1.2 million Tx/day | 2 million Tx/day |
| Active Addresses | 400,000+ | 2 million+ | 500,000+ | 300,000+ |
| Number of Smart Contracts Deployed | 15,000+ | 100,000+ | 3.5 million+ | 60,000+ |
| Hash Rate | N/A (PoS) | N/A (PoS) | 1,000,000 GH/s | N/A (PoS) |
| Staking Participation | 65% of SEI supply | 70% of SOL supply | 10% of ETH supply | 60% of AVAX supply |
Tokenomics
Total Supply: 5,000,000,000 SEI tokens
Current Circulating Supply: 1,200,000,000 SEI tokens
Emission Rate: SEI tokens are distributed through a combination of staking rewards and ecosystem incentives. The emission rate starts at 10% annual inflation, decreasing by 1% each year until it stabilizes at 2% annually.
Token Utility:
- Transaction Fees: SEI tokens are used to pay for transaction fees on the SEI network.
- Staking and Security: SEI tokens can be staked by validators and delegators to secure the network. Stakers earn rewards for their contributions, and staking also supports network operations and consensus.
- Governance: SEI token holders can participate in on-chain governance, voting on proposals and protocol upgrades that influence the network’s future development.
- Incentives: SEI tokens are used in various incentive programs to encourage network growth, including rewards for liquidity providers and developers.
Main Investors
| Investor | Token Holdings | Percentage of Total Supply |
|---|---|---|
| Multicoin Capital | 150,000,000 SEI | 1.50% |
| Coinbase Ventures | 100,000,000 SEI | 1.00% |
| Jump Crypto | 75,000,000 SEI | 0.75% |
| Alameda Research | 50,000,000 SEI | 0.50% |
| Delphi Digital | 25,000,000 SEI | 0.25% |
Founders and History
SEI was founded in 2022 by a team of seasoned professionals from top-tier technology firms and financial institutions. The founding team includes:
- Jay Jog: Co-founder and CEO, previously at Robinhood, where he worked on scaling trading infrastructure.
- David Lewis: Co-founder and CTO, formerly a senior engineer at Google, specializing in distributed systems.
The project was launched to address the specific needs of DeFi applications, which often require higher throughput and lower latency than what existing Layer 1 solutions could provide. Since its inception, SEI has rapidly gained traction, especially among developers and projects focused on building high-performance trading platforms.
Invest Alpha 