Please allow user selection of cointype in specific circumstances (SEI/SEI-EVM)

[cordt-sei]

Issue: Wallet Derivation for Sei / Sei-EVM

There is an ongoing significant issue with the way wallets are derived for Sei / Sei-EVM. There are some important considerations to make in how exactly this issue is resolved.

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Problem

As a dual-execution layer network, not having the same account as the signer for both the Cosmos and EVM environments creates major issues:

• Completely breaks interoperability.
• Significantly harms the functionality of the network overall.

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Simplest Solution (Not Ideal)

One solution is to simply enforce the same cointype across both the Sei and Sei-EVM environments within Keplr wallet. This would:

• Provide the "correct" wallet address (same underlying signer / key) for both environments.
• Ensure full functionality for applications and protocols, both on-chain and interchain.

This solution is not ideal because:

• Older wallets are derived using cointype 118.
• Recently onboarded wallets are derived using cointype 60.

Arbitrarily forcing one cointype over the other significantly harms (UX).

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Cointype Considerations

To my knowledge:

• Cointype is arbitrary and has no direct impact on wallet/account functionality.
• Problems arise only when the cointype (or any part of the derivation path) is inconsistent across interoperable accounts within an environment.

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Recommended Solution

Rather than enforcing a single cointype, the recommended approach is to provide users with the flexibility to select their preferred cointype. Specifically:

• Allow users to select either cointype 118 or 60 for both Sei and Sei-EVM wallets.

This approach preserves interoperability, ensures consistency, and avoids the UX issues caused by forcing a single cointype.

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Broader Impact

This issue is a blocker for several recently launched IBC networks collaborating with Sei. For example:

• A user engaging with EVM DeFi applications on Sei will face significant difficulties moving tokens to other IBC-enabled chains.
• This creates a UX comparable to having different wallets for every single chain within Keplr. Such a poor experience would discourage users from using the chain more than once and is a major blocker for external teams integrating with this network.

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Summary

To maintain interoperability, improve user experience, and support developers building in the interchain ecosystem, it is crucial to allow users to select their preferred cointype (118 or 60) for both Sei and Sei-EVM wallets.