sei-protocol · alexander-sei · Aug 2, 2026 · Aug 2, 2026
diff --git a/README.md b/README.md
@@ -8,7 +8,7 @@ This skill provides AI coding assistants with deep knowledge of the Sei ecosyste
 
 ### Contracts — smart contracts and tooling
 - **EVM Contracts**: Foundry + Hardhat setup, deployment, fork testing
-- **Precompiles**: All 11 Sei precompiles (Staking, Governance, Bank, Addr, Oracle, IBC, Pointer, P256, etc.)
+- **Precompiles**: All 11 Sei precompiles (Staking, Governance, Bank, Addr, Pointer, P256, etc.; Oracle and IBC are retired/closed)
 - **Pointer Contracts**: Cross-VM asset bridging between EVM and Cosmos
 - **Verification**: Seiscan (Sourcify) verification flows for Foundry and Hardhat
 - **Performance**: Load testing, OCC-aware design, Sei-specific gas optimization
@@ -27,11 +27,11 @@ This skill provides AI coding assistants with deep knowledge of the Sei ecosyste
 ### Ecosystem — apps, integration, participation
 - **dApps directory**: DEX, lending, perps, RWA, NFT, gaming, infra
 - **DeFi integrations**: DragonSwap, Yei, Takara, Saphyre, Pyth oracles, USDC
-- **Bridges**: LayerZero V2 (OFT), Wormhole, Axelar, IBC, CCTP, ThirdWeb
+- **Bridges**: LayerZero V2 (OFT), Wormhole, Axelar, CCTP, ThirdWeb (IBC is closed in both directions)
 - **RPC endpoints**: public, community, paid SaaS providers with failover patterns
 - **Oracles**: Chainlink, Pyth (+ VRF), API3, RedStone, native oracle precompile
 - **Indexers**: The Graph, Goldsky, Dune Analytics, Moralis, Goldrush
-- **Participation roles**: validator, RPC provider, indexer operator, oracle relayer, IBC relayer
+- **Participation roles**: validator, RPC provider, indexer operator, oracle relayer
 - **Grants**: Sei Foundation Grants, Ecosystem Fund, Creator Fund
 - **AI Tooling**: Sei MCP Server, Cambrian Agent Kit, x402
 
@@ -199,8 +199,8 @@ skill/
     └── ecosystem/                        # ── Domain: Ecosystem ──────────────────
         ├── apps-directory.md             # dApps grouped by category
         ├── integration-defi.md           # DEX/lending integration patterns
-        ├── bridges.md                    # LayerZero, Wormhole, Axelar, IBC, CCTP
-        ├── ibc-bridging.md               # IBC + legacy bridging deep dive
+        ├── bridges.md                    # LayerZero, Wormhole, Axelar, CCTP
+        ├── ibc-bridging.md               # IBC closed-state reference
         ├── rpc-providers.md              # Public + paid RPC endpoints
         ├── rpc-agent-skills.md           # 17 canonical RPC skills, retry, response shapes
         ├── oracles.md                    # Chainlink, Pyth, API3, RedStone, VRF

diff --git a/skill/SKILL-CONTRACTS.md b/skill/SKILL-CONTRACTS.md
@@ -33,7 +33,7 @@ Use this Skill when the user asks for:
 
 - EVM smart contract development on Sei (Solidity, Hardhat, Foundry)
 - Using Sei precompiles (Staking, Governance, Distribution, Oracle, JSON, P256)
-- CosmWasm bridge precompiles (Addr, Bank, CosmWasm, IBC, Pointer, PointerView)
+- CosmWasm bridge precompiles (Addr, Bank, CosmWasm, Pointer, PointerView; IBC is closed)
 - Pointer contracts and cross-VM asset bridging (ERC20↔CW20, ERC721↔CW721, ERC20↔native)
 - Token creation (ERC20/721/1155, TokenFactory native denoms)
 - Contract verification on Seiscan

diff --git a/skill/SKILL-ECOSYSTEM.md b/skill/SKILL-ECOSYSTEM.md
@@ -8,7 +8,7 @@ description: >
   Chainlink oracles on Sei", "set up The Graph / Goldsky subgraph for Sei",
   "set up a Sei full node", "how do I delegate SEI to a validator", "submit a
   governance proposal on Sei", "how do I become a Sei validator / RPC provider
-  / indexer operator / oracle relayer / IBC relayer", "apply for a Sei grant",
+  / indexer operator / oracle relayer", "apply for a Sei grant",
   "Sei Foundation grants / Ecosystem Fund / Creator Fund", "Sei MCP Server",
   "Cambrian Agent Kit", or any ecosystem participation, integration, or
   infrastructure question on Sei. Ecosystem-focused variant — apps directory,
@@ -35,14 +35,14 @@ Use this Skill when the user asks for:
 
 - Sei dApps directory by category (DEX, lending, perps, RWA, NFT, gaming, infra, AI)
 - Integration patterns for DeFi protocols (DragonSwap, Yei, Takara, Saphyre)
-- Bridges (LayerZero V2, Circle CCTP v2; Wormhole legacy/verify-first); inbound IBC disabled (SIP-3, legacy/exit-only)
+- Bridges (LayerZero V2, Circle CCTP v2; Wormhole verify-first); IBC closed in both directions
 - RPC endpoints — public, community, and paid providers + failover patterns
 - Oracle integration (Chainlink, Pyth, API3, RedStone, VRF — the native oracle precompile is shut off)
 - Indexer setup (The Graph, Goldsky, Dune, Moralis, Goldrush)
 - Node operations (full node setup, state sync, snapshots, `seid` CLI)
 - Validator setup (key management, HSM, slashing, monitoring)
 - Staking, delegation, governance proposals
-- Participation roles (validator, RPC provider, indexer operator, oracle relayer, IBC relayer)
+- Participation roles (validator, RPC provider, indexer operator, oracle relayer)
 - Grants and builder programs (Sei Foundation, Ecosystem Fund, Creator Fund)
 - AI tooling (Sei MCP Server, Cambrian Agent Kit)
 - Payments (USDC transfers, x402 HTTP-native micropayments)
@@ -66,7 +66,7 @@ These facts must inform every Sei ecosystem answer:
 
 1. **Oracles**: Pyth (pull) for sub-second latency; Chainlink (push) for production DeFi defaults; API3 / RedStone as alternatives. The native oracle precompile is **retired (shut off July 2026)** — queries revert; do not use it
 2. **Indexers**: The Graph for custom query workloads; Goldsky for real-time CDC; Dune for analytics
-3. **Bridges**: LayerZero V2 OFT for omnichain tokens; CCTP for native USDC. Wormhole (NTT/WTT) is supported per Wormhole but **not documented by Sei** — verify first. Inbound IBC is disabled (SIP-3) — not a path for new transfers
+3. **Bridges**: LayerZero V2 OFT for omnichain tokens; CCTP for native USDC. Wormhole (NTT/WTT) is supported per Wormhole but **not documented by Sei** — verify first. IBC is closed in both directions — not a path for any transfer
 4. **RPC**: Sei Foundation primary + community fallback for free; paid SaaS (QuickNode, Alchemy, dRPC) with multi-provider failover for production
 5. **Networks**: Default to testnet (`atlantic-2`, chain ID 1328) unless explicitly mainnet
 6. **Validators**: HSM-backed key management; uptime monitoring; participation in governance
@@ -141,8 +141,8 @@ For agent-grade RPC patterns, see the 17 canonical skills in [ecosystem/rpc-agen
 ### Apps + integrations
 - **dApps directory by category:** [ecosystem/apps-directory.md](references/ecosystem/apps-directory.md)
 - **DeFi integration patterns (DEXes, lending):** [ecosystem/integration-defi.md](references/ecosystem/integration-defi.md)
-- **Bridges (LayerZero V2, CCTP; Wormhole verify-first; IBC legacy/exit-only):** [ecosystem/bridges.md](references/ecosystem/bridges.md)
-- **IBC (legacy / exit-only — inbound disabled, SIP-3):** [ecosystem/ibc-bridging.md](references/ecosystem/ibc-bridging.md)
+- **Bridges (LayerZero V2, CCTP; Wormhole verify-first):** [ecosystem/bridges.md](references/ecosystem/bridges.md)
+- **IBC (closed both directions — Props 116/120 inbound, 121 outbound):** [ecosystem/ibc-bridging.md](references/ecosystem/ibc-bridging.md)
 
 ### Infrastructure
 - **RPC endpoints — public, community, paid:** [ecosystem/rpc-providers.md](references/ecosystem/rpc-providers.md)
@@ -154,7 +154,7 @@ For agent-grade RPC patterns, see the 17 canonical skills in [ecosystem/rpc-agen
 - **Staking & governance:** [ecosystem/staking-governance.md](references/ecosystem/staking-governance.md)
 
 ### Participation
-- **Participation roles (validator / RPC / indexer / oracle / IBC / grants):** [ecosystem/participation-roles.md](references/ecosystem/participation-roles.md)
+- **Participation roles (validator / RPC / indexer / oracle / grants):** [ecosystem/participation-roles.md](references/ecosystem/participation-roles.md)
 - **AI tooling (Sei MCP Server, Cambrian, x402):** [ecosystem/ai-tooling.md](references/ecosystem/ai-tooling.md)
 - **Payments (USDC + x402):** [ecosystem/payments.md](references/ecosystem/payments.md)
 

diff --git a/skill/SKILL.md b/skill/SKILL.md
@@ -41,7 +41,7 @@ This Skill covers three overlapping domains. Use it when the user asks for:
 ### Contracts (smart contracts + tooling)
 - EVM smart contract development on Sei (Solidity, Hardhat, Foundry)
 - Using Sei precompiles (Staking, Governance, Distribution, Oracle, JSON, P256)
-- CosmWasm bridge precompiles (Addr, Bank, CosmWasm, IBC, Pointer, PointerView)
+- CosmWasm bridge precompiles (Addr, Bank, CosmWasm, Pointer, PointerView; IBC is closed)
 - Pointer contracts and cross-VM asset bridging (ERC20↔CW20, ERC721↔CW721, ERC20↔native)
 - Token creation (ERC20/721/1155, TokenFactory native denoms)
 - Contract verification on Seiscan
@@ -65,11 +65,11 @@ This Skill covers three overlapping domains. Use it when the user asks for:
 ### Ecosystem (apps + integration + participation)
 - Sei dApps directory by category (DEX, lending, perps, RWA, NFT, gaming, infra)
 - Integration patterns for DeFi protocols (DragonSwap, Yei, Takara, Saphyre)
-- Bridges (LayerZero V2, Circle CCTP v2 for native USDC; Wormhole legacy/verify-first); inbound IBC disabled (SIP-3)
+- Bridges (LayerZero V2, Circle CCTP v2 for native USDC; Wormhole verify-first); IBC closed in both directions
 - RPC endpoints — public, community, and paid providers
 - Oracle integration (Chainlink, Pyth, API3, RedStone, VRF; native precompile is shut off)
 - Indexer setup (The Graph, Goldsky, Dune, Moralis, Goldrush)
-- Participation roles (validator, RPC provider, indexer operator, oracle relayer, IBC relayer)
+- Participation roles (validator, RPC provider, indexer operator, oracle relayer)
 - Grants and builder programs (Sei Foundation, Ecosystem Fund, Creator Fund)
 - Node operations and validator setup
 - Staking, governance, and delegation
@@ -207,8 +207,8 @@ When implementing changes, provide:
 ### Ecosystem — apps, integration, participation
 - **dApps directory by category:** [ecosystem/apps-directory.md](references/ecosystem/apps-directory.md)
 - **DeFi integration patterns (DEXes, lending):** [ecosystem/integration-defi.md](references/ecosystem/integration-defi.md)
-- **Bridges (LayerZero V2, CCTP; Wormhole verify-first; IBC legacy/exit-only):** [ecosystem/bridges.md](references/ecosystem/bridges.md)
-- **IBC (legacy / exit-only — inbound disabled, SIP-3):** [ecosystem/ibc-bridging.md](references/ecosystem/ibc-bridging.md)
+- **Bridges (LayerZero V2, CCTP; Wormhole verify-first):** [ecosystem/bridges.md](references/ecosystem/bridges.md)
+- **IBC (closed both directions — Props 116/120 inbound, 121 outbound):** [ecosystem/ibc-bridging.md](references/ecosystem/ibc-bridging.md)
 - **Payments (USDC + x402):** [ecosystem/payments.md](references/ecosystem/payments.md)
 - **RPC endpoints — public, community, paid:** [ecosystem/rpc-providers.md](references/ecosystem/rpc-providers.md)
 - **RPC agent skills (17 canonical patterns, retry, response shapes):** [ecosystem/rpc-agent-skills.md](references/ecosystem/rpc-agent-skills.md)
@@ -217,7 +217,7 @@ When implementing changes, provide:
 - **Node operations:** [ecosystem/node-operations.md](references/ecosystem/node-operations.md) — setup, sync, snapshots, seictl
 - **Validators:** [ecosystem/validators.md](references/ecosystem/validators.md) — key management, HSM, slashing, monitoring
 - **Staking & governance:** [ecosystem/staking-governance.md](references/ecosystem/staking-governance.md) — delegation, proposals
-- **Participation roles (validator, RPC, indexer, oracle, IBC relayer, grants):** [ecosystem/participation-roles.md](references/ecosystem/participation-roles.md)
+- **Participation roles (validator, RPC, indexer, oracle, grants):** [ecosystem/participation-roles.md](references/ecosystem/participation-roles.md)
 - **AI tooling:** [ecosystem/ai-tooling.md](references/ecosystem/ai-tooling.md) — Sei MCP Server, Cambrian Agent Kit
 
 ### CLI — seid and JSON-RPC

diff --git a/skill/references/contracts/common-errors.md b/skill/references/contracts/common-errors.md
@@ -195,17 +195,16 @@ forge verify-contract \
 
 ## IBC Errors
 
-### IBC packet timeout
-**Cause**: The IBC packet was not relayed within the timeout window.  
-**Fix**: Implement a reclaim flow. After timeout, the user can reclaim their tokens:
-```bash
-seid tx ibc-transfer timeout-packet [timeout-packet-details] --from mykey
-```
-Always communicate to users that IBC transfers can timeout (rare, but possible).
+### An IBC transfer fails or reverts
+**Cause**: IBC is closed on Sei in both directions — inbound by Props 116/120, outbound by [Proposal 121](https://seistream.app/proposals/121) (2026-07-31). The `ibc` module rejects the transfer regardless of channel, recipient, or amount. This applies to `seid tx ibc-transfer transfer` and to the IBC precompile (`0x…1009`) equally.
+
+**Fix**: There is no IBC route on or off Sei. Do not retry, adjust the timeout, or try another channel. Use an EVM bridge instead — see [../ecosystem/bridges.md](../ecosystem/bridges.md).
+
+Existing `ibc/...` balances are **not** stuck: they remain in the bank module and still transfer between Sei accounts and through their ERC-20 pointers. Only the route off the chain is closed. See [../ecosystem/ibc-bridging.md](../ecosystem/ibc-bridging.md).
 
 ### `IBC denom not recognized`
-**Cause**: The receiving chain doesn't know the `ibc/HASH` denom.  
-**Fix**: Query the denom trace to find the original denom:
+**Cause**: A consumer doesn't know what an `ibc/HASH` denom represents. These denoms still exist and are still valid on Sei.  
+**Fix**: Query the denom trace — this is a local query and still works:
 ```bash
 seid q ibc-transfer denom-trace <IBC_HASH> --node https://rpc.sei-apis.com
 ```

diff --git a/skill/references/contracts/tokens.md b/skill/references/contracts/tokens.md
@@ -110,7 +110,7 @@ Native tokens (not smart contracts) that live in the Cosmos bank module:
 | Token | Denom | Notes |
 |---|---|---|
 | SEI | `usei` | Gas token, staking |
-| IBC USDC | `ibc/...` | Via IBC from noble, etc. |
+| IBC USDC | `ibc/...` | Arrived via IBC from Noble, etc.; IBC is now closed, so no new inbound and no route out |
 | Factory tokens | `factory/<addr>/<subdenom>` | Created via TokenFactory |
 
 ## Token Visibility by Wallet Type

diff --git a/skill/references/ecosystem/apps-directory.md b/skill/references/ecosystem/apps-directory.md
@@ -55,7 +55,7 @@ Integration tip: see [integration-defi.md](integration-defi.md) for router/comet
 | Project | Category | Site | Notes |
 |---|---|---|---|
 | **Kryptonite** | LST + DeFi | varies | Stake SEI for sSEI |
-| **Stride** | Cross-chain LST | https://stride.zone | LST via IBC; bridge to EVM via pointer |
+| **Stride** | Cross-chain LST | https://stride.zone | LST arrived via IBC; no new inbound route (IBC closed). Existing denoms bridge to EVM via pointer |
 
 ## NFT & Marketplaces
 
@@ -111,9 +111,9 @@ See [addresses-wallets.md](../addresses-wallets.md) for setup and dual-address h
 | Bridge | Site | Notes |
 |---|---|---|
 | **LayerZero V2** | https://layerzero.network | OFT standard; Sei is a LayerZero V2 endpoint |
-| **Wormhole** | https://wormhole.com | SeiEVM supported per Wormhole (NTT/WTT); not documented by Sei — verify. CosmWasm side legacy/exit-only |
+| **Wormhole** | https://wormhole.com | SeiEVM supported per Wormhole (NTT/WTT); not documented by Sei — verify. CosmWasm side closed |
 | **Circle CCTP v2** | https://developers.circle.com/cctp | Native USDC, burn-and-mint |
-| **IBC** | — | Legacy/exit-only — **inbound IBC disabled** (SIP-3, pacific-1 Prop 116 / atlantic-2 #247) |
+| **IBC** | — | **Closed both directions** — inbound Props 116/120, outbound Prop 121. Not a route for any transfer. |
 
 See [bridges.md](bridges.md) for integration details and addresses.