From 7c3cda2072a44da79d4cc3ae9cc0cfc219be6e57 Mon Sep 17 00:00:00 2001 From: Stan Bondi Date: Wed, 24 Jul 2024 12:06:11 +0400 Subject: [PATCH] refactor!: remove mempool execute, add faucet component, remove create free test coins (#1082) Description --- - remove duplicate and incorrect state bootstrapping code in engine - remove CreateFreeTestCoins instruction - remove mempool transaction validation - add validation to consensus-level transaction executor - remove deferred decision (decision is now made until after execution and locking) - fixes for local-only-rule concurrent execution - fix(engine): fix incorrectly marking components as changed when no state change occurred - adds XtrFaucet builtin template - create funded XtrFaucet component in testnet bootstrap - update walletd to call XtrFaucet for free test coins - fix(consensus): only accept missing transactions if they were requested - fix(transaction-submitter): ignore race condition when retrieving tx results Motivation and Context --- CreateFreeTestCoins was a quick way to get test funds. However because it is the only valid transaction that required no inputs, a number of edge cases had to be handled. This PR replaces this with a faucet component that is bootstrapped with funds. This component is only created for non-mainnet networks. The mempool execution has a number of limitations e.g. cannot handle versionless inputs. Next steps: - fee claiming does not currently work. This is because we need a bunch of information from the L1/epoch manager to authorize a claim. We may need to rethink this e.g. at the end of epoch, we create/update an UnclaimedVnFee substate which can later be claimed/swept by validators. The "minting" of the validator fee substate may require co-operation from multiple shards. - multishard transactions only previously worked for versioned inputs. After this PR they will not work at all because they require a substate pledging protocol. This will be implemented in a subsequent PR. - there is a small chance that a substate may change shards as the version changes. This chance needs to be completely removed. The easiest way would be to simply ignore the last 8 (u32) bytes of a substate address when mapping to a shard, however that would leave many tiny "holes" in the shard space where state cannot exist. How Has This Been Tested? --- Existing tests. Manually: 5000 transaction stress test on single shard network What process can a PR reviewer use to test or verify this change? --- Run a stress test (remember to regenerate stress test transaction bin file with new XtrFaucet transaction) Observe that local-only transactions that share the XtrFaucet vault are executed in the same block Breaking Changes --- - [ ] None - [x] Requires data directory to be deleted - [x] Other - CreateFreeTestCoins is no longer valid, so all clients that submit these will have to change to use the XtrFaucet --- Cargo.lock | 4 +- .../implementation/manager.rs | 29 +- .../src/template_manager/interface/types.rs | 11 +- .../src/handlers/accounts.rs | 54 +- .../src/handlers/nfts.rs | 9 +- .../src/handlers/transaction.rs | 8 +- .../AssetVault/Components/ActionMenu.tsx | 2 +- .../src/routes/Onboarding/Onboarding.tsx | 2 +- .../src/routes/Wallet/Components/Accounts.tsx | 2 +- .../tari_indexer/src/dry_run/processor.rs | 16 +- .../tari_indexer/src/json_rpc/handlers.rs | 2 +- applications/tari_swarm_daemon/Cargo.toml | 1 + .../src/webserver/templates.rs | 5 + .../webui/src/routes/Main.tsx | 1021 +++++++++-------- applications/tari_validator_node/Cargo.toml | 2 + .../tari_validator_node/src/bootstrap.rs | 281 ++--- .../consensus/block_transaction_executor.rs | 168 +-- .../src/consensus/handle.rs | 17 +- .../src/consensus/metrics.rs | 1 - .../tari_validator_node/src/consensus/mod.rs | 113 +- .../tari_validator_node/src/consensus/spec.rs | 7 +- .../src/dry_run_transaction_processor.rs | 12 +- .../src/json_rpc/handlers.rs | 4 +- applications/tari_validator_node/src/lib.rs | 3 + .../src/p2p/services/mempool/error.rs | 58 +- .../src/p2p/services/mempool/executor.rs | 135 --- .../src/p2p/services/mempool/initializer.rs | 30 +- .../src/p2p/services/mempool/metrics.rs | 43 +- .../src/p2p/services/mempool/mod.rs | 3 - .../src/p2p/services/mempool/service.rs | 406 +------ .../validators/after/has_involved_shards.rs | 37 - .../services/mempool/validators/after/mod.rs | 7 - .../after/outputs_dont_exist_locally.rs | 51 - .../services/mempool/validators/and_then.rs | 33 - .../before/claim_fee_instructions.rs | 60 - .../mempool/validators/before/epoch_range.rs | 53 - .../mempool/validators/before/has_inputs.rs | 48 - .../p2p/services/mempool/validators/mod.rs | 45 - .../claim_fee_instructions.rs | 54 + .../src/transaction_validators/epoch_range.rs | 48 + .../src/transaction_validators/error.rs | 47 + .../before => transaction_validators}/fee.rs | 13 +- .../src/transaction_validators/has_inputs.rs | 37 + .../before => transaction_validators}/mod.rs | 9 +- .../signature.rs | 13 +- .../template_exists.rs | 13 +- .../transaction_validators/with_context.rs | 24 + .../tari_validator_node/src/validator.rs | 110 ++ bindings/src/types/Decision.ts | 2 +- bindings/src/types/ForeignProposal.ts | 2 +- bindings/src/types/Instruction.ts | 5 +- bindings/src/types/TransactionPoolRecord.ts | 9 +- .../common_types/src/substate_address.rs | 17 +- dan_layer/consensus/Cargo.toml | 1 - .../src/hotstuff/block_change_set.rs | 2 +- dan_layer/consensus/src/hotstuff/error.rs | 5 - dan_layer/consensus/src/hotstuff/mod.rs | 2 +- .../src/hotstuff/on_message_validate.rs | 265 ++--- .../consensus/src/hotstuff/on_propose.rs | 65 +- .../on_ready_to_vote_on_local_block.rs | 140 +-- .../hotstuff/on_receive_foreign_proposal.rs | 2 +- .../src/hotstuff/on_receive_local_proposal.rs | 56 +- .../hotstuff/on_receive_new_transaction.rs | 126 ++ ...on_receive_request_missing_transactions.rs | 7 +- .../on_receive_requested_transactions.rs | 43 - dan_layer/consensus/src/hotstuff/proposer.rs | 49 +- .../hotstuff/substate_store/pending_store.rs | 72 +- dan_layer/consensus/src/hotstuff/worker.rs | 221 ++-- dan_layer/consensus/src/messages/message.rs | 20 +- .../messages/request_missing_transaction.rs | 3 +- .../src/messages/requested_transaction.rs | 3 +- .../consensus/src/traits/substate_store.rs | 7 +- .../src/traits/transaction_executor.rs | 27 +- dan_layer/consensus_tests/src/consensus.rs | 136 ++- .../consensus_tests/src/substate_store.rs | 4 +- .../src/support/executions_store.rs | 4 +- .../consensus_tests/src/support/harness.rs | 85 +- .../consensus_tests/src/support/network.rs | 64 +- .../src/support/transaction.rs | 43 +- .../src/support/transaction_executor.rs | 29 +- .../src/support/validator/builder.rs | 36 +- .../src/support/validator/instance.rs | 12 +- dan_layer/engine/src/lib.rs | 5 - dan_layer/engine/src/runtime/error.rs | 6 +- dan_layer/engine/src/runtime/impl.rs | 29 +- dan_layer/engine/src/runtime/mod.rs | 9 +- dan_layer/engine/src/runtime/state_store.rs | 35 + dan_layer/engine/src/runtime/working_state.rs | 41 +- .../engine/src/{ => state_store}/bootstrap.rs | 28 +- dan_layer/engine/src/state_store/memory.rs | 2 +- dan_layer/engine/src/state_store/mod.rs | 2 + dan_layer/engine/src/transaction/processor.rs | 16 +- dan_layer/engine/tests/access_rules.rs | 2 +- dan_layer/engine/tests/confidential.rs | 17 +- dan_layer/engine/tests/shenanigans.rs | 4 +- dan_layer/engine/tests/test.rs | 47 +- dan_layer/engine_types/Cargo.toml | 4 +- dan_layer/engine_types/src/instruction.rs | 16 +- dan_layer/p2p/proto/consensus.proto | 23 +- dan_layer/p2p/proto/transaction.proto | 4 - dan_layer/p2p/src/conversions/consensus.rs | 42 +- dan_layer/p2p/src/conversions/transaction.rs | 23 +- .../up.sql | 10 +- dan_layer/state_store_sqlite/src/reader.rs | 38 +- dan_layer/state_store_sqlite/src/schema.rs | 4 +- .../src/sql_models/block_diff.rs | 56 +- .../src/sql_models/transaction.rs | 2 +- .../src/sql_models/transaction_pool.rs | 49 +- dan_layer/state_store_sqlite/src/writer.rs | 163 +-- dan_layer/state_store_sqlite/tests/tests.rs | 24 +- .../storage/src/consensus_models/block.rs | 4 +- .../src/consensus_models/block_diff.rs | 10 + .../storage/src/consensus_models/command.rs | 66 +- .../consensus_models/executed_transaction.rs | 10 +- .../storage/src/consensus_models/substate.rs | 7 +- .../src/consensus_models/transaction.rs | 51 +- .../consensus_models/transaction_decision.rs | 9 - .../consensus_models/transaction_execution.rs | 2 +- .../src/consensus_models/transaction_pool.rs | 120 +- dan_layer/storage/src/state_store/mod.rs | 14 +- dan_layer/template_builtin/build.rs | 2 +- dan_layer/template_builtin/src/lib.rs | 33 +- .../template_builtin/templates/.gitignore | 3 +- .../templates/faucet/Cargo.toml | 20 + .../templates/faucet/src/lib.rs | 34 + .../template_lib/src/auth/access_rules.rs | 10 +- dan_layer/template_lib/src/constants.rs | 12 +- .../src/models/confidential_proof.rs | 13 + dan_layer/template_test_tooling/src/lib.rs | 1 + .../src/template_test.rs | 18 +- dan_layer/transaction/src/substate.rs | 11 +- dan_layer/wallet/sdk/src/apis/substate.rs | 9 +- dan_layer/wallet/sdk/src/apis/transaction.rs | 15 +- integration_tests/src/wallet_daemon_cli.rs | 2 +- ...fees.feature => claim_fees.feature.ignore} | 3 + .../tests/features/transfer.feature | 48 +- networking/rpc_framework/src/client/mod.rs | 10 +- utilities/tariswap_test_bench/src/accounts.rs | 44 +- utilities/tariswap_test_bench/src/cli.rs | 3 + utilities/tariswap_test_bench/src/faucet.rs | 2 +- utilities/tariswap_test_bench/src/runner.rs | 7 +- .../tariswap_test_bench/src/templates.rs | 29 +- .../templates/faucet/Cargo.toml | 20 + .../templates/faucet/src/lib.rs | 55 + .../src/transaction_builders/free_coins.rs | 19 +- utilities/transaction_submitter/Cargo.toml | 1 + utilities/transaction_submitter/src/main.rs | 13 +- 147 files changed, 3002 insertions(+), 3144 deletions(-) delete mode 100644 applications/tari_validator_node/src/p2p/services/mempool/executor.rs delete mode 100644 applications/tari_validator_node/src/p2p/services/mempool/validators/after/has_involved_shards.rs delete mode 100644 applications/tari_validator_node/src/p2p/services/mempool/validators/after/mod.rs delete mode 100644 applications/tari_validator_node/src/p2p/services/mempool/validators/after/outputs_dont_exist_locally.rs delete mode 100644 applications/tari_validator_node/src/p2p/services/mempool/validators/and_then.rs delete mode 100644 applications/tari_validator_node/src/p2p/services/mempool/validators/before/claim_fee_instructions.rs delete mode 100644 applications/tari_validator_node/src/p2p/services/mempool/validators/before/epoch_range.rs delete mode 100644 applications/tari_validator_node/src/p2p/services/mempool/validators/before/has_inputs.rs delete mode 100644 applications/tari_validator_node/src/p2p/services/mempool/validators/mod.rs create mode 100644 applications/tari_validator_node/src/transaction_validators/claim_fee_instructions.rs create mode 100644 applications/tari_validator_node/src/transaction_validators/epoch_range.rs create mode 100644 applications/tari_validator_node/src/transaction_validators/error.rs rename applications/tari_validator_node/src/{p2p/services/mempool/validators/before => transaction_validators}/fee.rs (55%) create mode 100644 applications/tari_validator_node/src/transaction_validators/has_inputs.rs rename applications/tari_validator_node/src/{p2p/services/mempool/validators/before => transaction_validators}/mod.rs (72%) rename applications/tari_validator_node/src/{p2p/services/mempool/validators/before => transaction_validators}/signature.rs (64%) rename applications/tari_validator_node/src/{p2p/services/mempool/validators/before => transaction_validators}/template_exists.rs (78%) create mode 100644 applications/tari_validator_node/src/transaction_validators/with_context.rs create mode 100644 applications/tari_validator_node/src/validator.rs create mode 100644 dan_layer/consensus/src/hotstuff/on_receive_new_transaction.rs delete mode 100644 dan_layer/consensus/src/hotstuff/on_receive_requested_transactions.rs rename dan_layer/engine/src/{ => state_store}/bootstrap.rs (62%) create mode 100644 dan_layer/template_builtin/templates/faucet/Cargo.toml create mode 100644 dan_layer/template_builtin/templates/faucet/src/lib.rs rename integration_tests/tests/features/{claim_fees.feature => claim_fees.feature.ignore} (97%) create mode 100644 utilities/tariswap_test_bench/templates/faucet/Cargo.toml create mode 100644 utilities/tariswap_test_bench/templates/faucet/src/lib.rs diff --git a/Cargo.lock b/Cargo.lock index 9c8fd8675..9fd3c88f1 100644 --- a/Cargo.lock +++ b/Cargo.lock @@ -8761,7 +8761,6 @@ dependencies = [ "tari_dan_storage", "tari_engine_types", "tari_epoch_manager", - "tari_mmr", "tari_shutdown", "tari_state_tree", "tari_transaction", @@ -9736,6 +9735,7 @@ dependencies = [ "tari_common_types", "tari_core", "tari_crypto", + "tari_dan_engine", "tari_engine_types", "tari_shutdown", "tari_validator_node_client", @@ -9919,6 +9919,7 @@ dependencies = [ "tari_rpc_state_sync", "tari_shutdown", "tari_state_store_sqlite", + "tari_template_builtin", "tari_template_lib", "tari_transaction", "tari_validator_node_client", @@ -10632,6 +10633,7 @@ version = "0.7.0" dependencies = [ "anyhow", "clap 4.5.4", + "tari_dan_common_types", "tari_transaction", "tari_validator_node_client", "tokio", diff --git a/applications/tari_dan_app_utilities/src/template_manager/implementation/manager.rs b/applications/tari_dan_app_utilities/src/template_manager/implementation/manager.rs index 0727b62c7..82c6feee5 100644 --- a/applications/tari_dan_app_utilities/src/template_manager/implementation/manager.rs +++ b/applications/tari_dan_app_utilities/src/template_manager/implementation/manager.rs @@ -40,7 +40,12 @@ use tari_dan_engine::{ use tari_dan_storage::global::{DbTemplate, DbTemplateType, DbTemplateUpdate, GlobalDb, TemplateStatus}; use tari_dan_storage_sqlite::global::SqliteGlobalDbAdapter; use tari_engine_types::calculate_template_binary_hash; -use tari_template_builtin::{get_template_builtin, ACCOUNT_NFT_TEMPLATE_ADDRESS, ACCOUNT_TEMPLATE_ADDRESS}; +use tari_template_builtin::{ + get_template_builtin, + ACCOUNT_NFT_TEMPLATE_ADDRESS, + ACCOUNT_TEMPLATE_ADDRESS, + FAUCET_TEMPLATE_ADDRESS, +}; use tari_template_lib::models::TemplateAddress; use super::TemplateConfig; @@ -90,28 +95,28 @@ impl TemplateManager { fn load_builtin_templates() -> HashMap { // for now, we only load the "account" template - let mut builtin_templates = HashMap::new(); + let mut builtin_templates = HashMap::with_capacity(3); // get the builtin WASM code of the account template let compiled_code = get_template_builtin(&ACCOUNT_TEMPLATE_ADDRESS); - let template = Self::load_builtin_template("account", ACCOUNT_TEMPLATE_ADDRESS, compiled_code.to_vec()); + let template = Self::convert_code_to_template("Account", ACCOUNT_TEMPLATE_ADDRESS, compiled_code.to_vec()); builtin_templates.insert(ACCOUNT_TEMPLATE_ADDRESS, template); // get the builtin WASM code of the account nft template let compiled_code = get_template_builtin(&ACCOUNT_NFT_TEMPLATE_ADDRESS); - let template = Self::load_builtin_template("account_nft", ACCOUNT_NFT_TEMPLATE_ADDRESS, compiled_code.to_vec()); + let template = + Self::convert_code_to_template("AccountNft", ACCOUNT_NFT_TEMPLATE_ADDRESS, compiled_code.to_vec()); builtin_templates.insert(ACCOUNT_NFT_TEMPLATE_ADDRESS, template); + // get the builtin WASM code of the account nft template + let compiled_code = get_template_builtin(&FAUCET_TEMPLATE_ADDRESS); + let template = Self::convert_code_to_template("XtrFaucet", FAUCET_TEMPLATE_ADDRESS, compiled_code.to_vec()); + builtin_templates.insert(FAUCET_TEMPLATE_ADDRESS, template); + builtin_templates } - fn load_builtin_template(name: &str, address: TemplateAddress, compiled_code: Vec) -> Template { - let compiled_code_len = compiled_code.len(); - info!( - target: LOG_TARGET, - "Loading builtin {} template: {} bytes", name, compiled_code_len - ); - + fn convert_code_to_template(name: &str, address: TemplateAddress, compiled_code: Vec) -> Template { // build the template object of the account template let binary_sha = calculate_template_binary_hash(&compiled_code); Template { @@ -119,7 +124,7 @@ impl TemplateManager { name: name.to_string(), address, url: "".to_string(), - binary_sha: binary_sha.to_vec(), + binary_sha, height: 0, }, executable: TemplateExecutable::CompiledWasm(compiled_code), diff --git a/applications/tari_dan_app_utilities/src/template_manager/interface/types.rs b/applications/tari_dan_app_utilities/src/template_manager/interface/types.rs index aadf16bde..14120b900 100644 --- a/applications/tari_dan_app_utilities/src/template_manager/interface/types.rs +++ b/applications/tari_dan_app_utilities/src/template_manager/interface/types.rs @@ -20,6 +20,7 @@ // WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE // USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. +use tari_common_types::types::FixedHash; use tari_dan_storage::global::{DbTemplate, DbTemplateType}; use tari_template_lib::models::TemplateAddress; use tari_validator_node_client::types::TemplateAbi; @@ -34,7 +35,7 @@ pub struct TemplateMetadata { // this must be in the form of "https://example.com/my_template.wasm" pub url: String, /// SHA hash of binary - pub binary_sha: Vec, + pub binary_sha: FixedHash, /// Block height in which the template was published pub height: u64, } @@ -45,7 +46,9 @@ impl From for TemplateMetadata { name: reg.template_name, address: reg.template_address, url: reg.registration.binary_url.into_string(), - binary_sha: reg.registration.binary_sha.into_vec(), + binary_sha: FixedHash::try_from(reg.registration.binary_sha.into_vec()) + // TODO: impl Fallible conversion + .expect("binary_sha must be 32 bytes long"), height: reg.mined_height, } } @@ -58,7 +61,7 @@ impl From for TemplateMetadata { name: record.template_name, address: (*record.template_address).into(), url: record.url, - binary_sha: vec![], + binary_sha: FixedHash::zero(), height: record.height, } } @@ -87,7 +90,7 @@ impl From for Template { address: (*record.template_address).into(), url: record.url, // TODO: add field to db - binary_sha: vec![], + binary_sha: FixedHash::zero(), height: record.height, }, executable: match record.template_type { diff --git a/applications/tari_dan_wallet_daemon/src/handlers/accounts.rs b/applications/tari_dan_wallet_daemon/src/handlers/accounts.rs index 89172be39..973603156 100644 --- a/applications/tari_dan_wallet_daemon/src/handlers/accounts.rs +++ b/applications/tari_dan_wallet_daemon/src/handlers/accounts.rs @@ -17,7 +17,7 @@ use tari_dan_common_types::optional::Optional; use tari_dan_wallet_crypto::ConfidentialProofStatement; use tari_dan_wallet_sdk::{ apis::{confidential_transfer::TransferParams, jwt::JrpcPermission, key_manager, substate::ValidatorScanResult}, - models::{NewAccountInfo, VersionedSubstateId}, + models::NewAccountInfo, storage::WalletStore, DanWalletSdk, }; @@ -32,6 +32,7 @@ use tari_key_manager::key_manager::DerivedKey; use tari_template_builtin::ACCOUNT_TEMPLATE_ADDRESS; use tari_template_lib::{ args, + constants::{XTR_FAUCET_COMPONENT_ADDRESS, XTR_FAUCET_VAULT_ADDRESS}, models::{Amount, UnclaimedConfidentialOutputAddress}, prelude::CONFIDENTIAL_TARI_RESOURCE_ADDRESS, }; @@ -124,11 +125,7 @@ pub async fn handle_create( let transaction = Transaction::builder() .fee_transaction_pay_from_component(default_account.address.as_component_address().unwrap(), max_fee) .create_account(owner_pk.clone()) - .with_inputs( - inputs - .iter() - .map(|addr| SubstateRequirement::new(addr.substate_id.clone(), Some(addr.version))), - ) + .with_inputs(inputs) .sign(&signing_key.key) .build(); @@ -541,12 +538,8 @@ pub async fn handle_claim_burn( // Add all versioned account child addresses as inputs // add the commitment substate id as input to the claim burn transaction - let commitment_substate_address = VersionedSubstateId { - substate_id: SubstateId::UnclaimedConfidentialOutput(UnclaimedConfidentialOutputAddress::try_from( - commitment.as_slice(), - )?), - version: 0, - }; + let commitment_substate_address = + SubstateRequirement::unversioned(UnclaimedConfidentialOutputAddress::try_from(commitment.as_slice())?); inputs.push(commitment_substate_address.clone()); info!( @@ -561,7 +554,7 @@ pub async fn handle_claim_burn( .substate_api() .scan_for_substate( &commitment_substate_address.substate_id, - Some(commitment_substate_address.version), + commitment_substate_address.version, ) .await?; let output = output.into_unclaimed_confidential_output().unwrap(); @@ -648,7 +641,7 @@ async fn finish_claiming( account_address: SubstateId, new_account_name: Option, sdk: &DanWalletSdk, - mut inputs: Vec, + mut inputs: Vec, account_public_key: &RistrettoPublicKey, max_fee: Amount, account_secret_key: DerivedKey, @@ -670,7 +663,7 @@ async fn finish_claiming( if new_account_name.is_none() { // Add all versioned account child addresses as inputs unless the account is new let child_addresses = sdk.substate_api().load_dependent_substates(&[&account_address])?; - inputs.extend(child_addresses); + inputs.extend(child_addresses.into_iter().map(Into::into)); instructions.push(Instruction::CallMethod { component_address: account_component_address, method: "deposit".to_string(), @@ -687,9 +680,6 @@ async fn finish_claiming( method: "pay_fee".to_string(), args: args![max_fee], }); - let inputs = inputs - .into_iter() - .map(|s| SubstateRequirement::new(s.substate_id.clone(), Some(s.version))); let transaction = Transaction::builder() .with_fee_instructions(instructions) .with_inputs(inputs) @@ -727,7 +717,6 @@ async fn finish_claiming( } /// Mints free test coins into an account. If an account name is provided which does not exist, that account is created -#[allow(clippy::too_many_lines)] pub async fn handle_create_free_test_coins( context: &HandlerContext, token: Option, @@ -748,24 +737,21 @@ pub async fn handle_create_free_test_coins( return Err(invalid_params("fee", Some("cannot be negative"))); } - let mut inputs = vec![]; + let mut inputs = vec![ + SubstateRequirement::unversioned(XTR_FAUCET_COMPONENT_ADDRESS), + SubstateRequirement::unversioned(XTR_FAUCET_VAULT_ADDRESS), + ]; let accounts_api = sdk.accounts_api(); let (account_address, account_secret_key, new_account_name) = get_or_create_account(&account, &accounts_api, key_id, sdk, &mut inputs)?; let account_public_key = PublicKey::from_secret_key(&account_secret_key.key); - let output = sdk - .confidential_crypto_api() - .generate_output_for_dest(&account_public_key, amount)?; - - let instructions = vec![ - // TODO: We create double what is expected, amount confidential and amount revealed. Should let the caller - // specify these values separately. - Instruction::CreateFreeTestCoins { - revealed_amount: amount, - output: Some(output), - }, - ]; + + let instructions = vec![Instruction::CallMethod { + component_address: XTR_FAUCET_COMPONENT_ADDRESS, + method: "take".to_string(), + args: args![amount], + }]; // ------------------------------ let (tx_id, finalized) = finish_claiming( @@ -799,7 +785,7 @@ fn get_or_create_account( accounts_api: &tari_dan_wallet_sdk::apis::accounts::AccountsApi<'_, T>, key_id: Option, sdk: &DanWalletSdk, - inputs: &mut Vec, + inputs: &mut Vec, ) -> Result<(SubstateId, DerivedKey, Option), anyhow::Error> { let maybe_account = match account { Some(ref addr_or_name) => get_account(addr_or_name, accounts_api).optional()?, @@ -819,7 +805,7 @@ fn get_or_create_account( .key_manager_api() .derive_key(key_manager::TRANSACTION_BRANCH, key_index)?; let account_substate = sdk.substate_api().get_substate(&account.address)?; - inputs.push(account_substate.address); + inputs.push(account_substate.address.into()); (account.address, account_secret_key, None) }, diff --git a/applications/tari_dan_wallet_daemon/src/handlers/nfts.rs b/applications/tari_dan_wallet_daemon/src/handlers/nfts.rs index 6f3336854..c768a3a94 100644 --- a/applications/tari_dan_wallet_daemon/src/handlers/nfts.rs +++ b/applications/tari_dan_wallet_daemon/src/handlers/nfts.rs @@ -180,15 +180,11 @@ async fn mint_account_nft( let sdk = context.wallet_sdk(); sdk.jwt_api().check_auth(token, &[JrpcPermission::Admin])?; - let inputs = sdk + let mut inputs = sdk .substate_api() .locate_dependent_substates(&[account.address.clone()]) .await?; - let mut inputs = inputs - .iter() - .map(|v| SubstateRequirement::new(v.substate_id.clone(), Some(v.version))) - .collect::>(); inputs.extend([SubstateRequirement::new(SubstateId::Component(component_address), None)]); let instructions = vec![ @@ -252,9 +248,6 @@ async fn create_account_nft( .substate_api() .locate_dependent_substates(&[account.address.clone()]) .await?; - let inputs = inputs - .iter() - .map(|addr| SubstateRequirement::new(addr.substate_id.clone(), Some(addr.version))); let transaction = Transaction::builder() .fee_transaction_pay_from_component(account.address.as_component_address().unwrap(), fee) diff --git a/applications/tari_dan_wallet_daemon/src/handlers/transaction.rs b/applications/tari_dan_wallet_daemon/src/handlers/transaction.rs index ca079d91b..684a97813 100644 --- a/applications/tari_dan_wallet_daemon/src/handlers/transaction.rs +++ b/applications/tari_dan_wallet_daemon/src/handlers/transaction.rs @@ -121,13 +121,7 @@ pub async fn handle_submit( .unwrap_or(&req.fee_instructions), )?); let substates = substates.into_iter().collect::>(); - let loaded_dependent_substates = sdk - .substate_api() - .locate_dependent_substates(&substates) - .await? - .into_iter() - .map(Into::into) - .collect(); + let loaded_dependent_substates = sdk.substate_api().locate_dependent_substates(&substates).await?; [req.inputs, loaded_dependent_substates].concat() }; diff --git a/applications/tari_dan_wallet_web_ui/src/routes/AssetVault/Components/ActionMenu.tsx b/applications/tari_dan_wallet_web_ui/src/routes/AssetVault/Components/ActionMenu.tsx index be5d3762d..c89bedf60 100644 --- a/applications/tari_dan_wallet_web_ui/src/routes/AssetVault/Components/ActionMenu.tsx +++ b/applications/tari_dan_wallet_web_ui/src/routes/AssetVault/Components/ActionMenu.tsx @@ -37,7 +37,7 @@ function ActionMenu() { const onClaimFreeCoins = () => { mutate({ accountName: accountName, - amount: 100000, + amount: 200000, fee: 1000, }); }; diff --git a/applications/tari_dan_wallet_web_ui/src/routes/Onboarding/Onboarding.tsx b/applications/tari_dan_wallet_web_ui/src/routes/Onboarding/Onboarding.tsx index 89e14821e..379c9b930 100644 --- a/applications/tari_dan_wallet_web_ui/src/routes/Onboarding/Onboarding.tsx +++ b/applications/tari_dan_wallet_web_ui/src/routes/Onboarding/Onboarding.tsx @@ -45,7 +45,7 @@ function Onboarding() { mutate( { accountName: accountFormState.accountName, - amount: 100000, + amount: 200000, fee: 1000, }, { diff --git a/applications/tari_dan_wallet_web_ui/src/routes/Wallet/Components/Accounts.tsx b/applications/tari_dan_wallet_web_ui/src/routes/Wallet/Components/Accounts.tsx index 754ecbcea..9a07f2166 100644 --- a/applications/tari_dan_wallet_web_ui/src/routes/Wallet/Components/Accounts.tsx +++ b/applications/tari_dan_wallet_web_ui/src/routes/Wallet/Components/Accounts.tsx @@ -161,7 +161,7 @@ function Accounts() { const onClaimFreeCoins = async () => { await mutateCreateFeeTestCoins({ accountName: "TestAccount", - amount: 100000, + amount: 200000, fee: 1000, }); }; diff --git a/applications/tari_indexer/src/dry_run/processor.rs b/applications/tari_indexer/src/dry_run/processor.rs index de32a4026..8faeea7ae 100644 --- a/applications/tari_indexer/src/dry_run/processor.rs +++ b/applications/tari_indexer/src/dry_run/processor.rs @@ -29,11 +29,7 @@ use tari_dan_app_utilities::{ transaction_executor::{TariDanTransactionProcessor, TransactionExecutor as _}, }; use tari_dan_common_types::{Epoch, PeerAddress, SubstateAddress}; -use tari_dan_engine::{ - bootstrap_state, - fees::FeeTable, - state_store::{memory::MemoryStateStore, AtomicDb, StateWriter}, -}; +use tari_dan_engine::{fees::FeeTable, state_store::new_memory_store}; use tari_engine_types::{ commit_result::ExecuteResult, instruction::Instruction, @@ -115,7 +111,7 @@ where TSubstateCache: SubstateCache + 'static let virtual_substates = self.get_virtual_substates(&transaction, epoch).await?; - let state_store = new_state_store(); + let state_store = new_memory_store(); state_store.set_many(found_substates)?; // execute the payload in the WASM engine and return the result @@ -271,11 +267,3 @@ where TSubstateCache: SubstateCache + 'static Ok(virtual_substates) } } - -fn new_state_store() -> MemoryStateStore { - let state_store = MemoryStateStore::new(); - let mut tx = state_store.write_access().unwrap(); - bootstrap_state(&mut tx).unwrap(); - tx.commit().unwrap(); - state_store -} diff --git a/applications/tari_indexer/src/json_rpc/handlers.rs b/applications/tari_indexer/src/json_rpc/handlers.rs index 2e5074f7f..4921e94e0 100644 --- a/applications/tari_indexer/src/json_rpc/handlers.rs +++ b/applications/tari_indexer/src/json_rpc/handlers.rs @@ -617,7 +617,7 @@ impl JsonRpcHandlers { name: t.name, address: t.address, url: t.url, - binary_sha: to_hex(&t.binary_sha), + binary_sha: to_hex(t.binary_sha.as_slice()), height: t.height, }) .collect(), diff --git a/applications/tari_swarm_daemon/Cargo.toml b/applications/tari_swarm_daemon/Cargo.toml index 4f9697207..7712b35ea 100644 --- a/applications/tari_swarm_daemon/Cargo.toml +++ b/applications/tari_swarm_daemon/Cargo.toml @@ -18,6 +18,7 @@ tari_engine_types = { workspace = true } minotari_node_grpc_client = { workspace = true } minotari_wallet_grpc_client = { workspace = true } tari_validator_node_client = { workspace = true } +tari_dan_engine = { workspace = true } anyhow = { workspace = true } async-trait = { workspace = true } diff --git a/applications/tari_swarm_daemon/src/webserver/templates.rs b/applications/tari_swarm_daemon/src/webserver/templates.rs index 81e20289f..0d0329160 100644 --- a/applications/tari_swarm_daemon/src/webserver/templates.rs +++ b/applications/tari_swarm_daemon/src/webserver/templates.rs @@ -11,6 +11,7 @@ use axum::{ }; use log::{error, info}; use tari_crypto::tari_utilities::hex; +use tari_dan_engine::wasm::WasmModule; use tari_engine_types::calculate_template_binary_hash; use tokio::{fs, io::AsyncWriteExt}; use url::Url; @@ -32,6 +33,10 @@ pub async fn upload( let hash = calculate_template_binary_hash(&bytes); let dest_file = format!("{}-{}.wasm", slug(&name), hex::to_hex(hash.as_ref())); let dest_path = context.config().base_dir.join("templates").join(&dest_file); + + // Load the struct name from the wasm. + let loaded = WasmModule::load_template_from_code(&bytes).map_err(|e| UploadError::Other(e.into()))?; + let name = loaded.template_def().template_name().to_string(); let mut file = fs::File::create(dest_path).await?; file.write_all(&bytes).await?; info!("🌐 Upload template {} bytes", bytes.len()); diff --git a/applications/tari_swarm_daemon/webui/src/routes/Main.tsx b/applications/tari_swarm_daemon/webui/src/routes/Main.tsx index 415736ae8..c759a6cd0 100644 --- a/applications/tari_swarm_daemon/webui/src/routes/Main.tsx +++ b/applications/tari_swarm_daemon/webui/src/routes/Main.tsx @@ -1,565 +1,566 @@ // Copyright 2024 The Tari Project // SPDX-License-Identifier: BSD-3-Clause -import {ChangeEvent, useEffect, useState} from "react"; -import {jsonRpc} from "../utils/json_rpc"; -import {ExecutedTransaction} from "../Types.ts"; +import { ChangeEvent, useEffect, useState } from "react"; +import { jsonRpc } from "../utils/json_rpc"; +import { ExecutedTransaction } from "../Types.ts"; enum Executable { - BaseNode = 1, - Wallet = 2, - Miner = 3, - ValidatorNode = 4, - Indexer = 5, - DanWallet = 6, - Templates = 7, + BaseNode = 1, + Wallet = 2, + Miner = 3, + ValidatorNode = 4, + Indexer = 5, + DanWallet = 6, + Templates = 7, } async function jsonRpc2(address: string, method: string, params: any = null) { - let id = 0; - id += 1; - const response = await fetch(address, { - method: "POST", - body: JSON.stringify({ - method: method, - jsonrpc: "2.0", - id: id, - params: params, - }), - headers: { - "Content-Type": "application/json", - }, - }); - const json = await response.json(); - if (json.error) { - throw json.error; - } - return json.result; + let id = 0; + id += 1; + const response = await fetch(address, { + method: "POST", + body: JSON.stringify({ + method: method, + jsonrpc: "2.0", + id: id, + params: params, + }), + headers: { + "Content-Type": "application/json", + }, + }); + const json = await response.json(); + if (json.error) { + throw json.error; + } + return json.result; } -function ExtraInfoVN({name, url, setRow, addTxToPool, autoRefresh, state, horizontal}: { - name: string, - url: string, - setRow: any, - addTxToPool: any, - autoRefresh: boolean, - state: any, - horizontal: boolean +function ExtraInfoVN({ name, url, setRow, addTxToPool, autoRefresh, state, horizontal }: { + name: string, + url: string, + setRow: any, + addTxToPool: any, + autoRefresh: boolean, + state: any, + horizontal: boolean }) { - const [bucket, setBucket] = useState(null); - const [epoch, setEpoch] = useState(null); - const [height, setHeight] = useState(null); - const [pool, setPool] = useState([]); - const [copied, setCopied] = useState(false); - const [missingTxStates, setMissingTxStates] = useState({}); // {tx_id: [vn1, vn2, ...]} - const [publicKey, setPublicKey] = useState(null); - const [peerId, setPeerId] = useState(null); - const [tick, setTick] = useState(0); - useEffect(() => { - if (autoRefresh) { - const timer = setInterval(() => { - setTick(tick + 1); - }, 1000); - return () => clearInterval(timer); - } - }, [tick, autoRefresh]); - useEffect(() => { - jsonRpc2(url, "get_epoch_manager_stats").then((resp) => { - setRow(resp.committee_shard.shard + 1); - setBucket(resp.committee_shard.shard); - setHeight(resp.current_block_height); - setEpoch(resp.current_epoch); - }).catch((resp) => { - console.error("err", resp); - }); - jsonRpc2(url, "get_tx_pool").then((resp) => { - setPool(resp.tx_pool); - addTxToPool(resp.tx_pool.map((tx: any) => tx.transaction.id).sort()); - }); - jsonRpc2(url, "get_identity").then((resp) => { - setPublicKey(resp.public_key); - setPeerId(resp.peer_id); - }); - let missing_tx = new Set(); - for (const k in state) { - if (k != name && state[k].length > 0) { - missing_tx = new Set([...missing_tx, ...state[k]]); - } - } - const my_txs = new Set(state[name]); - missing_tx = new Set([...missing_tx].filter((tx) => !my_txs.has(tx))); - const promises = Array.from(missing_tx).map((tx) => jsonRpc2(url, "get_transaction", [tx]) - .then((resp) => resp.transaction as ExecutedTransaction) - .catch((resp) => { - throw {resp, tx}; - })); - Promise.allSettled(promises).then((results) => { - const newState: Map = new Map(); - for (const result of results) { - if (result.status == "fulfilled") { - const tx = result.value; - newState.set(tx.transaction.id, { - known: true, - abort_details: tx.abort_details, - final_decision: tx.final_decision, - }); - } else { - newState.set(result.reason.tx, {known: false}); - } - } - if (JSON.stringify(newState) != JSON.stringify(missingTxStates)) { - setMissingTxStates(newState); - } - }); - // for (let tx of missing_tx) { - // jsonRpc2(url, "get_transaction", [tx]).then((resp) => { - // setMissingTxStates((state) => ({ ...state, [tx]: { known: true, abort_details: resp.transaction.abort_details, final_decision: resp.transaction.final_decision } })); - // // console.log(resp); - // }).catch((resp) => { setMissingTxStates((state) => ({ ...state, [tx]: { know: false } })); }); - // } - }, [tick, state]); - const shorten = (str: string) => { - if (str.length > 20) { - return str.slice(0, 3) + "..." + str.slice(-3); - } - return str; - }; - useEffect(() => { - if (copied) { - setTimeout(() => setCopied(false), 1000); - } - }, [copied]); - const copyToClipboard = (str: string) => { - setCopied(true); - navigator.clipboard.writeText(str); - }; - const showMissingTx = (missingTxStates: { [key: string]: any }) => { - if (Object.keys(missingTxStates).length == 0) { - return null; - } - return ( - <> -
-

Transaction from others TXs pools

-
- Tx Id - Known - Abort details - Final decision - {Object.keys(missingTxStates).map((tx) => { - const {known, abort_details, final_decision} = missingTxStates[tx]; - return ( - <> -
copyToClipboard(tx)}>{copied && "Copied" || shorten(tx)}
-
{known && "Yes" || "No"}
-
{abort_details || unknown}
-
{final_decision || unknown}
- - ); - })} -
- ); - }; - const showPool = (pool: Array) => { - if (pool.length == 0) { - return null; + const [bucket, setBucket] = useState(null); + const [epoch, setEpoch] = useState(null); + const [height, setHeight] = useState(null); + const [pool, setPool] = useState([]); + const [copied, setCopied] = useState(false); + const [missingTxStates, setMissingTxStates] = useState({}); // {tx_id: [vn1, vn2, ...]} + const [publicKey, setPublicKey] = useState(null); + const [peerId, setPeerId] = useState(null); + const [tick, setTick] = useState(0); + useEffect(() => { + if (autoRefresh) { + const timer = setInterval(() => { + setTick(tick + 1); + }, 1000); + return () => clearInterval(timer); + } + }, [tick, autoRefresh]); + useEffect(() => { + jsonRpc2(url, "get_epoch_manager_stats").then((resp) => { + setRow(resp.committee_shard.shard + 1); + setBucket(resp.committee_shard.shard); + setHeight(resp.current_block_height); + setEpoch(resp.current_epoch); + }).catch((resp) => { + console.error("err", resp); + }); + jsonRpc2(url, "get_tx_pool").then((resp) => { + setPool(resp.tx_pool); + addTxToPool(resp.tx_pool.filter((tx: any) => Boolean(tx?.transaction)).map((tx: any) => tx.transaction.id).sort()); + }); + jsonRpc2(url, "get_identity").then((resp) => { + setPublicKey(resp.public_key); + setPeerId(resp.peer_id); + }); + let missing_tx = new Set(); + for (const k in state) { + if (k != name && state[k].length > 0) { + missing_tx = new Set([...missing_tx, ...state[k]]); + } + } + const my_txs = new Set(state[name]); + missing_tx = new Set([...missing_tx].filter((tx) => !my_txs.has(tx))); + const promises = Array.from(missing_tx).map((tx) => jsonRpc2(url, "get_transaction", [tx]) + .then((resp) => resp.transaction as ExecutedTransaction) + .catch((resp) => { + throw { resp, tx }; + })); + Promise.allSettled(promises).then((results) => { + const newState: Map = new Map(); + for (const result of results) { + if (result.status == "fulfilled") { + const tx = result.value; + newState.set(tx.transaction.id, { + known: true, + abort_details: tx.abort_details, + final_decision: tx.final_decision, + }); + } else { + newState.set(result.reason.tx, { known: false }); } - return (<> -
-

Pool transaction

- - - - - - - - {pool.map(({atom}, i) => ( - - - - - - ))} -
Tx IdReadyDecisionStage
copyToClipboard(atom.id)}>{copied && "Copied" || shorten(atom.id)}{atom.is_ready && "Yes" || "No"}{atom.decision || "_"}{atom.stage}
- - ); - }; + } + if (JSON.stringify(newState) != JSON.stringify(missingTxStates)) { + setMissingTxStates(newState); + } + }); + // for (let tx of missing_tx) { + // jsonRpc2(url, "get_transaction", [tx]).then((resp) => { + // setMissingTxStates((state) => ({ ...state, [tx]: { known: true, abort_details: resp.transaction.abort_details, final_decision: resp.transaction.final_decision } })); + // // console.log(resp); + // }).catch((resp) => { setMissingTxStates((state) => ({ ...state, [tx]: { know: false } })); }); + // } + }, [tick, state]); + const shorten = (str: string) => { + if (str.length > 20) { + return str.slice(0, 3) + "..." + str.slice(-3); + } + return str; + }; + useEffect(() => { + if (copied) { + setTimeout(() => setCopied(false), 1000); + } + }, [copied]); + const copyToClipboard = (str: string) => { + setCopied(true); + navigator.clipboard.writeText(str); + }; + const showMissingTx = (missingTxStates: { [key: string]: any }) => { + if (Object.keys(missingTxStates).length == 0) { + return null; + } return ( -
-
-
-
Bucket
-
Height
-
Epoch
-
Public key
-
Peer id
-
{bucket}
-
{height}
-
{epoch}
-
{publicKey}
-
{peerId}
-
- {showPool(pool)} - {showMissingTx(missingTxStates)} + <> +
+

Transaction from others TXs pools

+
+ Tx Id + Known + Abort details + Final decision + {Object.keys(missingTxStates).map((tx) => { + const { known, abort_details, final_decision } = missingTxStates[tx]; + return ( + <> +
copyToClipboard(tx)}>{copied && "Copied" || shorten(tx)}
+
{known && "Yes" || "No"}
+
{abort_details || unknown}
+
{final_decision || unknown}
+ + ); + })}
+ ); + }; + const showPool = (pool: Array) => { + if (pool.length == 0) { + return null; + } + return (<> +
+

Pool transaction

+ + + + + + + + {pool.map((atom, i) => ( + + + + + + ))} +
Tx IdReadyDecisionStage
copyToClipboard(atom.transaction_id)}>{copied && "Copied" || shorten(atom.transaction_id)}{atom.is_ready && "Yes" || "No"}{atom.decision || "_"}{atom.stage}
+ ); + }; + return ( +
+
+
+
Bucket
+
Height
+
Epoch
+
Public key
+
Peer id
+
{bucket}
+
{height}
+
{epoch}
+
{publicKey}
+
{peerId}
+
+ {showPool(pool)} + {showMissingTx(missingTxStates)} +
+ ); } function ShowInfo(params: any) { - const { - children, - executable, - name, - node, - logs, - stdoutLogs, - showLogs, - autoRefresh, - updateState, - state, - horizontal, - onReload, - } = params; - const [row, setRow] = useState(1); - // const [unprocessedTx, setUnprocessedTx] = useState([]); - const nameInfo = name && ( -
- 

-            Name
-            {name}
-        

-    );
-    const jrpcInfo = node?.jrpc && (
-        
-    );
-    const grpcInfo = node?.grpc && (
+  const {
+    children,
+    executable,
+    name,
+    node,
+    logs,
+    stdoutLogs,
+    showLogs,
+    autoRefresh,
+    updateState,
+    state,
+    horizontal,
+    onReload,
+  } = params;
+  const [row, setRow] = useState(1);
+  // const [unprocessedTx, setUnprocessedTx] = useState([]);
+  const nameInfo = name && (
+    

+      

+      Name
+      {name}
+    

+  );
+  const jrpcInfo = node?.jrpc && (
+    
+  );
+  const grpcInfo = node?.grpc && (
+    

+      GRPC
+      {node.grpc}
+    

+  );
+  const httpInfo = node?.web && (
+    

+      HTTP
+      {node.web}
+    

+  );
+  const logInfo = logs && (
+    <>
+      

+        Logs
         

-            GRPC
-            {node.grpc}
+          {logs?.map((e: any) => (
+            
+          ))}
         

-    );
-    const httpInfo = node?.web && (
+      

+      

         

-            HTTP
-            {node.web}
-        

-    );
-    const logInfo = logs && (
-        <>
-            

-                Logs
-                

-                    {logs?.map((e: any) => (
-                        
-                    ))}
-                

+          {stdoutLogs?.map((e: any) => (
+            

+              stdout
             

-            

-                

-                    {stdoutLogs?.map((e: any) => (
-                        

-                            stdout
-                        

-                    ))}
-                

-            

-        
-    );
-    const addTxToPool = (tx: any) => {
-        updateState({name: name, state: tx});
-    };
+          ))}
+        

+      

+    
+  );
+  const addTxToPool = (tx: any) => {
+    updateState({ name: name, state: tx });
+  };
 
-    const handleOnStart = () => {
-        jsonRpc("start", name).then(onReload);
-    };
+  const handleOnStart = () => {
+    jsonRpc("start", name).then(onReload);
+  };
 
-    const handleOnStop = () => {
-        jsonRpc("stop", name).then(onReload);
-    };
+  const handleOnStop = () => {
+    jsonRpc("stop", name).then(onReload);
+  };
 
-    const handleDeleteData = () => {
-        jsonRpc("delete_data", {name}).then(onReload);
-    };
+  const handleDeleteData = () => {
+    jsonRpc("delete_data", { name }).then(onReload);
+  };
 
 
-    return (
-        

-            {nameInfo}
-            {httpInfo}
-            {jrpcInfo}
-            {grpcInfo}
-            {showLogs && logInfo}
-            {executable === Executable.ValidatorNode && node?.jrpc &&
-                 {
-                    if (new_row != row) setRow(new_row);
-                }} addTxToPool={addTxToPool} autoRefresh={autoRefresh} state={state} horizontal={horizontal}/>}
-            {executable !== Executable.Templates &&
-                 handleOnStart()}
-                    onStop={() => handleOnStop()}
-                    onDeleteData={() => handleDeleteData()}
-                />}
-            {children}
-        

-    );
+  return (
+    

+      {nameInfo}
+      {httpInfo}
+      {jrpcInfo}
+      {grpcInfo}
+      {showLogs && logInfo}
+      {executable === Executable.ValidatorNode && node?.jrpc &&
+         {
+          if (new_row != row) setRow(new_row);
+        }} addTxToPool={addTxToPool} autoRefresh={autoRefresh} state={state} horizontal={horizontal} />}
+      {executable !== Executable.Templates &&
+         handleOnStart()}
+          onStop={() => handleOnStop()}
+          onDeleteData={() => handleDeleteData()}
+        />}
+      {children}
+    

+  );
 }
 
 interface NodeControlsProps {
-    isRunning: boolean,
-    onStart: () => void;
-    onStop: () => void;
-    onDeleteData: () => void;
+  isRunning: boolean,
+  onStart: () => void;
+  onStop: () => void;
+  onDeleteData: () => void;
 }
 
-function NodeControls({isRunning, onStart, onStop, onDeleteData}: NodeControlsProps) {
-    return <>
-        
-        
-        
-    ;
+function NodeControls({ isRunning, onStart, onStop, onDeleteData }: NodeControlsProps) {
+  return <>
+    
+    
+    
+  ;
 }
 
 function ShowInfos(params: any) {
-    const {nodes, logs, stdoutLogs, name, showLogs, autoRefresh, horizontal, onReload} = params;
-    const [state, setState] = useState<{ [key: string]: any }>({});
-    let executable: Executable;
-    switch (name) {
-        case "vn":
-            executable = Executable.ValidatorNode;
-            break;
-        case "dan":
-            executable = Executable.DanWallet;
-            break;
-        case "indexer":
-            executable = Executable.Indexer;
-            break;
-        default:
-            console.log(`Unknown name ${name}`);
-            break;
+  const { nodes, logs, stdoutLogs, name, showLogs, autoRefresh, horizontal, onReload } = params;
+  const [state, setState] = useState<{ [key: string]: any }>({});
+  let executable: Executable;
+  switch (name) {
+    case "vn":
+      executable = Executable.ValidatorNode;
+      break;
+    case "dan":
+      executable = Executable.DanWallet;
+      break;
+    case "indexer":
+      executable = Executable.Indexer;
+      break;
+    default:
+      console.log(`Unknown name ${name}`);
+      break;
+  }
+  const updateState = (partial_state: { name: string, state: any }) => {
+    if (JSON.stringify(state[partial_state.name]) != JSON.stringify(partial_state.state)) {
+      setState((state) => ({ ...state, [partial_state.name]: partial_state.state }));
     }
-    const updateState = (partial_state: { name: string, state: any }) => {
-        if (JSON.stringify(state[partial_state.name]) != JSON.stringify(partial_state.state)) {
-            setState((state) => ({...state, [partial_state.name]: partial_state.state}));
-        }
-    };
-    return (
-        

-            {Object.keys(nodes).map((index) =>
-                )}
-        

-    );
+  };
+  return (
+    

+      {Object.keys(nodes).map((index) =>
+        )}
+    

+  );
 }
 
 export default function Main() {
-    const [vns, setVns] = useState({});
-    const [danWallet, setDanWallets] = useState({});
-    const [indexers, setIndexers] = useState({});
-    const [node, setNode] = useState<{ grpc: any }>();
-    const [wallet, _setWallet] = useState();
-    const [logs, setLogs] = useState({});
-    const [stdoutLogs, setStdoutLogs] = useState({});
-    const [connectorSample, setConnectorSample] = useState(null);
-    const [selectedFile, setSelectedFile] = useState(null);
-    const [showLogs, setShowLogs] = useState(false);
-    const [autoRefresh, setAutoRefresh] = useState(true);
-    const [horizontal, setHorizontal] = useState(false);
-    const [instances, setInstances] = useState([]);
+  const [vns, setVns] = useState({});
+  const [danWallet, setDanWallets] = useState({});
+  const [indexers, setIndexers] = useState({});
+  const [node, setNode] = useState<{ grpc: any }>();
+  const [wallet, _setWallet] = useState();
+  const [logs, setLogs] = useState({});
+  const [stdoutLogs, setStdoutLogs] = useState({});
+  const [connectorSample, setConnectorSample] = useState(null);
+  const [selectedFile, setSelectedFile] = useState(null);
+  const [showLogs, setShowLogs] = useState(false);
+  const [autoRefresh, setAutoRefresh] = useState(true);
+  const [horizontal, setHorizontal] = useState(false);
+  const [instances, setInstances] = useState([]);
 
-    const getInfo = () => {
-        jsonRpc("vns")
+  const getInfo = () => {
+    jsonRpc("vns")
+      .then((resp) => {
+        setVns(resp.nodes);
+        Object.keys(resp.nodes).map((index) => {
+          jsonRpc("get_logs", `vn ${index}`)
             .then((resp) => {
-                setVns(resp.nodes);
-                Object.keys(resp.nodes).map((index) => {
-                    jsonRpc("get_logs", `vn ${index}`)
-                        .then((resp) => {
-                            setLogs((state: any) => ({...state, [`vn ${index}`]: resp}));
-                        })
-                        .catch((error) => console.log(error));
-                    jsonRpc("get_stdout", `vn ${index}`)
-                        .then((resp) => {
-                            setStdoutLogs((state: any) => ({...state, [`vn ${index}`]: resp}));
-                        })
-                        .catch((error) => console.log(error));
-                });
+              setLogs((state: any) => ({ ...state, [`vn ${index}`]: resp }));
             })
-            .catch((error) => {
-                console.log(error);
-            });
-        jsonRpc("dan_wallets")
+            .catch((error) => console.log(error));
+          jsonRpc("get_stdout", `vn ${index}`)
             .then((resp) => {
-                setDanWallets(resp.nodes);
-                Object.keys(resp.nodes).map((index) => {
-                    jsonRpc("get_logs", `dan ${index}`)
-                        .then((resp) => {
-                            setLogs((state: any) => ({...state, [`dan ${index}`]: resp}));
-                        })
-                        .catch((error) => console.log(error));
-                    jsonRpc("get_stdout", `dan ${index}`)
-                        .then((resp) => {
-                            setStdoutLogs((state: any) => ({...state, [`dan ${index}`]: resp}));
-                        })
-                        .catch((error) => console.log(error));
-                });
+              setStdoutLogs((state: any) => ({ ...state, [`vn ${index}`]: resp }));
             })
-            .catch((error) => {
-                console.log(error);
-            });
-        jsonRpc("indexers")
+            .catch((error) => console.log(error));
+        });
+      })
+      .catch((error) => {
+        console.log(error);
+      });
+    jsonRpc("dan_wallets")
+      .then((resp) => {
+        setDanWallets(resp.nodes);
+        Object.keys(resp.nodes).map((index) => {
+          jsonRpc("get_logs", `dan ${index}`)
             .then((resp) => {
-                setIndexers(resp.nodes);
-                Object.keys(resp.nodes).map((index) => {
-                    jsonRpc("get_logs", `indexer ${index}`)
-                        .then((resp) => {
-                            setLogs((state: any) => ({...state, [`indexer ${index}`]: resp}));
-                        })
-                        .catch((error) => console.log(error));
-                    jsonRpc("get_stdout", `indexer ${index}`)
-                        .then((resp) => {
-                            setStdoutLogs((state: any) => ({...state, [`indexer ${index}`]: resp}));
-                        })
-                        .catch((error) => console.log(error));
-                });
+              setLogs((state: any) => ({ ...state, [`dan ${index}`]: resp }));
             })
-            .catch((error) => {
-                console.log(error);
-            });
-        jsonRpc("http_connector")
+            .catch((error) => console.log(error));
+          jsonRpc("get_stdout", `dan ${index}`)
             .then((resp) => {
-                setConnectorSample(resp);
+              setStdoutLogs((state: any) => ({ ...state, [`dan ${index}`]: resp }));
             })
-            .catch((error) => {
-                console.log(error);
-            });
-        jsonRpc("get_logs", "node").then((resp) => {
-            setLogs((state: any) => ({...state, node: resp}));
-        });
-        jsonRpc("get_logs", "wallet").then((resp) => {
-            setLogs((state: any) => ({...state, wallet: resp}));
-        });
-        jsonRpc("get_logs", "miner").then((resp) => {
-            setLogs((state: any) => ({...state, miner: resp}));
+            .catch((error) => console.log(error));
         });
-        jsonRpc("get_stdout", "node").then((resp) => {
-            setStdoutLogs((state: any) => ({...state, node: resp}));
-        });
-        jsonRpc("get_stdout", "wallet").then((resp) => {
-            setStdoutLogs((state: any) => ({...state, wallet: resp}));
-        });
-        jsonRpc("get_stdout", "miner").then((resp) => {
-            setStdoutLogs((state: any) => ({...state, miner: resp}));
+      })
+      .catch((error) => {
+        console.log(error);
+      });
+    jsonRpc("indexers")
+      .then((resp) => {
+        setIndexers(resp.nodes);
+        Object.keys(resp.nodes).map((index) => {
+          jsonRpc("get_logs", `indexer ${index}`)
+            .then((resp) => {
+              setLogs((state: any) => ({ ...state, [`indexer ${index}`]: resp }));
+            })
+            .catch((error) => console.log(error));
+          jsonRpc("get_stdout", `indexer ${index}`)
+            .then((resp) => {
+              setStdoutLogs((state: any) => ({ ...state, [`indexer ${index}`]: resp }));
+            })
+            .catch((error) => console.log(error));
         });
-        jsonRpc("grpc_node").then((resp) => setNode({grpc: resp}));
-        jsonRpc("list_instances", {by_type: null}).then(({instances}) => setInstances(instances));
-    };
+      })
+      .catch((error) => {
+        console.log(error);
+      });
+    jsonRpc("http_connector")
+      .then((resp) => {
+        setConnectorSample(resp);
+      })
+      .catch((error) => {
+        console.log(error);
+      });
+    jsonRpc("get_logs", "node").then((resp) => {
+      setLogs((state: any) => ({ ...state, node: resp }));
+    });
+    jsonRpc("get_logs", "wallet").then((resp) => {
+      setLogs((state: any) => ({ ...state, wallet: resp }));
+    });
+    jsonRpc("get_logs", "miner").then((resp) => {
+      setLogs((state: any) => ({ ...state, miner: resp }));
+    });
+    jsonRpc("get_stdout", "node").then((resp) => {
+      setStdoutLogs((state: any) => ({ ...state, node: resp }));
+    });
+    jsonRpc("get_stdout", "wallet").then((resp) => {
+      setStdoutLogs((state: any) => ({ ...state, wallet: resp }));
+    });
+    jsonRpc("get_stdout", "miner").then((resp) => {
+      setStdoutLogs((state: any) => ({ ...state, miner: resp }));
+    });
+    jsonRpc("grpc_node").then((resp) => setNode({ grpc: resp }));
+    jsonRpc("list_instances", { by_type: null }).then(({ instances }) => setInstances(instances));
+  };
 
-    useEffect(getInfo, []);
+  useEffect(getInfo, []);
 
-    const handleFileChange = (event: ChangeEvent) => {
-        const file = event.target.files?.item(0);
-        if (file) {
-            setSelectedFile(file);
-        }
-    };
+  const handleFileChange = (event: ChangeEvent) => {
+    const file = event.target.files?.item(0);
+    if (file) {
+      setSelectedFile(file);
+    }
+  };
 
-    const handleFileUpload = () => {
-        if (!selectedFile) {
-            return;
-        }
-        const address = import.meta.env.VITE_DAEMON_JRPC_ADDRESS || ""; //Current host
-        const formData = new FormData();
-        formData.append("file", selectedFile);
-        fetch(`${address}/upload_template`, {method: "POST", body: formData}).then((resp) => {
-            console.log("resp", resp);
-        });
-    };
-    return (
-        

-            
-            
-            
-            
Base layer

-            

-                
-                
-                
-                    
-                
-            

-            

-                
Validator Nodes

-                
-            

-            

-                
Dan Wallets

-                
-            

-            

-                
Indexers

-                
-            

-            
Templates

-            

-                
-                    
-                    
-                
-            

-            {connectorSample && (
-                
-            )}
-            
All Instances

-            

-                
-                    
-                    
-                        
-                        
-                        
-                    
-                    
-                    
-                    {instances.filter((i: any) => i.is_running).map((instance: any, i: number) => 
-                        
-                        
-                        
-                    )}
-                    
-                
NamePortsBase Path
#{instance.id} {instance.name} ({instance.instance_type}){JSON.stringify(instance.ports)}{instance.base_path}

-            

+  const handleFileUpload = () => {
+    if (!selectedFile) {
+      return;
+    }
+    const address = import.meta.env.VITE_DAEMON_JRPC_ADDRESS || ""; //Current host
+    const formData = new FormData();
+    formData.append("file", selectedFile);
+    fetch(`${address}/upload_template`, { method: "POST", body: formData }).then((resp) => {
+      console.log("resp", resp);
+    });
+  };
+  return (
+    

+      
+      
+      
+      
Base layer

+      

+        
+        
+        
+          
+        
+      

+      

+        
Validator Nodes

+        
+      

+      

+        
Dan Wallets

+        
+      

+      

+        
Indexers

+        
+      

+      
Templates

+      

+        
+          
+          
+        
+      

+      {connectorSample && (
+        
-    );
+      )}
+      
All Instances

+      

+        
+          
+          
+            
+            
+            
+          
+          
+          
+          {instances.filter((i: any) => i.is_running).map((instance: any, i: number) => 
+            
+            
+            
+          )}
+          
+        
NamePortsBase Path
#{instance.id} {instance.name} ({instance.instance_type}){JSON.stringify(instance.ports)}{instance.base_path}

+      

+    

+  );
 }
diff --git a/applications/tari_validator_node/Cargo.toml b/applications/tari_validator_node/Cargo.toml
index f30828688..b310030fa 100644
--- a/applications/tari_validator_node/Cargo.toml
+++ b/applications/tari_validator_node/Cargo.toml
@@ -41,6 +41,8 @@ tari_consensus = { workspace = true }
 tari_state_store_sqlite = { workspace = true }
 tari_networking = { workspace = true }
 tari_rpc_framework = { workspace = true }
+tari_template_builtin = { workspace = true }
+
 sqlite_message_logger = { workspace = true }
 
 libp2p = { workspace = true }
diff --git a/applications/tari_validator_node/src/bootstrap.rs b/applications/tari_validator_node/src/bootstrap.rs
index 9a65a1c87..3cdbb556b 100644
--- a/applications/tari_validator_node/src/bootstrap.rs
+++ b/applications/tari_validator_node/src/bootstrap.rs
@@ -30,6 +30,7 @@ use minotari_app_utilities::identity_management;
 use serde::Serialize;
 use sqlite_message_logger::SqliteMessageLogger;
 use tari_base_node_client::grpc::GrpcBaseNodeClient;
+use tari_bor::cbor;
 use tari_common::{
     configuration::Network,
     exit_codes::{ExitCode, ExitError},
@@ -48,11 +49,11 @@ use tari_dan_app_utilities::{
     template_manager::{implementation::TemplateManager, interface::TemplateManagerHandle},
     transaction_executor::TariDanTransactionProcessor,
 };
-use tari_dan_common_types::{shard::Shard, Epoch, NodeAddressable, NodeHeight, PeerAddress, SubstateAddress};
+use tari_dan_common_types::{shard::Shard, Epoch, NodeAddressable, NodeHeight, PeerAddress};
 use tari_dan_engine::fees::FeeTable;
 use tari_dan_p2p::TariMessagingSpec;
 use tari_dan_storage::{
-    consensus_models::{Block, BlockId, ExecutedTransaction, SubstateRecord},
+    consensus_models::{Block, BlockId, SubstateRecord},
     global::GlobalDb,
     StateStore,
     StateStoreReadTransaction,
@@ -60,7 +61,13 @@ use tari_dan_storage::{
     StorageError,
 };
 use tari_dan_storage_sqlite::global::SqliteGlobalDbAdapter;
-use tari_engine_types::{resource::Resource, substate::SubstateId};
+use tari_engine_types::{
+    component::{ComponentBody, ComponentHeader},
+    resource::Resource,
+    resource_container::ResourceContainer,
+    substate::{SubstateId, SubstateValue},
+    vault::Vault,
+};
 use tari_epoch_manager::base_layer::{EpochManagerConfig, EpochManagerHandle};
 use tari_indexer_lib::substate_scanner::SubstateScanner;
 use tari_networking::{MessagingMode, NetworkingHandle, RelayCircuitLimits, RelayReservationLimits, SwarmConfig};
@@ -69,12 +76,17 @@ use tari_shutdown::ShutdownSignal;
 use tari_state_store_sqlite::SqliteStateStore;
 use tari_template_lib::{
     auth::ResourceAccessRules,
-    constants::{CONFIDENTIAL_TARI_RESOURCE_ADDRESS, PUBLIC_IDENTITY_RESOURCE_ADDRESS},
-    models::Metadata,
-    prelude::{OwnerRule, ResourceType},
+    constants::{
+        CONFIDENTIAL_TARI_RESOURCE_ADDRESS,
+        PUBLIC_IDENTITY_RESOURCE_ADDRESS,
+        XTR_FAUCET_COMPONENT_ADDRESS,
+        XTR_FAUCET_VAULT_ADDRESS,
+    },
+    models::{Amount, EntityId, Metadata},
+    prelude::{ComponentAccessRules, OwnerRule, ResourceType},
     resource::TOKEN_SYMBOL,
 };
-use tari_transaction::Transaction;
+use tari_transaction::{Transaction, VersionedSubstateId};
 use tari_validator_node_rpc::client::TariValidatorNodeRpcClientFactory;
 use tokio::{sync::mpsc, task::JoinHandle};
 
@@ -86,24 +98,13 @@ use crate::{
     p2p::{
         create_tari_validator_node_rpc_service,
         services::{
-            mempool::{
-                self,
-                ClaimFeeTransactionValidator,
-                EpochRangeValidator,
-                FeeTransactionValidator,
-                HasInputs,
-                HasInvolvedShards,
-                MempoolError,
-                MempoolHandle,
-                OutputsDontExistLocally,
-                TemplateExistsValidator,
-                TransactionSignatureValidator,
-                Validator,
-            },
+            mempool::{self, MempoolHandle},
             messaging::{ConsensusInboundMessaging, ConsensusOutboundMessaging, Gossip},
         },
     },
     substate_resolver::TariSubstateResolver,
+    transaction_validators::{FeeTransactionValidator, HasInputs, TemplateExistsValidator, TransactionValidationError},
+    validator::Validator,
     validator_registration_file::ValidatorRegistrationFile,
     virtual_substate::VirtualSubstateManager,
     ApplicationConfig,
@@ -227,13 +228,8 @@ pub async fn spawn_services(
             per_log_cost: 1,
         }
     };
-    let payload_processor = TariDanTransactionProcessor::new(config.network, template_manager.clone(), fee_table);
-
-    let validator_node_client_factory = TariValidatorNodeRpcClientFactory::new(networking.clone());
-
-    // Consensus
-    let (tx_executed_transaction, rx_executed_transaction) = mpsc::channel(10);
 
+    // Messaging
     let local_address = PeerAddress::from(keypair.public_key().clone());
     let (loopback_sender, loopback_receiver) = mpsc::unbounded_channel();
     let inbound_messaging = ConsensusInboundMessaging::new(
@@ -245,19 +241,26 @@ pub async fn spawn_services(
     let outbound_messaging =
         ConsensusOutboundMessaging::new(loopback_sender, networking.clone(), message_logger.clone());
 
-    let transaction_executor = TariDanBlockTransactionExecutor::new(epoch_manager.clone(), payload_processor.clone());
+    // Consensus
+    let payload_processor = TariDanTransactionProcessor::new(config.network, template_manager.clone(), fee_table);
+    let transaction_executor = TariDanBlockTransactionExecutor::new(
+        payload_processor.clone(),
+        consensus::create_transaction_validator(&config.validator_node, template_manager.clone()),
+    );
 
     #[cfg(feature = "metrics")]
     let metrics = PrometheusConsensusMetrics::new(state_store.clone(), metrics_registry);
     #[cfg(not(feature = "metrics"))]
     let metrics = NoopHooks;
 
-    let (consensus_join_handle, consensus_handle, rx_consensus_to_mempool) = consensus::spawn(
+    let validator_node_client_factory = TariValidatorNodeRpcClientFactory::new(networking.clone());
+    let signing_service = consensus::TariSignatureService::new(keypair.clone());
+    let (consensus_join_handle, consensus_handle) = consensus::spawn(
         config.network,
         state_store.clone(),
-        keypair.clone(),
+        local_address,
+        signing_service,
         epoch_manager.clone(),
-        rx_executed_transaction,
         inbound_messaging,
         outbound_messaging.clone(),
         validator_node_client_factory.clone(),
@@ -269,41 +272,13 @@ pub async fn spawn_services(
     .await;
     handles.push(consensus_join_handle);
 
-    // substate cache
-    let substate_cache_dir = config.common.base_path.join("substate_cache");
-    let substate_cache = SubstateFileCache::new(substate_cache_dir)
-        .map_err(|e| ExitError::new(ExitCode::ConfigError, format!("Substate cache error: {}", e)))?;
-
-    // Mempool
-    let virtual_substate_manager = VirtualSubstateManager::new(state_store.clone(), epoch_manager.clone());
-    let scanner = SubstateScanner::new(
-        epoch_manager.clone(),
-        validator_node_client_factory.clone(),
-        substate_cache,
-    );
-    let substate_resolver = TariSubstateResolver::new(
-        state_store.clone(),
-        scanner,
-        epoch_manager.clone(),
-        virtual_substate_manager.clone(),
-    );
-
     let gossip = Gossip::new(networking.clone(), rx_gossip_messages);
 
     let (mempool, join_handle) = mempool::spawn(
         gossip,
-        tx_executed_transaction,
         epoch_manager.clone(),
-        payload_processor.clone(),
-        substate_resolver.clone(),
-        create_mempool_before_execute_validator(
-            &config.validator_node,
-            template_manager.clone(),
-            epoch_manager.clone(),
-        ),
-        create_mempool_after_execute_validator(state_store.clone()),
+        create_mempool_transaction_validator(&config.validator_node, template_manager.clone()),
         state_store.clone(),
-        rx_consensus_to_mempool,
         consensus_handle.clone(),
         #[cfg(feature = "metrics")]
         metrics_registry,
@@ -328,6 +303,25 @@ pub async fn spawn_services(
     );
     handles.push(join_handle);
 
+    // substate cache
+    let substate_cache_dir = config.common.base_path.join("substate_cache");
+    let substate_cache = SubstateFileCache::new(substate_cache_dir)
+        .map_err(|e| ExitError::new(ExitCode::ConfigError, format!("Substate cache error: {}", e)))?;
+
+    // Dry-run services (TODO: should we implement dry-run on validator nodes, or just keep it in the indexer?)
+    let virtual_substate_manager = VirtualSubstateManager::new(state_store.clone(), epoch_manager.clone());
+    let scanner = SubstateScanner::new(
+        epoch_manager.clone(),
+        validator_node_client_factory.clone(),
+        substate_cache,
+    );
+    let substate_resolver = TariSubstateResolver::new(
+        state_store.clone(),
+        scanner,
+        epoch_manager.clone(),
+        virtual_substate_manager.clone(),
+    );
+
     spawn_p2p_rpc(
         config,
         &mut networking,
@@ -447,88 +441,111 @@ async fn spawn_p2p_rpc(
     Ok(())
 }
 
-// TODO: Figure out the best way to have the engine shard store mirror these bootstrapped states.
 fn bootstrap_state(tx: &mut TTx, network: Network) -> Result<(), StorageError>
 where
     TTx: StateStoreWriteTransaction + Deref,
     TTx::Target: StateStoreReadTransaction,
     TTx::Addr: NodeAddressable + Serialize,
 {
-    let genesis_block = Block::genesis(network, Epoch(0), Shard::zero());
-    let substate_id = SubstateId::Resource(PUBLIC_IDENTITY_RESOURCE_ADDRESS);
-    let substate_address = SubstateAddress::from_substate_id(&substate_id, 0);
-    let mut metadata: Metadata = Default::default();
-    metadata.insert(TOKEN_SYMBOL, "ID".to_string());
-    if !SubstateRecord::exists(&**tx, &substate_address)? {
-        // Create the resource for public identity
-        SubstateRecord {
-            substate_id,
-            version: 0,
-            substate_value: Resource::new(
-                ResourceType::NonFungible,
-                None,
-                OwnerRule::None,
-                ResourceAccessRules::new(),
-                metadata,
-                None,
-                None,
-            )
-            .into(),
-            state_hash: Default::default(),
-            created_by_transaction: Default::default(),
-            created_justify: *genesis_block.justify().id(),
-            created_block: BlockId::zero(),
-            created_height: NodeHeight(0),
-            created_by_shard: Shard::zero(),
-            created_at_epoch: Epoch(0),
-            destroyed: None,
-        }
-        .create(tx)?;
+    // Assume that if the public identity resource exists, then the rest of the state has been bootstrapped
+    if SubstateRecord::exists(
+        &**tx,
+        &VersionedSubstateId::new(PUBLIC_IDENTITY_RESOURCE_ADDRESS.into(), 0),
+    )? {
+        return Ok(());
     }
 
-    let substate_id = SubstateId::Resource(CONFIDENTIAL_TARI_RESOURCE_ADDRESS);
-    let substate_address = SubstateAddress::from_substate_id(&substate_id, 0);
-    let mut metadata = Metadata::new();
-    metadata.insert(TOKEN_SYMBOL, "tXTR".to_string());
-    if !SubstateRecord::exists(&**tx, &substate_address)? {
-        SubstateRecord {
-            substate_id,
-            version: 0,
-            substate_value: Resource::new(
-                ResourceType::Confidential,
-                None,
-                OwnerRule::None,
-                ResourceAccessRules::new(),
-                metadata,
-                None,
-                None,
-            )
-            .into(),
-            state_hash: Default::default(),
-            created_by_transaction: Default::default(),
-            created_justify: *genesis_block.justify().id(),
-            created_block: BlockId::zero(),
-            created_height: NodeHeight(0),
-            created_at_epoch: Epoch(0),
-            created_by_shard: Shard::zero(),
-            destroyed: None,
-        }
-        .create(tx)?;
+    let value = Resource::new(
+        ResourceType::NonFungible,
+        None,
+        OwnerRule::None,
+        ResourceAccessRules::new(),
+        Metadata::from([(TOKEN_SYMBOL, "ID".to_string())]),
+        None,
+        None,
+    );
+    create_substate(tx, network, PUBLIC_IDENTITY_RESOURCE_ADDRESS, value)?;
+
+    let mut xtr_resource = Resource::new(
+        ResourceType::Confidential,
+        None,
+        OwnerRule::None,
+        ResourceAccessRules::new(),
+        Metadata::from([(TOKEN_SYMBOL, "XTR".to_string())]),
+        None,
+        None,
+    );
+
+    // Create faucet component
+    if !matches!(network, Network::MainNet) {
+        let value = ComponentHeader {
+            template_address: tari_template_builtin::FAUCET_TEMPLATE_ADDRESS,
+            module_name: "XtrFaucet".to_string(),
+            owner_key: None,
+            owner_rule: OwnerRule::None,
+            access_rules: ComponentAccessRules::allow_all(),
+            entity_id: EntityId::default(),
+            body: ComponentBody {
+                state: cbor!({"vault" => XTR_FAUCET_VAULT_ADDRESS}).unwrap(),
+            },
+        };
+        create_substate(tx, network, XTR_FAUCET_COMPONENT_ADDRESS, value)?;
+
+        xtr_resource.increase_total_supply(Amount::MAX);
+        let value = Vault::new(ResourceContainer::Confidential {
+            address: CONFIDENTIAL_TARI_RESOURCE_ADDRESS,
+            commitments: Default::default(),
+            revealed_amount: Amount::MAX,
+            locked_commitments: Default::default(),
+            locked_revealed_amount: Default::default(),
+        });
+
+        create_substate(tx, network, XTR_FAUCET_VAULT_ADDRESS, value)?;
     }
 
+    create_substate(tx, network, CONFIDENTIAL_TARI_RESOURCE_ADDRESS, xtr_resource)?;
+
     Ok(())
 }
 
-fn create_mempool_before_execute_validator(
+fn create_substate(
+    tx: &mut TTx,
+    network: Network,
+    substate_id: TId,
+    value: TVal,
+) -> Result<(), StorageError>
+where
+    TTx: StateStoreWriteTransaction + Deref,
+    TTx::Target: StateStoreReadTransaction,
+    TTx::Addr: NodeAddressable + Serialize,
+    TId: Into,
+    TVal: Into,
+{
+    let genesis_block = Block::genesis(network, Epoch(0), Shard::zero());
+    let substate_id = substate_id.into();
+    let id = VersionedSubstateId::new(substate_id, 0);
+    SubstateRecord {
+        substate_id: id.substate_id,
+        version: id.version,
+        substate_value: value.into(),
+        state_hash: Default::default(),
+        created_by_transaction: Default::default(),
+        created_justify: *genesis_block.justify().id(),
+        created_block: BlockId::zero(),
+        created_height: NodeHeight(0),
+        created_by_shard: Shard::zero(),
+        created_at_epoch: Epoch(0),
+        destroyed: None,
+    }
+    .create(tx)?;
+    Ok(())
+}
+
+fn create_mempool_transaction_validator(
     config: &ValidatorNodeConfig,
     template_manager: TemplateManager,
-    epoch_manager: EpochManagerHandle,
-) -> impl Validator {
-    let mut validator = TransactionSignatureValidator
-        .and_then(TemplateExistsValidator::new(template_manager))
-        .and_then(EpochRangeValidator::new(epoch_manager.clone()))
-        .and_then(ClaimFeeTransactionValidator::new(epoch_manager))
-        .boxed();
+) -> impl Validator {
+    let mut validator = TemplateExistsValidator::new(template_manager).boxed();
     if !config.no_fees {
         // A transaction without fee payment may have 0 inputs.
         validator = HasInputs::new()
@@ -539,8 +556,8 @@ fn create_mempool_before_execute_validator(
     validator
 }
 
-fn create_mempool_after_execute_validator(
-    store: SqliteStateStore,
-) -> impl Validator {
-    HasInvolvedShards::new().and_then(OutputsDontExistLocally::new(store))
-}
+// fn create_mempool_after_execute_validator(
+//     store: SqliteStateStore,
+// ) -> impl MempoolValidator {
+//     HasInvolvedShards::new().and_then(OutputsDontExistLocally::new(store))
+// }
diff --git a/applications/tari_validator_node/src/consensus/block_transaction_executor.rs b/applications/tari_validator_node/src/consensus/block_transaction_executor.rs
index a4cd2793a..a7cd42bab 100644
--- a/applications/tari_validator_node/src/consensus/block_transaction_executor.rs
+++ b/applications/tari_validator_node/src/consensus/block_transaction_executor.rs
@@ -1,6 +1,8 @@
 //   Copyright 2024 The Tari Project
 //   SPDX-License-Identifier: BSD-3-Clause
 
+use std::sync::Arc;
+
 use indexmap::IndexMap;
 use log::info;
 use tari_consensus::{
@@ -8,79 +10,33 @@ use tari_consensus::{
     traits::{BlockTransactionExecutor, BlockTransactionExecutorError, ReadableSubstateStore},
 };
 use tari_dan_app_utilities::transaction_executor::TransactionExecutor;
-use tari_dan_common_types::optional::Optional;
-use tari_dan_engine::{
-    bootstrap_state,
-    state_store::{memory::MemoryStateStore, AtomicDb, StateWriter},
+use tari_dan_common_types::{optional::Optional, Epoch};
+use tari_dan_engine::state_store::{memory::MemoryStateStore, new_memory_store, AtomicDb, StateWriter};
+use tari_dan_storage::{
+    consensus_models::{ExecutedTransaction, TransactionRecord},
+    StateStore,
 };
-use tari_dan_storage::{consensus_models::ExecutedTransaction, StateStore};
 use tari_engine_types::{
     substate::{Substate, SubstateId},
-    virtual_substate::VirtualSubstates,
+    virtual_substate::{VirtualSubstate, VirtualSubstateId, VirtualSubstates},
 };
 use tari_transaction::{Transaction, VersionedSubstateId};
 
+use crate::{transaction_validators::TransactionValidationError, validator::Validator};
+
 const LOG_TARGET: &str = "tari::dan::consensus::hotstuff::block_transaction_executor";
 
-#[derive(Debug, Clone)]
-pub struct TariDanBlockTransactionExecutor {
-    // TODO: we will need the epoch manager for virtual substates and other operations in the future
-    #[allow(dead_code)]
-    epoch_manager: TEpochManager,
+#[derive(Debug)]
+pub struct TariDanBlockTransactionExecutor {
     executor: TExecutor,
+    validator: Arc,
 }
 
-impl BlockTransactionExecutor
-    for TariDanBlockTransactionExecutor
-where
-    TStateStore: StateStore,
-    TExecutor: TransactionExecutor,
-{
-    fn execute(
-        &self,
-        transaction: Transaction,
-        store: &PendingSubstateStore,
-    ) -> Result {
-        let id: tari_transaction::TransactionId = *transaction.id();
-
-        // Get the latest input substates
-        let inputs = self.resolve_substates::(&transaction, store)?;
-        info!(target: LOG_TARGET, "Transaction {} executing. Inputs: {:?}", id, inputs);
-
-        // Create a memory db with all the input substates, needed for the transaction execution
-        let state_db = Self::new_state_db();
-        self.add_substates_to_memory_db(&inputs, &state_db)?;
-
-        // TODO: create the virtual substates for execution
-        let virtual_substates = VirtualSubstates::new();
-
-        // Execute the transaction and get the result
-        let exec_output = self
-            .executor
-            .execute(transaction, state_db, virtual_substates)
-            .map_err(|e| BlockTransactionExecutorError::ExecutionThreadFailure(e.to_string()))?;
-
-        // Generate the resolved inputs to set the specific version and required lock flag, as we know it after
-        // execution
-        let resolved_inputs = exec_output.resolve_inputs(inputs);
-
-        let executed = ExecutedTransaction::new(
-            exec_output.transaction,
-            exec_output.result,
-            resolved_inputs,
-            exec_output.outputs,
-            exec_output.execution_time,
-        );
-        info!(target: LOG_TARGET, "Transaction {} executed. {}", id,executed.result().finalize.result);
-        Ok(executed)
-    }
-}
-
-impl TariDanBlockTransactionExecutor {
-    pub fn new(epoch_manager: TEpochManager, executor: TExecutor) -> Self {
+impl TariDanBlockTransactionExecutor {
+    pub fn new(executor: TExecutor, validator: TValidator) -> Self {
         Self {
-            epoch_manager,
             executor,
+            validator: Arc::new(validator),
         }
     }
 
@@ -95,7 +51,7 @@ impl TariDanBlockTransactionExecutor {
                     let id = VersionedSubstateId::new(input.substate_id, version);
-                    let substate = store.get(&id.to_substate_address())?;
+                    let substate = store.get(&id)?;
                     info!(target: LOG_TARGET, "Resolved substate: {id}");
                     resolved_substates.insert(id, substate);
                 },
@@ -146,14 +102,88 @@ impl TariDanBlockTransactionExecutor BlockTransactionExecutor
+    for TariDanBlockTransactionExecutor
+where
+    TStateStore: StateStore,
+    TExecutor: TransactionExecutor,
+    for<'a> TValidator: Validator,
+{
+    fn validate(
+        &self,
+        _tx: &TStateStore::ReadTransaction<'_>,
+        current_epoch: Epoch,
+        transaction: &Transaction,
+    ) -> Result<(), BlockTransactionExecutorError> {
+        self.validator
+            .validate(&ValidationContext { current_epoch }, transaction)
+            // TODO: see if we can avoid the err as string
+            .map_err(|e| BlockTransactionExecutorError::TransactionValidationError(e.to_string()))
+    }
 
-    fn new_state_db() -> MemoryStateStore {
-        let state_db = MemoryStateStore::new();
-        // unwrap: Memory state store is infallible
-        let mut tx = state_db.write_access().unwrap();
-        // Add bootstrapped substates
-        bootstrap_state(&mut tx).unwrap();
-        tx.commit().unwrap();
-        state_db
+    fn prepare(
+        &self,
+        transaction: Transaction,
+        store: &TStateStore,
+    ) -> Result {
+        let t = store.with_read_tx(|tx| TransactionRecord::get(tx, transaction.id()))?;
+        Ok(t)
     }
+
+    fn execute(
+        &self,
+        transaction: Transaction,
+        store: &PendingSubstateStore,
+        current_epoch: Epoch,
+    ) -> Result {
+        let id: tari_transaction::TransactionId = *transaction.id();
+
+        // Get the latest input substates
+        let inputs = self.resolve_substates::(&transaction, store)?;
+        info!(target: LOG_TARGET, "Transaction {} executing. Inputs: {:?}", id, inputs);
+
+        // Create a memory db with all the input substates, needed for the transaction execution
+        let state_db = new_memory_store();
+        self.add_substates_to_memory_db(&inputs, &state_db)?;
+
+        let mut virtual_substates = VirtualSubstates::new();
+        virtual_substates.insert(
+            VirtualSubstateId::CurrentEpoch,
+            VirtualSubstate::CurrentEpoch(current_epoch.as_u64()),
+        );
+
+        // Execute the transaction and get the result
+        let exec_output = self
+            .executor
+            .execute(transaction, state_db, virtual_substates)
+            .map_err(|e| BlockTransactionExecutorError::ExecutionThreadFailure(e.to_string()))?;
+
+        // Generate the resolved inputs to set the specific version and required lock flag, as we know it after
+        // execution
+        let resolved_inputs = exec_output.resolve_inputs(inputs);
+
+        let executed = ExecutedTransaction::new(
+            exec_output.transaction,
+            exec_output.result,
+            resolved_inputs,
+            exec_output.outputs,
+            exec_output.execution_time,
+        );
+        info!(target: LOG_TARGET, "Transaction {} executed. {}", id,executed.result().finalize.result);
+        Ok(executed)
+    }
+}
+
+impl Clone for TariDanBlockTransactionExecutor {
+    fn clone(&self) -> Self {
+        Self {
+            executor: self.executor.clone(),
+            validator: self.validator.clone(),
+        }
+    }
+}
+pub struct ValidationContext {
+    pub current_epoch: Epoch,
 }
diff --git a/applications/tari_validator_node/src/consensus/handle.rs b/applications/tari_validator_node/src/consensus/handle.rs
index 82db12b24..1acfc8f85 100644
--- a/applications/tari_validator_node/src/consensus/handle.rs
+++ b/applications/tari_validator_node/src/consensus/handle.rs
@@ -2,7 +2,8 @@
 //   SPDX-License-Identifier: BSD-3-Clause
 
 use tari_consensus::hotstuff::{ConsensusCurrentState, CurrentView, HotstuffEvent};
-use tokio::sync::{broadcast, watch};
+use tari_transaction::Transaction;
+use tokio::sync::{broadcast, mpsc, watch};
 
 use crate::event_subscription::EventSubscription;
 
@@ -11,6 +12,7 @@ pub struct ConsensusHandle {
     rx_current_state: watch::Receiver,
     events_subscription: EventSubscription,
     current_view: CurrentView,
+    tx_new_transaction: mpsc::Sender<(Transaction, usize)>,
 }
 
 impl ConsensusHandle {
@@ -18,14 +20,27 @@ impl ConsensusHandle {
         rx_current_state: watch::Receiver,
         events_subscription: EventSubscription,
         current_view: CurrentView,
+        tx_new_transaction: mpsc::Sender<(Transaction, usize)>,
     ) -> Self {
         Self {
             rx_current_state,
             events_subscription,
             current_view,
+            tx_new_transaction,
         }
     }
 
+    pub async fn notify_new_transaction(
+        &self,
+        transaction: Transaction,
+        num_pending: usize,
+    ) -> Result<(), mpsc::error::SendError<()>> {
+        self.tx_new_transaction
+            .send((transaction, num_pending))
+            .await
+            .map_err(|_| mpsc::error::SendError(()))
+    }
+
     pub fn current_view(&self) -> &CurrentView {
         &self.current_view
     }
diff --git a/applications/tari_validator_node/src/consensus/metrics.rs b/applications/tari_validator_node/src/consensus/metrics.rs
index 9d9cddd9d..990cc9092 100644
--- a/applications/tari_validator_node/src/consensus/metrics.rs
+++ b/applications/tari_validator_node/src/consensus/metrics.rs
@@ -196,7 +196,6 @@ impl ConsensusHooks for PrometheusConsensusMetrics {
             Decision::Abort => {
                 self.transactions_finalized_aborted.inc();
             },
-            Decision::Deferred => {},
         }
     }
 }
diff --git a/applications/tari_validator_node/src/consensus/mod.rs b/applications/tari_validator_node/src/consensus/mod.rs
index fd16a42a7..635286a4e 100644
--- a/applications/tari_validator_node/src/consensus/mod.rs
+++ b/applications/tari_validator_node/src/consensus/mod.rs
@@ -1,13 +1,24 @@
 //    Copyright 2023 The Tari Project
 //    SPDX-License-Identifier: BSD-3-Clause
 
+use sqlite_message_logger::SqliteMessageLogger;
 use tari_common::configuration::Network;
-use tari_consensus::hotstuff::{ConsensusWorker, ConsensusWorkerContext, HotstuffConfig, HotstuffWorker};
+use tari_consensus::{
+    hotstuff::{ConsensusWorker, ConsensusWorkerContext, HotstuffConfig, HotstuffWorker},
+    traits::ConsensusSpec,
+};
+use tari_dan_app_utilities::{
+    consensus_constants::ConsensusConstants,
+    template_manager::implementation::TemplateManager,
+    transaction_executor::TariDanTransactionProcessor,
+};
+use tari_dan_common_types::PeerAddress;
 use tari_dan_storage::consensus_models::TransactionPool;
 use tari_epoch_manager::base_layer::EpochManagerHandle;
+use tari_rpc_state_sync::RpcStateSyncManager;
 use tari_shutdown::ShutdownSignal;
 use tari_state_store_sqlite::SqliteStateStore;
-use tari_transaction::{Transaction, TransactionId};
+use tari_transaction::Transaction;
 use tari_validator_node_rpc::client::TariValidatorNodeRpcClientFactory;
 use tokio::{
     sync::{broadcast, mpsc, watch},
@@ -15,12 +26,20 @@ use tokio::{
 };
 
 use crate::{
-    consensus::{
-        leader_selection::RoundRobinLeaderStrategy,
-        signature_service::TariSignatureService,
-        spec::TariConsensusSpec,
-    },
+    consensus::{leader_selection::RoundRobinLeaderStrategy, spec::TariConsensusSpec},
     event_subscription::EventSubscription,
+    p2p::services::messaging::{ConsensusInboundMessaging, ConsensusOutboundMessaging},
+    transaction_validators::{
+        ClaimFeeTransactionValidator,
+        EpochRangeValidator,
+        FeeTransactionValidator,
+        HasInputs,
+        TemplateExistsValidator,
+        TransactionSignatureValidator,
+        TransactionValidationError,
+    },
+    validator::{BoxedValidator, Validator},
+    ValidatorNodeConfig,
 };
 
 mod block_transaction_executor;
@@ -31,52 +50,39 @@ pub mod metrics;
 mod signature_service;
 mod spec;
 
-pub use block_transaction_executor::TariDanBlockTransactionExecutor;
+pub use block_transaction_executor::*;
 pub use handle::*;
-use sqlite_message_logger::SqliteMessageLogger;
-use tari_consensus::traits::ConsensusSpec;
-use tari_dan_app_utilities::{
-    consensus_constants::ConsensusConstants,
-    keypair::RistrettoKeypair,
-    template_manager::implementation::TemplateManager,
-    transaction_executor::TariDanTransactionProcessor,
-};
-use tari_dan_common_types::PeerAddress;
-use tari_rpc_state_sync::RpcStateSyncManager;
+pub use signature_service::*;
+
+use crate::transaction_validators::WithContext;
 
-use crate::p2p::services::messaging::{ConsensusInboundMessaging, ConsensusOutboundMessaging};
+pub type ConsensusTransactionValidator = BoxedValidator;
 
 pub async fn spawn(
     network: Network,
     store: SqliteStateStore,
-    keypair: RistrettoKeypair,
+    local_addr: PeerAddress,
+    signing_service: TariSignatureService,
     epoch_manager: EpochManagerHandle,
-    rx_new_transactions: mpsc::Receiver<(TransactionId, usize)>,
     inbound_messaging: ConsensusInboundMessaging,
     outbound_messaging: ConsensusOutboundMessaging,
     client_factory: TariValidatorNodeRpcClientFactory,
     hooks: ::Hooks,
     shutdown_signal: ShutdownSignal,
     transaction_executor: TariDanBlockTransactionExecutor<
-        EpochManagerHandle,
         TariDanTransactionProcessor>,
+        ConsensusTransactionValidator,
     >,
     consensus_constants: ConsensusConstants,
-) -> (
-    JoinHandle>,
-    ConsensusHandle,
-    mpsc::UnboundedReceiver,
-) {
-    let (tx_mempool, rx_mempool) = mpsc::unbounded_channel();
+) -> (JoinHandle>, ConsensusHandle) {
+    let (tx_new_transaction, rx_new_transactions) = mpsc::channel(10);
 
-    let validator_addr = PeerAddress::from(keypair.public_key().clone());
-    let signing_service = TariSignatureService::new(keypair);
     let leader_strategy = RoundRobinLeaderStrategy::new();
     let transaction_pool = TransactionPool::new();
     let (tx_hotstuff_events, _) = broadcast::channel(100);
 
     let hotstuff_worker = HotstuffWorker::::new(
-        validator_addr,
+        local_addr,
         network,
         inbound_messaging,
         outbound_messaging,
@@ -88,7 +94,6 @@ pub async fn spawn(
         transaction_pool,
         transaction_executor,
         tx_hotstuff_events.clone(),
-        tx_mempool,
         hooks,
         shutdown_signal.clone(),
         HotstuffConfig {
@@ -106,15 +111,39 @@ pub async fn spawn(
         tx_current_state,
     };
 
-    let handle = ConsensusWorker::new(shutdown_signal).spawn(context);
+    let join_handle = ConsensusWorker::new(shutdown_signal).spawn(context);
+
+    let consensus_handle = ConsensusHandle::new(
+        rx_current_state,
+        EventSubscription::new(tx_hotstuff_events),
+        current_view,
+        tx_new_transaction,
+    );
+
+    (join_handle, consensus_handle)
+}
 
-    (
-        handle,
-        ConsensusHandle::new(
-            rx_current_state,
-            EventSubscription::new(tx_hotstuff_events),
-            current_view,
-        ),
-        rx_mempool,
-    )
+pub fn create_transaction_validator(
+    config: &ValidatorNodeConfig,
+    template_manager: TemplateManager,
+) -> ConsensusTransactionValidator {
+    let mut validator = WithContext::::new()
+        .map_context(
+            |_| (),
+            TransactionSignatureValidator.and_then(TemplateExistsValidator::new(template_manager)),
+        )
+        .map_context(
+            |c| c.current_epoch,
+            EpochRangeValidator::new().and_then(ClaimFeeTransactionValidator::new()),
+        )
+        .boxed();
+    if !config.no_fees {
+        // A transaction without fee payment may have 0 inputs.
+        validator = WithContext::::new()
+            .map_context(|_| (), HasInputs::new())
+            .and_then(validator)
+            .map_context(|_| (), FeeTransactionValidator)
+            .boxed();
+    }
+    validator
 }
diff --git a/applications/tari_validator_node/src/consensus/spec.rs b/applications/tari_validator_node/src/consensus/spec.rs
index 86843e729..d3db0e612 100644
--- a/applications/tari_validator_node/src/consensus/spec.rs
+++ b/applications/tari_validator_node/src/consensus/spec.rs
@@ -20,6 +20,7 @@ use crate::{
     consensus::{
         leader_selection::RoundRobinLeaderStrategy,
         signature_service::TariSignatureService,
+        ConsensusTransactionValidator,
         TariDanBlockTransactionExecutor,
     },
     p2p::services::messaging::{ConsensusInboundMessaging, ConsensusOutboundMessaging},
@@ -41,6 +42,8 @@ impl ConsensusSpec for TariConsensusSpec {
     type SignatureService = TariSignatureService;
     type StateStore = SqliteStateStore;
     type SyncManager = RpcStateSyncManager;
-    type TransactionExecutor =
-        TariDanBlockTransactionExecutor>>;
+    type TransactionExecutor = TariDanBlockTransactionExecutor<
+        TariDanTransactionProcessor>,
+        ConsensusTransactionValidator,
+    >;
 }
diff --git a/applications/tari_validator_node/src/dry_run_transaction_processor.rs b/applications/tari_validator_node/src/dry_run_transaction_processor.rs
index c4ff2cd10..589ed7089 100644
--- a/applications/tari_validator_node/src/dry_run_transaction_processor.rs
+++ b/applications/tari_validator_node/src/dry_run_transaction_processor.rs
@@ -27,10 +27,7 @@ use tari_dan_app_utilities::{
     transaction_executor::{TariDanTransactionProcessor, TransactionExecutor, TransactionProcessorError},
 };
 use tari_dan_common_types::PeerAddress;
-use tari_dan_engine::{
-    bootstrap_state,
-    state_store::{memory::MemoryStateStore, AtomicDb, StateStoreError, StateWriter},
-};
+use tari_dan_engine::state_store::{new_memory_store, StateStoreError};
 use tari_dan_storage::StorageError;
 use tari_engine_types::commit_result::ExecuteResult;
 use tari_epoch_manager::{base_layer::EpochManagerHandle, EpochManagerError, EpochManagerReader};
@@ -107,12 +104,7 @@ impl DryRunTransactionProcessor {
         transaction: Transaction,
     ) -> Result {
         // Resolve all local and foreign substates
-        let temp_state_store = MemoryStateStore::new();
-        {
-            let mut tx = temp_state_store.write_access().map_err(StateStoreError::Custom)?;
-            bootstrap_state(&mut tx)?;
-            tx.commit()?;
-        }
+        let temp_state_store = new_memory_store();
 
         let current_epoch = self.epoch_manager.current_epoch().await?;
         let virtual_substates = self
diff --git a/applications/tari_validator_node/src/json_rpc/handlers.rs b/applications/tari_validator_node/src/json_rpc/handlers.rs
index f567290f3..cdcd51fdb 100644
--- a/applications/tari_validator_node/src/json_rpc/handlers.rs
+++ b/applications/tari_validator_node/src/json_rpc/handlers.rs
@@ -480,7 +480,7 @@ impl JsonRpcHandlers {
                     name: t.name,
                     address: t.address,
                     url: t.url,
-                    binary_sha: t.binary_sha,
+                    binary_sha: t.binary_sha.to_vec(),
                     height: t.height,
                 })
                 .collect(),
@@ -508,7 +508,7 @@ impl JsonRpcHandlers {
                 name: template.metadata.name,
                 address: template.metadata.address,
                 url: template.metadata.url,
-                binary_sha: template.metadata.binary_sha,
+                binary_sha: template.metadata.binary_sha.to_vec(),
                 height: template.metadata.height,
             },
             abi,
diff --git a/applications/tari_validator_node/src/lib.rs b/applications/tari_validator_node/src/lib.rs
index 0df7d88b5..7484d2644 100644
--- a/applications/tari_validator_node/src/lib.rs
+++ b/applications/tari_validator_node/src/lib.rs
@@ -35,7 +35,10 @@ mod p2p;
 mod substate_resolver;
 mod virtual_substate;
 
+pub mod transaction_validators;
+mod validator;
 mod validator_registration_file;
+
 use std::{fs, io, process};
 
 use log::*;
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/error.rs b/applications/tari_validator_node/src/p2p/services/mempool/error.rs
index 85b7f63e9..4168c044a 100644
--- a/applications/tari_validator_node/src/p2p/services/mempool/error.rs
+++ b/applications/tari_validator_node/src/p2p/services/mempool/error.rs
@@ -1,26 +1,15 @@
 //    Copyright 2023 The Tari Project
 //    SPDX-License-Identifier: BSD-3-Clause
 
-use std::collections::HashSet;
-
-use indexmap::IndexMap;
-use tari_dan_app_utilities::{
-    template_manager::interface::TemplateManagerError,
-    transaction_executor::TransactionProcessorError,
-};
-use tari_dan_common_types::Epoch;
-use tari_dan_storage::{consensus_models::TransactionPoolError, StorageError};
-use tari_engine_types::substate::{Substate, SubstateId};
+use tari_dan_storage::StorageError;
 use tari_epoch_manager::EpochManagerError;
 use tari_networking::NetworkingError;
-use tari_transaction::{SubstateRequirement, TransactionId};
 use tokio::sync::{mpsc, oneshot};
 
 use crate::{
     dry_run_transaction_processor::DryRunTransactionProcessorError,
     p2p::services::mempool::MempoolRequest,
-    substate_resolver::SubstateResolverError,
-    virtual_substate::VirtualSubstateError,
+    transaction_validators::TransactionValidationError,
 };
 
 #[derive(thiserror::Error, Debug)]
@@ -31,50 +20,15 @@ pub enum MempoolError {
     EpochManagerError(#[from] EpochManagerError),
     #[error("Internal service request cancelled")]
     RequestCancelled,
+    #[error("Consensus channel closed")]
+    ConsensusChannelClosed,
     #[error("DryRunTransactionProcessor Error: {0}")]
     DryRunTransactionProcessorError(#[from] DryRunTransactionProcessorError),
-    #[error("Execution thread failure: {0}")]
-    ExecutionThreadPanicked(String),
-    #[error("Requires consensus for local substates: {local_substates:?}")]
-    MustDeferExecution {
-        local_substates: IndexMap,
-        foreign_substates: HashSet,
-    },
-    #[error("SubstateResolver Error: {0}")]
-    SubstateResolverError(#[from] SubstateResolverError),
-    #[error("Transaction Execution Error: {0}")]
-    TransactionExecutionError(#[from] TransactionProcessorError),
     #[error("Storage Error: {0}")]
     StorageError(#[from] StorageError),
-    #[error("Virtual substate error: {0}")]
-    VirtualSubstateError(#[from] VirtualSubstateError),
-    #[error("Transaction pool error: {0}")]
-    TransactionPoolError(#[from] TransactionPoolError),
+    #[error("Transaction validation error: {0}")]
+    TransactionValidationError(#[from] TransactionValidationError),
 
-    // TODO: move these to MempoolValidationError type
-    #[error("Invalid template address: {0}")]
-    InvalidTemplateAddress(#[from] TemplateManagerError),
-    #[error("No fee instructions")]
-    NoFeeInstructions,
-    #[error("Output substate exists in transaction {transaction_id}")]
-    OutputSubstateExists { transaction_id: TransactionId },
-    #[error("Validator fee claim instruction in transaction {transaction_id} contained invalid epoch {given_epoch}")]
-    ValidatorFeeClaimEpochInvalid {
-        transaction_id: TransactionId,
-        given_epoch: Epoch,
-    },
-    #[error("Current epoch ({current_epoch}) is less than minimum epoch ({min_epoch}) required for transaction")]
-    CurrentEpochLessThanMinimum { current_epoch: Epoch, min_epoch: Epoch },
-    #[error("Current epoch ({current_epoch}) is greater than maximum epoch ({max_epoch}) required for transaction")]
-    CurrentEpochGreaterThanMaximum { current_epoch: Epoch, max_epoch: Epoch },
-    #[error("Transaction {transaction_id} does not have any inputs")]
-    NoInputs { transaction_id: TransactionId },
-    #[error("Executed transaction {transaction_id} does not involved any shards")]
-    NoInvolvedShards { transaction_id: TransactionId },
-    #[error("Invalid transaction signature")]
-    InvalidSignature,
-    #[error("Transaction {transaction_id} is not signed")]
-    TransactionNotSigned { transaction_id: TransactionId },
     #[error("Network error: {0}")]
     NetworkingError(#[from] NetworkingError),
 }
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/executor.rs b/applications/tari_validator_node/src/p2p/services/mempool/executor.rs
deleted file mode 100644
index 946fcfaf2..000000000
--- a/applications/tari_validator_node/src/p2p/services/mempool/executor.rs
+++ /dev/null
@@ -1,135 +0,0 @@
-//    Copyright 2023 The Tari Project
-//    SPDX-License-Identifier: BSD-3-Clause
-
-use log::*;
-use tari_dan_app_utilities::transaction_executor::{TransactionExecutor, TransactionProcessorError};
-use tari_dan_common_types::Epoch;
-use tari_dan_engine::{
-    bootstrap_state,
-    state_store::{memory::MemoryStateStore, AtomicDb, StateWriter},
-};
-use tari_dan_storage::consensus_models::{ExecutedTransaction, SubstateLockFlag, VersionedSubstateIdLockIntent};
-use tari_transaction::{Transaction, VersionedSubstateId};
-use tokio::task;
-
-use crate::{
-    p2p::services::mempool::{MempoolError, ResolvedSubstates, SubstateResolver},
-    substate_resolver::SubstateResolverError,
-};
-
-const LOG_TARGET: &str = "tari::dan::mempool::executor";
-
-pub async fn execute_transaction(
-    transaction: Transaction,
-    substate_resolver: TSubstateResolver,
-    executor: TExecutor,
-    current_epoch: Epoch,
-) -> Result, MempoolError>
-where
-    TSubstateResolver: SubstateResolver,
-    TExecutor: TransactionExecutor + Send + Sync + 'static,
-{
-    let virtual_substates = match substate_resolver
-        .resolve_virtual_substates(&transaction, current_epoch)
-        .await
-    {
-        Ok(virtual_substates) => virtual_substates,
-        Err(err @ SubstateResolverError::UnauthorizedFeeClaim { .. }) => {
-            warn!(target: LOG_TARGET, "One or more invalid fee claims for transaction {}: {}", transaction.id(), err);
-            return Ok(Err(err.into()));
-        },
-        Err(err) => return Err(err.into()),
-    };
-
-    info!(target: LOG_TARGET, "🎱 Transaction {} found virtual_substates = [{}]", transaction.id(), virtual_substates.keys().map(|addr| addr.to_string()).collect::>().join(", "));
-
-    let ResolvedSubstates {
-        local: local_substates,
-        unresolved_foreign: foreign,
-    } = match substate_resolver.try_resolve_local(&transaction) {
-        Ok(pair) => pair,
-        // Substates are downed/dont exist
-        Err(err @ SubstateResolverError::InputSubstateDowned { .. }) |
-        Err(err @ SubstateResolverError::InputSubstateDoesNotExist { .. }) => {
-            warn!(target: LOG_TARGET, "One or more invalid input shards for transaction {}: {}", transaction.id(), err);
-            // Ok(Err(_)) return that the transaction should be rejected, not an internal mempool execution failure
-            return Ok(Err(err.into()));
-        },
-        // Some other issue - network, db, etc
-        Err(err) => return Err(err.into()),
-    };
-
-    if !foreign.is_empty() {
-        info!(target: LOG_TARGET, "Unable to execute transaction {} in the mempool because it has foreign inputs: {:?}", transaction.id(), foreign);
-        return Err(MempoolError::MustDeferExecution {
-            local_substates,
-            foreign_substates: foreign,
-        });
-    }
-
-    info!(target: LOG_TARGET, "🎱 Transaction {} resolved local inputs = [{}]", transaction.id(), local_substates.keys().map(|addr| addr.to_string()).collect::>().join(", "));
-
-    let res = task::spawn_blocking(move || {
-        let versioned_inputs = local_substates
-            .iter()
-            .map(|(id, substate)| VersionedSubstateId::new(id.clone(), substate.version()))
-            .collect::>();
-        let state_db = new_state_db();
-        state_db.set_many(local_substates).expect("memory db is infallible");
-
-        match executor.execute(transaction, state_db, virtual_substates) {
-            Ok(exec_output) => {
-                // Update the resolved inputs to set the specific version, as we know it after execution
-                let resolved_inputs = if let Some(diff) = exec_output.result.finalize.accept() {
-                    versioned_inputs
-                        .into_iter()
-                        .map(|versioned_id| {
-                            let lock_flag = if diff.down_iter().any(|(id, _)| *id == versioned_id.substate_id) {
-                                // Update all inputs that were DOWNed to be write locked
-                                SubstateLockFlag::Write
-                            } else {
-                                // Any input not downed, gets a read lock
-                                SubstateLockFlag::Read
-                            };
-                            VersionedSubstateIdLockIntent::new(versioned_id, lock_flag)
-                        })
-                        .collect()
-                } else {
-                    versioned_inputs
-                        .into_iter()
-                        .map(|versioned_id| {
-                            // We cannot tell which inputs are written, however since this transaction is a
-                            // reject it does not matter since it will not cause locks.
-                            // We still set resolved inputs because this is used to determine which shards are
-                            // involved.
-                            VersionedSubstateIdLockIntent::new(versioned_id, SubstateLockFlag::Write)
-                        })
-                        .collect()
-                };
-
-                Ok(ExecutedTransaction::new(
-                    exec_output.transaction,
-                    exec_output.result,
-                    resolved_inputs,
-                    exec_output.outputs,
-                    exec_output.execution_time,
-                ))
-            },
-            Err(err) => Err(err.into()),
-        }
-    })
-    .await;
-
-    // If this errors, the thread panicked due to a bug
-    res.map_err(|err| MempoolError::ExecutionThreadPanicked(err.to_string()))
-}
-
-fn new_state_db() -> MemoryStateStore {
-    let state_db = MemoryStateStore::new();
-    // unwrap: Memory state store is infallible
-    let mut tx = state_db.write_access().unwrap();
-    // Add bootstrapped substates
-    bootstrap_state(&mut tx).unwrap();
-    tx.commit().unwrap();
-    state_db
-}
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/initializer.rs b/applications/tari_validator_node/src/p2p/services/mempool/initializer.rs
index a8c34600e..e07e70ecc 100644
--- a/applications/tari_validator_node/src/p2p/services/mempool/initializer.rs
+++ b/applications/tari_validator_node/src/p2p/services/mempool/initializer.rs
@@ -21,12 +21,10 @@
 //  USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
 
 use log::*;
-use tari_dan_app_utilities::transaction_executor::{TransactionExecutor, TransactionProcessorError};
 use tari_dan_common_types::PeerAddress;
-use tari_dan_storage::consensus_models::ExecutedTransaction;
 use tari_epoch_manager::base_layer::EpochManagerHandle;
 use tari_state_store_sqlite::SqliteStateStore;
-use tari_transaction::{Transaction, TransactionId};
+use tari_transaction::Transaction;
 use tokio::{sync::mpsc, task, task::JoinHandle};
 
 #[cfg(feature = "metrics")]
@@ -34,32 +32,25 @@ use super::metrics::PrometheusMempoolMetrics;
 use crate::{
     consensus::ConsensusHandle,
     p2p::services::{
-        mempool::{handle::MempoolHandle, service::MempoolService, MempoolError, SubstateResolver, Validator},
+        mempool::{handle::MempoolHandle, service::MempoolService},
         messaging::Gossip,
     },
-    substate_resolver::SubstateResolverError,
+    transaction_validators::TransactionValidationError,
+    validator::Validator,
 };
 
 const LOG_TARGET: &str = "tari::dan::validator_node::mempool";
 
-pub fn spawn(
+pub fn spawn(
     gossip: Gossip,
-    tx_executed_transactions: mpsc::Sender<(TransactionId, usize)>,
     epoch_manager: EpochManagerHandle,
-    transaction_executor: TExecutor,
-    substate_resolver: TSubstateResolver,
-    validator: TValidator,
-    after_executed_validator: TExecutedValidator,
+    transaction_validator: TValidator,
     state_store: SqliteStateStore,
-    rx_consensus_to_mempool: mpsc::UnboundedReceiver,
     consensus_handle: ConsensusHandle,
     #[cfg(feature = "metrics")] metrics_registry: &prometheus::Registry,
 ) -> (MempoolHandle, JoinHandle>)
 where
-    TValidator: Validator + Send + Sync + 'static,
-    TExecutedValidator: Validator + Send + Sync + 'static,
-    TExecutor: TransactionExecutor + Clone + Send + Sync + 'static,
-    TSubstateResolver: SubstateResolver + Clone + Send + Sync + 'static,
+    TValidator: Validator + Send + Sync + 'static,
 {
     // This channel only needs to be size 1, because each mempool request must wait for a reply and the mempool is
     // running on a single task and so there is no benefit to buffering multiple requests.
@@ -70,14 +61,9 @@ where
     let mempool = MempoolService::new(
         rx_mempool_request,
         gossip,
-        tx_executed_transactions,
         epoch_manager,
-        transaction_executor,
-        substate_resolver,
-        validator,
-        after_executed_validator,
+        transaction_validator,
         state_store,
-        rx_consensus_to_mempool,
         consensus_handle,
         #[cfg(feature = "metrics")]
         metrics,
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/metrics.rs b/applications/tari_validator_node/src/p2p/services/mempool/metrics.rs
index 49d9e520b..21f45db4c 100644
--- a/applications/tari_validator_node/src/p2p/services/mempool/metrics.rs
+++ b/applications/tari_validator_node/src/p2p/services/mempool/metrics.rs
@@ -1,21 +1,14 @@
 //   Copyright 2024 The Tari Project
 //   SPDX-License-Identifier: BSD-3-Clause
 
-//   Copyright 2024 The Tari Project
-//   SPDX-License-Identifier: BSD-3-Clause
-use prometheus::{Histogram, HistogramOpts, IntCounter, Registry};
-use tari_dan_storage::consensus_models::ExecutedTransaction;
+use prometheus::{IntCounter, Registry};
 use tari_transaction::{Transaction, TransactionId};
 
-use crate::{metrics::CollectorRegister, p2p::services::mempool::MempoolError};
+use crate::metrics::CollectorRegister;
 
 #[derive(Debug, Clone)]
 pub struct PrometheusMempoolMetrics {
     transactions_received: IntCounter,
-    transactions_executed: IntCounter,
-    transactions_execute_time: Histogram,
-
-    transaction_execute_error: IntCounter,
     transaction_validation_error: IntCounter,
 }
 
@@ -25,21 +18,6 @@ impl PrometheusMempoolMetrics {
             transactions_received: IntCounter::new("mempool_transactions_received", "Number of transactions received")
                 .unwrap()
                 .register_at(registry),
-            transactions_executed: IntCounter::new("mempool_transactions_executed", "Number of transactions executed")
-                .unwrap()
-                .register_at(registry),
-            transactions_execute_time: Histogram::with_opts(HistogramOpts::new(
-                "mempool_transactions_execute_time",
-                "Time to execute a transaction",
-            ))
-            .unwrap()
-            .register_at(registry),
-            transaction_execute_error: IntCounter::new(
-                "mempool_transaction_execute_error",
-                "Number of transaction execution errors",
-            )
-            .unwrap()
-            .register_at(registry),
             transaction_validation_error: IntCounter::new(
                 "mempool_transaction_validation_error",
                 "Number of transaction validation errors",
@@ -53,23 +31,6 @@ impl PrometheusMempoolMetrics {
         self.transactions_received.inc();
     }
 
-    pub fn on_transaction_executed(
-        &mut self,
-        _transaction_id: &TransactionId,
-        execution_result: &Result,
-    ) {
-        self.transactions_executed.inc();
-        match execution_result {
-            Ok(transaction) => {
-                self.transactions_execute_time
-                    .observe(transaction.execution_time().as_millis() as f64);
-            },
-            Err(_) => {
-                self.transaction_execute_error.inc();
-            },
-        }
-    }
-
     pub fn on_transaction_validation_error(&mut self, _transaction: &TransactionId, _err: &E) {
         self.transaction_validation_error.inc();
     }
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/mod.rs b/applications/tari_validator_node/src/p2p/services/mempool/mod.rs
index 049b06888..799ff4f8f 100644
--- a/applications/tari_validator_node/src/p2p/services/mempool/mod.rs
+++ b/applications/tari_validator_node/src/p2p/services/mempool/mod.rs
@@ -27,14 +27,11 @@ mod initializer;
 pub use initializer::spawn;
 
 mod error;
-mod executor;
 mod gossip;
 #[cfg(feature = "metrics")]
 mod metrics;
 mod service;
 mod traits;
-mod validators;
 
 pub use error::*;
 pub use traits::*;
-pub use validators::*;
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/service.rs b/applications/tari_validator_node/src/p2p/services/mempool/service.rs
index 1a583d8c9..b7b8f1594 100644
--- a/applications/tari_validator_node/src/p2p/services/mempool/service.rs
+++ b/applications/tari_validator_node/src/p2p/services/mempool/service.rs
@@ -20,17 +20,12 @@
 //   WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE
 //   USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
 
-use std::{collections::HashSet, fmt, fmt::Display, iter};
+use std::{collections::HashSet, fmt::Display, iter};
 
-use futures::{future::BoxFuture, stream::FuturesUnordered, FutureExt, StreamExt};
 use log::*;
-use tari_dan_app_utilities::transaction_executor::{TransactionExecutor, TransactionProcessorError};
-use tari_dan_common_types::{optional::Optional, shard::Shard, Epoch, PeerAddress, SubstateAddress};
+use tari_dan_common_types::{optional::Optional, shard::Shard, PeerAddress, SubstateAddress};
 use tari_dan_p2p::{DanMessage, NewTransactionMessage};
-use tari_dan_storage::{
-    consensus_models::{ExecutedTransaction, SubstateRecord, TransactionRecord},
-    StateStore,
-};
+use tari_dan_storage::{consensus_models::TransactionRecord, StateStore};
 use tari_epoch_manager::{base_layer::EpochManagerHandle, EpochManagerEvent, EpochManagerReader};
 use tari_state_store_sqlite::SqliteStateStore;
 use tari_transaction::{Transaction, TransactionId};
@@ -42,111 +37,47 @@ use super::MempoolError;
 use crate::{
     consensus::ConsensusHandle,
     p2p::services::{
-        mempool::{
-            executor::execute_transaction,
-            gossip::MempoolGossip,
-            handle::MempoolRequest,
-            traits::SubstateResolver,
-            Validator,
-        },
+        mempool::{gossip::MempoolGossip, handle::MempoolRequest},
         messaging::Gossip,
     },
-    substate_resolver::SubstateResolverError,
+    transaction_validators::TransactionValidationError,
+    validator::Validator,
 };
 
 const LOG_TARGET: &str = "tari::validator_node::mempool::service";
 
-/// Data returned from a pending execution.
-struct MempoolTransactionExecution {
-    transaction_id: TransactionId,
-    execution: TransactionExecution,
-    should_propagate: bool,
-    sender_shard: Option,
-}
-
-pub enum TransactionExecution {
-    /// The transaction was executed in the mempool
-    Executed {
-        result: Result,
-    },
-    /// Mempool execution failed due to an error that is unrelated to the transaction. IO, resources, database etc
-    ExecutionFailure {
-        error: MempoolError,
-        transaction: Transaction,
-    },
-    /// Execution cannot occur in the mempool and is deferred to consensus
-    Deferred { transaction: Transaction },
-}
-
-impl Display for TransactionExecution {
-    fn fmt(&self, f: &mut fmt::Formatter<'_>) -> fmt::Result {
-        match self {
-            TransactionExecution::Executed { result } => match result {
-                Ok(executed) => write!(f, "Executed {}: {}", executed.id(), executed.result().finalize.result),
-                Err(e) => write!(f, "Execution failed: {}", e),
-            },
-            TransactionExecution::ExecutionFailure { error, .. } => {
-                write!(f, "Unexpected Execution failure: {}", error)
-            },
-            TransactionExecution::Deferred { transaction } => write!(f, "Deferred: {}", transaction.id()),
-        }
-    }
-}
-
 #[derive(Debug)]
-pub struct MempoolService {
+pub struct MempoolService {
     transactions: HashSet,
-    pending_executions: FuturesUnordered>,
     mempool_requests: mpsc::Receiver,
-    tx_executed_transactions: mpsc::Sender<(TransactionId, usize)>,
     epoch_manager: EpochManagerHandle,
     before_execute_validator: TValidator,
-    after_execute_validator: TExecutedValidator,
-    transaction_executor: TExecutor,
-    substate_resolver: TSubstateResolver,
     state_store: SqliteStateStore,
     gossip: MempoolGossip,
-    rx_consensus_to_mempool: mpsc::UnboundedReceiver,
     consensus_handle: ConsensusHandle,
     #[cfg(feature = "metrics")]
     metrics: PrometheusMempoolMetrics,
 }
 
-impl
-    MempoolService
-where
-    TValidator: Validator,
-    TExecutedValidator: Validator,
-    TExecutor: TransactionExecutor + Clone + Send + Sync + 'static,
-    TSubstateResolver: SubstateResolver + Clone + Send + Sync + 'static,
+impl MempoolService
+where TValidator: Validator
 {
     pub(super) fn new(
         mempool_requests: mpsc::Receiver,
         gossip: Gossip,
-        tx_executed_transactions: mpsc::Sender<(TransactionId, usize)>,
         epoch_manager: EpochManagerHandle,
-        transaction_executor: TExecutor,
-        substate_resolver: TSubstateResolver,
         before_execute_validator: TValidator,
-        after_execute_validator: TExecutedValidator,
         state_store: SqliteStateStore,
-        rx_consensus_to_mempool: mpsc::UnboundedReceiver,
         consensus_handle: ConsensusHandle,
         #[cfg(feature = "metrics")] metrics: PrometheusMempoolMetrics,
     ) -> Self {
         Self {
             gossip: MempoolGossip::new(epoch_manager.clone(), gossip),
             transactions: Default::default(),
-            pending_executions: FuturesUnordered::new(),
             mempool_requests,
-            tx_executed_transactions,
             epoch_manager,
-            transaction_executor,
-            substate_resolver,
             before_execute_validator,
-            after_execute_validator,
             state_store,
-            rx_consensus_to_mempool,
             consensus_handle,
             #[cfg(feature = "metrics")]
             metrics,
@@ -159,21 +90,11 @@ where
         loop {
             tokio::select! {
                 Some(req) = self.mempool_requests.recv() => self.handle_request(req).await,
-                Some(result) = self.pending_executions.next() => {
-                    if  let Err(e) = self.handle_execution_task_complete(result).await {
-                        error!(target: LOG_TARGET, "Possible bug: handle_execution_complete failed: {}", e);
-                    }
-                },
                 Some(result) = self.gossip.next_message() => {
                     if let Err(e) = self.handle_new_transaction_from_remote(result).await {
                         warn!(target: LOG_TARGET, "Mempool rejected transaction: {}", e);
                     }
                 }
-                Some(msg) = self.rx_consensus_to_mempool.recv() => {
-                    if let Err(e) = self.handle_new_transaction_from_local(msg, false).await {
-                        warn!(target: LOG_TARGET, "Mempool rejected transaction: {}", e);
-                    }
-                }
                 Ok(event) = events.recv() => {
                     if let EpochManagerEvent::EpochChanged(epoch) = event {
                         if self.epoch_manager.is_this_validator_registered_for_epoch(epoch).await?{
@@ -328,7 +249,7 @@ where
         #[cfg(feature = "metrics")]
         self.metrics.on_transaction_received(&transaction);
 
-        if let Err(e) = self.before_execute_validator.validate(&transaction).await {
+        if let Err(e) = self.before_execute_validator.validate(&(), &transaction) {
             let transaction_id = *transaction.id();
             self.state_store.with_write_tx(|tx| {
                 TransactionRecord::new(transaction)
@@ -338,7 +259,7 @@ where
 
             #[cfg(feature = "metrics")]
             self.metrics.on_transaction_validation_error(&transaction_id, &e);
-            return Err(e);
+            return Err(e.into());
         }
 
         // Get the shards involved in claim fees.
@@ -375,12 +296,16 @@ where
 
         if is_input_shard || is_output_shard {
             debug!(target: LOG_TARGET, "🎱 New transaction {} in mempool", transaction.id());
-            let transaction = TransactionRecord::new(transaction);
-            self.state_store.with_write_tx(|tx| transaction.insert(tx))?;
-            let transaction = transaction.into_transaction();
+            // let transaction = TransactionRecord::new(transaction);
+            // self.state_store.with_write_tx(|tx| transaction.insert(tx))?;
+            // let transaction = transaction.into_transaction();
             self.transactions.insert(*transaction.id());
+            self.consensus_handle
+                .notify_new_transaction(transaction.clone(), 0)
+                .await
+                .map_err(|_| MempoolError::ConsensusChannelClosed)?;
 
-            self.queue_transaction_for_execution(transaction.clone(), current_epoch, should_propagate, sender_shard);
+            // self.queue_transaction_for_execution(transaction.clone(), current_epoch, should_propagate, sender_shard);
 
             if should_propagate {
                 // This validator is involved, we to send the transaction to local replicas
@@ -465,299 +390,6 @@ where
         Ok(())
     }
 
-    fn queue_transaction_for_execution(
-        &mut self,
-        transaction: Transaction,
-        current_epoch: Epoch,
-        should_propagate: bool,
-        sender_shard: Option,
-    ) {
-        let substate_resolver = self.substate_resolver.clone();
-        let executor = self.transaction_executor.clone();
-        let transaction_id = *transaction.id();
-
-        self.pending_executions.push(Box::pin(
-            execute_transaction(transaction.clone(), substate_resolver, executor, current_epoch).map(move |result| {
-                match result {
-                    Ok(execution_result) => MempoolTransactionExecution {
-                        transaction_id,
-                        execution: TransactionExecution::Executed {
-                            result: execution_result,
-                        },
-                        should_propagate,
-                        sender_shard,
-                    },
-                    Err(MempoolError::MustDeferExecution { .. }) => MempoolTransactionExecution {
-                        transaction_id,
-                        execution: TransactionExecution::Deferred { transaction },
-                        should_propagate,
-                        sender_shard,
-                    },
-                    Err(error) => MempoolTransactionExecution {
-                        transaction_id,
-                        // IO, Database, etc errors
-                        execution: TransactionExecution::ExecutionFailure { error, transaction },
-                        should_propagate,
-                        sender_shard,
-                    },
-                }
-            }),
-        ));
-    }
-
-    async fn handle_execution_task_complete(
-        &mut self,
-        result: MempoolTransactionExecution,
-    ) -> Result<(), MempoolError> {
-        let MempoolTransactionExecution {
-            transaction_id,
-            execution,
-            should_propagate,
-            sender_shard,
-        } = result;
-
-        info!(target: LOG_TARGET, "🎱 Transaction {transaction_id} execution: {execution}");
-        match execution {
-            TransactionExecution::Executed { result } => {
-                self.handle_execution_complete(transaction_id, result, should_propagate, sender_shard)
-                    .await
-            },
-            // Bubble the error up
-            TransactionExecution::ExecutionFailure { error, .. } => {
-                // TODO: should we retry this transaction at some point?
-                self.transactions.remove(&transaction_id);
-                Err(error)
-            },
-            TransactionExecution::Deferred { transaction } => self.handle_deferred_execution(transaction).await,
-        }
-    }
-
-    async fn handle_deferred_execution(&mut self, transaction: Transaction) -> Result<(), MempoolError> {
-        let transaction_id = *transaction.id();
-
-        let pending_exec_size = self.pending_executions.len();
-        // Notify consensus about the transaction
-        if self
-            .tx_executed_transactions
-            .send((transaction_id, pending_exec_size))
-            .await
-            .is_err()
-        {
-            debug!(
-                target: LOG_TARGET,
-                "Executed transaction channel closed before executed transaction could be sent"
-            );
-        }
-
-        self.transactions.remove(&transaction_id);
-        Ok(())
-    }
-
-    #[allow(clippy::too_many_lines)]
-    async fn handle_execution_complete(
-        &mut self,
-        transaction_id: TransactionId,
-        exec_result: Result,
-        should_propagate: bool,
-        sender_shard: Option,
-    ) -> Result<(), MempoolError> {
-        #[cfg(feature = "metrics")]
-        self.metrics.on_transaction_executed(&transaction_id, &exec_result);
-
-        // The avoids the case where:
-        // 1. A transaction is received and start executing
-        // 2. The node switches to sync mode
-        // 3. Sync completes (some transactions that were finalized in sync may have been busy executing)
-        // 4. Execution completes and the transaction is added to the pool even though it is finalized via sync
-        // TODO: This is not guaranteed to work and is subject to races. The mempool should pause processing executed
-        // transactions until consensus is in sync.
-        if self
-            .state_store
-            .with_read_tx(|tx| SubstateRecord::exists_for_transaction(tx, &transaction_id))?
-        {
-            debug!(
-                target: LOG_TARGET,
-                "🎱 Transaction {} already processed. Ignoring",
-                transaction_id
-            );
-            return Ok(());
-        }
-
-        let executed = match exec_result {
-            Ok(mut executed) => {
-                info!(
-                    target: LOG_TARGET,
-                    "✅ Transaction {} executed ({}) in {:?}",
-                    executed.id(),
-                    executed.result().finalize.result,
-                    executed.execution_time()
-                );
-                let has_involved_shards = executed.num_inputs_and_outputs() > 0;
-
-                match self.after_execute_validator.validate(&executed).await {
-                    Ok(_) => {
-                        info!(
-                            target: LOG_TARGET,
-                            "✅ Transaction {} passed validation",
-                            executed.id(),
-                        );
-                        // Add the transaction result and push it into the pool for consensus. This is done in a single
-                        // transaction so that if we receive a proposal for this transaction, we
-                        // either are awaiting execution OR execution is complete and it's in the pool.
-                        self.state_store.with_write_tx(|tx| {
-                            if !has_involved_shards {
-                                match executed.result().finalize.result.full_reject() {
-                                    Some(reason) => {
-                                        executed
-                                            .set_abort(format!("Transaction failed: {}", reason))
-                                            .update(tx)?;
-                                    },
-                                    None => {
-                                        executed
-                                            .set_abort("Mempool after execution validation failed: No involved shards")
-                                            .update(tx)?;
-                                    },
-                                }
-
-                                return Ok::<_, MempoolError>(());
-                            }
-
-                            executed.update(tx)?;
-                            Ok::<_, MempoolError>(())
-                        })?;
-                    },
-                    Err(e) => {
-                        info!(
-                            target: LOG_TARGET,
-                            "❌ Executed transaction {} failed validation: {}",
-                            executed.id(),
-                            e,
-                        );
-                        #[cfg(feature = "metrics")]
-                        self.metrics.on_transaction_validation_error(&transaction_id, &e);
-                        self.state_store.with_write_tx(|tx| {
-                            match executed.result().finalize.result.full_reject() {
-                                Some(reason) => {
-                                    executed
-                                        .set_abort(format!("Transaction failed: {}", reason))
-                                        .update(tx)?;
-                                },
-                                None => {
-                                    executed
-                                        .set_abort(format!("Mempool after execution validation failed: {}", e))
-                                        .update(tx)?;
-                                },
-                            }
-
-                            Ok::<_, MempoolError>(())
-                        })?;
-                        // We want this to go though to consensus, because validation may only fail in this shard (e.g
-                        // outputs already exist) so we need to send LocalPrepared(ABORT) to
-                        // other shards.
-                    },
-                }
-
-                // TODO: This transaction executed but no shard is involved even after execution
-                //        (happens for CreateFreeTestCoin only) so we just ignore it.
-                if !has_involved_shards {
-                    warn!(
-                        target: LOG_TARGET,
-                        "Transaction {} has no involved shards after executing. Ignoring",
-                        transaction_id
-                    );
-                    self.transactions.remove(&transaction_id);
-                    return Ok(());
-                }
-
-                executed
-            },
-            Err(e) => {
-                error!(
-                    target: LOG_TARGET,
-                    "❌ Transaction {} failed: {}",
-                    transaction_id,
-                    e
-                );
-                self.state_store.with_write_tx(|tx| {
-                    TransactionRecord::get(&**tx, &transaction_id)?
-                        .set_abort(format!("Mempool failed to execute: {}", e))
-                        .update(tx)
-                })?;
-
-                self.transactions.remove(&transaction_id);
-
-                return Ok(());
-            },
-        };
-
-        let current_epoch = self.consensus_handle.current_view().get_epoch();
-
-        let local_committee_shard = self.epoch_manager.get_local_committee_info(current_epoch).await?;
-        let all_inputs_iter = executed.all_inputs_iter().map(|i| i.to_substate_address());
-        let is_input_shard = local_committee_shard.includes_any_shard(all_inputs_iter) ||
-            (executed.transaction().inputs().is_empty() && executed.transaction().filled_inputs().is_empty());
-
-        if should_propagate && is_input_shard {
-            // Forward the transaction to any output shards that are not part of the input shard set as these have
-            // already been forwarded
-            let num_committees = self.epoch_manager.get_num_committees(current_epoch).await?;
-            let input_shards = executed
-                .resolved_inputs()
-                .iter()
-                .map(|s| s.versioned_substate_id().to_committee_shard(num_committees))
-                .collect::>();
-            let tx_substate_address = SubstateAddress::for_transaction_receipt(executed.id().into_receipt_address());
-            let output_shards = executed
-                .resulting_outputs()
-                .iter()
-                // All involved shards commit the transaction receipt, so we exclude the shard @ tx_substate_address from propagation and consensus.
-                .map(|s| s.to_substate_address())
-                .filter(|s| *s != tx_substate_address)
-                .filter(|s| !input_shards.contains(&s.to_shard(num_committees)))
-                .collect();
-
-            if let Err(err) = self
-                .gossip
-                .forward_to_foreign_replicas(
-                    current_epoch,
-                    output_shards,
-                    NewTransactionMessage {
-                        transaction: executed.transaction().clone(),
-                        output_shards: executed
-                            .resulting_outputs()
-                            .iter()
-                            .map(|s| s.to_substate_address())
-                            .collect::>(),
-                    },
-                    sender_shard,
-                )
-                .await
-            {
-                error!(
-                    target: LOG_TARGET,
-                    "Unable to propagate transaction among peers: {}", err
-                );
-            }
-        }
-
-        // Notify consensus that a transaction is ready to go!
-        let pending_exec_size = self.pending_executions.len();
-        if self
-            .tx_executed_transactions
-            .send((*executed.id(), pending_exec_size))
-            .await
-            .is_err()
-        {
-            debug!(
-                target: LOG_TARGET,
-                "Executed transaction channel closed before executed transaction could be sent"
-            );
-        }
-
-        self.transactions.remove(&transaction_id);
-        Ok(())
-    }
-
     fn transaction_exists(&self, id: &TransactionId) -> Result {
         if self.transactions.contains(id) {
             debug!(
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/validators/after/has_involved_shards.rs b/applications/tari_validator_node/src/p2p/services/mempool/validators/after/has_involved_shards.rs
deleted file mode 100644
index ec3b2a313..000000000
--- a/applications/tari_validator_node/src/p2p/services/mempool/validators/after/has_involved_shards.rs
+++ /dev/null
@@ -1,37 +0,0 @@
-//   Copyright 2023 The Tari Project
-//   SPDX-License-Identifier: BSD-3-Clause
-
-use async_trait::async_trait;
-use log::*;
-use tari_dan_storage::consensus_models::ExecutedTransaction;
-
-use crate::p2p::services::mempool::{MempoolError, Validator};
-
-const LOG_TARGET: &str = "tari::dan::mempool::validators::has_involved_shards";
-
-/// Refuse to process the transaction if it does not have any involved shards.
-/// This may be removed in future in favour of a stricter rule that requires all transactions to have at least one
-/// input/input_ref before execution. Currently, we need to allow zero inputs because of CreateFreeTestCoins.
-pub struct HasInvolvedShards;
-
-impl HasInvolvedShards {
-    pub fn new() -> Self {
-        Self
-    }
-}
-
-#[async_trait]
-impl Validator for HasInvolvedShards {
-    type Error = MempoolError;
-
-    async fn validate(&self, executed: &ExecutedTransaction) -> Result<(), Self::Error> {
-        if executed.num_inputs_and_outputs() == 0 {
-            warn!(target: LOG_TARGET, "HasInvolvedShards - FAIL: No input or output shards");
-            return Err(MempoolError::NoInvolvedShards {
-                transaction_id: *executed.id(),
-            });
-        }
-
-        Ok(())
-    }
-}
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/validators/after/mod.rs b/applications/tari_validator_node/src/p2p/services/mempool/validators/after/mod.rs
deleted file mode 100644
index f1c3cba3d..000000000
--- a/applications/tari_validator_node/src/p2p/services/mempool/validators/after/mod.rs
+++ /dev/null
@@ -1,7 +0,0 @@
-//   Copyright 2023 The Tari Project
-//   SPDX-License-Identifier: BSD-3-Clause
-mod has_involved_shards;
-mod outputs_dont_exist_locally;
-
-pub use has_involved_shards::*;
-pub use outputs_dont_exist_locally::*;
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/validators/after/outputs_dont_exist_locally.rs b/applications/tari_validator_node/src/p2p/services/mempool/validators/after/outputs_dont_exist_locally.rs
deleted file mode 100644
index 60b1f5407..000000000
--- a/applications/tari_validator_node/src/p2p/services/mempool/validators/after/outputs_dont_exist_locally.rs
+++ /dev/null
@@ -1,51 +0,0 @@
-//    Copyright 2023 The Tari Project
-//    SPDX-License-Identifier: BSD-3-Clause
-
-use async_trait::async_trait;
-use log::*;
-use tari_dan_storage::{
-    consensus_models::{ExecutedTransaction, SubstateRecord},
-    StateStore,
-};
-
-use crate::p2p::services::mempool::{MempoolError, Validator};
-
-const LOG_TARGET: &str = "tari::dan::mempool::validators::outputs_dont_exist";
-
-/// Refuse to process the transaction if any input_refs are downed
-pub struct OutputsDontExistLocally {
-    store: TStateStore,
-}
-
-impl OutputsDontExistLocally {
-    pub fn new(store: TStateStore) -> Self {
-        Self { store }
-    }
-}
-
-#[async_trait]
-impl Validator for OutputsDontExistLocally
-where TStateStore: StateStore + Send + Sync
-{
-    type Error = MempoolError;
-
-    async fn validate(&self, executed: &ExecutedTransaction) -> Result<(), Self::Error> {
-        if executed.resulting_outputs().is_empty() {
-            debug!(target: LOG_TARGET, "OutputsDontExistLocally - OK");
-            return Ok(());
-        }
-
-        if self
-            .store
-            .with_read_tx(|tx| SubstateRecord::any_exist(tx, executed.resulting_outputs()))?
-        {
-            warn!(target: LOG_TARGET, "OutputsDontExistLocally - FAIL");
-            return Err(MempoolError::OutputSubstateExists {
-                transaction_id: *executed.id(),
-            });
-        }
-
-        debug!(target: LOG_TARGET, "OutputsDontExistLocally - OK");
-        Ok(())
-    }
-}
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/validators/and_then.rs b/applications/tari_validator_node/src/p2p/services/mempool/validators/and_then.rs
deleted file mode 100644
index 68fced0e8..000000000
--- a/applications/tari_validator_node/src/p2p/services/mempool/validators/and_then.rs
+++ /dev/null
@@ -1,33 +0,0 @@
-//    Copyright 2023 The Tari Project
-//    SPDX-License-Identifier: BSD-3-Clause
-
-use async_trait::async_trait;
-
-use super::Validator;
-
-pub struct AndThen {
-    first: A,
-    second: U,
-}
-
-impl AndThen {
-    pub fn new(first: A, second: U) -> Self {
-        Self { first, second }
-    }
-}
-
-#[async_trait]
-impl Validator for AndThen
-where
-    A: Validator + Send + Sync,
-    B: Validator + Send + Sync,
-    T: Sync,
-{
-    type Error = A::Error;
-
-    async fn validate(&self, input: &T) -> Result<(), Self::Error> {
-        self.first.validate(input).await?;
-        self.second.validate(input).await?;
-        Ok(())
-    }
-}
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/validators/before/claim_fee_instructions.rs b/applications/tari_validator_node/src/p2p/services/mempool/validators/before/claim_fee_instructions.rs
deleted file mode 100644
index b8a8174dd..000000000
--- a/applications/tari_validator_node/src/p2p/services/mempool/validators/before/claim_fee_instructions.rs
+++ /dev/null
@@ -1,60 +0,0 @@
-//    Copyright 2023 The Tari Project
-//    SPDX-License-Identifier: BSD-3-Clause
-
-use async_trait::async_trait;
-use log::*;
-use tari_dan_common_types::Epoch;
-use tari_engine_types::instruction::Instruction;
-use tari_epoch_manager::EpochManagerReader;
-use tari_transaction::Transaction;
-
-use crate::p2p::services::mempool::{MempoolError, Validator};
-
-const LOG_TARGET: &str = "tari::dan::mempool::validators::claim_fee_instructions";
-
-#[derive(Debug)]
-pub struct ClaimFeeTransactionValidator {
-    epoch_manager: TEpochManager,
-}
-
-impl ClaimFeeTransactionValidator {
-    pub fn new(epoch_manager: TEpochManager) -> Self {
-        Self { epoch_manager }
-    }
-}
-
-#[async_trait]
-impl Validator for ClaimFeeTransactionValidator {
-    type Error = MempoolError;
-
-    async fn validate(&self, transaction: &Transaction) -> Result<(), MempoolError> {
-        let current_epoch = self.epoch_manager.current_epoch().await?;
-
-        let mut claim_fees = transaction
-            .fee_instructions()
-            .iter()
-            .chain(transaction.instructions())
-            .filter_map(|i| {
-                if let Instruction::ClaimValidatorFees { epoch, .. } = i {
-                    Some(epoch)
-                } else {
-                    None
-                }
-            });
-
-        if let Some(epoch) = claim_fees.find(|e| **e >= current_epoch.as_u64()) {
-            warn!(
-                target: LOG_TARGET,
-                "ClaimFeeTransactionValidator - FAIL: Rejecting fee claim for epoch {} because it is equal or greater than the current epoch {}",
-                epoch,
-                current_epoch
-            );
-            return Err(MempoolError::ValidatorFeeClaimEpochInvalid {
-                transaction_id: *transaction.id(),
-                given_epoch: Epoch(*epoch),
-            });
-        }
-
-        Ok(())
-    }
-}
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/validators/before/epoch_range.rs b/applications/tari_validator_node/src/p2p/services/mempool/validators/before/epoch_range.rs
deleted file mode 100644
index 3327cc86b..000000000
--- a/applications/tari_validator_node/src/p2p/services/mempool/validators/before/epoch_range.rs
+++ /dev/null
@@ -1,53 +0,0 @@
-//    Copyright 2023 The Tari Project
-//    SPDX-License-Identifier: BSD-3-Clause
-
-use async_trait::async_trait;
-use log::warn;
-use tari_dan_common_types::NodeAddressable;
-use tari_epoch_manager::{base_layer::EpochManagerHandle, EpochManagerReader};
-use tari_transaction::Transaction;
-
-use crate::p2p::services::mempool::{MempoolError, Validator};
-
-const LOG_TARGET: &str = "tari::dan::mempool::validators::epoch_range";
-
-#[derive(Debug)]
-pub struct EpochRangeValidator {
-    epoch_manager: EpochManagerHandle,
-}
-
-impl EpochRangeValidator {
-    pub fn new(epoch_manager: EpochManagerHandle) -> Self {
-        Self { epoch_manager }
-    }
-}
-
-#[async_trait]
-impl Validator for EpochRangeValidator {
-    type Error = MempoolError;
-
-    async fn validate(&self, transaction: &Transaction) -> Result<(), MempoolError> {
-        let current_epoch = self.epoch_manager.current_epoch().await?;
-        if let Some(min_epoch) = transaction.min_epoch() {
-            if current_epoch < min_epoch {
-                warn!(target: LOG_TARGET, "EpochRangeValidator - FAIL: Current epoch {current_epoch} less than minimum epoch {min_epoch}.");
-                return Err(MempoolError::CurrentEpochLessThanMinimum {
-                    current_epoch,
-                    min_epoch,
-                });
-            }
-        }
-
-        if let Some(max_epoch) = transaction.max_epoch() {
-            if current_epoch > max_epoch {
-                warn!(target: LOG_TARGET, "EpochRangeValidator - FAIL: Current epoch {current_epoch} greater than maximum epoch {max_epoch}.");
-                return Err(MempoolError::CurrentEpochGreaterThanMaximum {
-                    current_epoch,
-                    max_epoch,
-                });
-            }
-        }
-
-        Ok(())
-    }
-}
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/validators/before/has_inputs.rs b/applications/tari_validator_node/src/p2p/services/mempool/validators/before/has_inputs.rs
deleted file mode 100644
index 1cec19e96..000000000
--- a/applications/tari_validator_node/src/p2p/services/mempool/validators/before/has_inputs.rs
+++ /dev/null
@@ -1,48 +0,0 @@
-//   Copyright 2023 The Tari Project
-//   SPDX-License-Identifier: BSD-3-Clause
-
-use async_trait::async_trait;
-use log::*;
-use tari_engine_types::instruction::Instruction;
-use tari_transaction::Transaction;
-
-use crate::p2p::services::mempool::{MempoolError, Validator};
-
-const LOG_TARGET: &str = "tari::dan::mempool::validators::has_involved_shards";
-
-/// Refuse to process the transaction if it does not have any inputs.
-/// We make an exception (for now) for CreateFreeTestCoins transactions, which have no inputs.
-pub struct HasInputs;
-
-impl HasInputs {
-    pub fn new() -> Self {
-        Self
-    }
-}
-
-#[async_trait]
-impl Validator for HasInputs {
-    type Error = MempoolError;
-
-    async fn validate(&self, transaction: &Transaction) -> Result<(), Self::Error> {
-        if transaction.all_inputs_iter().next().is_none() {
-            // TODO: remove this conditional when we remove CreateFreeTestCoins
-            if transaction
-                .fee_instructions()
-                .iter()
-                .any(|i| matches!(i, Instruction::CreateFreeTestCoins { .. }))
-            {
-                debug!(target: LOG_TARGET, "HasInputs - OK: CreateFreeTestCoins");
-                return Ok(());
-            }
-
-            warn!(target: LOG_TARGET, "HasInputs - FAIL: No input shards");
-            return Err(MempoolError::NoInputs {
-                transaction_id: *transaction.id(),
-            });
-        }
-
-        debug!(target: LOG_TARGET, "HasInputs - OK");
-        Ok(())
-    }
-}
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/validators/mod.rs b/applications/tari_validator_node/src/p2p/services/mempool/validators/mod.rs
deleted file mode 100644
index 54e47faf4..000000000
--- a/applications/tari_validator_node/src/p2p/services/mempool/validators/mod.rs
+++ /dev/null
@@ -1,45 +0,0 @@
-//   Copyright 2022 The Tari Project
-//   SPDX-License-Identifier: BSD-3-Clause
-
-pub use after::*;
-pub use and_then::*;
-pub use before::*;
-
-mod after;
-mod before;
-
-mod and_then;
-use async_trait::async_trait;
-
-#[async_trait]
-pub trait Validator {
-    type Error;
-
-    async fn validate(&self, input: &T) -> Result<(), Self::Error>;
-
-    fn boxed(self) -> BoxedValidator
-    where Self: Sized + Send + Sync + 'static {
-        BoxedValidator { inner: Box::new(self) }
-    }
-
-    fn and_then(self, other: V) -> AndThen
-    where
-        V: Validator,
-        Self: Sized,
-    {
-        AndThen::new(self, other)
-    }
-}
-
-pub struct BoxedValidator {
-    inner: Box + Send + Sync + 'static>,
-}
-
-#[async_trait]
-impl Validator for BoxedValidator {
-    type Error = E;
-
-    async fn validate(&self, input: &T) -> Result<(), Self::Error> {
-        self.inner.validate(input).await
-    }
-}
diff --git a/applications/tari_validator_node/src/transaction_validators/claim_fee_instructions.rs b/applications/tari_validator_node/src/transaction_validators/claim_fee_instructions.rs
new file mode 100644
index 000000000..2434911fd
--- /dev/null
+++ b/applications/tari_validator_node/src/transaction_validators/claim_fee_instructions.rs
@@ -0,0 +1,54 @@
+//    Copyright 2024 The Tari Project
+//    SPDX-License-Identifier: BSD-3-Clause
+
+use log::*;
+use tari_dan_common_types::Epoch;
+use tari_engine_types::instruction::Instruction;
+use tari_transaction::Transaction;
+
+use crate::{transaction_validators::error::TransactionValidationError, validator::Validator};
+
+const LOG_TARGET: &str = "tari::dan::validators::claim_fee_instructions";
+
+#[derive(Debug, Default)]
+pub struct ClaimFeeTransactionValidator;
+
+impl ClaimFeeTransactionValidator {
+    pub fn new() -> Self {
+        Self
+    }
+}
+
+impl Validator for ClaimFeeTransactionValidator {
+    type Context = Epoch;
+    type Error = TransactionValidationError;
+
+    fn validate(&self, ¤t_epoch: &Epoch, transaction: &Transaction) -> Result<(), Self::Error> {
+        let mut claim_fees = transaction
+            .fee_instructions()
+            .iter()
+            .chain(transaction.instructions())
+            .filter_map(|i| {
+                if let Instruction::ClaimValidatorFees { epoch, .. } = i {
+                    Some(epoch)
+                } else {
+                    None
+                }
+            });
+
+        if let Some(&epoch) = claim_fees.find(|e| **e >= current_epoch.as_u64()) {
+            warn!(
+                target: LOG_TARGET,
+                "ClaimFeeTransactionValidator - FAIL: Rejecting fee claim for epoch {} because it is equal or greater than the current epoch {}",
+                epoch,
+                current_epoch
+            );
+            return Err(TransactionValidationError::ValidatorFeeClaimEpochInvalid {
+                transaction_id: *transaction.id(),
+                given_epoch: Epoch(epoch),
+            });
+        }
+
+        Ok(())
+    }
+}
diff --git a/applications/tari_validator_node/src/transaction_validators/epoch_range.rs b/applications/tari_validator_node/src/transaction_validators/epoch_range.rs
new file mode 100644
index 000000000..6449e3b8f
--- /dev/null
+++ b/applications/tari_validator_node/src/transaction_validators/epoch_range.rs
@@ -0,0 +1,48 @@
+//    Copyright 2024 The Tari Project
+//    SPDX-License-Identifier: BSD-3-Clause
+
+use log::warn;
+use tari_dan_common_types::Epoch;
+use tari_transaction::Transaction;
+
+use crate::{transaction_validators::TransactionValidationError, validator::Validator};
+
+const LOG_TARGET: &str = "tari::dan::mempool::validators::epoch_range";
+
+#[derive(Debug, Default)]
+pub struct EpochRangeValidator;
+
+impl EpochRangeValidator {
+    pub fn new() -> Self {
+        Self
+    }
+}
+
+impl Validator for EpochRangeValidator {
+    type Context = Epoch;
+    type Error = TransactionValidationError;
+
+    fn validate(&self, ¤t_epoch: &Epoch, transaction: &Transaction) -> Result<(), TransactionValidationError> {
+        if let Some(min_epoch) = transaction.min_epoch() {
+            if current_epoch < min_epoch {
+                warn!(target: LOG_TARGET, "EpochRangeValidator - FAIL: Current epoch {current_epoch} less than minimum epoch {min_epoch}.");
+                return Err(TransactionValidationError::CurrentEpochLessThanMinimum {
+                    current_epoch,
+                    min_epoch,
+                });
+            }
+        }
+
+        if let Some(max_epoch) = transaction.max_epoch() {
+            if current_epoch > max_epoch {
+                warn!(target: LOG_TARGET, "EpochRangeValidator - FAIL: Current epoch {current_epoch} greater than maximum epoch {max_epoch}.");
+                return Err(TransactionValidationError::CurrentEpochGreaterThanMaximum {
+                    current_epoch,
+                    max_epoch,
+                });
+            }
+        }
+
+        Ok(())
+    }
+}
diff --git a/applications/tari_validator_node/src/transaction_validators/error.rs b/applications/tari_validator_node/src/transaction_validators/error.rs
new file mode 100644
index 000000000..067d9eb66
--- /dev/null
+++ b/applications/tari_validator_node/src/transaction_validators/error.rs
@@ -0,0 +1,47 @@
+//    Copyright 2024 The Tari Project
+//    SPDX-License-Identifier: BSD-3-Clause
+
+use tari_dan_app_utilities::template_manager::interface::TemplateManagerError;
+use tari_dan_common_types::Epoch;
+use tari_dan_storage::{consensus_models::TransactionPoolError, StorageError};
+use tari_networking::NetworkingError;
+use tari_transaction::TransactionId;
+
+use crate::virtual_substate::VirtualSubstateError;
+
+#[derive(thiserror::Error, Debug)]
+pub enum TransactionValidationError {
+    #[error("Storage Error: {0}")]
+    StorageError(#[from] StorageError),
+    #[error("Virtual substate error: {0}")]
+    VirtualSubstateError(#[from] VirtualSubstateError),
+    #[error("Transaction pool error: {0}")]
+    TransactionPoolError(#[from] TransactionPoolError),
+
+    // TODO: move these to MempoolValidationError type
+    #[error("Invalid template address: {0}")]
+    InvalidTemplateAddress(#[from] TemplateManagerError),
+    #[error("No fee instructions")]
+    NoFeeInstructions,
+    #[error("Output substate exists in transaction {transaction_id}")]
+    OutputSubstateExists { transaction_id: TransactionId },
+    #[error("Validator fee claim instruction in transaction {transaction_id} contained invalid epoch {given_epoch}")]
+    ValidatorFeeClaimEpochInvalid {
+        transaction_id: TransactionId,
+        given_epoch: Epoch,
+    },
+    #[error("Current epoch ({current_epoch}) is less than minimum epoch ({min_epoch}) required for transaction")]
+    CurrentEpochLessThanMinimum { current_epoch: Epoch, min_epoch: Epoch },
+    #[error("Current epoch ({current_epoch}) is greater than maximum epoch ({max_epoch}) required for transaction")]
+    CurrentEpochGreaterThanMaximum { current_epoch: Epoch, max_epoch: Epoch },
+    #[error("Transaction {transaction_id} does not have any inputs")]
+    NoInputs { transaction_id: TransactionId },
+    #[error("Executed transaction {transaction_id} does not involved any shards")]
+    NoInvolvedShards { transaction_id: TransactionId },
+    #[error("Invalid transaction signature")]
+    InvalidSignature,
+    #[error("Transaction {transaction_id} is not signed")]
+    TransactionNotSigned { transaction_id: TransactionId },
+    #[error("Network error: {0}")]
+    NetworkingError(#[from] NetworkingError),
+}
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/validators/before/fee.rs b/applications/tari_validator_node/src/transaction_validators/fee.rs
similarity index 55%
rename from applications/tari_validator_node/src/p2p/services/mempool/validators/before/fee.rs
rename to applications/tari_validator_node/src/transaction_validators/fee.rs
index 0bff2bbe3..f12601996 100644
--- a/applications/tari_validator_node/src/p2p/services/mempool/validators/before/fee.rs
+++ b/applications/tari_validator_node/src/transaction_validators/fee.rs
@@ -1,25 +1,24 @@
-//    Copyright 2023 The Tari Project
+//    Copyright 2024 The Tari Project
 //    SPDX-License-Identifier: BSD-3-Clause
 
-use async_trait::async_trait;
 use log::warn;
 use tari_transaction::Transaction;
 
-use crate::p2p::services::mempool::{MempoolError, Validator};
+use crate::{transaction_validators::TransactionValidationError, validator::Validator};
 
 const LOG_TARGET: &str = "tari::dan::mempool::validators::fee";
 
 #[derive(Debug)]
 pub struct FeeTransactionValidator;
 
-#[async_trait]
 impl Validator for FeeTransactionValidator {
-    type Error = MempoolError;
+    type Context = ();
+    type Error = TransactionValidationError;
 
-    async fn validate(&self, transaction: &Transaction) -> Result<(), MempoolError> {
+    fn validate(&self, _context: &(), transaction: &Transaction) -> Result<(), TransactionValidationError> {
         if transaction.fee_instructions().is_empty() {
             warn!(target: LOG_TARGET, "FeeTransactionValidator - FAIL: No fee instructions");
-            return Err(MempoolError::NoFeeInstructions);
+            return Err(TransactionValidationError::NoFeeInstructions);
         }
         Ok(())
     }
diff --git a/applications/tari_validator_node/src/transaction_validators/has_inputs.rs b/applications/tari_validator_node/src/transaction_validators/has_inputs.rs
new file mode 100644
index 000000000..05b5ebba7
--- /dev/null
+++ b/applications/tari_validator_node/src/transaction_validators/has_inputs.rs
@@ -0,0 +1,37 @@
+//    Copyright 2024 The Tari Project
+//    SPDX-License-Identifier: BSD-3-Clause
+
+use log::*;
+use tari_transaction::Transaction;
+
+use crate::{transaction_validators::TransactionValidationError, validator::Validator};
+
+const LOG_TARGET: &str = "tari::dan::mempool::validators::has_involved_shards";
+
+/// Refuse to process the transaction if it does not have any inputs.
+/// We make an exception (for now) for CreateFreeTestCoins transactions, which have no inputs.
+#[derive(Debug, Clone, Default)]
+pub struct HasInputs;
+
+impl HasInputs {
+    pub fn new() -> Self {
+        Self
+    }
+}
+
+impl Validator for HasInputs {
+    type Context = ();
+    type Error = TransactionValidationError;
+
+    fn validate(&self, _context: &(), transaction: &Transaction) -> Result<(), Self::Error> {
+        if transaction.all_inputs_iter().next().is_none() {
+            warn!(target: LOG_TARGET, "HasInputs - FAIL: No input shards");
+            return Err(TransactionValidationError::NoInputs {
+                transaction_id: *transaction.id(),
+            });
+        }
+
+        debug!(target: LOG_TARGET, "HasInputs - OK");
+        Ok(())
+    }
+}
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/validators/before/mod.rs b/applications/tari_validator_node/src/transaction_validators/mod.rs
similarity index 72%
rename from applications/tari_validator_node/src/p2p/services/mempool/validators/before/mod.rs
rename to applications/tari_validator_node/src/transaction_validators/mod.rs
index 3ac77ef34..ff6a9140e 100644
--- a/applications/tari_validator_node/src/p2p/services/mempool/validators/before/mod.rs
+++ b/applications/tari_validator_node/src/transaction_validators/mod.rs
@@ -1,5 +1,6 @@
-//   Copyright 2023 The Tari Project
+//   Copyright 2022 The Tari Project
 //   SPDX-License-Identifier: BSD-3-Clause
+
 mod claim_fee_instructions;
 mod epoch_range;
 mod fee;
@@ -13,3 +14,9 @@ pub use fee::*;
 pub use has_inputs::*;
 pub use signature::*;
 pub use template_exists::*;
+
+mod error;
+mod with_context;
+
+pub use error::*;
+pub use with_context::*;
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/validators/before/signature.rs b/applications/tari_validator_node/src/transaction_validators/signature.rs
similarity index 64%
rename from applications/tari_validator_node/src/p2p/services/mempool/validators/before/signature.rs
rename to applications/tari_validator_node/src/transaction_validators/signature.rs
index 2a8a835c2..81d107e53 100644
--- a/applications/tari_validator_node/src/p2p/services/mempool/validators/before/signature.rs
+++ b/applications/tari_validator_node/src/transaction_validators/signature.rs
@@ -1,32 +1,31 @@
 //    Copyright 2023 The Tari Project
 //    SPDX-License-Identifier: BSD-3-Clause
 
-use async_trait::async_trait;
 use log::warn;
 use tari_transaction::Transaction;
 
-use crate::p2p::services::mempool::{MempoolError, Validator};
+use crate::{transaction_validators::TransactionValidationError, validator::Validator};
 
 const LOG_TARGET: &str = "tari::dan::mempool::validators::signature";
 
 #[derive(Debug)]
 pub struct TransactionSignatureValidator;
 
-#[async_trait]
 impl Validator for TransactionSignatureValidator {
-    type Error = MempoolError;
+    type Context = ();
+    type Error = TransactionValidationError;
 
-    async fn validate(&self, transaction: &Transaction) -> Result<(), MempoolError> {
+    fn validate(&self, _context: &(), transaction: &Transaction) -> Result<(), TransactionValidationError> {
         if transaction.signatures().is_empty() {
             warn!(target: LOG_TARGET, "TransactionSignatureValidator - FAIL: No signatures");
-            return Err(MempoolError::TransactionNotSigned {
+            return Err(TransactionValidationError::TransactionNotSigned {
                 transaction_id: *transaction.id(),
             });
         }
 
         if !transaction.verify_all_signatures() {
             warn!(target: LOG_TARGET, "TransactionSignatureValidator - FAIL: Invalid signature");
-            return Err(MempoolError::InvalidSignature);
+            return Err(TransactionValidationError::InvalidSignature);
         }
 
         Ok(())
diff --git a/applications/tari_validator_node/src/p2p/services/mempool/validators/before/template_exists.rs b/applications/tari_validator_node/src/transaction_validators/template_exists.rs
similarity index 78%
rename from applications/tari_validator_node/src/p2p/services/mempool/validators/before/template_exists.rs
rename to applications/tari_validator_node/src/transaction_validators/template_exists.rs
index 213d67c12..298145935 100644
--- a/applications/tari_validator_node/src/p2p/services/mempool/validators/before/template_exists.rs
+++ b/applications/tari_validator_node/src/transaction_validators/template_exists.rs
@@ -1,14 +1,13 @@
 //    Copyright 2023 The Tari Project
 //    SPDX-License-Identifier: BSD-3-Clause
 
-use async_trait::async_trait;
 use log::warn;
 use tari_dan_app_utilities::template_manager::{implementation::TemplateManager, interface::TemplateManagerError};
 use tari_dan_common_types::NodeAddressable;
 use tari_engine_types::instruction::Instruction;
 use tari_transaction::Transaction;
 
-use crate::p2p::services::mempool::{MempoolError, Validator};
+use crate::{transaction_validators::TransactionValidationError, validator::Validator};
 
 const LOG_TARGET: &str = "tari::dan::mempool::validators::template_exists";
 
@@ -23,21 +22,21 @@ impl TemplateExistsValidator {
     }
 }
 
-#[async_trait]
 impl Validator for TemplateExistsValidator {
-    type Error = MempoolError;
+    type Context = ();
+    type Error = TransactionValidationError;
 
-    async fn validate(&self, transaction: &Transaction) -> Result<(), MempoolError> {
+    fn validate(&self, _context: &(), transaction: &Transaction) -> Result<(), TransactionValidationError> {
         let instructions = transaction.instructions();
         for instruction in instructions {
             match instruction {
                 Instruction::CallFunction { template_address, .. } => {
                     let template_exists = self.template_manager.template_exists(template_address);
                     match template_exists {
-                        Err(e) => return Err(MempoolError::InvalidTemplateAddress(e)),
+                        Err(e) => return Err(TransactionValidationError::InvalidTemplateAddress(e)),
                         Ok(false) => {
                             warn!(target: LOG_TARGET, "TemplateExistsValidator - FAIL: Template not found");
-                            return Err(MempoolError::InvalidTemplateAddress(
+                            return Err(TransactionValidationError::InvalidTemplateAddress(
                                 TemplateManagerError::TemplateNotFound {
                                     address: *template_address,
                                 },
diff --git a/applications/tari_validator_node/src/transaction_validators/with_context.rs b/applications/tari_validator_node/src/transaction_validators/with_context.rs
new file mode 100644
index 000000000..250695d30
--- /dev/null
+++ b/applications/tari_validator_node/src/transaction_validators/with_context.rs
@@ -0,0 +1,24 @@
+//    Copyright 2024 The Tari Project
+//    SPDX-License-Identifier: BSD-3-Clause
+
+use std::marker::PhantomData;
+
+use crate::validator::Validator;
+
+#[derive(Debug, Default)]
+pub struct WithContext(PhantomData<(C, T, E)>);
+
+impl WithContext {
+    pub fn new() -> Self {
+        Self(PhantomData)
+    }
+}
+
+impl Validator for WithContext {
+    type Context = C;
+    type Error = E;
+
+    fn validate(&self, _context: &C, _input: &T) -> Result<(), Self::Error> {
+        Ok(())
+    }
+}
diff --git a/applications/tari_validator_node/src/validator.rs b/applications/tari_validator_node/src/validator.rs
new file mode 100644
index 000000000..2ed78df8e
--- /dev/null
+++ b/applications/tari_validator_node/src/validator.rs
@@ -0,0 +1,110 @@
+//   Copyright 2024 The Tari Project
+//   SPDX-License-Identifier: BSD-3-Clause
+
+use std::fmt::{Debug, Formatter};
+
+pub trait Validator {
+    type Context;
+    type Error;
+
+    fn validate(&self, context: &Self::Context, input: &T) -> Result<(), Self::Error>;
+
+    fn boxed(self) -> BoxedValidator
+    where Self: Sized + Send + Sync + 'static {
+        BoxedValidator { inner: Box::new(self) }
+    }
+
+    fn and_then(self, other: V) -> AndThen
+    where
+        V: Validator,
+        Self: Sized,
+    {
+        AndThen::new(self, other)
+    }
+
+    fn map_context(self, f: F, validator: V) -> MapContext
+    where
+        V: Validator,
+        F: Fn(&Self::Context) -> V::Context,
+        Self: Sized,
+    {
+        MapContext::new(self, validator, f)
+    }
+}
+
+pub struct BoxedValidator {
+    inner: Box + Send + Sync + 'static>,
+}
+
+impl Validator for BoxedValidator {
+    type Context = C;
+    type Error = E;
+
+    fn validate(&self, context: &Self::Context, input: &T) -> Result<(), Self::Error> {
+        self.inner.validate(context, input)
+    }
+}
+
+impl Debug for BoxedValidator {
+    fn fmt(&self, f: &mut Formatter<'_>) -> std::fmt::Result {
+        f.debug_struct("BoxedValidator")
+            .field("inner", &"Box")
+            .finish()
+    }
+}
+
+pub struct AndThen {
+    first: A,
+    second: B,
+}
+
+impl AndThen {
+    pub fn new(first: A, second: B) -> Self {
+        Self { first, second }
+    }
+}
+
+impl Validator for AndThen
+where
+    A: Validator + Send + Sync,
+    B: Validator + Send + Sync,
+    T: Sync,
+{
+    type Context = A::Context;
+    type Error = A::Error;
+
+    fn validate(&self, context: &Self::Context, input: &T) -> Result<(), Self::Error> {
+        self.first.validate(context, input)?;
+        self.second.validate(context, input)?;
+        Ok(())
+    }
+}
+
+pub struct MapContext {
+    first: A,
+    second: B,
+    mapper: F,
+}
+
+impl MapContext {
+    pub fn new(first: A, second: B, mapper: F) -> Self {
+        Self { first, second, mapper }
+    }
+}
+
+impl Validator for MapContext
+where
+    A: Validator + Send + Sync,
+    B: Validator + Send + Sync,
+    F: Fn(&A::Context) -> B::Context,
+    T: Sync,
+{
+    type Context = A::Context;
+    type Error = A::Error;
+
+    fn validate(&self, context: &Self::Context, input: &T) -> Result<(), Self::Error> {
+        self.first.validate(context, input)?;
+        self.second.validate(&(self.mapper)(context), input)?;
+        Ok(())
+    }
+}
diff --git a/bindings/src/types/Decision.ts b/bindings/src/types/Decision.ts
index 1411b5cfe..a697b0f15 100644
--- a/bindings/src/types/Decision.ts
+++ b/bindings/src/types/Decision.ts
@@ -1,3 +1,3 @@
 // This file was generated by [ts-rs](https://github.com/Aleph-Alpha/ts-rs). Do not edit this file manually.
 
-export type Decision = "Commit" | "Abort" | "Deferred";
+export type Decision = "Commit" | "Abort";
diff --git a/bindings/src/types/ForeignProposal.ts b/bindings/src/types/ForeignProposal.ts
index a04264c51..fcd39385b 100644
--- a/bindings/src/types/ForeignProposal.ts
+++ b/bindings/src/types/ForeignProposal.ts
@@ -3,7 +3,7 @@ import type { ForeignProposalState } from "./ForeignProposalState";
 import type { NodeHeight } from "./NodeHeight";
 
 export interface ForeignProposal {
-  bucket: number;
+  shard: number;
   block_id: string;
   state: ForeignProposalState;
   proposed_height: NodeHeight | null;
diff --git a/bindings/src/types/Instruction.ts b/bindings/src/types/Instruction.ts
index 8ea451274..38fb0b612 100644
--- a/bindings/src/types/Instruction.ts
+++ b/bindings/src/types/Instruction.ts
@@ -1,9 +1,7 @@
 // This file was generated by [ts-rs](https://github.com/Aleph-Alpha/ts-rs). Do not edit this file manually.
-import type { Amount } from "./Amount";
 import type { Arg } from "./Arg";
 import type { ComponentAddress } from "./ComponentAddress";
 import type { ConfidentialClaim } from "./ConfidentialClaim";
-import type { ConfidentialOutput } from "./ConfidentialOutput";
 import type { LogLevel } from "./LogLevel";
 
 export type Instruction =
@@ -14,5 +12,4 @@ export type Instruction =
   | { EmitLog: { level: LogLevel; message: string } }
   | { ClaimBurn: { claim: ConfidentialClaim } }
   | { ClaimValidatorFees: { epoch: number; validator_public_key: string } }
-  | "DropAllProofsInWorkspace"
-  | { CreateFreeTestCoins: { revealed_amount: Amount; output: ConfidentialOutput | null } };
+  | "DropAllProofsInWorkspace";
diff --git a/bindings/src/types/TransactionPoolRecord.ts b/bindings/src/types/TransactionPoolRecord.ts
index bf3c67e2e..533d96108 100644
--- a/bindings/src/types/TransactionPoolRecord.ts
+++ b/bindings/src/types/TransactionPoolRecord.ts
@@ -1,12 +1,17 @@
 // This file was generated by [ts-rs](https://github.com/Aleph-Alpha/ts-rs). Do not edit this file manually.
 import type { Decision } from "./Decision";
-import type { TransactionAtom } from "./TransactionAtom";
+import type { Evidence } from "./Evidence";
+import type { LeaderFee } from "./LeaderFee";
 import type { TransactionPoolStage } from "./TransactionPoolStage";
 
 export interface TransactionPoolRecord {
-  atom: TransactionAtom;
+  transaction_id: string;
+  evidence: Evidence;
+  transaction_fee: number;
+  leader_fee: LeaderFee | null;
   stage: TransactionPoolStage;
   pending_stage: TransactionPoolStage | null;
+  original_decision: Decision;
   local_decision: Decision | null;
   remote_decision: Decision | null;
   is_ready: boolean;
diff --git a/dan_layer/common_types/src/substate_address.rs b/dan_layer/common_types/src/substate_address.rs
index fe4d76295..529a0b05f 100644
--- a/dan_layer/common_types/src/substate_address.rs
+++ b/dan_layer/common_types/src/substate_address.rs
@@ -22,10 +22,7 @@ use tari_engine_types::{
 };
 use tari_template_lib::{models::ObjectKey, Hash};
 
-use crate::{
-    shard::Shard,
-    uint::{U256, U256_ZERO},
-};
+use crate::{shard::Shard, uint::U256};
 
 /// This is u16::MAX / 2 as a u32 = 32767 shards. Any number of shards greater than this will be clamped to this value.
 /// This is done to limit the number of addresses that are added to the final shard to allow the same shard boundaries.
@@ -113,6 +110,10 @@ impl SubstateAddress {
         Ok(Self(hash.into_array()))
     }
 
+    pub fn is_zero(&self) -> bool {
+        self.as_bytes().iter().all(|&b| b == 0)
+    }
+
     pub const fn into_array(self) -> [u8; 32] {
         self.0
     }
@@ -140,16 +141,10 @@ impl SubstateAddress {
     /// Calculates and returns the shard number that this SubstateAddress belongs.
     /// A shard is a division of the 256-bit shard space where the boundary of the division if always a power of two.
     pub fn to_shard(&self, num_shards: u32) -> Shard {
-        if num_shards == 0 {
+        if num_shards <= 1 || self.is_zero() {
             return Shard::from(0u32);
         }
         let addr_u256 = self.to_u256();
-        if addr_u256 == U256_ZERO {
-            return Shard::from(0u32);
-        }
-        if num_shards == 1 {
-            return Shard::from(0u32);
-        }
 
         if num_shards.is_power_of_two() {
             let shard_size = U256::MAX >> num_shards.trailing_zeros();
diff --git a/dan_layer/consensus/Cargo.toml b/dan_layer/consensus/Cargo.toml
index 741a2aa2d..57337877e 100644
--- a/dan_layer/consensus/Cargo.toml
+++ b/dan_layer/consensus/Cargo.toml
@@ -19,7 +19,6 @@ tari_state_tree = { workspace = true }
 # Used for PublicKey and Signature and Network enum
 tari_common = { workspace = true }
 tari_common_types = { workspace = true }
-tari_mmr = { workspace = true }
 tari_shutdown = { workspace = true }
 
 anyhow = { workspace = true }
diff --git a/dan_layer/consensus/src/hotstuff/block_change_set.rs b/dan_layer/consensus/src/hotstuff/block_change_set.rs
index 8514d0856..650486c7d 100644
--- a/dan_layer/consensus/src/hotstuff/block_change_set.rs
+++ b/dan_layer/consensus/src/hotstuff/block_change_set.rs
@@ -121,7 +121,7 @@ impl ProposedBlockChangeSet {
             block_height: self.block.height,
             transaction_id: *transaction.transaction_id(),
             stage: next_stage,
-            evidence: transaction.atom().evidence.clone(),
+            evidence: transaction.evidence().clone(),
             is_ready,
             local_decision: transaction.current_decision(),
         });
diff --git a/dan_layer/consensus/src/hotstuff/error.rs b/dan_layer/consensus/src/hotstuff/error.rs
index 78586bb04..38bcf848e 100644
--- a/dan_layer/consensus/src/hotstuff/error.rs
+++ b/dan_layer/consensus/src/hotstuff/error.rs
@@ -8,7 +8,6 @@ use tari_dan_storage::{
     StorageError,
 };
 use tari_epoch_manager::EpochManagerError;
-use tari_mmr::BalancedBinaryMerkleProofError;
 use tari_state_tree::StateTreeError;
 use tari_transaction::{TransactionId, VersionedSubstateIdError};
 
@@ -45,8 +44,6 @@ pub enum HotStuffError {
     DecisionMismatch { block_id: BlockId, pool: &'static str },
     #[error("Not the leader. {details}")]
     NotTheLeader { details: String },
-    #[error("Merkle proof error: {0}")]
-    BalancedBinaryMerkleProofError(#[from] BalancedBinaryMerkleProofError),
     #[error("Epoch manager error: {0}")]
     EpochManagerError(anyhow::Error),
     #[error("State manager error: {0}")]
@@ -183,8 +180,6 @@ pub enum ProposalValidationError {
     QCInvalidSignature { qc: QuorumCertificate },
     #[error("Quorum was not reached: {qc}")]
     QuorumWasNotReached { qc: QuorumCertificate },
-    #[error("Merkle proof error: {0}")]
-    BalancedBinaryMerkleProofError(#[from] BalancedBinaryMerkleProofError),
     #[error("Invalid network in block {block_id}: expected {expected_network}, given {block_network}")]
     InvalidNetwork {
         expected_network: String,
diff --git a/dan_layer/consensus/src/hotstuff/mod.rs b/dan_layer/consensus/src/hotstuff/mod.rs
index 5d08221fc..4f5374881 100644
--- a/dan_layer/consensus/src/hotstuff/mod.rs
+++ b/dan_layer/consensus/src/hotstuff/mod.rs
@@ -14,9 +14,9 @@ mod on_propose;
 mod on_ready_to_vote_on_local_block;
 mod on_receive_foreign_proposal;
 mod on_receive_local_proposal;
+mod on_receive_new_transaction;
 mod on_receive_new_view;
 mod on_receive_request_missing_transactions;
-mod on_receive_requested_transactions;
 mod on_receive_vote;
 mod on_sync_request;
 // mod on_sync_response;
diff --git a/dan_layer/consensus/src/hotstuff/on_message_validate.rs b/dan_layer/consensus/src/hotstuff/on_message_validate.rs
index 4f04f94e8..5c5346520 100644
--- a/dan_layer/consensus/src/hotstuff/on_message_validate.rs
+++ b/dan_layer/consensus/src/hotstuff/on_message_validate.rs
@@ -5,16 +5,10 @@ use std::collections::HashSet;
 
 use log::*;
 use tari_common::configuration::Network;
-use tari_dan_common_types::{optional::Optional, NodeHeight};
+use tari_common_types::types::PublicKey;
+use tari_dan_common_types::{Epoch, NodeHeight};
 use tari_dan_storage::{
-    consensus_models::{
-        Block,
-        ExecutedTransaction,
-        TransactionAtom,
-        TransactionPool,
-        TransactionPoolRecord,
-        TransactionRecord,
-    },
+    consensus_models::{Block, BlockId, TransactionRecord},
     StateStore,
     StateStoreWriteTransaction,
 };
@@ -26,7 +20,7 @@ use super::config::HotstuffConfig;
 use crate::{
     block_validations,
     hotstuff::{error::HotStuffError, HotstuffEvent},
-    messages::{HotstuffMessage, ProposalMessage, RequestMissingTransactionsMessage},
+    messages::{HotstuffMessage, MissingTransactionsRequest, ProposalMessage},
     traits::{ConsensusSpec, OutboundMessaging},
 };
 
@@ -41,8 +35,10 @@ pub struct OnMessageValidate {
     leader_strategy: TConsensusSpec::LeaderStrategy,
     vote_signing_service: TConsensusSpec::SignatureService,
     outbound_messaging: TConsensusSpec::OutboundMessaging,
-    transaction_pool: TransactionPool,
     tx_events: broadcast::Sender,
+    /// Keep track of max 16 in-flight requests
+    active_missing_transaction_requests: SimpleFixedArray,
+    current_request_id: u32,
 }
 
 impl OnMessageValidate {
@@ -55,7 +51,6 @@ impl OnMessageValidate {
         leader_strategy: TConsensusSpec::LeaderStrategy,
         vote_signing_service: TConsensusSpec::SignatureService,
         outbound_messaging: TConsensusSpec::OutboundMessaging,
-        transaction_pool: TransactionPool,
         tx_events: broadcast::Sender,
     ) -> Self {
         Self {
@@ -67,8 +62,9 @@ impl OnMessageValidate {
             leader_strategy,
             vote_signing_service,
             outbound_messaging,
-            transaction_pool,
             tx_events,
+            active_missing_transaction_requests: SimpleFixedArray::new(),
+            current_request_id: 0,
         }
     }
 
@@ -93,10 +89,53 @@ impl OnMessageValidate {
                     message: HotstuffMessage::ForeignProposal(proposal),
                 })
             },
+            HotstuffMessage::MissingTransactionsResponse(msg) => {
+                if !self.active_missing_transaction_requests.remove_element(&msg.request_id) {
+                    warn!(target: LOG_TARGET, "❓Received missing transactions (req_id = {}) from {} that we did not request. Discarding message", msg.request_id, from);
+                    return Ok(MessageValidationResult::Discard);
+                }
+                if msg.transactions.len() > 1000 {
+                    warn!(target: LOG_TARGET, "⚠️Peer sent more than the maximum amount of transactions. Discarding message");
+                    return Ok(MessageValidationResult::Discard);
+                }
+                Ok(MessageValidationResult::Ready {
+                    from,
+                    message: HotstuffMessage::MissingTransactionsResponse(msg),
+                })
+            },
             msg => Ok(MessageValidationResult::Ready { from, message: msg }),
         }
     }
 
+    pub async fn request_missing_transactions(
+        &mut self,
+        to: TConsensusSpec::Addr,
+        block_id: BlockId,
+        epoch: Epoch,
+        missing_txs: HashSet,
+    ) -> Result<(), HotStuffError> {
+        let request_id = self.next_request_id();
+        self.active_missing_transaction_requests.insert(request_id);
+        self.outbound_messaging
+            .send(
+                to,
+                HotstuffMessage::MissingTransactionsRequest(MissingTransactionsRequest {
+                    request_id,
+                    block_id,
+                    epoch,
+                    transactions: missing_txs,
+                }),
+            )
+            .await?;
+        Ok(())
+    }
+
+    fn next_request_id(&mut self) -> u32 {
+        let req_id = self.current_request_id;
+        self.current_request_id += 1;
+        req_id
+    }
+
     async fn process_local_proposal(
         &mut self,
         current_height: NodeHeight,
@@ -132,24 +171,11 @@ impl OnMessageValidate {
             });
         }
 
-        let Some(ready_block) = self.handle_missing_transactions(block).await? else {
-            // Block not ready -park it
-            return Ok(MessageValidationResult::NotReady);
-        };
-
-        // let vn = self
-        //     .epoch_manager
-        //     .get_validator_node_by_public_key(ready_block.epoch(), ready_block.proposed_by())
-        //     .await?;
-
-        Ok(MessageValidationResult::Ready {
-            from,
-            message: HotstuffMessage::Proposal(ProposalMessage { block: ready_block }),
-        })
+        self.handle_missing_transactions(from, block).await
     }
 
     pub async fn update_parked_blocks(
-        &mut self,
+        &self,
         current_height: NodeHeight,
         transaction_id: &TransactionId,
     ) -> Result, HotStuffError> {
@@ -163,36 +189,6 @@ impl OnMessageValidate {
 
         info!(target: LOG_TARGET, "♻️ all transactions for block {unparked_block} are ready for consensus");
 
-        // todo(hacky): ensure that all transactions are in the pool. Race condition: because we have not yet
-        // received it yet in the select! loop.
-        self.store.with_write_tx(|tx| {
-            for tx_id in unparked_block.all_transaction_ids() {
-                if self.transaction_pool.exists(&**tx, tx_id)? {
-                    continue;
-                }
-
-                warn!(
-                    target: LOG_TARGET,
-                    "⚠️ Transaction {} is missing from the transaction pool. Attempting to recover.",
-                    tx_id
-                );
-
-                let transaction = TransactionRecord::get(&**tx, tx_id)?;
-                // Did the mempool execute it?
-                if transaction.is_executed() {
-                    // This should never fail
-                    let executed = ExecutedTransaction::try_from(transaction)?;
-                    self.transaction_pool.insert(tx, executed.to_atom())?;
-                } else {
-                    // Deferred execution
-                    self.transaction_pool
-                        .insert(tx, TransactionAtom::deferred(*transaction.id()))?;
-                }
-            }
-
-            Ok::<_, HotStuffError>(())
-        })?;
-
         let vn = self
             .epoch_manager
             .get_validator_node_by_public_key(unparked_block.epoch(), unparked_block.proposed_by())
@@ -221,120 +217,67 @@ impl OnMessageValidate {
         Ok(())
     }
 
-    async fn handle_missing_transactions(&mut self, block: Block) -> Result, HotStuffError> {
-        let (missing_tx_ids, awaiting_execution) = self
+    async fn handle_missing_transactions(
+        &mut self,
+        from: TConsensusSpec::Addr,
+        block: Block,
+    ) -> Result, HotStuffError> {
+        let missing_tx_ids = self
             .store
             .with_write_tx(|tx| self.check_for_missing_transactions(tx, &block))?;
 
-        if missing_tx_ids.is_empty() && awaiting_execution.is_empty() {
-            return Ok(Some(block));
+        if missing_tx_ids.is_empty() {
+            return Ok(MessageValidationResult::Ready {
+                from,
+                message: HotstuffMessage::Proposal(ProposalMessage { block }),
+            });
         }
 
         let _ignore = self.tx_events.send(HotstuffEvent::ProposedBlockParked {
             block: block.as_leaf_block(),
             num_missing_txs: missing_tx_ids.len(),
-            num_awaiting_txs: awaiting_execution.len(),
+            // TODO: remove
+            num_awaiting_txs: 0,
         });
 
-        if !missing_tx_ids.is_empty() {
-            let block_id = *block.id();
-            let epoch = block.epoch();
-            let block_proposed_by = block.proposed_by().clone();
-
-            let vn = self
-                .epoch_manager
-                .get_validator_node_by_public_key(epoch, &block_proposed_by)
-                .await?;
-
-            let mut request_from_address = vn.address;
-
-            // (Yet another) Edge case: If we're catching up, we could be the proposer but we no longer have the
-            // transaction (we deleted our database) In this case, request from another random VN
-            // (TODO: not 100% reliable)
-            if request_from_address == self.local_validator_addr {
-                let mut local_committee = self.epoch_manager.get_local_committee(epoch).await?;
-
-                local_committee.shuffle();
-                match local_committee
-                    .into_iter()
-                    .find(|(addr, _)| *addr != self.local_validator_addr)
-                {
-                    Some((addr, _)) => {
-                        warn!(target: LOG_TARGET, "⚠️Requesting missing transactions from another validator {addr} because we are (presumably) catching up (local_peer_id = {})", self.local_validator_addr);
-                        request_from_address = addr;
-                    },
-                    None => {
-                        warn!(
-                            target: LOG_TARGET,
-                            "❌NEVERHAPPEN: We're the only validator in the committee but we need to request missing transactions."
-                        );
-                        return Ok(None);
-                    },
-                }
-            }
-
-            self.outbound_messaging
-                .send(
-                    request_from_address,
-                    HotstuffMessage::RequestMissingTransactions(RequestMissingTransactionsMessage {
-                        block_id,
-                        epoch,
-                        transactions: missing_tx_ids,
-                    }),
-                )
-                .await?;
-        }
-
-        Ok(None)
+        Ok(MessageValidationResult::ParkedProposal {
+            block_id: *block.id(),
+            epoch: block.epoch(),
+            proposed_by: block.proposed_by().clone(),
+            missing_txs: missing_tx_ids,
+        })
     }
 
     fn check_for_missing_transactions(
         &self,
         tx: &mut ::WriteTransaction<'_>,
         block: &Block,
-    ) -> Result<(HashSet, HashSet), HotStuffError> {
+    ) -> Result, HotStuffError> {
         if block.commands().is_empty() {
             debug!(
                 target: LOG_TARGET,
                 "✅ Block {} is empty (no missing transactions)", block
             );
-            return Ok((HashSet::new(), HashSet::new()));
-        }
-        let (transactions, missing_tx_ids) = TransactionRecord::get_any(&**tx, block.all_transaction_ids())?;
-        let awaiting_execution_or_deferred = transactions
-            .into_iter()
-            .filter(|tx| tx.final_decision.is_some())
-            .filter(|tx| tx.result.is_none())
-            .map(|tx| *tx.transaction.id())
-            .collect::>();
-
-        // TODO(hacky): improve this. We need to account for transactions that are deferred when determining which
-        // transactions are awaiting execution.
-        let mut awaiting_execution = HashSet::new();
-        for id in &awaiting_execution_or_deferred {
-            if let Some(t) = TransactionPoolRecord::get(&**tx, id).optional()? {
-                if !t.is_deferred() {
-                    awaiting_execution.insert(*id);
-                }
-            }
+            return Ok(HashSet::new());
         }
+        let missing_tx_ids = TransactionRecord::get_missing(&**tx, block.all_transaction_ids())?;
 
-        if missing_tx_ids.is_empty() && awaiting_execution.is_empty() {
+        if missing_tx_ids.is_empty() {
             debug!(
                 target: LOG_TARGET,
                 "✅ Block {} has no missing transactions", block
             );
-            return Ok((HashSet::new(), HashSet::new()));
+            return Ok(HashSet::new());
         }
 
         info!(
             target: LOG_TARGET,
-            "⏳ Block {} has {} missing transactions and {} awaiting execution", block, missing_tx_ids.len(), awaiting_execution.len(),
+            "⏳ Block {} has {} missing transactions", block, missing_tx_ids.len(),
         );
 
-        tx.missing_transactions_insert(block, &missing_tx_ids, &awaiting_execution)?;
+        tx.missing_transactions_insert(block, &missing_tx_ids, &[])?;
 
-        Ok((missing_tx_ids, awaiting_execution))
+        Ok(missing_tx_ids)
     }
 }
 
@@ -344,7 +287,12 @@ pub enum MessageValidationResult {
         from: TAddr,
         message: HotstuffMessage,
     },
-    NotReady,
+    ParkedProposal {
+        block_id: BlockId,
+        epoch: Epoch,
+        proposed_by: PublicKey,
+        missing_txs: HashSet,
+    },
     Discard,
     Invalid {
         from: TAddr,
@@ -352,3 +300,42 @@ pub enum MessageValidationResult {
         err: HotStuffError,
     },
 }
+
+#[derive(Debug, Clone)]
+struct SimpleFixedArray {
+    elems: [Option; SZ],
+    ptr: usize,
+}
+
+impl SimpleFixedArray {
+    pub fn new() -> Self {
+        Self {
+            elems: [None; SZ],
+            ptr: 0,
+        }
+    }
+
+    pub fn insert(&mut self, elem: T) {
+        // We dont care about overwriting "old" elements
+        self.elems[self.ptr] = Some(elem);
+        self.ptr = (self.ptr + 1) % SZ;
+    }
+
+    pub fn remove_element(&mut self, elem: &T) -> bool
+    where T: PartialEq {
+        for (i, e) in self.elems.iter().enumerate() {
+            if e.as_ref() == Some(elem) {
+                // We dont care about "holes" in the collection
+                self.elems[i] = None;
+                return true;
+            }
+        }
+        false
+    }
+}
+
+impl Default for SimpleFixedArray {
+    fn default() -> Self {
+        Self::new()
+    }
+}
diff --git a/dan_layer/consensus/src/hotstuff/on_propose.rs b/dan_layer/consensus/src/hotstuff/on_propose.rs
index b55d58706..1ab71d0fa 100644
--- a/dan_layer/consensus/src/hotstuff/on_propose.rs
+++ b/dan_layer/consensus/src/hotstuff/on_propose.rs
@@ -174,7 +174,7 @@ where TConsensusSpec: ConsensusSpec
             for mut executed in executed_transactions.into_values() {
                 // TODO: This is a hacky workaround, if the executed transaction has no shards after execution, we
                 // remove it from the pool so that it does not get proposed again. Ideally we should be
-                // able to catch this in transaction validation.
+                // able to catch this in transaction validation and propose ABORT.
                 if local_committee_info.count_distinct_shards(executed.involved_addresses_iter()) == 0 {
                     self.transaction_pool.remove(tx, *executed.id())?;
                     executed
@@ -237,13 +237,14 @@ where TConsensusSpec: ConsensusSpec
     fn execute_transaction(
         &self,
         store: &PendingSubstateStore,
+        current_epoch: Epoch,
         transaction_id: &TransactionId,
     ) -> Result {
         let transaction = TransactionRecord::get(store.read_transaction(), transaction_id)?;
 
         let executed = self
             .transaction_executor
-            .execute(transaction.into_transaction(), store)
+            .execute(transaction.into_transaction(), store, current_epoch)
             .map_err(|e| HotStuffError::TransactionExecutorError(e.to_string()))?;
 
         Ok(executed)
@@ -254,38 +255,29 @@ where TConsensusSpec: ConsensusSpec
     fn transaction_pool_record_to_command(
         &self,
         tx: &::ReadTransaction<'_>,
+        parent_block: &LeafBlock,
         mut tx_rec: TransactionPoolRecord,
         local_committee_info: &CommitteeInfo,
         substate_store: &mut PendingSubstateStore,
         executed_transactions: &mut HashMap,
     ) -> Result, HotStuffError> {
-        // Execute deferred transaction
-        if tx_rec.is_deferred() {
-            info!(
-                target: LOG_TARGET,
-                "👨‍🔧 PROPOSE: Executing deferred transaction {}",
-                tx_rec.transaction_id(),
-            );
+        info!(
+            target: LOG_TARGET,
+            "👨‍🔧 PROPOSE: Executing transaction {}",
+            tx_rec.transaction_id(),
+        );
 
-            let executed = self.execute_transaction(substate_store, tx_rec.transaction_id())?;
+        if tx_rec.current_stage().is_new() {
+            let executed = self.execute_transaction(substate_store, parent_block.epoch(), tx_rec.transaction_id())?;
             // Update the decision so that we can propose it
             tx_rec.set_local_decision(executed.decision());
-            tx_rec.set_initial_evidence(executed.to_initial_evidence());
+            tx_rec.set_evidence(executed.to_initial_evidence());
             tx_rec.set_transaction_fee(executed.transaction_fee());
             executed_transactions.insert(*executed.id(), executed);
-        } else if tx_rec.current_decision().is_commit() && tx_rec.current_stage().is_new() {
-            // Executed in mempool. Add to this block's executed transactions
-            let executed = ExecutedTransaction::get(tx, tx_rec.transaction_id())?;
-            tx_rec.set_local_decision(executed.decision());
-            tx_rec.set_initial_evidence(executed.to_initial_evidence());
-            tx_rec.set_transaction_fee(executed.transaction_fee());
-            executed_transactions.insert(*executed.id(), executed);
-        } else {
-            // Continue...
-        };
+        }
 
         let num_involved_shards =
-            local_committee_info.count_distinct_shards(tx_rec.atom().evidence.substate_addresses_iter());
+            local_committee_info.count_distinct_shards(tx_rec.evidence().substate_addresses_iter());
 
         if num_involved_shards == 0 {
             warn!(
@@ -414,15 +406,17 @@ where TConsensusSpec: ConsensusSpec
                 let leader_fee = tx_rec.calculate_leader_fee(involved, EXHAUST_DIVISOR);
                 let tx_atom = tx_rec.get_final_transaction_atom(leader_fee);
                 if tx_atom.decision.is_commit() {
-                    let transaction = tx_rec.get_transaction(tx)?;
-                    let result = transaction.result().ok_or_else(|| {
-                        HotStuffError::InvariantError(format!(
-                            "Transaction {} is committed but has no result when proposing",
-                            tx_rec.transaction_id(),
-                        ))
-                    })?;
-
-                    let diff = result.finalize.result.accept().ok_or_else(|| {
+                    let execution = tx_rec
+                        .get_execution_for_block(tx, parent_block.block_id())
+                        .optional()?
+                        .ok_or_else(|| {
+                            HotStuffError::InvariantError(format!(
+                                "Transaction {} is committed but has no result when proposing",
+                                tx_rec.transaction_id(),
+                            ))
+                        })?;
+
+                    let diff = execution.result().finalize.accept().ok_or_else(|| {
                         HotStuffError::InvariantError(format!(
                             "Transaction {} has COMMIT decision but execution failed when proposing",
                             tx_rec.transaction_id(),
@@ -455,14 +449,14 @@ where TConsensusSpec: ConsensusSpec
         high_qc: QuorumCertificate,
         proposed_by: PublicKey,
         local_committee_info: &CommitteeInfo,
-        empty_block: bool,
+        dont_propose_transactions: bool,
         base_layer_block_height: u64,
         base_layer_block_hash: FixedHash,
         propose_epoch_end: bool,
     ) -> Result<(Block, HashMap), HotStuffError> {
         // TODO: Configure
-        const TARGET_BLOCK_SIZE: usize = 1000;
-        let batch = if empty_block || propose_epoch_end {
+        const TARGET_BLOCK_SIZE: usize = 500;
+        let batch = if dont_propose_transactions || propose_epoch_end {
             vec![]
         } else {
             self.transaction_pool.get_batch_for_next_block(tx, TARGET_BLOCK_SIZE)?
@@ -496,11 +490,12 @@ where TConsensusSpec: ConsensusSpec
 
         // batch is empty for is_empty, is_epoch_end and is_epoch_start blocks
         let tree_store = ChainScopedTreeStore::new(epoch, local_committee_info.shard(), tx);
-        let mut substate_store = PendingSubstateStore::new(tree_store);
+        let mut substate_store = PendingSubstateStore::new(*parent_block.block_id(), tree_store);
         let mut executed_transactions = HashMap::new();
         for transaction in batch {
             if let Some(command) = self.transaction_pool_record_to_command(
                 tx,
+                parent_block,
                 transaction,
                 local_committee_info,
                 &mut substate_store,
diff --git a/dan_layer/consensus/src/hotstuff/on_ready_to_vote_on_local_block.rs b/dan_layer/consensus/src/hotstuff/on_ready_to_vote_on_local_block.rs
index 6448ddedc..4898fad5e 100644
--- a/dan_layer/consensus/src/hotstuff/on_ready_to_vote_on_local_block.rs
+++ b/dan_layer/consensus/src/hotstuff/on_ready_to_vote_on_local_block.rs
@@ -5,7 +5,7 @@
 use std::num::NonZeroU64;
 
 use log::*;
-use tari_dan_common_types::{committee::CommitteeInfo, optional::Optional};
+use tari_dan_common_types::{committee::CommitteeInfo, optional::Optional, Epoch};
 use tari_dan_storage::{
     consensus_models::{
         Block,
@@ -13,7 +13,6 @@ use tari_dan_storage::{
         BlockId,
         Command,
         Decision,
-        ExecutedTransaction,
         ForeignProposal,
         LastExecuted,
         LastVoted,
@@ -49,6 +48,7 @@ use crate::{
 
 const LOG_TARGET: &str = "tari::dan::consensus::hotstuff::on_ready_to_vote_on_local_block";
 
+#[derive(Debug, Clone)]
 pub struct OnReadyToVoteOnLocalBlock {
     local_validator_addr: TConsensusSpec::Addr,
     store: TConsensusSpec::StateStore,
@@ -192,27 +192,9 @@ where TConsensusSpec: ConsensusSpec
         // Store used for transactions that have inputs without specific versions.
         // It lives through the entire block so multiple transactions can be sequenced together in the same block
         let tree_store = ChainScopedTreeStore::new(block.epoch(), block.shard(), tx);
-        let mut substate_store = PendingSubstateStore::new(tree_store);
+        let mut substate_store = PendingSubstateStore::new(*block.parent(), tree_store);
         let mut proposed_block_change_set = ProposedBlockChangeSet::new(block.as_leaf_block());
 
-        // if epoch_should_start && !block.is_epoch_start() {
-        //     warn!(
-        //         target: LOG_TARGET,
-        //         "❌ EpochEvent::Start command expected for block {} but not found",
-        //         block.id()
-        //     );
-        //     return Ok(proposed_block_change_set.no_vote());
-        // }
-        //
-        // if epoch_should_end && !block.is_epoch_end() {
-        //     warn!(
-        //         target: LOG_TARGET,
-        //         "❌ EpochEvent::End command expected for block {} but not found",
-        //         block.id()
-        //     );
-        //     return Ok(proposed_block_change_set.no_vote());
-        // }
-
         if block.is_epoch_end() && block.commands().len() > 1 {
             warn!(
                 target: LOG_TARGET,
@@ -278,37 +260,19 @@ where TConsensusSpec: ConsensusSpec
             );
             match cmd {
                 Command::LocalOnly(t) => {
-                    if tx_rec.is_deferred() {
-                        info!(
-                            target: LOG_TARGET,
-                            "👨‍🔧 LOCAL-ONLY: Executing deferred transaction {} in block {}",
-                            tx_rec.transaction_id(),
-                            block,
-                        );
+                    info!(
+                        target: LOG_TARGET,
+                        "👨‍🔧 LOCAL-ONLY: Executing deferred transaction {} in block {}",
+                        tx_rec.transaction_id(),
+                        block,
+                    );
 
-                        let executed = self.execute_transaction_if_required(&substate_store, &atom.id, block.id())?;
-                        tx_rec.set_local_decision(executed.decision());
-                        tx_rec.set_initial_evidence(executed.to_initial_evidence());
-                        tx_rec.set_transaction_fee(executed.transaction_fee());
-                        proposed_block_change_set.add_transaction_execution(executed);
-                    } else if tx_rec.current_decision().is_commit() &&
-                        matches!(
-                            tx_rec.current_stage(),
-                            // TODO: Investigate race condition where transaction pool stage is already LocalOnly
-                            TransactionPoolStage::New | TransactionPoolStage::LocalOnly
-                        )
-                    {
-                        // We need to include the transaction execution context for this block if a transaction is yet
-                        // to be prepared.
-                        let execution = ExecutedTransaction::get_pending_execution_for_block(tx, block.id(), &t.id)?;
-                        // Align the TransactionPoolRecord with the relevant execution
-                        tx_rec.set_local_decision(execution.decision());
-                        tx_rec.set_initial_evidence(execution.to_initial_evidence());
-                        tx_rec.set_transaction_fee(execution.transaction_fee());
-                        proposed_block_change_set.add_transaction_execution(execution);
-                    } else {
-                        // continue
-                    }
+                    let executed =
+                        self.execute_transaction_if_required(&substate_store, &atom.id, block.id(), block.epoch())?;
+                    tx_rec.set_local_decision(executed.decision());
+                    tx_rec.set_evidence(executed.to_initial_evidence());
+                    tx_rec.set_transaction_fee(executed.transaction_fee());
+                    proposed_block_change_set.add_transaction_execution(executed);
 
                     if !tx_rec.current_stage().is_new() && !tx_rec.current_stage().is_local_only() {
                         warn!(
@@ -321,13 +285,13 @@ where TConsensusSpec: ConsensusSpec
                         return Ok(proposed_block_change_set.no_vote());
                     }
 
-                    if tx_rec.atom().transaction_fee != t.transaction_fee {
+                    if tx_rec.transaction_fee() != t.transaction_fee {
                         warn!(
                             target: LOG_TARGET,
                             "❌ LocalOnly transaction fee disagreement for block {}. Leader proposed {}, we calculated {}",
                             block,
                             t.transaction_fee,
-                            tx_rec.atom().transaction_fee
+                            tx_rec.transaction_fee()
                         );
                         return Ok(proposed_block_change_set.no_vote());
                     }
@@ -349,7 +313,7 @@ where TConsensusSpec: ConsensusSpec
                     }
 
                     if !local_committee_info
-                        .includes_all_substate_addresses(tx_rec.atom().evidence.substate_addresses_iter())
+                        .includes_all_substate_addresses(tx_rec.evidence().substate_addresses_iter())
                     {
                         warn!(
                             target: LOG_TARGET,
@@ -370,6 +334,8 @@ where TConsensusSpec: ConsensusSpec
                                         t.id, block
                                     ))
                                 })?;
+                        // TODO: If we proposed this block, we shouldn't have to reprocess the locks. Locks are
+                        // currently fairly expensive.
                         if !self.try_obtain_locks(execution, local_committee_info, &mut substate_store)? {
                             // They want to ABORT a successfully executed transaction because of a lock conflict, which
                             // we also have.
@@ -460,26 +426,19 @@ where TConsensusSpec: ConsensusSpec
                     );
                 },
                 Command::Prepare(t) => {
-                    if tx_rec.is_deferred() {
-                        info!(
-                            target: LOG_TARGET,
-                            "👨‍🔧 PREPARE: Executing deferred transaction {} in block {}",
-                            tx_rec.transaction_id(),
-                            block,
-                        );
+                    info!(
+                        target: LOG_TARGET,
+                        "👨‍🔧 PREPARE: Executing deferred transaction {} in block {}",
+                        tx_rec.transaction_id(),
+                        block,
+                    );
 
-                        let executed = self.execute_transaction_if_required(&substate_store, &atom.id, block.id())?;
-                        tx_rec.set_local_decision(executed.decision());
-                        tx_rec.set_initial_evidence(executed.to_initial_evidence());
-                        tx_rec.set_transaction_fee(executed.transaction_fee());
-                        proposed_block_change_set.add_transaction_execution(executed);
-                    } else {
-                        let executed = ExecutedTransaction::get_pending_execution_for_block(tx, block.id(), &t.id)?;
-                        tx_rec.set_local_decision(executed.decision());
-                        tx_rec.set_initial_evidence(executed.to_initial_evidence());
-                        tx_rec.set_transaction_fee(executed.transaction_fee());
-                        proposed_block_change_set.add_transaction_execution(executed);
-                    }
+                    let executed =
+                        self.execute_transaction_if_required(&substate_store, &atom.id, block.id(), block.epoch())?;
+                    tx_rec.set_local_decision(executed.decision());
+                    tx_rec.set_evidence(executed.to_initial_evidence());
+                    tx_rec.set_transaction_fee(executed.transaction_fee());
+                    proposed_block_change_set.add_transaction_execution(executed);
 
                     if !tx_rec.current_stage().is_new() && !tx_rec.current_stage().is_prepared() {
                         warn!(
@@ -492,13 +451,13 @@ where TConsensusSpec: ConsensusSpec
                         return Ok(proposed_block_change_set.no_vote());
                     }
 
-                    if tx_rec.atom().transaction_fee != t.transaction_fee {
+                    if tx_rec.transaction_fee() != t.transaction_fee {
                         warn!(
                             target: LOG_TARGET,
                             "❌ Accept transaction fee disagreement for block {}. Leader proposed {}, we calculated {}",
                             block,
                             t.transaction_fee,
-                            tx_rec.atom().transaction_fee
+                            tx_rec.transaction_fee()
                         );
                         return Ok(proposed_block_change_set.no_vote());
                     }
@@ -585,14 +544,14 @@ where TConsensusSpec: ConsensusSpec
                         return Ok(proposed_block_change_set.no_vote());
                     }
 
-                    if tx_rec.atom().transaction_fee != t.transaction_fee {
+                    if tx_rec.transaction_fee() != t.transaction_fee {
                         warn!(
                             target: LOG_TARGET,
                             "❌ Accept transaction fee disagreement tx {} in block {}. Leader proposed {}, we calculated {}",
                             tx_rec.transaction_id(),
                             block,
                             t.transaction_fee,
-                            tx_rec.atom().transaction_fee
+                            tx_rec.transaction_fee()
                         );
                         return Ok(proposed_block_change_set.no_vote());
                     }
@@ -600,7 +559,7 @@ where TConsensusSpec: ConsensusSpec
                     proposed_block_change_set.set_next_transaction_update(
                         &tx_rec,
                         TransactionPoolStage::LocalPrepared,
-                        tx_rec.atom().evidence.all_shards_justified(),
+                        tx_rec.evidence().all_shards_justified(),
                     );
                 },
                 Command::Accept(t) => {
@@ -629,26 +588,26 @@ where TConsensusSpec: ConsensusSpec
                         return Ok(proposed_block_change_set.no_vote());
                     }
 
-                    if !tx_rec.atom().evidence.all_shards_justified() {
+                    if !tx_rec.evidence().all_shards_justified() {
                         warn!(
                             target: LOG_TARGET,
                             "❌ Accept evidence disagreement tx {} in block {}. Evidence for {} out of {} shards",
                             tx_rec.transaction_id(),
                             block,
-                            tx_rec.atom().evidence.num_justified_shards(),
-                            tx_rec.atom().evidence.len(),
+                            tx_rec.evidence().num_justified_shards(),
+                            tx_rec.evidence().len(),
                         );
                         return Ok(proposed_block_change_set.no_vote());
                     }
 
-                    if tx_rec.atom().transaction_fee != t.transaction_fee {
+                    if tx_rec.transaction_fee() != t.transaction_fee {
                         warn!(
                             target: LOG_TARGET,
                             "❌ Accept transaction fee disagreement tx {} in block {}. Leader proposed {}, we calculated {}",
                             tx_rec.transaction_id(),
                             block,
                             t.transaction_fee,
-                            tx_rec.atom().transaction_fee
+                            tx_rec.transaction_fee()
                         );
 
                         return Ok(proposed_block_change_set.no_vote());
@@ -658,18 +617,18 @@ where TConsensusSpec: ConsensusSpec
                     // It is possible that the transaction was not marked as ready yet because of the order we
                     // received messages, but if we are in LocalPrepared and we have all the
                     // evidence, we would have proposed this too so we can continue.
-                    if !tx_rec.is_ready() && !tx_rec.atom().evidence.all_shards_justified() {
+                    if !tx_rec.is_ready() && !tx_rec.evidence().all_shards_justified() {
                         warn!(
                             target: LOG_TARGET,
                             "⚠️ Local proposal received ({}) for transaction {} which is not ready. Not voting.",
                             block,
-                            tx_rec.atom()
+                            tx_rec.transaction_id()
                         );
                         return Ok(proposed_block_change_set.no_vote());
                     }
 
                     let distinct_shards =
-                        local_committee_info.count_distinct_shards(tx_rec.atom().evidence.substate_addresses_iter());
+                        local_committee_info.count_distinct_shards(tx_rec.evidence().substate_addresses_iter());
                     let distinct_shards = NonZeroU64::new(distinct_shards as u64).ok_or_else(|| {
                         HotStuffError::InvariantError(format!(
                             "Distinct shards is zero for transaction {} in block {}",
@@ -789,6 +748,7 @@ where TConsensusSpec: ConsensusSpec
         store: &PendingSubstateStore,
         transaction_id: &TransactionId,
         block_id: &BlockId,
+        current_epoch: Epoch,
     ) -> Result {
         // If the transaction is already executed in the propose phase we simply load it for this block
         if let Some(execution) =
@@ -799,15 +759,9 @@ where TConsensusSpec: ConsensusSpec
 
         let transaction = TransactionRecord::get(store.read_transaction(), transaction_id)?;
 
-        info!(
-            target: LOG_TARGET,
-            "🔥 Executing transaction {}",
-            transaction_id,
-        );
-
         let executed = self
             .transaction_executor
-            .execute(transaction.into_transaction(), store)
+            .execute(transaction.into_transaction(), store, current_epoch)
             .map_err(|e| HotStuffError::TransactionExecutorError(e.to_string()))?;
 
         Ok(executed.into_execution_for_block(*block_id))
diff --git a/dan_layer/consensus/src/hotstuff/on_receive_foreign_proposal.rs b/dan_layer/consensus/src/hotstuff/on_receive_foreign_proposal.rs
index 7347aabc7..d9d14ebf8 100644
--- a/dan_layer/consensus/src/hotstuff/on_receive_foreign_proposal.rs
+++ b/dan_layer/consensus/src/hotstuff/on_receive_foreign_proposal.rs
@@ -187,7 +187,7 @@ where TConsensusSpec: ConsensusSpec
             // If all shards are complete and we've already received our LocalPrepared, we can set out LocalPrepared
             // transaction as ready to propose ACCEPT. If we have not received the local LocalPrepared, the transition
             // will happen when we receive the local block.
-            if tx_rec.current_stage().is_local_prepared() && tx_rec.atom().evidence.all_shards_justified() {
+            if tx_rec.current_stage().is_local_prepared() && tx_rec.evidence().all_shards_justified() {
                 info!(
                     target: LOG_TARGET,
                     "🔥 FOREIGN PROPOSAL: Transaction is ready for propose ACCEPT({}, {}) Local Stage: {}",
diff --git a/dan_layer/consensus/src/hotstuff/on_receive_local_proposal.rs b/dan_layer/consensus/src/hotstuff/on_receive_local_proposal.rs
index bd4a62e17..5f19ab1fa 100644
--- a/dan_layer/consensus/src/hotstuff/on_receive_local_proposal.rs
+++ b/dan_layer/consensus/src/hotstuff/on_receive_local_proposal.rs
@@ -13,27 +13,23 @@ use tari_dan_storage::{
     consensus_models::{
         Block,
         Decision,
-        ExecutedTransaction,
         ForeignProposal,
         HighQc,
         LastSentVote,
         QuorumDecision,
-        TransactionAtom,
         TransactionPool,
-        TransactionPoolStage,
         TransactionRecord,
         ValidBlock,
     },
     StateStore,
 };
 use tari_epoch_manager::EpochManagerReader;
-use tokio::sync::broadcast;
+use tokio::{sync::broadcast, task};
 
 use super::proposer::Proposer;
 use crate::{
     hotstuff::{
         calculate_dummy_blocks,
-        current_view::CurrentView,
         error::HotStuffError,
         on_ready_to_vote_on_local_block::OnReadyToVoteOnLocalBlock,
         pacemaker_handle::PaceMakerHandle,
@@ -100,7 +96,7 @@ impl OnReceiveLocalProposalHandler Result<(), HotStuffError> {
+    pub async fn handle(&mut self, current_epoch: Epoch, message: ProposalMessage) -> Result<(), HotStuffError> {
         let ProposalMessage { block } = message;
 
         debug!(
@@ -110,7 +106,7 @@ impl OnReceiveLocalProposalHandler Ok(()),
             Err(err @ HotStuffError::ProposalValidationError(_)) => {
                 self.hooks.on_block_validation_failed(&err);
@@ -121,7 +117,7 @@ impl OnReceiveLocalProposalHandler Result<(), HotStuffError> {
+    async fn process_block(&mut self, current_epoch: Epoch, block: Block) -> Result<(), HotStuffError> {
         if !self.epoch_manager.is_epoch_active(block.epoch()).await? {
             return Err(HotStuffError::EpochNotActive {
                 epoch: block.epoch(),
@@ -149,26 +145,6 @@ impl OnReceiveLocalProposalHandler OnReceiveLocalProposalHandler current_view.get_epoch();
-
-            let block_decision = self.on_ready_to_vote_on_local_block.handle(
-                &valid_block,
-                local_committee_info,
-                can_propose_epoch_end,
-            )?;
+            let em_epoch = self.epoch_manager.current_epoch().await?;
+            let can_propose_epoch_end = em_epoch > current_epoch;
+
+            let mut on_ready_to_vote_on_local_block = self.on_ready_to_vote_on_local_block.clone();
+            let (block_decision, valid_block) = task::spawn_blocking(move || {
+                let decision = on_ready_to_vote_on_local_block.handle(
+                    &valid_block,
+                    local_committee_info,
+                    can_propose_epoch_end,
+                )?;
+                Ok::<_, HotStuffError>((decision, valid_block))
+            })
+            .await
+            .unwrap()?;
 
             self.hooks
                 .on_local_block_decide(&valid_block, block_decision.quorum_decision);
@@ -425,7 +407,7 @@ impl OnReceiveLocalProposalHandler {
+    store: TConsensusSpec::StateStore,
+    transaction_pool: TransactionPool,
+    executor: TConsensusSpec::TransactionExecutor,
+    tx_missing_transactions: mpsc::UnboundedSender,
+}
+
+impl OnReceiveNewTransaction
+where TConsensusSpec: ConsensusSpec
+{
+    pub fn new(
+        store: TConsensusSpec::StateStore,
+        transaction_pool: TransactionPool,
+        executor: TConsensusSpec::TransactionExecutor,
+        tx_missing_transactions: mpsc::UnboundedSender,
+    ) -> Self {
+        Self {
+            store,
+            transaction_pool,
+            executor,
+            tx_missing_transactions,
+        }
+    }
+
+    pub async fn process_requested(
+        &mut self,
+        current_epoch: Epoch,
+        from: TConsensusSpec::Addr,
+        msg: MissingTransactionsResponse,
+    ) -> Result<(), HotStuffError> {
+        info!(target: LOG_TARGET, "Receiving {} requested transactions for block {} from {:?}", msg.transactions.len(), msg.block_id, from, );
+        self.store.with_write_tx(|tx| {
+            for transaction in msg.transactions {
+                if let Some(rec) = self.validate_and_sequence_transaction(tx, current_epoch, transaction)? {
+                    // TODO: Could this cause a race-condition? Transaction could be proposed as Prepare before the
+                    // unparked block is processed (however, if there's a parked block it's probably not our turn to
+                    // propose). Ideally we remove this channel because it's a work around
+                    self.tx_missing_transactions
+                        .send(*rec.id())
+                        .map_err(|_| HotStuffError::InternalChannelClosed {
+                            context: "process_requested",
+                        })?;
+                }
+            }
+            Ok(())
+        })
+    }
+
+    pub fn try_sequence_transaction(
+        &mut self,
+        current_epoch: Epoch,
+        transaction: Transaction,
+    ) -> Result, HotStuffError> {
+        self.store
+            .with_write_tx(|tx| self.validate_and_sequence_transaction(tx, current_epoch, transaction))
+    }
+
+    fn validate_and_sequence_transaction(
+        &self,
+        tx: &mut <::StateStore as StateStore>::WriteTransaction<'_>,
+        current_epoch: Epoch,
+        transaction: Transaction,
+    ) -> Result, HotStuffError> {
+        if self.transaction_pool.exists(&**tx, transaction.id())? {
+            return Ok(None);
+        }
+
+        let mut rec = TransactionRecord::get(&**tx, transaction.id())
+            .optional()?
+            .unwrap_or_else(|| TransactionRecord::new(transaction));
+
+        // Edge case: a validator sends a transaction that is already finalized as a missing transaction or via
+        // propagation
+        if rec.is_finalized() {
+            warn!(
+                target: LOG_TARGET, "Transaction {} is already finalized. Consensus will ignore it.", rec.id()
+            );
+            return Ok(None);
+        }
+
+        let result = self.executor.validate(&**tx, current_epoch, rec.transaction());
+
+        if let Err(err) = result {
+            warn!(
+                target: LOG_TARGET,
+                "Transaction {} failed validation: {}", rec.id(), err
+            );
+            rec.set_current_decision_to_abort(err.to_string()).insert(tx)?;
+            self.add_to_pool(tx, &rec)?;
+            return Ok(Some(rec));
+        }
+        rec.save(tx)?;
+        self.add_to_pool(tx, &rec)?;
+        Ok(Some(rec))
+    }
+
+    fn add_to_pool(
+        &self,
+        tx: &mut ::WriteTransaction<'_>,
+        transaction: &TransactionRecord,
+    ) -> Result<(), HotStuffError> {
+        self.transaction_pool
+            .insert_new(tx, *transaction.id(), transaction.current_decision())?;
+        Ok(())
+    }
+}
diff --git a/dan_layer/consensus/src/hotstuff/on_receive_request_missing_transactions.rs b/dan_layer/consensus/src/hotstuff/on_receive_request_missing_transactions.rs
index 2f3fe4518..7d15e6772 100644
--- a/dan_layer/consensus/src/hotstuff/on_receive_request_missing_transactions.rs
+++ b/dan_layer/consensus/src/hotstuff/on_receive_request_missing_transactions.rs
@@ -6,7 +6,7 @@ use tari_dan_storage::{consensus_models::TransactionRecord, StateStore};
 
 use crate::{
     hotstuff::error::HotStuffError,
-    messages::{HotstuffMessage, RequestMissingTransactionsMessage, RequestedTransactionMessage},
+    messages::{HotstuffMessage, MissingTransactionsRequest, MissingTransactionsResponse},
     traits::{ConsensusSpec, OutboundMessaging},
 };
 
@@ -30,7 +30,7 @@ where TConsensusSpec: ConsensusSpec
     pub async fn handle(
         &mut self,
         from: TConsensusSpec::Addr,
-        msg: RequestMissingTransactionsMessage,
+        msg: MissingTransactionsRequest,
     ) -> Result<(), HotStuffError> {
         info!(target: LOG_TARGET, "{} requested {} missing transaction(s) from block {}", from, msg.transactions.len(), msg.block_id);
         let (txs, missing) = self
@@ -46,7 +46,8 @@ where TConsensusSpec: ConsensusSpec
         self.outbound_messaging
             .send(
                 from,
-                HotstuffMessage::RequestedTransaction(RequestedTransactionMessage {
+                HotstuffMessage::MissingTransactionsResponse(MissingTransactionsResponse {
+                    request_id: msg.request_id,
                     epoch: msg.epoch,
                     block_id: msg.block_id,
                     transactions: txs.into_iter().map(|tx| tx.into_transaction()).collect(),
diff --git a/dan_layer/consensus/src/hotstuff/on_receive_requested_transactions.rs b/dan_layer/consensus/src/hotstuff/on_receive_requested_transactions.rs
deleted file mode 100644
index f7a4c019d..000000000
--- a/dan_layer/consensus/src/hotstuff/on_receive_requested_transactions.rs
+++ /dev/null
@@ -1,43 +0,0 @@
-//   Copyright 2023 The Tari Project
-//   SPDX-License-Identifier: BSD-3-Clause
-
-use log::*;
-use tari_transaction::Transaction;
-use tokio::sync::mpsc;
-
-use crate::{hotstuff::error::HotStuffError, messages::RequestedTransactionMessage, traits::ConsensusSpec};
-
-const LOG_TARGET: &str = "tari::dan::consensus::hotstuff::on_receive_requested_transactions";
-
-pub struct OnReceiveRequestedTransactions {
-    tx_mempool: mpsc::UnboundedSender,
-    _phantom: std::marker::PhantomData,
-}
-
-impl OnReceiveRequestedTransactions
-where TConsensusSpec: ConsensusSpec
-{
-    pub fn new(tx_mempool: mpsc::UnboundedSender) -> Self {
-        Self {
-            tx_mempool,
-            _phantom: Default::default(),
-        }
-    }
-
-    pub async fn handle(
-        &mut self,
-        from: TConsensusSpec::Addr,
-        msg: RequestedTransactionMessage,
-    ) -> Result<(), HotStuffError> {
-        info!(target: LOG_TARGET, "Receiving {} requested transactions for block {} from {:?}", msg.transactions.len(), msg.block_id, from, );
-        // TODO: Check that we requested this
-        for tx in msg.transactions {
-            self.tx_mempool
-                .send(tx)
-                .map_err(|_| HotStuffError::InternalChannelClosed {
-                    context: "tx_new_transaction in OnReceiveRequestedTransactions::handle",
-                })?;
-        }
-        Ok(())
-    }
-}
diff --git a/dan_layer/consensus/src/hotstuff/proposer.rs b/dan_layer/consensus/src/hotstuff/proposer.rs
index 1eb446ee1..552f3d1f0 100644
--- a/dan_layer/consensus/src/hotstuff/proposer.rs
+++ b/dan_layer/consensus/src/hotstuff/proposer.rs
@@ -1,15 +1,10 @@
 //   Copyright 2023 The Tari Project
 //   SPDX-License-Identifier: BSD-3-Clause
 
-use std::collections::{BTreeSet, HashSet};
+use std::collections::HashSet;
 
 use log::{debug, info};
-use tari_dan_common_types::shard::Shard;
-use tari_dan_storage::{
-    consensus_models::{Block, Command, ExecutedTransaction},
-    StateStore,
-    StateStoreReadTransaction,
-};
+use tari_dan_storage::consensus_models::Block;
 use tari_epoch_manager::EpochManagerReader;
 
 use super::HotStuffError;
@@ -20,7 +15,6 @@ use crate::{
 
 #[derive(Clone)]
 pub struct Proposer {
-    store: TConsensusSpec::StateStore,
     epoch_manager: TConsensusSpec::EpochManager,
     outbound_messaging: TConsensusSpec::OutboundMessaging,
 }
@@ -31,12 +25,10 @@ impl Proposer
 where TConsensusSpec: ConsensusSpec
 {
     pub fn new(
-        store: TConsensusSpec::StateStore,
         epoch_manager: TConsensusSpec::EpochManager,
         outbound_messaging: TConsensusSpec::OutboundMessaging,
     ) -> Self {
         Self {
-            store,
             epoch_manager,
             outbound_messaging,
         }
@@ -47,9 +39,14 @@ where TConsensusSpec: ConsensusSpec
 
         let validator = self.epoch_manager.get_our_validator_node(block.epoch()).await?;
         let local_shard = validator.shard_key.to_shard(num_committees);
-        let non_local_shards = self
-            .store
-            .with_read_tx(|tx| get_non_local_shards(tx, &block, num_committees, local_shard))?;
+        let non_local_shards = block
+            .commands()
+            .iter()
+            .filter_map(|c| c.local_prepared())
+            .flat_map(|p| p.evidence.substate_addresses_iter())
+            .map(|addr| addr.to_shard(num_committees))
+            .filter(|shard| *shard != local_shard)
+            .collect::>();
         if non_local_shards.is_empty() {
             return Ok(());
         }
@@ -88,29 +85,3 @@ where TConsensusSpec: ConsensusSpec
         Ok(())
     }
 }
-
-pub fn get_non_local_shards(
-    tx: &TTx,
-    block: &Block,
-    num_committees: u32,
-    local_shard: Shard,
-) -> Result, HotStuffError> {
-    get_non_local_shards_from_commands(tx, block.commands(), num_committees, local_shard)
-}
-
-fn get_non_local_shards_from_commands(
-    tx: &TTx,
-    commands: &BTreeSet,
-    num_committees: u32,
-    local_shard: Shard,
-) -> Result, HotStuffError> {
-    let prepared_iter = commands.iter().filter_map(|cmd| cmd.local_prepared()).map(|t| &t.id);
-    let prepared_txs = ExecutedTransaction::get_involved_shards(tx, prepared_iter)?;
-    let non_local_shards = prepared_txs
-        .into_iter()
-        .flat_map(|(_, addresses)| addresses)
-        .map(|address| address.to_shard(num_committees))
-        .filter(|shard| *shard != local_shard)
-        .collect();
-    Ok(non_local_shards)
-}
diff --git a/dan_layer/consensus/src/hotstuff/substate_store/pending_store.rs b/dan_layer/consensus/src/hotstuff/substate_store/pending_store.rs
index ecf97e815..8b4a93f41 100644
--- a/dan_layer/consensus/src/hotstuff/substate_store/pending_store.rs
+++ b/dan_layer/consensus/src/hotstuff/substate_store/pending_store.rs
@@ -10,6 +10,8 @@ use tari_dan_common_types::{optional::Optional, SubstateAddress};
 use tari_dan_storage::{
     consensus_models::{
         Block,
+        BlockDiff,
+        BlockId,
         LockedSubstate,
         PendingStateTreeDiff,
         SubstateChange,
@@ -39,15 +41,17 @@ pub struct PendingSubstateStore<'a, 'tx, TStore: StateStore + 'a + 'tx> {
     /// Append only list of changes ordered oldest to newest
     diff: Vec,
     new_locks: IndexMap>,
+    parent_block: BlockId,
 }
 
 impl<'a, 'tx, TStore: StateStore + 'a> PendingSubstateStore<'a, 'tx, TStore> {
-    pub fn new(store: ChainScopedTreeStore<&'a TStore::ReadTransaction<'tx>>) -> Self {
+    pub fn new(parent_block: BlockId, store: ChainScopedTreeStore<&'a TStore::ReadTransaction<'tx>>) -> Self {
         Self {
             store,
             pending: HashMap::new(),
             diff: Vec::new(),
             new_locks: IndexMap::new(),
+            parent_block,
         }
     }
 
@@ -59,15 +63,23 @@ impl<'a, 'tx, TStore: StateStore + 'a> PendingSubstateStore<'a, 'tx, TStore> {
 impl<'a, 'tx, TStore: StateStore + 'a + 'tx> ReadableSubstateStore for PendingSubstateStore<'a, 'tx, TStore> {
     type Error = SubstateStoreError;
 
-    fn get(&self, key: &SubstateAddress) -> Result {
-        if let Some(change) = self.get_pending(key) {
+    fn get(&self, id: &VersionedSubstateId) -> Result {
+        if let Some(change) = self.get_pending(id) {
             return change.up().cloned().ok_or_else(|| SubstateStoreError::SubstateIsDown {
                 id: change.versioned_substate_id().clone(),
             });
         }
 
-        let Some(substate) = SubstateRecord::get(self.read_transaction(), key).optional()? else {
-            return Err(SubstateStoreError::SubstateNotFound { address: *key });
+        if let Some(change) =
+            BlockDiff::get_for_substate(self.read_transaction(), &self.parent_block, &id.substate_id).optional()?
+        {
+            return change
+                .into_up()
+                .ok_or_else(|| SubstateStoreError::SubstateIsDown { id: id.clone() });
+        }
+
+        let Some(substate) = SubstateRecord::get(self.read_transaction(), &id.to_substate_address()).optional()? else {
+            return Err(SubstateStoreError::SubstateNotFound { address: id.to_substate_address() });
         };
         Ok(substate.into_substate())
     }
@@ -96,9 +108,6 @@ impl<'a, 'tx, TStore: StateStore + 'a + 'tx> WriteableSubstateStore for PendingS
 
 impl<'a, 'tx, TStore: StateStore + 'a + 'tx> PendingSubstateStore<'a, 'tx, TStore> {
     pub fn get_latest(&self, id: &SubstateId) -> Result {
-        // TODO: This returns the pledged inputs (local or foreign)
-
-        // TODO(perf): O(n) lookup. Can be improved by maintaining a map of latest substates
         if let Some(substate) = self
             .diff
             .iter()
@@ -109,6 +118,13 @@ impl<'a, 'tx, TStore: StateStore + 'a + 'tx> PendingSubstateStore<'a, 'tx, TStor
             return Ok(substate.clone());
         }
 
+        if let Some(change) = BlockDiff::get_for_substate(self.read_transaction(), &self.parent_block, id).optional()? {
+            let id = change.versioned_substate_id().clone();
+            return change
+                .into_up()
+                .ok_or_else(|| SubstateStoreError::SubstateIsDown { id });
+        }
+
         let substate = SubstateRecord::get_latest(self.read_transaction(), id)?;
         Ok(substate.into_substate())
     }
@@ -220,7 +236,7 @@ impl<'a, 'tx, TStore: StateStore + 'a + 'tx> PendingSubstateStore<'a, 'tx, TStor
                         transaction_id,
                         requested_lock.versioned_substate_id().version(),
                         requested_lock_flag,
-                        true,
+                        is_local_only,
                     ),
                 );
             },
@@ -265,7 +281,7 @@ impl<'a, 'tx, TStore: StateStore + 'a + 'tx> PendingSubstateStore<'a, 'tx, TStor
                         transaction_id,
                         requested_lock.versioned_substate_id().version(),
                         SubstateLockFlag::Output,
-                        true,
+                        is_local_only,
                     ),
                 );
             },
@@ -308,7 +324,7 @@ impl<'a, 'tx, TStore: StateStore + 'a + 'tx> PendingSubstateStore<'a, 'tx, TStor
                         requested_lock.versioned_substate_id().version(),
                         // WRITE or READ
                         requested_lock_flag,
-                        true,
+                        is_local_only,
                     ),
                 );
             },
@@ -317,9 +333,9 @@ impl<'a, 'tx, TStore: StateStore + 'a + 'tx> PendingSubstateStore<'a, 'tx, TStor
         Ok(())
     }
 
-    fn get_pending(&self, key: &SubstateAddress) -> Option<&SubstateChange> {
+    fn get_pending(&self, key: &VersionedSubstateId) -> Option<&SubstateChange> {
         self.pending
-            .get(key)
+            .get(&key.to_substate_address())
             .map(|&pos| self.diff.get(pos).expect("Index map and diff are out of sync"))
     }
 
@@ -345,33 +361,40 @@ impl<'a, 'tx, TStore: StateStore + 'a + 'tx> PendingSubstateStore<'a, 'tx, TStor
     }
 
     fn assert_is_up(&self, id: &VersionedSubstateId) -> Result<(), SubstateStoreError> {
-        let address = id.to_substate_address();
-        if let Some(change) = self.get_pending(&address) {
+        if let Some(change) = self.get_pending(id) {
             if change.is_down() {
                 return Err(SubstateStoreError::SubstateIsDown { id: id.clone() });
             }
             return Ok(());
         }
 
-        let is_up = SubstateRecord::substate_is_up(self.read_transaction(), &address)
-            .optional()?
-            .unwrap_or(false);
-        if !is_up {
+        if let Some(change) =
+            BlockDiff::get_for_substate(self.read_transaction(), &self.parent_block, &id.substate_id).optional()?
+        {
+            if change.is_up() {
+                return Ok(());
+            }
             return Err(SubstateStoreError::SubstateIsDown { id: id.clone() });
         }
 
-        Ok(())
+        match SubstateRecord::substate_is_up(self.read_transaction(), &id.to_substate_address()).optional()? {
+            Some(true) => Ok(()),
+            Some(false) => Err(SubstateStoreError::SubstateIsDown { id: id.clone() }),
+            None => Err(SubstateStoreError::SubstateNotFound {
+                address: id.to_substate_address(),
+            }),
+        }
     }
 
     fn assert_is_down(&self, id: &VersionedSubstateId) -> Result<(), SubstateStoreError> {
-        let address = id.to_substate_address();
-        if let Some(change) = self.get_pending(&address) {
+        if let Some(change) = self.get_pending(id) {
             if change.is_up() {
                 return Err(SubstateStoreError::ExpectedSubstateDown { id: id.clone() });
             }
             return Ok(());
         }
 
+        let address = id.to_substate_address();
         let Some(is_up) = SubstateRecord::substate_is_up(self.read_transaction(), &address).optional()? else {
             debug!(target: LOG_TARGET, "Expected substate {} to be DOWN but it does not exist", address);
             return Err(SubstateStoreError::SubstateNotFound { address });
@@ -384,15 +407,14 @@ impl<'a, 'tx, TStore: StateStore + 'a + 'tx> PendingSubstateStore<'a, 'tx, TStor
     }
 
     fn assert_not_exist(&self, id: &VersionedSubstateId) -> Result<(), SubstateStoreError> {
-        let address = id.to_substate_address();
-        if let Some(change) = self.get_pending(&address) {
+        if let Some(change) = self.get_pending(id) {
             if change.is_up() {
                 return Err(SubstateStoreError::ExpectedSubstateNotExist { id: id.clone() });
             }
             return Ok(());
         }
 
-        if SubstateRecord::exists(self.read_transaction(), &address)? {
+        if SubstateRecord::exists(self.read_transaction(), id)? {
             return Err(SubstateStoreError::ExpectedSubstateNotExist { id: id.clone() });
         }
 
diff --git a/dan_layer/consensus/src/hotstuff/worker.rs b/dan_layer/consensus/src/hotstuff/worker.rs
index 38405af44..16d9f64fb 100644
--- a/dan_layer/consensus/src/hotstuff/worker.rs
+++ b/dan_layer/consensus/src/hotstuff/worker.rs
@@ -7,16 +7,7 @@ use log::*;
 use tari_common::configuration::Network;
 use tari_dan_common_types::{shard::Shard, Epoch, NodeHeight};
 use tari_dan_storage::{
-    consensus_models::{
-        Block,
-        BlockDiff,
-        ExecutedTransaction,
-        HighQc,
-        LeafBlock,
-        TransactionAtom,
-        TransactionPool,
-        TransactionRecord,
-    },
+    consensus_models::{Block, BlockDiff, HighQc, LeafBlock, TransactionPool},
     StateStore,
 };
 use tari_epoch_manager::{EpochManagerEvent, EpochManagerReader};
@@ -26,7 +17,7 @@ use tokio::sync::{broadcast, mpsc};
 
 use super::{
     config::HotstuffConfig,
-    on_receive_requested_transactions::OnReceiveRequestedTransactions,
+    on_receive_new_transaction::OnReceiveNewTransaction,
     proposer::Proposer,
     ProposalValidationError,
 };
@@ -56,12 +47,13 @@ use crate::{
 const LOG_TARGET: &str = "tari::dan::consensus::hotstuff::worker";
 
 pub struct HotstuffWorker {
-    validator_addr: TConsensusSpec::Addr,
+    local_validator_addr: TConsensusSpec::Addr,
     network: Network,
     hooks: TConsensusSpec::Hooks,
 
     tx_events: broadcast::Sender,
-    rx_new_transactions: mpsc::Receiver<(TransactionId, usize)>,
+    rx_new_transactions: mpsc::Receiver<(Transaction, usize)>,
+    rx_missing_transactions: mpsc::UnboundedReceiver,
 
     on_inbound_message: OnInboundMessage,
     on_next_sync_view: OnNextSyncViewHandler,
@@ -70,7 +62,7 @@ pub struct HotstuffWorker {
     on_receive_vote: OnReceiveVoteHandler,
     on_receive_new_view: OnReceiveNewViewHandler,
     on_receive_request_missing_txs: OnReceiveRequestMissingTransactions,
-    on_receive_requested_txs: OnReceiveRequestedTransactions,
+    on_receive_new_transaction: OnReceiveNewTransaction,
     on_message_validate: OnMessageValidate,
     on_propose: OnPropose,
     on_sync_request: OnSyncRequest,
@@ -92,7 +84,7 @@ impl HotstuffWorker {
         network: Network,
         inbound_messaging: TConsensusSpec::InboundMessaging,
         outbound_messaging: TConsensusSpec::OutboundMessaging,
-        rx_new_transactions: mpsc::Receiver<(TransactionId, usize)>,
+        rx_new_transactions: mpsc::Receiver<(Transaction, usize)>,
         state_store: TConsensusSpec::StateStore,
         epoch_manager: TConsensusSpec::EpochManager,
         leader_strategy: TConsensusSpec::LeaderStrategy,
@@ -100,11 +92,11 @@ impl HotstuffWorker {
         transaction_pool: TransactionPool,
         transaction_executor: TConsensusSpec::TransactionExecutor,
         tx_events: broadcast::Sender,
-        tx_mempool: mpsc::UnboundedSender,
         hooks: TConsensusSpec::Hooks,
         shutdown: ShutdownSignal,
         config: HotstuffConfig,
     ) -> Self {
+        let (tx_missing_transactions, rx_missing_transactions) = mpsc::unbounded_channel();
         let pacemaker = PaceMaker::new();
         let vote_receiver = VoteReceiver::new(
             network,
@@ -114,13 +106,13 @@ impl HotstuffWorker {
             signing_service.clone(),
             pacemaker.clone_handle(),
         );
-        let proposer =
-            Proposer::::new(state_store.clone(), epoch_manager.clone(), outbound_messaging.clone());
+        let proposer = Proposer::::new(epoch_manager.clone(), outbound_messaging.clone());
         Self {
-            validator_addr: validator_addr.clone(),
+            local_validator_addr: validator_addr.clone(),
             network,
             tx_events: tx_events.clone(),
             rx_new_transactions,
+            rx_missing_transactions,
 
             on_inbound_message: OnInboundMessage::new(inbound_messaging, hooks.clone()),
             on_message_validate: OnMessageValidate::new(
@@ -132,7 +124,6 @@ impl HotstuffWorker {
                 leader_strategy.clone(),
                 signing_service.clone(),
                 outbound_messaging.clone(),
-                transaction_pool.clone(),
                 tx_events.clone(),
             ),
 
@@ -176,7 +167,12 @@ impl HotstuffWorker {
                 state_store.clone(),
                 outbound_messaging.clone(),
             ),
-            on_receive_requested_txs: OnReceiveRequestedTransactions::new(tx_mempool),
+            on_receive_new_transaction: OnReceiveNewTransaction::new(
+                state_store.clone(),
+                transaction_pool.clone(),
+                transaction_executor.clone(),
+                tx_missing_transactions,
+            ),
             on_propose: OnPropose::new(
                 network,
                 state_store.clone(),
@@ -272,14 +268,14 @@ impl HotstuffWorker {
 
             tokio::select! {
                 Some(result) = self.on_inbound_message.next_message(current_epoch, current_height) => {
-                    if let Err(err) = self.on_unvalidated_message(current_height, result).await {
+                    if let Err(err) = self.on_unvalidated_message(current_epoch, current_height, result).await {
                         self.hooks.on_error(&err);
                         error!(target: LOG_TARGET, "🚨Error handling new message: {}", err);
                     }
                 },
 
                 Some((tx_id, pending)) = self.rx_new_transactions.recv() => {
-                    if let Err(err) = self.on_new_transaction(tx_id, pending, current_height).await {
+                    if let Err(err) = self.on_new_transaction(tx_id, pending, current_epoch, current_height).await {
                         self.hooks.on_error(&err);
                         error!(target: LOG_TARGET, "🚨Error handling new transaction: {}", err);
                     }
@@ -289,6 +285,17 @@ impl HotstuffWorker {
                     self.on_epoch_manager_event(event).await?;
                 },
 
+                // TODO: This channel is used to work around some design-flaws in missing transactions handling.
+                //       We cannot simply call check_if_block_can_be_unparked in dispatch_hotstuff_message as that creates a cycle.
+                //       One suggestion is to refactor consensus to emit events (kinda like libp2p does) and handle those events.
+                //       This should be easy to reason about and avoid a large depth of async calls and "callback channels".
+                Some(tx_id) = self.rx_missing_transactions.recv() => {
+                    if let Err(err) = self.check_if_block_can_be_unparked(current_epoch, current_height, &tx_id).await {
+                        self.hooks.on_error(&err);
+                        error!(target: LOG_TARGET, "🚨Error handling missing transaction: {}", err);
+                    }
+                },
+
                 _ = on_beat.wait() => {
                     if let Err(e) = self.on_beat(current_epoch).await {
                         self.on_failure("on_beat", &e).await;
@@ -330,96 +337,141 @@ impl HotstuffWorker {
 
     async fn on_unvalidated_message(
         &mut self,
+        current_epoch: Epoch,
         current_height: NodeHeight,
         result: Result<(TConsensusSpec::Addr, HotstuffMessage), HotStuffError>,
     ) -> Result<(), HotStuffError> {
         let (from, msg) = result?;
 
-        match self.on_message_validate.handle(current_height, from, msg).await? {
+        match self
+            .on_message_validate
+            .handle(current_height, from.clone(), msg)
+            .await?
+        {
             MessageValidationResult::Ready { from, message: msg } => {
-                if let Err(e) = self.dispatch_hotstuff_message(from, msg).await {
+                if let Err(e) = self.dispatch_hotstuff_message(current_epoch, from, msg).await {
                     self.on_failure("on_unvalidated_message -> dispatch_hotstuff_message", &e)
                         .await;
                     return Err(e);
                 }
                 Ok(())
             },
-            MessageValidationResult::NotReady | MessageValidationResult::Discard => Ok(()),
+            MessageValidationResult::ParkedProposal {
+                epoch,
+                missing_txs,
+                block_id,
+                ..
+            } => {
+                let mut request_from_address = from;
+                if request_from_address == self.local_validator_addr {
+                    // let vn = self
+                    //     .epoch_manager
+                    //     .get_validator_node_by_public_key(epoch, &proposed_by)
+                    //     .await?;
+                    //
+                    // let mut request_from_address = vn.address;
+                    //
+                    // // (Yet another) Edge case: If we're catching up, we could be the proposer but we no longer have
+                    // the // transaction (we deleted our database) In this case, request from
+                    // another random VN // (TODO: not 100% reliable)
+                    // if request_from_address == self.local_validator_addr {
+                    let mut local_committee = self.epoch_manager.get_local_committee(epoch).await?;
+
+                    local_committee.shuffle();
+                    match local_committee
+                        .into_iter()
+                        .find(|(addr, _)| *addr != self.local_validator_addr)
+                    {
+                        Some((addr, _)) => {
+                            warn!(target: LOG_TARGET, "⚠️Requesting missing transactions from another validator {addr}
+                because we are (presumably) catching up (local_peer_id = {})", self.local_validator_addr);
+                            request_from_address = addr;
+                        },
+                        None => {
+                            warn!(
+                                target: LOG_TARGET,
+                                "❌NEVERHAPPEN: We're the only validator in the committee but we need to request missing
+                transactions."             );
+                            return Ok(());
+                        },
+                    }
+                }
+
+                self.on_message_validate
+                    .request_missing_transactions(request_from_address, block_id, epoch, missing_txs)
+                    .await?;
+                Ok(())
+            },
+            MessageValidationResult::Discard => Ok(()),
             MessageValidationResult::Invalid { err, .. } => Err(err),
         }
     }
 
     async fn on_new_transaction(
         &mut self,
-        tx_id: TransactionId,
+        transaction: Transaction,
         num_pending_txs: usize,
+        current_epoch: Epoch,
         current_height: NodeHeight,
     ) -> Result<(), HotStuffError> {
-        let exists = self.state_store.with_write_tx(|tx| {
-            if self.transaction_pool.exists(&**tx, &tx_id)? {
-                return Ok(Some(true));
-            }
-            let transaction = TransactionRecord::get(&**tx, &tx_id)?;
-            if transaction.is_finalized() {
-                warn!(
-                    target: LOG_TARGET, "Transaction {} is already finalized. Consensus will ignore it.", transaction.id()
-                );
-                return Ok(None);
-            }
-            // Did the mempool execute it?
-            if transaction.is_executed() {
-                // This should never fail
-                let executed = ExecutedTransaction::try_from(transaction)?;
-                self.transaction_pool.insert(tx, executed.to_atom())?;
-            } else {
-                debug!(
-                    target: LOG_TARGET,
-                    "🔥 New transaction {tx_id} is deferred (not executed yet)",
-                );
-                // Deferred execution
-                self.transaction_pool
-                    .insert(tx, TransactionAtom::deferred(*transaction.id()))?;
-            }
-            Ok::<_, HotStuffError>(Some(false))
-        })?;
+        let maybe_transaction = self
+            .on_receive_new_transaction
+            .try_sequence_transaction(current_epoch, transaction)?;
 
-        let Some(exists) = exists else {
+        let Some(transaction) = maybe_transaction else {
             return Ok(());
         };
 
         debug!(
             target: LOG_TARGET,
-            "🔥 new transaction ready for consensus: {} ({} pending, already exists = {})",
-            tx_id,
+            "🔥 new transaction ready for consensus: {} ({} pending)",
+            transaction.id(),
             num_pending_txs,
-            exists
         );
 
-        if !exists {
-            self.hooks.on_transaction_ready(&tx_id);
-        }
+        self.hooks.on_transaction_ready(transaction.id());
 
-        if let Some((from, msg)) = self
-            .on_message_validate
-            .update_parked_blocks(current_height, &tx_id)
+        if self
+            .check_if_block_can_be_unparked(current_epoch, current_height, transaction.id())
             .await?
         {
-            if let Err(e) = self.dispatch_hotstuff_message(from, msg).await {
-                self.on_failure("on_new_transaction -> dispatch_hotstuff_message", &e)
-                    .await;
-                return Err(e);
-            }
+            // No need to call on_beat, a block was unparked so on_beat will be called as needed
+            return Ok(());
         }
 
         // There are num_pending_txs transactions in the queue. If we have no pending transactions, we'll propose now if
         // able.
-        if !exists && num_pending_txs == 0 {
+        if num_pending_txs == 0 {
             self.pacemaker.beat();
         }
 
         Ok(())
     }
 
+    /// Returns true if a block was unparked, otherwise false
+    async fn check_if_block_can_be_unparked(
+        &mut self,
+        current_epoch: Epoch,
+        current_height: NodeHeight,
+        tx_id: &TransactionId,
+    ) -> Result {
+        match self
+            .on_message_validate
+            .update_parked_blocks(current_height, tx_id)
+            .await?
+        {
+            Some((from, msg)) => {
+                if let Err(e) = self.dispatch_hotstuff_message(current_epoch, from, msg).await {
+                    self.on_failure("on_new_transaction -> dispatch_hotstuff_message", &e)
+                        .await;
+                    return Err(e);
+                }
+                Ok(true)
+            },
+            None => Ok(false),
+        }
+    }
+
     async fn on_epoch_manager_event(&mut self, event: EpochManagerEvent) -> Result<(), HotStuffError> {
         match event {
             EpochManagerEvent::EpochChanged(epoch) => {
@@ -451,7 +503,7 @@ impl HotstuffWorker {
     async fn request_initial_catch_up_sync(&mut self, current_epoch: Epoch) -> Result<(), HotStuffError> {
         let committee = self.epoch_manager.get_local_committee(current_epoch).await?;
         for member in committee.shuffled() {
-            if *member != self.validator_addr {
+            if *member != self.local_validator_addr {
                 self.on_catch_up_sync.request_sync(current_epoch, member).await?;
                 break;
             }
@@ -521,14 +573,16 @@ impl HotstuffWorker {
 
         let local_committee = self.epoch_manager.get_local_committee(epoch).await?;
 
-        let is_leader =
-            self.leader_strategy
-                .is_leader_for_next_block(&self.validator_addr, &local_committee, leaf_block.height);
+        let is_leader = self.leader_strategy.is_leader_for_next_block(
+            &self.local_validator_addr,
+            &local_committee,
+            leaf_block.height,
+        );
         info!(
             target: LOG_TARGET,
             "🔥 [on_beat{}] {} Is leader: {:?}, leaf_block: {}, local_committee: {}",
             if is_newview_propose { " (NEWVIEW)"} else { "" },
-            self.validator_addr,
+            self.local_validator_addr,
             is_leader,
             leaf_block,
             local_committee
@@ -559,6 +613,7 @@ impl HotstuffWorker {
 
     async fn dispatch_hotstuff_message(
         &mut self,
+        current_epoch: Epoch,
         from: TConsensusSpec::Addr,
         msg: HotstuffMessage,
     ) -> Result<(), HotStuffError> {
@@ -570,11 +625,9 @@ impl HotstuffWorker {
                 self.on_receive_new_view.handle(from, message).await,
             ),
             HotstuffMessage::Proposal(msg) => {
-                let current_view = self.pacemaker.current_view().clone();
-                let current_epoch = current_view.get_epoch();
                 match log_err(
                     "on_receive_local_proposal",
-                    self.on_receive_local_proposal.handle(current_view, msg).await,
+                    self.on_receive_local_proposal.handle(current_epoch, msg).await,
                 ) {
                     Ok(_) => Ok(()),
                     Err(
@@ -597,13 +650,15 @@ impl HotstuffWorker {
                 self.on_receive_foreign_proposal.handle(from, msg).await,
             ),
             HotstuffMessage::Vote(msg) => log_err("on_receive_vote", self.on_receive_vote.handle(from, msg).await),
-            HotstuffMessage::RequestMissingTransactions(msg) => log_err(
+            HotstuffMessage::MissingTransactionsRequest(msg) => log_err(
                 "on_receive_request_missing_transactions",
                 self.on_receive_request_missing_txs.handle(from, msg).await,
             ),
-            HotstuffMessage::RequestedTransaction(msg) => log_err(
-                "on_receive_requested_txs",
-                self.on_receive_requested_txs.handle(from, msg).await,
+            HotstuffMessage::MissingTransactionsResponse(msg) => log_err(
+                "on_receive_new_transaction",
+                self.on_receive_new_transaction
+                    .process_requested(current_epoch, from, msg)
+                    .await,
             ),
             HotstuffMessage::CatchUpSyncRequest(msg) => {
                 self.on_sync_request.handle(from, msg);
@@ -660,7 +715,7 @@ impl HotstuffWorker {
 impl Debug for HotstuffWorker {
     fn fmt(&self, f: &mut Formatter<'_>) -> std::fmt::Result {
         f.debug_struct("HotstuffWorker")
-            .field("validator_addr", &self.validator_addr)
+            .field("validator_addr", &self.local_validator_addr)
             .field("epoch_manager", &"EpochManager")
             .field("pacemaker_handle", &self.pacemaker)
             .field("pacemaker", &"Pacemaker")
diff --git a/dan_layer/consensus/src/messages/message.rs b/dan_layer/consensus/src/messages/message.rs
index 9b8c60b78..b77a1ec6e 100644
--- a/dan_layer/consensus/src/messages/message.rs
+++ b/dan_layer/consensus/src/messages/message.rs
@@ -6,8 +6,8 @@ use std::fmt::Display;
 use serde::Serialize;
 use tari_dan_common_types::Epoch;
 
-use super::{NewViewMessage, ProposalMessage, RequestedTransactionMessage, VoteMessage};
-use crate::messages::{RequestMissingTransactionsMessage, SyncRequestMessage, SyncResponseMessage};
+use super::{MissingTransactionsResponse, NewViewMessage, ProposalMessage, VoteMessage};
+use crate::messages::{MissingTransactionsRequest, SyncRequestMessage, SyncResponseMessage};
 
 // Serialize is implemented for the message logger
 #[derive(Debug, Clone, Serialize)]
@@ -16,8 +16,8 @@ pub enum HotstuffMessage {
     Proposal(ProposalMessage),
     ForeignProposal(ProposalMessage),
     Vote(VoteMessage),
-    RequestMissingTransactions(RequestMissingTransactionsMessage),
-    RequestedTransaction(RequestedTransactionMessage),
+    MissingTransactionsRequest(MissingTransactionsRequest),
+    MissingTransactionsResponse(MissingTransactionsResponse),
     CatchUpSyncRequest(SyncRequestMessage),
     // TODO: remove unused
     SyncResponse(SyncResponseMessage),
@@ -30,8 +30,8 @@ impl HotstuffMessage {
             HotstuffMessage::Proposal(_) => "Proposal",
             HotstuffMessage::ForeignProposal(_) => "ForeignProposal",
             HotstuffMessage::Vote(_) => "Vote",
-            HotstuffMessage::RequestMissingTransactions(_) => "RequestMissingTransactions",
-            HotstuffMessage::RequestedTransaction(_) => "RequestedTransaction",
+            HotstuffMessage::MissingTransactionsRequest(_) => "MissingTransactionsRequest",
+            HotstuffMessage::MissingTransactionsResponse(_) => "MissingTransactionsResponse",
             HotstuffMessage::CatchUpSyncRequest(_) => "CatchUpSyncRequest",
             HotstuffMessage::SyncResponse(_) => "SyncResponse",
         }
@@ -43,8 +43,8 @@ impl HotstuffMessage {
             Self::Proposal(msg) => msg.block.epoch(),
             Self::ForeignProposal(msg) => msg.block.epoch(),
             Self::Vote(msg) => msg.epoch,
-            Self::RequestMissingTransactions(msg) => msg.epoch,
-            Self::RequestedTransaction(msg) => msg.epoch,
+            Self::MissingTransactionsRequest(msg) => msg.epoch,
+            Self::MissingTransactionsResponse(msg) => msg.epoch,
             Self::CatchUpSyncRequest(msg) => msg.epoch,
             Self::SyncResponse(msg) => msg.epoch,
         }
@@ -67,7 +67,7 @@ impl Display for HotstuffMessage {
             },
             HotstuffMessage::ForeignProposal(msg) => write!(f, "ForeignProposal({})", msg),
             HotstuffMessage::Vote(msg) => write!(f, "Vote({}, {}, {})", msg.block_height, msg.block_id, msg.decision),
-            HotstuffMessage::RequestMissingTransactions(msg) => {
+            HotstuffMessage::MissingTransactionsRequest(msg) => {
                 write!(
                     f,
                     "RequestMissingTransactions({} transaction(s), block: {}, epoch: {})",
@@ -76,7 +76,7 @@ impl Display for HotstuffMessage {
                     msg.epoch
                 )
             },
-            HotstuffMessage::RequestedTransaction(msg) => write!(
+            HotstuffMessage::MissingTransactionsResponse(msg) => write!(
                 f,
                 "RequestedTransaction({} transaction(s), block: {}, epoch: {})",
                 msg.transactions.len(),
diff --git a/dan_layer/consensus/src/messages/request_missing_transaction.rs b/dan_layer/consensus/src/messages/request_missing_transaction.rs
index b5658c7bd..8bda6cd9f 100644
--- a/dan_layer/consensus/src/messages/request_missing_transaction.rs
+++ b/dan_layer/consensus/src/messages/request_missing_transaction.rs
@@ -9,7 +9,8 @@ use tari_dan_storage::consensus_models::BlockId;
 use tari_transaction::TransactionId;
 
 #[derive(Debug, Clone, Serialize)]
-pub struct RequestMissingTransactionsMessage {
+pub struct MissingTransactionsRequest {
+    pub request_id: u32,
     pub epoch: Epoch,
     pub block_id: BlockId,
     pub transactions: HashSet,
diff --git a/dan_layer/consensus/src/messages/requested_transaction.rs b/dan_layer/consensus/src/messages/requested_transaction.rs
index 20acace33..6537d7da3 100644
--- a/dan_layer/consensus/src/messages/requested_transaction.rs
+++ b/dan_layer/consensus/src/messages/requested_transaction.rs
@@ -7,7 +7,8 @@ use tari_dan_storage::consensus_models::BlockId;
 use tari_transaction::Transaction;
 
 #[derive(Debug, Clone, Serialize)]
-pub struct RequestedTransactionMessage {
+pub struct MissingTransactionsResponse {
+    pub request_id: u32,
     pub epoch: Epoch,
     pub block_id: BlockId,
     pub transactions: Vec,
diff --git a/dan_layer/consensus/src/traits/substate_store.rs b/dan_layer/consensus/src/traits/substate_store.rs
index cd7813503..32209017c 100644
--- a/dan_layer/consensus/src/traits/substate_store.rs
+++ b/dan_layer/consensus/src/traits/substate_store.rs
@@ -1,7 +1,6 @@
 //   Copyright 2024 The Tari Project
 //   SPDX-License-Identifier: BSD-3-Clause
 
-use tari_dan_common_types::SubstateAddress;
 use tari_dan_storage::{
     consensus_models::{SubstateChange, SubstateRecord},
     StateStoreReadTransaction,
@@ -13,7 +12,7 @@ use tari_transaction::{TransactionId, VersionedSubstateId};
 pub trait ReadableSubstateStore {
     type Error;
 
-    fn get(&self, key: &SubstateAddress) -> Result;
+    fn get(&self, id: &VersionedSubstateId) -> Result;
 }
 
 pub trait WriteableSubstateStore: ReadableSubstateStore {
@@ -46,8 +45,8 @@ impl SubstateStore for T {}
 impl ReadableSubstateStore for &T {
     type Error = StorageError;
 
-    fn get(&self, key: &SubstateAddress) -> Result {
-        let substate = SubstateRecord::get(*self, key)?;
+    fn get(&self, id: &VersionedSubstateId) -> Result {
+        let substate = SubstateRecord::get(*self, &id.to_substate_address())?;
         Ok(substate.into_substate())
     }
 }
diff --git a/dan_layer/consensus/src/traits/transaction_executor.rs b/dan_layer/consensus/src/traits/transaction_executor.rs
index 05e1c1a01..3a76d9779 100644
--- a/dan_layer/consensus/src/traits/transaction_executor.rs
+++ b/dan_layer/consensus/src/traits/transaction_executor.rs
@@ -1,7 +1,12 @@
 //   Copyright 2024 The Tari Project
 //   SPDX-License-Identifier: BSD-3-Clause
 
-use tari_dan_storage::{consensus_models::ExecutedTransaction, StateStore, StorageError};
+use tari_dan_common_types::Epoch;
+use tari_dan_storage::{
+    consensus_models::{ExecutedTransaction, TransactionRecord},
+    StateStore,
+    StorageError,
+};
 use tari_engine_types::substate::SubstateId;
 use tari_transaction::Transaction;
 
@@ -22,12 +27,32 @@ pub enum BlockTransactionExecutorError {
     StateStoreError(String),
     #[error("Substate store error: {0}")]
     SubstateStoreError(#[from] SubstateStoreError),
+    #[error("Transaction validation error: {0}")]
+    TransactionValidationError(String),
 }
 
 pub trait BlockTransactionExecutor {
+    fn validate(
+        &self,
+        tx: &TStateStore::ReadTransaction<'_>,
+        current_epoch: Epoch,
+        transaction: &Transaction,
+    ) -> Result<(), BlockTransactionExecutorError>;
+
+    fn prepare(
+        &self,
+        transaction: Transaction,
+        store: &TStateStore,
+    ) -> Result;
     fn execute(
         &self,
         transaction: Transaction,
         store: &PendingSubstateStore,
+        current_epoch: Epoch,
     ) -> Result;
+    // fn accept(
+    //     &self,
+    //     transaction: ExecutedTransaction,
+    //     store: &TStateStore,
+    // ) -> Result<(), BlockTransactionExecutorError>;
 }
diff --git a/dan_layer/consensus_tests/src/consensus.rs b/dan_layer/consensus_tests/src/consensus.rs
index 55649cd42..957f4e86b 100644
--- a/dan_layer/consensus_tests/src/consensus.rs
+++ b/dan_layer/consensus_tests/src/consensus.rs
@@ -10,6 +10,7 @@
 
 use std::time::Duration;
 
+use tari_common_types::types::PrivateKey;
 use tari_consensus::hotstuff::HotStuffError;
 use tari_dan_common_types::{optional::Optional, shard::Shard, Epoch, NodeHeight};
 use tari_dan_storage::{
@@ -22,7 +23,6 @@ use tari_transaction::{SubstateRequirement, Transaction};
 use crate::support::{
     build_transaction,
     build_transaction_from,
-    build_transaction_with_inputs,
     change_decision,
     create_execution_result_for_transaction,
     logging::setup_logger,
@@ -145,8 +145,21 @@ async fn node_requests_missing_transaction_from_local_leader() {
     // block. We could send to "1" but the test would have to wait for the block time to be hit and block 1 to be
     // proposed before node "1" can propose block 2 with all the transactions.
     for _ in 0..10 {
-        test.send_transaction_to(&TestAddress::new("2"), Decision::Commit, 1, 5)
+        let transaction = test
+            .send_transaction_to(&TestAddress::new("2"), Decision::Commit, 1, 5)
             .await;
+        // All VNs will decide the same thing
+        test.create_execution_at_destination(
+            TestNetworkDestination::All,
+            create_execution_result_for_transaction(
+                BlockId::zero(),
+                *transaction.id(),
+                transaction.current_decision(),
+                0,
+                transaction.resolved_inputs.clone().unwrap_or_default(),
+                transaction.resulting_outputs.clone(),
+            ),
+        );
     }
     test.start_epoch(Epoch(1)).await;
     loop {
@@ -279,6 +292,7 @@ async fn foreign_shard_decides_to_abort() {
         .await;
     let tx2 = change_decision(tx1.clone().try_into().unwrap(), Decision::Abort);
     assert_eq!(tx1.id(), tx2.id());
+    assert!(tx2.current_decision().is_abort());
     test.send_transaction_to_destination(TestNetworkDestination::Shard(1), tx2.clone())
         .await;
 
@@ -302,12 +316,11 @@ async fn foreign_shard_decides_to_abort() {
     }
 
     test.assert_all_validators_at_same_height().await;
-    test.assert_all_validators_have_decision(tx1.id(), Decision::Abort)
+    test.assert_all_validators_have_decision(tx2.id(), Decision::Abort)
         .await;
-    test.assert_all_validators_did_not_commit();
 
-    log::info!("total messages sent: {}", test.network().total_messages_sent());
     test.assert_clean_shutdown().await;
+    log::info!("total messages sent: {}", test.network().total_messages_sent());
 }
 
 #[tokio::test(flavor = "multi_thread", worker_threads = 4)]
@@ -367,7 +380,72 @@ async fn output_conflict_abort() {
 }
 
 #[tokio::test(flavor = "multi_thread", worker_threads = 4)]
-async fn inputs_depend_on_outputs_multishard() {
+async fn single_shard_inputs_from_previous_outputs() {
+    setup_logger();
+    let mut test = Test::builder()
+        .debug_sql("/tmp/test{}.db")
+        .add_committee(0, vec!["1", "2"])
+        .start()
+        .await;
+
+    let tx1 = build_transaction(Decision::Commit, 1, 5, 2);
+    let resulting_outputs = tx1.resulting_outputs().to_vec();
+    test.send_transaction_to_destination(TestNetworkDestination::All, tx1.clone())
+        .await;
+
+    let tx2 = Transaction::builder()
+        .with_inputs(resulting_outputs.clone().into_iter().map(Into::into))
+        .sign(&Default::default())
+        .build();
+    let tx2 = build_transaction_from(
+        tx2.clone(),
+        Decision::Commit,
+        1,
+        resulting_outputs
+            .clone()
+            .into_iter()
+            .map(VersionedSubstateIdLockIntent::write)
+            .collect(),
+        vec![],
+    );
+
+    test.send_transaction_to_destination(TestNetworkDestination::All, tx2.clone())
+        .await;
+
+    test.start_epoch(Epoch(1)).await;
+
+    test.wait_for_n_to_be_finalized(2).await;
+
+    let leaf1 = test.get_validator(&TestAddress::new("1")).get_leaf_block();
+    let leaf2 = test.get_validator(&TestAddress::new("2")).get_leaf_block();
+    if leaf1.height > NodeHeight(30) || leaf2.height > NodeHeight(30) {
+        panic!(
+            "Not all transaction committed after {}/{} blocks",
+            leaf1.height, leaf2.height,
+        );
+    }
+
+    test.assert_all_validators_at_same_height().await;
+    // We do not work out input dependencies when we sequence transactions in blocks. Currently ordering within a block
+    // is lexicographical by transaction id, therefore both will only be committed if tx1 happens to be sequenced
+    // first.
+    if tx1.id() < tx2.id() {
+        test.assert_all_validators_have_decision(tx1.id(), Decision::Commit)
+            .await;
+        test.assert_all_validators_have_decision(tx2.id(), Decision::Commit)
+            .await;
+    } else {
+        test.assert_all_validators_have_decision(tx1.id(), Decision::Commit)
+            .await;
+        test.assert_all_validators_have_decision(tx2.id(), Decision::Abort)
+            .await;
+    }
+
+    test.assert_clean_shutdown().await;
+    log::info!("total messages sent: {}", test.network().total_messages_sent());
+}
+#[tokio::test(flavor = "multi_thread", worker_threads = 4)]
+async fn multishard_inputs_from_previous_outputs() {
     setup_logger();
     let mut test = Test::builder()
         .with_test_timeout(Duration::from_secs(60))
@@ -395,7 +473,6 @@ async fn inputs_depend_on_outputs_multishard() {
             .collect(),
         vec![],
     );
-    assert_ne!(tx1.id(), tx2.id());
 
     test.send_transaction_to_destination(TestNetworkDestination::All, tx2.clone())
         .await;
@@ -431,7 +508,7 @@ async fn inputs_depend_on_outputs_multishard() {
 }
 
 #[tokio::test(flavor = "multi_thread", worker_threads = 4)]
-async fn deferred_input_conflict() {
+async fn single_shard_input_conflict() {
     setup_logger();
     let mut test = Test::builder().add_committee(0, vec!["1", "2"]).start().await;
 
@@ -449,31 +526,38 @@ async fn deferred_input_conflict() {
         .build();
     let tx2 = TransactionRecord::new(tx2);
 
-    test.transaction_executions()
-        .insert(create_execution_result_for_transaction(
+    test.create_execution_at_destination(
+        TestNetworkDestination::All,
+        create_execution_result_for_transaction(
             BlockId::zero(),
             *tx1.id(),
             Decision::Commit,
             0,
             vec![VersionedSubstateIdLockIntent::read(substate_id.clone())],
             vec![],
-        ))
-        .insert(create_execution_result_for_transaction(
+        ),
+    )
+    .create_execution_at_destination(
+        TestNetworkDestination::All,
+        create_execution_result_for_transaction(
             BlockId::zero(),
             *tx2.id(),
             Decision::Commit,
             0,
             vec![VersionedSubstateIdLockIntent::write(substate_id)],
             vec![],
-        ));
+        ),
+    );
     // Transactions are sorted in the blocks, because we have a "first come first serve" policy for locking objects
     // the "first" will be Committed and the "last" Aborted
     let mut sorted_tx_ids = [tx1.id(), tx2.id()];
     sorted_tx_ids.sort();
 
-    test.send_transaction_to_destination(TestNetworkDestination::All, tx1.clone())
+    test.network()
+        .send_transaction(TestNetworkDestination::All, tx1.clone())
         .await;
-    test.send_transaction_to_destination(TestNetworkDestination::All, tx2.clone())
+    test.network()
+        .send_transaction(TestNetworkDestination::All, tx2.clone())
         .await;
 
     test.start_epoch(Epoch(1)).await;
@@ -667,28 +751,34 @@ async fn foreign_block_distribution() {
 }
 
 #[tokio::test(flavor = "multi_thread", worker_threads = 4)]
-async fn deferred_execution() {
+async fn single_shard_unversioned_inputs() {
     setup_logger();
-    let mut test = Test::builder().add_committee(0, vec!["1"]).start().await;
+    let mut test = Test::builder().add_committee(0, vec!["1", "2"]).start().await;
     // First get transaction in the mempool
     let inputs = test.create_substates_on_all_vns(1);
     // Remove versions from inputs to allow deferred transactions
     let unversioned_inputs = inputs
         .iter()
         .map(|i| SubstateRequirement::new(i.substate_id.clone(), None));
-    let tx = build_transaction_with_inputs(Decision::Deferred, 1, unversioned_inputs);
+    let tx = Transaction::builder()
+        .with_inputs(unversioned_inputs)
+        .sign(&PrivateKey::default())
+        .build();
+    let tx = TransactionRecord::new(tx);
 
-    test.transaction_executions()
-        .insert(create_execution_result_for_transaction(
+    test.send_transaction_to_destination(TestNetworkDestination::All, tx.clone())
+        .await;
+    test.create_execution_at_destination(
+        TestNetworkDestination::All,
+        create_execution_result_for_transaction(
             BlockId::zero(),
             *tx.id(),
             Decision::Commit,
             0,
             inputs.into_iter().map(VersionedSubstateIdLockIntent::write).collect(),
             vec![],
-        ));
-    test.send_transaction_to_destination(TestNetworkDestination::All, tx)
-        .await;
+        ),
+    );
 
     test.start_epoch(Epoch(1)).await;
 
diff --git a/dan_layer/consensus_tests/src/substate_store.rs b/dan_layer/consensus_tests/src/substate_store.rs
index a5070ec17..84deccf98 100644
--- a/dan_layer/consensus_tests/src/substate_store.rs
+++ b/dan_layer/consensus_tests/src/substate_store.rs
@@ -87,7 +87,7 @@ fn it_allows_down_then_up() {
         })
         .unwrap();
 
-    let s = store.get(&id.to_next_version().to_substate_address()).unwrap();
+    let s = store.get(&id.to_next_version()).unwrap();
     assert_substate_eq(s, new_substate(1, 1));
     let s = store.get_latest(id.substate_id()).unwrap();
     assert_substate_eq(s, new_substate(1, 1));
@@ -224,7 +224,7 @@ fn create_pending_store<'a, 'tx, TAddr: NodeAddressable>(
     tx: &'a  as StateStore>::ReadTransaction<'tx>,
 ) -> PendingSubstateStore<'a, 'tx, SqliteStateStore> {
     let tree_store = ChainScopedTreeStore::new(Epoch::zero(), Shard::zero(), tx);
-    PendingSubstateStore::new(tree_store)
+    PendingSubstateStore::new(BlockId::zero(), tree_store)
 }
 
 fn new_substate_id(seed: u8) -> SubstateId {
diff --git a/dan_layer/consensus_tests/src/support/executions_store.rs b/dan_layer/consensus_tests/src/support/executions_store.rs
index 843a27c33..652d64dd9 100644
--- a/dan_layer/consensus_tests/src/support/executions_store.rs
+++ b/dan_layer/consensus_tests/src/support/executions_store.rs
@@ -9,9 +9,11 @@ use std::{
 use tari_dan_storage::consensus_models::TransactionExecution;
 use tari_transaction::TransactionId;
 
+type TestExecutionStore = HashMap;
+
 #[derive(Debug, Clone, Default)]
 pub struct TestTransactionExecutionsStore {
-    transactions: Arc>>,
+    transactions: Arc>,
 }
 
 impl TestTransactionExecutionsStore {
diff --git a/dan_layer/consensus_tests/src/support/harness.rs b/dan_layer/consensus_tests/src/support/harness.rs
index 38dcdac81..017aeba36 100644
--- a/dan_layer/consensus_tests/src/support/harness.rs
+++ b/dan_layer/consensus_tests/src/support/harness.rs
@@ -3,6 +3,7 @@
 
 use std::{
     collections::{hash_map, HashMap, HashSet},
+    fmt::Display,
     time::Duration,
 };
 
@@ -10,7 +11,7 @@ use futures::{stream::FuturesUnordered, FutureExt, StreamExt};
 use tari_consensus::hotstuff::HotstuffEvent;
 use tari_dan_common_types::{committee::Committee, shard::Shard, Epoch, NodeHeight};
 use tari_dan_storage::{
-    consensus_models::{BlockId, Decision, QcId, SubstateRecord, TransactionRecord},
+    consensus_models::{BlockId, Decision, QcId, SubstateRecord, TransactionExecution, TransactionRecord},
     StateStore,
     StateStoreReadTransaction,
     StorageError,
@@ -25,11 +26,10 @@ use tari_template_lib::models::ComponentAddress;
 use tari_transaction::{TransactionId, VersionedSubstateId};
 use tokio::{sync::broadcast, task, time::sleep};
 
-use super::{helpers, MessageFilter};
+use super::{create_execution_result_for_transaction, helpers, MessageFilter};
 use crate::support::{
     address::TestAddress,
     epoch_manager::TestEpochManager,
-    executions_store::TestTransactionExecutionsStore,
     network::{spawn_network, TestNetwork, TestNetworkDestination},
     transaction::build_transaction,
     validator::Validator,
@@ -40,7 +40,6 @@ use crate::support::{
 pub struct Test {
     validators: HashMap,
     network: TestNetwork,
-    transaction_executions: TestTransactionExecutionsStore,
     _leader_strategy: RoundRobinLeaderStrategy,
     epoch_manager: TestEpochManager,
     shutdown: Shutdown,
@@ -52,11 +51,18 @@ impl Test {
         TestBuilder::new()
     }
 
-    pub async fn send_transaction_to(&self, addr: &TestAddress, decision: Decision, fee: u64, num_shards: usize) {
+    pub async fn send_transaction_to(
+        &self,
+        addr: &TestAddress,
+        decision: Decision,
+        fee: u64,
+        num_shards: usize,
+    ) -> TransactionRecord {
         let num_committees = self.epoch_manager.get_num_committees(Epoch(0)).await.unwrap();
         let transaction = build_transaction(decision, fee, num_shards, num_committees);
-        self.send_transaction_to_destination(TestNetworkDestination::Address(addr.clone()), transaction)
+        self.send_transaction_to_destination(TestNetworkDestination::Address(addr.clone()), transaction.clone())
             .await;
+        transaction
     }
 
     pub async fn send_transaction_to_all(&self, decision: Decision, fee: u64, num_shards: usize) {
@@ -67,17 +73,31 @@ impl Test {
     }
 
     pub async fn send_transaction_to_destination(&self, dest: TestNetworkDestination, transaction: TransactionRecord) {
-        let num_committees = self.epoch_manager.get_num_committees(Epoch(0)).await.unwrap();
-        self.validators.values().for_each(|v| {
-            if dest.is_for(&v.address, v.substate_address.to_shard(num_committees)) {
-                v.state_store.with_write_tx(|tx| transaction.insert(tx)).unwrap();
-            }
-        });
+        self.create_execution_at_destination(
+            dest.clone(),
+            create_execution_result_for_transaction(
+                BlockId::zero(),
+                *transaction.id(),
+                transaction.current_decision(),
+                0,
+                transaction.resolved_inputs.clone().unwrap_or_default(),
+                transaction.resulting_outputs.clone(),
+            ),
+        );
         self.network.send_transaction(dest, transaction).await;
     }
 
-    pub fn transaction_executions(&self) -> &TestTransactionExecutionsStore {
-        &self.transaction_executions
+    pub fn create_execution_at_destination(
+        &self,
+        dest: TestNetworkDestination,
+        execution: TransactionExecution,
+    ) -> &Self {
+        for vn in self.validators.values() {
+            if dest.is_for(&vn.address, vn.shard) {
+                vn.transaction_executions.insert(execution.clone());
+            }
+        }
+        self
     }
 
     pub fn create_substates_on_all_vns(&self, num: usize) -> Vec {
@@ -230,12 +250,23 @@ impl Test {
         })
     }
 
+    pub async fn wait_for_n_to_be_finalized(&self, n: usize) {
+        self.wait_all_for_predicate("waiting for n to be finalized", |vn| {
+            let transactions = vn
+                .state_store
+                .with_read_tx(|tx| tx.transactions_get_paginated(10000, 0, None))
+                .unwrap();
+            log::info!("{} has {} transactions in pool", vn.address, transactions.len());
+            transactions.iter().filter(|tx| tx.is_finalized()).count() >= n
+        })
+        .await
+    }
+
     pub fn with_all_validators(&self, f: impl FnMut(&Validator)) {
         self.validators.values().for_each(f);
     }
 
-    #[allow(dead_code)]
-    async fn wait_all_for_predicate bool>(&self, description: String, mut predicate: P) {
+    async fn wait_all_for_predicate bool>(&self, description: T, mut predicate: P) {
         let mut complete = vec![];
         let mut remaining_loops = 100usize; // ~10 seconds
         loop {
@@ -330,6 +361,7 @@ impl Test {
                     attempts += 1;
                     // Send this task to the back of the queue and try again after other tasks have executed
                     // to allow validators to catch up
+                    // tokio::time::sleep(Duration::from_millis(50)).await;
                     task::yield_now().await;
                     continue 'outer;
                 }
@@ -351,16 +383,6 @@ impl Test {
         });
     }
 
-    pub fn assert_all_validators_did_not_commit(&self) {
-        self.validators.values().for_each(|v| {
-            assert!(
-                !v.has_committed_substates(),
-                "Validator {} committed but we expected it not to",
-                v.address
-            );
-        });
-    }
-
     pub async fn assert_clean_shutdown(&mut self) {
         self.shutdown.trigger();
         for (_, v) in self.validators.drain() {
@@ -434,7 +456,6 @@ impl TestBuilder {
         &self,
         leader_strategy: &RoundRobinLeaderStrategy,
         epoch_manager: &TestEpochManager,
-        transaction_executions: TestTransactionExecutionsStore,
         shutdown_signal: ShutdownSignal,
     ) -> (Vec, HashMap) {
         epoch_manager
@@ -447,7 +468,6 @@ impl TestBuilder {
 
                 let (channels, validator) = Validator::builder()
                     .with_sql_url(sql_address)
-                    .with_transaction_executions(transaction_executions.clone())
                     .with_address_and_secret_key(address.clone(), sk)
                     .with_shard(shard)
                     .with_bucket(bucket)
@@ -478,21 +498,14 @@ impl TestBuilder {
         let epoch_manager = TestEpochManager::new(tx_epoch_events);
         epoch_manager.add_committees(self.committees.clone()).await;
         let shutdown = Shutdown::new();
-        let transaction_executions = TestTransactionExecutionsStore::new();
         let (channels, validators) = self
-            .build_validators(
-                &leader_strategy,
-                &epoch_manager,
-                transaction_executions.clone(),
-                shutdown.to_signal(),
-            )
+            .build_validators(&leader_strategy, &epoch_manager, shutdown.to_signal())
             .await;
         let network = spawn_network(channels, shutdown.to_signal(), self.message_filter);
 
         Test {
             validators,
             network,
-            transaction_executions,
 
             _leader_strategy: leader_strategy,
             epoch_manager,
diff --git a/dan_layer/consensus_tests/src/support/network.rs b/dan_layer/consensus_tests/src/support/network.rs
index d6f9ff7fe..68c5c623b 100644
--- a/dan_layer/consensus_tests/src/support/network.rs
+++ b/dan_layer/consensus_tests/src/support/network.rs
@@ -10,7 +10,7 @@ use futures::{stream::FuturesUnordered, FutureExt, StreamExt};
 use itertools::Itertools;
 use tari_consensus::messages::HotstuffMessage;
 use tari_dan_common_types::shard::Shard;
-use tari_dan_storage::{consensus_models::TransactionRecord, StateStore};
+use tari_dan_storage::consensus_models::TransactionRecord;
 use tari_shutdown::ShutdownSignal;
 use tari_state_store_sqlite::SqliteStateStore;
 use tari_transaction::{Transaction, TransactionId};
@@ -37,7 +37,7 @@ pub fn spawn_network(
         .map(|c| {
             (
                 c.address.clone(),
-                (c.bucket, c.tx_new_transactions.clone(), c.state_store.clone()),
+                (c.shard, c.tx_new_transactions.clone(), c.state_store.clone()),
             )
         })
         .collect();
@@ -45,15 +45,9 @@ pub fn spawn_network(
         .iter()
         .map(|c| (c.address.clone(), c.tx_hs_message.clone()))
         .collect();
-    let (rx_broadcast, rx_leader, rx_mempool) = channels
+    let (rx_broadcast, rx_leader) = channels
         .into_iter()
-        .map(|c| {
-            (
-                (c.address.clone(), c.rx_broadcast),
-                (c.address.clone(), c.rx_leader),
-                (c.address, c.rx_mempool),
-            )
-        })
+        .map(|c| ((c.address.clone(), c.rx_broadcast), (c.address.clone(), c.rx_leader)))
         .multiunzip();
     let (tx_new_transaction, rx_new_transaction) = mpsc::channel(100);
     let (tx_network_status, network_status) = watch::channel(NetworkStatus::Paused);
@@ -70,7 +64,6 @@ pub fn spawn_network(
         tx_hs_message,
         rx_broadcast: Some(rx_broadcast),
         rx_leader: Some(rx_leader),
-        rx_mempool: Some(rx_mempool),
         on_message: tx_on_message,
         num_sent_messages: num_sent_messages.clone(),
         num_filtered_messages: num_filtered_messages.clone(),
@@ -180,20 +173,13 @@ impl TestNetworkDestination {
 pub struct TestNetworkWorker {
     rx_new_transaction: Option>,
     #[allow(clippy::type_complexity)]
-    tx_new_transactions: HashMap<
-        TestAddress,
-        (
-            Shard,
-            mpsc::Sender<(TransactionId, usize)>,
-            SqliteStateStore,
-        ),
-    >,
+    tx_new_transactions:
+        HashMap, SqliteStateStore)>,
     tx_hs_message: HashMap>,
     #[allow(clippy::type_complexity)]
     rx_broadcast: Option, HotstuffMessage)>>>,
     #[allow(clippy::type_complexity)]
     rx_leader: Option>>,
-    rx_mempool: Option>>,
     network_status: watch::Receiver,
     on_message: watch::Sender>,
     num_sent_messages: Arc,
@@ -213,7 +199,6 @@ impl TestNetworkWorker {
     async fn run(mut self) {
         let mut rx_broadcast = self.rx_broadcast.take().unwrap();
         let mut rx_leader = self.rx_leader.take().unwrap();
-        let mut rx_mempool = self.rx_mempool.take().unwrap();
 
         let mut rx_new_transaction = self.rx_new_transaction.take().unwrap();
         let tx_new_transactions = self.tx_new_transactions.clone();
@@ -242,13 +227,13 @@ impl TestNetworkWorker {
                 for (addr, (shard, tx_new_transaction_to_consensus, _)) in &tx_new_transactions {
                     if dest.is_for(addr, *shard) {
                         tx_new_transaction_to_consensus
-                            .send((*tx_record.id(), remaining))
+                            .send((tx_record.transaction().clone(), remaining))
                             .await
                             .unwrap();
                         log::info!("🐞 New transaction {} for vn {}", tx_record.id(), addr);
                     } else {
-                        log::warn!(
-                            "⚠️🐞 New transaction {} for vn {} was not sent to consensus (dest = {:?})",
+                        log::debug!(
+                            "ℹ️🐞 New transaction {} not destined for vn {} (dest = {:?})",
                             tx_record.id(),
                             addr,
                             dest
@@ -269,11 +254,6 @@ impl TestNetworkWorker {
                 .map(|(from, rx)| rx.recv().map(|r| (from.clone(), r)))
                 .collect::>();
 
-            let mut rx_mempool = rx_mempool
-                .iter_mut()
-                .map(|(from, rx)| rx.recv().map(|r| (from.clone(), r)))
-                .collect::>();
-
             tokio::select! {
                 biased;
 
@@ -299,7 +279,6 @@ impl TestNetworkWorker {
 
                 Some((from, Some((to, msg)))) = rx_broadcast.next() => self.handle_broadcast(from, to, msg).await,
                 Some((from, Some((to, msg)))) = rx_leader.next() => self.handle_leader(from, to, msg).await,
-                Some((from, Some(msg))) = rx_mempool.next() => self.handle_mempool(from, msg).await,
             }
         }
 
@@ -352,29 +331,8 @@ impl TestNetworkWorker {
         self.tx_hs_message.get(&to).unwrap().send((from, msg)).await.unwrap();
     }
 
-    async fn is_offline_destination(&self, addr: &TestAddress, bucket: Shard) -> bool {
+    async fn is_offline_destination(&self, addr: &TestAddress, shard: Shard) -> bool {
         let lock = self.offline_destinations.read().await;
-        lock.iter().any(|d| d.is_for(addr, bucket))
-    }
-
-    /// Handles transactions that come in from missing transactions
-    async fn handle_mempool(&mut self, from: TestAddress, msg: Transaction) {
-        let (_, sender, state_store) = self
-            .tx_new_transactions
-            .get(&from)
-            .unwrap_or_else(|| panic!("No new transaction channel for {}", from));
-
-        // In the normal case, we need to provide the same execution results to consensus. In future, we could add code
-        // here to make a local decision to ABORT.
-        let existing_tx = self.transaction_store.read().await.get(msg.id()).unwrap().clone();
-        state_store
-            .with_write_tx(|tx| {
-                // Add the transaction from the store to the node's db
-                existing_tx.upsert(tx)?;
-                Ok::<_, anyhow::Error>(())
-            })
-            .unwrap();
-
-        sender.send((*existing_tx.id(), 0)).await.unwrap();
+        lock.iter().any(|d| d.is_for(addr, shard))
     }
 }
diff --git a/dan_layer/consensus_tests/src/support/transaction.rs b/dan_layer/consensus_tests/src/support/transaction.rs
index 55121b7ae..d7b2e3d7f 100644
--- a/dan_layer/consensus_tests/src/support/transaction.rs
+++ b/dan_layer/consensus_tests/src/support/transaction.rs
@@ -19,7 +19,7 @@ use tari_engine_types::{
     fees::FeeReceipt,
     substate::{Substate, SubstateDiff},
 };
-use tari_transaction::{SubstateRequirement, Transaction, TransactionId, VersionedSubstateId};
+use tari_transaction::{Transaction, TransactionId, VersionedSubstateId};
 
 use crate::support::helpers::random_substate_in_shard;
 
@@ -31,23 +31,24 @@ pub fn build_transaction_from(
     resulting_outputs: Vec,
 ) -> TransactionRecord {
     let mut tx = TransactionRecord::new(tx);
+    if decision.is_abort() {
+        tx.set_current_decision_to_abort("Test aborted");
+    }
 
-    if !decision.is_deferred() {
-        let execution = create_execution_result_for_transaction(
-            // We're just building the execution here for DRY purposes, so genesis block id isn't used
-            BlockId::zero(),
-            *tx.id(),
-            decision,
-            fee,
-            resolved_inputs,
-            resulting_outputs.clone(),
-        );
+    let execution = create_execution_result_for_transaction(
+        // We're just building the execution here for DRY purposes, so genesis block id isn't used
+        BlockId::zero(),
+        *tx.id(),
+        decision,
+        fee,
+        resolved_inputs,
+        resulting_outputs.clone(),
+    );
 
-        tx.result = Some(execution.result);
-        tx.resulting_outputs = execution.resulting_outputs;
-        tx.execution_time = Some(execution.execution_time);
-        tx.resolved_inputs = Some(execution.resolved_inputs);
-    }
+    tx.execution_result = Some(execution.result);
+    tx.resulting_outputs = execution.resulting_outputs;
+    tx.execution_time = Some(execution.execution_time);
+    tx.resolved_inputs = Some(execution.resolved_inputs);
     tx
 }
 
@@ -119,16 +120,6 @@ pub fn build_transaction(
     build_transaction_from(tx, decision, fee, vec![], outputs)
 }
 
-pub fn build_transaction_with_inputs>(
-    decision: Decision,
-    fee: u64,
-    inputs: I,
-) -> TransactionRecord {
-    let k = PrivateKey::default();
-    let tx = Transaction::builder().with_inputs(inputs).sign(&k).build();
-    build_transaction_from(tx, decision, fee, vec![], vec![])
-}
-
 pub fn change_decision(tx: ExecutedTransaction, new_decision: Decision) -> TransactionRecord {
     let total_fees_paid = tx
         .result()
diff --git a/dan_layer/consensus_tests/src/support/transaction_executor.rs b/dan_layer/consensus_tests/src/support/transaction_executor.rs
index 1eb12c6a8..526414a55 100644
--- a/dan_layer/consensus_tests/src/support/transaction_executor.rs
+++ b/dan_layer/consensus_tests/src/support/transaction_executor.rs
@@ -5,6 +5,7 @@ use tari_consensus::{
     hotstuff::substate_store::PendingSubstateStore,
     traits::{BlockTransactionExecutor, BlockTransactionExecutorError},
 };
+use tari_dan_common_types::{optional::Optional, Epoch};
 use tari_dan_storage::{
     consensus_models::{ExecutedTransaction, TransactionRecord},
     StateStore,
@@ -25,21 +26,45 @@ impl TestBlockTransactionProcessor {
 }
 
 impl BlockTransactionExecutor for TestBlockTransactionProcessor {
+    fn validate(
+        &self,
+        _tx: &TStateStore::ReadTransaction<'_>,
+        _current_epoch: Epoch,
+        _transaction: &Transaction,
+    ) -> Result<(), BlockTransactionExecutorError> {
+        Ok(())
+    }
+
+    fn prepare(
+        &self,
+        transaction: Transaction,
+        store: &TStateStore,
+    ) -> Result {
+        let t = store.with_read_tx(|tx| TransactionRecord::get(tx, transaction.id()))?;
+        Ok(t)
+    }
+
     fn execute(
         &self,
         transaction: Transaction,
         store: &PendingSubstateStore,
+        _current_epoch: Epoch,
     ) -> Result {
         if let Some(execution) = self.store.get(transaction.id()) {
             let mut rec = TransactionRecord::new(transaction);
             rec.resolved_inputs = Some(execution.resolved_inputs().to_vec());
-            rec.result = Some(execution.result().clone());
+            rec.execution_result = Some(execution.result().clone());
             rec.resulting_outputs.clone_from(execution.resulting_outputs());
             rec.execution_time = Some(execution.execution_time());
 
             return Ok(rec.try_into().unwrap());
         }
-        let executed = ExecutedTransaction::get(store.read_transaction(), transaction.id())?;
+        let executed = ExecutedTransaction::get(store.read_transaction(), transaction.id())
+            .optional()?
+            .expect(
+                "ExecutedTransaction was not found by the test executor. Perhaps you need to explicitly add an \
+                 execution",
+            );
         Ok(executed)
     }
 }
diff --git a/dan_layer/consensus_tests/src/support/validator/builder.rs b/dan_layer/consensus_tests/src/support/validator/builder.rs
index 368973188..cf215b3bb 100644
--- a/dan_layer/consensus_tests/src/support/validator/builder.rs
+++ b/dan_layer/consensus_tests/src/support/validator/builder.rs
@@ -32,8 +32,8 @@ pub struct ValidatorBuilder {
     pub address: TestAddress,
     pub secret_key: PrivateKey,
     pub public_key: PublicKey,
-    pub shard: SubstateAddress,
-    pub bucket: Shard,
+    pub shard_address: SubstateAddress,
+    pub shard: Shard,
     pub sql_url: String,
     pub leader_strategy: RoundRobinLeaderStrategy,
     pub epoch_manager: Option,
@@ -46,8 +46,8 @@ impl ValidatorBuilder {
             address: TestAddress::new("default"),
             secret_key: PrivateKey::default(),
             public_key: PublicKey::default(),
-            shard: SubstateAddress::zero(),
-            bucket: Shard::from(0),
+            shard_address: SubstateAddress::zero(),
+            shard: Shard::from(0),
             sql_url: ":memory".to_string(),
             leader_strategy: RoundRobinLeaderStrategy::new(),
             epoch_manager: None,
@@ -62,18 +62,13 @@ impl ValidatorBuilder {
         self
     }
 
-    pub fn with_transaction_executions(&mut self, transaction_executions: TestTransactionExecutionsStore) -> &mut Self {
-        self.transaction_executions = transaction_executions;
-        self
-    }
-
     pub fn with_bucket(&mut self, bucket: Shard) -> &mut Self {
-        self.bucket = bucket;
+        self.shard = bucket;
         self
     }
 
     pub fn with_shard(&mut self, shard: SubstateAddress) -> &mut Self {
-        self.shard = shard;
+        self.shard_address = shard;
         self
     }
 
@@ -103,7 +98,6 @@ impl ValidatorBuilder {
         let (tx_new_transactions, rx_new_transactions) = mpsc::channel(100);
         let (tx_hs_message, rx_hs_message) = mpsc::channel(100);
         let (tx_leader, rx_leader) = mpsc::channel(100);
-        let (tx_mempool, rx_mempool) = mpsc::unbounded_channel();
 
         let (outbound_messaging, rx_loopback) = TestOutboundMessaging::create(tx_leader, tx_broadcast);
         let inbound_messaging = TestInboundMessaging::new(self.address.clone(), rx_hs_message, rx_loopback);
@@ -113,11 +107,11 @@ impl ValidatorBuilder {
         let transaction_pool = TransactionPool::new();
         let (tx_events, _) = broadcast::channel(100);
 
-        let epoch_manager =
-            self.epoch_manager
-                .as_ref()
-                .unwrap()
-                .clone_for(self.address.clone(), self.public_key.clone(), self.shard);
+        let epoch_manager = self.epoch_manager.as_ref().unwrap().clone_for(
+            self.address.clone(),
+            self.public_key.clone(),
+            self.shard_address,
+        );
 
         let transaction_executor = TestBlockTransactionProcessor::new(self.transaction_executions.clone());
 
@@ -134,7 +128,6 @@ impl ValidatorBuilder {
             transaction_pool,
             transaction_executor,
             tx_events.clone(),
-            tx_mempool,
             NoopHooks,
             shutdown_signal.clone(),
             HotstuffConfig {
@@ -156,18 +149,19 @@ impl ValidatorBuilder {
 
         let channels = ValidatorChannels {
             address: self.address.clone(),
-            bucket: self.bucket,
+            shard: self.shard,
             state_store: store.clone(),
             tx_new_transactions,
             tx_hs_message,
             rx_broadcast,
             rx_leader,
-            rx_mempool,
         };
 
         let validator = Validator {
             address: self.address.clone(),
-            substate_address: self.shard,
+            shard_address: self.shard_address,
+            shard: self.shard,
+            transaction_executions: self.transaction_executions.clone(),
             state_store: store,
             epoch_manager,
             leader_strategy: self.leader_strategy,
diff --git a/dan_layer/consensus_tests/src/support/validator/instance.rs b/dan_layer/consensus_tests/src/support/validator/instance.rs
index d1fa954e9..5a48e1ff2 100644
--- a/dan_layer/consensus_tests/src/support/validator/instance.rs
+++ b/dan_layer/consensus_tests/src/support/validator/instance.rs
@@ -8,7 +8,7 @@ use tari_consensus::{
 use tari_dan_common_types::{shard::Shard, SubstateAddress};
 use tari_dan_storage::{consensus_models::LeafBlock, StateStore, StateStoreReadTransaction};
 use tari_state_store_sqlite::SqliteStateStore;
-use tari_transaction::{Transaction, TransactionId};
+use tari_transaction::Transaction;
 use tokio::{
     sync::{broadcast, mpsc, watch},
     task::JoinHandle,
@@ -17,27 +17,29 @@ use tokio::{
 use crate::support::{
     address::TestAddress,
     epoch_manager::TestEpochManager,
+    executions_store::TestTransactionExecutionsStore,
     RoundRobinLeaderStrategy,
     ValidatorBuilder,
 };
 
 pub struct ValidatorChannels {
     pub address: TestAddress,
-    pub bucket: Shard,
+    pub shard: Shard,
     pub state_store: SqliteStateStore,
 
-    pub tx_new_transactions: mpsc::Sender<(TransactionId, usize)>,
+    pub tx_new_transactions: mpsc::Sender<(Transaction, usize)>,
     pub tx_hs_message: mpsc::Sender<(TestAddress, HotstuffMessage)>,
     pub rx_broadcast: mpsc::Receiver<(Vec, HotstuffMessage)>,
     pub rx_leader: mpsc::Receiver<(TestAddress, HotstuffMessage)>,
-    pub rx_mempool: mpsc::UnboundedReceiver,
 }
 
 pub struct Validator {
     pub address: TestAddress,
-    pub substate_address: SubstateAddress,
+    pub shard_address: SubstateAddress,
+    pub shard: Shard,
 
     pub state_store: SqliteStateStore,
+    pub transaction_executions: TestTransactionExecutionsStore,
     pub epoch_manager: TestEpochManager,
     pub leader_strategy: RoundRobinLeaderStrategy,
     pub events: broadcast::Receiver,
diff --git a/dan_layer/engine/src/lib.rs b/dan_layer/engine/src/lib.rs
index 7fbce7c33..1d8dcf743 100644
--- a/dan_layer/engine/src/lib.rs
+++ b/dan_layer/engine/src/lib.rs
@@ -1,10 +1,6 @@
 // Copyright 2022 The Tari Project
 // SPDX-License-Identifier: BSD-3-Clause
 
-// FIXME: RuntimeError is at least 144 bytes
-#![allow(clippy::result_large_err)]
-
-mod bootstrap;
 pub mod fees;
 pub mod flow;
 pub mod function_definitions;
@@ -15,7 +11,6 @@ pub mod traits;
 pub mod transaction;
 pub mod wasm;
 
-pub use bootstrap::bootstrap_state;
 pub use tari_template_abi as abi;
 
 pub mod base_layer_hashers {
diff --git a/dan_layer/engine/src/runtime/error.rs b/dan_layer/engine/src/runtime/error.rs
index bdd4d8a03..50ec598b7 100644
--- a/dan_layer/engine/src/runtime/error.rs
+++ b/dan_layer/engine/src/runtime/error.rs
@@ -80,7 +80,8 @@ pub enum RuntimeError {
     #[error("Substate {address} is not owned by {requested_owner}")]
     SubstateNotOwned {
         address: SubstateId,
-        requested_owner: SubstateId,
+        // To reduce the size of this variant, we box one of the fields
+        requested_owner: Box,
     },
     #[error("Expected lock {lock_id} to lock {expected_type} but it locks {address}")]
     LockSubstateMismatch {
@@ -149,7 +150,8 @@ pub enum RuntimeError {
     #[error("Access Denied: attempt to set state on component {attempted_on} from another component {attempted_by}")]
     AccessDeniedSetComponentState {
         attempted_on: SubstateId,
-        attempted_by: SubstateId,
+        // To reduce the size of this variant, we box one of the fields
+        attempted_by: Box,
     },
     #[error("Resource Auth Hook Denied Access for action {action_ident}: {details}")]
     AccessDeniedAuthHook { action_ident: ActionIdent, details: String },
diff --git a/dan_layer/engine/src/runtime/impl.rs b/dan_layer/engine/src/runtime/impl.rs
index 0b83a720d..b9152d8c4 100644
--- a/dan_layer/engine/src/runtime/impl.rs
+++ b/dan_layer/engine/src/runtime/impl.rs
@@ -645,12 +645,16 @@ impl> RuntimeInte
                     if *component_lock.address() != component_address {
                         return Err(RuntimeError::AccessDeniedSetComponentState {
                             attempted_on: component_address.into(),
-                            attempted_by: component_lock.address().clone(),
+                            attempted_by: Box::new(component_lock.address().clone()),
                         });
                     }
 
                     state.modify_component_with(&component_lock, |component| {
+                        if component_state == *component.state() {
+                            return false;
+                        }
                         component.body.set(component_state);
+                        true
                     })?;
 
                     Ok(InvokeResult::unit())
@@ -690,7 +694,11 @@ impl> RuntimeInte
                         .require_ownership(ComponentAction::SetAccessRules, component.as_ownership())?;
 
                     state.modify_component_with(&component_lock, |component| {
+                        if access_rules == component.access_rules {
+                            return false;
+                        }
                         component.set_access_rules(access_rules);
+                        true
                     })?;
 
                     Ok::<_, RuntimeError>(())
@@ -2215,25 +2223,6 @@ impl> RuntimeInte
         Ok(())
     }
 
-    fn create_free_test_coins(
-        &self,
-        revealed_amount: Amount,
-        output: Option,
-    ) -> Result {
-        let resource = ResourceContainer::confidential(
-            CONFIDENTIAL_TARI_RESOURCE_ADDRESS,
-            output.map(|o| (o.commitment.clone(), o)),
-            revealed_amount,
-        );
-
-        self.tracker.write_with(|state| {
-            let bucket_id = state.new_bucket_id();
-            state.new_bucket(bucket_id, resource)?;
-            state.set_last_instruction_output(IndexedValue::from_type(&bucket_id)?);
-            Ok::<_, RuntimeError>(bucket_id)
-        })
-    }
-
     fn set_fee_checkpoint(&self) -> Result<(), RuntimeError> {
         if self.tracker.total_fee_payments() < self.tracker.total_fee_charges() {
             return Err(RuntimeError::InsufficientFeesPaid {
diff --git a/dan_layer/engine/src/runtime/mod.rs b/dan_layer/engine/src/runtime/mod.rs
index 62ff6c9e5..cdbd6da6f 100644
--- a/dan_layer/engine/src/runtime/mod.rs
+++ b/dan_layer/engine/src/runtime/mod.rs
@@ -59,7 +59,7 @@ use tari_dan_common_types::Epoch;
 use tari_engine_types::{
     commit_result::FinalizeResult,
     component::ComponentHeader,
-    confidential::{ConfidentialClaim, ConfidentialOutput},
+    confidential::ConfidentialClaim,
     indexed_value::IndexedValue,
     lock::LockFlag,
     substate::SubstateValue,
@@ -87,7 +87,7 @@ use tari_template_lib::{
         WorkspaceAction,
     },
     invoke_args,
-    models::{Amount, BucketId, ComponentAddress, EntityId, Metadata, NonFungibleAddress, VaultRef},
+    models::{ComponentAddress, EntityId, Metadata, NonFungibleAddress, VaultRef},
 };
 pub use tracker::StateTracker;
 
@@ -159,11 +159,6 @@ pub trait RuntimeInterface: Send + Sync {
 
     fn claim_validator_fees(&self, epoch: Epoch, validator_public_key: PublicKey) -> Result<(), RuntimeError>;
 
-    fn create_free_test_coins(
-        &self,
-        revealed_amount: Amount,
-        confidential_output: Option,
-    ) -> Result;
     fn set_fee_checkpoint(&self) -> Result<(), RuntimeError>;
     fn reset_to_fee_checkpoint(&self) -> Result<(), RuntimeError>;
     fn finalize(&self) -> Result;
diff --git a/dan_layer/engine/src/runtime/state_store.rs b/dan_layer/engine/src/runtime/state_store.rs
index 68ffe03a8..6b5503ab2 100644
--- a/dan_layer/engine/src/runtime/state_store.rs
+++ b/dan_layer/engine/src/runtime/state_store.rs
@@ -67,6 +67,41 @@ impl WorkingStateStore {
         Ok((lock.address().clone(), substate))
     }
 
+    pub fn mutate_locked_substate_with<
+        R,
+        F: FnOnce(&SubstateId, &mut SubstateValue) -> Result, RuntimeError>,
+    >(
+        &mut self,
+        lock_id: LockId,
+        callback: F,
+    ) -> Result, RuntimeError> {
+        let lock = self.locked_substates.get(lock_id, LockFlag::Write)?;
+        if let Some(mut substate) = self.loaded_substates.remove(lock.address()) {
+            return match callback(lock.address(), &mut substate)? {
+                Some(ret) => {
+                    self.new_substates.insert(lock.address().clone(), substate);
+                    Ok(Some(ret))
+                },
+                None => {
+                    // It is undefined to mutate the state and return None from the callback. We do not assert this
+                    // however which is risky.
+                    self.loaded_substates.insert(lock.address().clone(), substate);
+                    Ok(None)
+                },
+            };
+        }
+
+        let substate_mut = self
+            .new_substates
+            .get_mut(lock.address())
+            .ok_or_else(|| LockError::SubstateNotLocked {
+                address: lock.address().clone(),
+            })?;
+
+        // Since the substate is already mutated, we dont really care if the callback mutates it again or not
+        callback(lock.address(), substate_mut)
+    }
+
     pub fn get_locked_substate(&self, lock_id: LockId) -> Result<(SubstateId, &SubstateValue), RuntimeError> {
         let lock = self.locked_substates.get(lock_id, LockFlag::Read)?;
         let substate = self.get_ref(lock.address())?;
diff --git a/dan_layer/engine/src/runtime/working_state.rs b/dan_layer/engine/src/runtime/working_state.rs
index bc090d1d3..5c0c68f35 100644
--- a/dan_layer/engine/src/runtime/working_state.rs
+++ b/dan_layer/engine/src/runtime/working_state.rs
@@ -171,26 +171,39 @@ impl WorkingState {
         Ok(component)
     }
 
-    pub fn modify_component_with R>(
+    pub fn modify_component_with bool>(
         &mut self,
         locked: &LockedSubstate,
         f: F,
-    ) -> Result {
-        let (address, substate_mut) = self.store.get_locked_substate_mut(locked.lock_id())?;
-        let component_mut = substate_mut
-            .component_mut()
-            .ok_or_else(|| RuntimeError::LockSubstateMismatch {
-                lock_id: locked.lock_id(),
-                address,
-                expected_type: "Component",
+    ) -> Result<(), RuntimeError> {
+        let maybe_before_and_after = self
+            .store
+            .mutate_locked_substate_with(locked.lock_id(), |_, substate_mut| {
+                let component_mut = substate_mut
+                    .component_mut()
+                    .ok_or_else(|| RuntimeError::LockSubstateMismatch {
+                        lock_id: locked.lock_id(),
+                        address: locked.address().clone(),
+                        expected_type: "Component",
+                    })?;
+
+                let before = IndexedWellKnownTypes::from_value(component_mut.state())?;
+                if !f(component_mut) {
+                    // rollback
+                    return Ok(None);
+                }
+
+                let after = IndexedWellKnownTypes::from_value(component_mut.state())?;
+                Ok(Some((before, after)))
             })?;
-        let before = IndexedWellKnownTypes::from_value(component_mut.state())?;
-        let ret = f(component_mut);
 
-        let after = IndexedWellKnownTypes::from_value(component_mut.state())?;
+        let Some((before, after))= maybe_before_and_after else {
+            return Ok(());
+        };
+
         self.validate_component_state(Some(&before), &after)?;
 
-        Ok(ret)
+        Ok(())
     }
 
     pub fn get_resource(&self, locked: &LockedSubstate) -> Result<&Resource, RuntimeError> {
@@ -1176,7 +1189,7 @@ impl WorkingState {
             );
             return Err(RuntimeError::SubstateNotOwned {
                 address: address.clone(),
-                requested_owner: component_lock.address().clone(),
+                requested_owner: Box::new(component_lock.address().clone()),
             });
         }
 
diff --git a/dan_layer/engine/src/bootstrap.rs b/dan_layer/engine/src/state_store/bootstrap.rs
similarity index 62%
rename from dan_layer/engine/src/bootstrap.rs
rename to dan_layer/engine/src/state_store/bootstrap.rs
index 293f8847d..6847a9a25 100644
--- a/dan_layer/engine/src/bootstrap.rs
+++ b/dan_layer/engine/src/state_store/bootstrap.rs
@@ -1,21 +1,32 @@
-//   Copyright 2023 The Tari Project
-//   SPDX-License-Identifier: BSD-3-Clause
+//    Copyright 2024 The Tari Project
+//    SPDX-License-Identifier: BSD-3-Clause
 
 use tari_engine_types::{
     resource::Resource,
     substate::{Substate, SubstateId},
 };
 use tari_template_lib::{
-    auth::{AccessRule, ResourceAccessRules},
+    auth::ResourceAccessRules,
     constants::{CONFIDENTIAL_TARI_RESOURCE_ADDRESS, PUBLIC_IDENTITY_RESOURCE_ADDRESS},
     models::Metadata,
     prelude::{OwnerRule, ResourceType},
     resource::TOKEN_SYMBOL,
 };
 
-use crate::state_store::{StateStoreError, StateWriter};
+use crate::state_store::{memory::MemoryStateStore, AtomicDb, StateStoreError, StateWriter};
 
-pub fn bootstrap_state(state_db: &mut T) -> Result<(), StateStoreError> {
+pub fn new_memory_store() -> MemoryStateStore {
+    let state_db = MemoryStateStore::new();
+    // unwrap: Memory state store is infallible
+    let mut tx = state_db.write_access().unwrap();
+    // Add shared global resources
+    add_global_resources(&mut tx).unwrap();
+    tx.commit().unwrap();
+    state_db
+}
+
+/// These are implicitly included in every transaction. These are immutable and pledging them is not required.
+fn add_global_resources(state_db: &mut T) -> Result<(), StateStoreError> {
     let address = SubstateId::Resource(PUBLIC_IDENTITY_RESOURCE_ADDRESS);
     let mut metadata = Metadata::new();
     metadata.insert(TOKEN_SYMBOL, "ID".to_string());
@@ -39,8 +50,7 @@ pub fn bootstrap_state(state_db: &mut T) -> Result<(), StateStor
     // Create the second layer tari resource
     let address = SubstateId::Resource(CONFIDENTIAL_TARI_RESOURCE_ADDRESS);
     let mut metadata = Metadata::new();
-    // TODO: decide on symbol for L2 tari
-    metadata.insert(TOKEN_SYMBOL, "tXTR".to_string());
+    metadata.insert(TOKEN_SYMBOL, "XTR".to_string());
     state_db.set_state(
         &address,
         Substate::new(
@@ -49,9 +59,7 @@ pub fn bootstrap_state(state_db: &mut T) -> Result<(), StateStor
                 ResourceType::Confidential,
                 None,
                 OwnerRule::None,
-                ResourceAccessRules::new()
-                    .withdrawable(AccessRule::AllowAll)
-                    .depositable(AccessRule::AllowAll),
+                ResourceAccessRules::new(),
                 metadata,
                 None,
                 None,
diff --git a/dan_layer/engine/src/state_store/memory.rs b/dan_layer/engine/src/state_store/memory.rs
index e49202c6f..dbc614155 100644
--- a/dan_layer/engine/src/state_store/memory.rs
+++ b/dan_layer/engine/src/state_store/memory.rs
@@ -38,7 +38,7 @@ pub struct MemoryStateStore {
 }
 
 impl MemoryStateStore {
-    pub fn new() -> Self {
+    pub(crate) fn new() -> Self {
         Self::default()
     }
 
diff --git a/dan_layer/engine/src/state_store/mod.rs b/dan_layer/engine/src/state_store/mod.rs
index b289386b0..381913724 100644
--- a/dan_layer/engine/src/state_store/mod.rs
+++ b/dan_layer/engine/src/state_store/mod.rs
@@ -20,6 +20,8 @@
 //  WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE
 //  USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
 
+mod bootstrap;
+pub use bootstrap::*;
 pub mod memory;
 
 use std::{error::Error, fmt::Debug};
diff --git a/dan_layer/engine/src/transaction/processor.rs b/dan_layer/engine/src/transaction/processor.rs
index b956dbe9a..3b3a65cdd 100644
--- a/dan_layer/engine/src/transaction/processor.rs
+++ b/dan_layer/engine/src/transaction/processor.rs
@@ -31,13 +31,13 @@ use tari_engine_types::{
     commit_result::{ExecuteResult, FinalizeResult, RejectReason, TransactionResult},
     component::new_component_address_from_public_key,
     entity_id_provider::EntityIdProvider,
-    indexed_value::{IndexedValue, IndexedWellKnownTypes},
+    indexed_value::IndexedWellKnownTypes,
     instruction::Instruction,
     instruction_result::InstructionResult,
     lock::LockFlag,
     virtual_substate::VirtualSubstates,
 };
-use tari_template_abi::{FunctionDef, Type};
+use tari_template_abi::FunctionDef;
 use tari_template_builtin::ACCOUNT_TEMPLATE_ADDRESS;
 use tari_template_lib::{
     arg,
@@ -263,18 +263,6 @@ impl + 'static> T
                     .claim_validator_fees(Epoch(epoch), validator_public_key)?;
                 Ok(InstructionResult::empty())
             },
-            Instruction::CreateFreeTestCoins {
-                revealed_amount: amount,
-                output,
-            } => {
-                let bucket_id = runtime.interface().create_free_test_coins(amount, output)?;
-                Ok(InstructionResult {
-                    indexed: IndexedValue::from_type(&bucket_id)?,
-                    return_type: Type::Other {
-                        name: "BucketId".to_string(),
-                    },
-                })
-            },
         }
     }
 
diff --git a/dan_layer/engine/tests/access_rules.rs b/dan_layer/engine/tests/access_rules.rs
index 83c25fe6a..b36060633 100644
--- a/dan_layer/engine/tests/access_rules.rs
+++ b/dan_layer/engine/tests/access_rules.rs
@@ -1060,7 +1060,7 @@ mod resource_access_rules {
 
         assert_reject_reason(result, RuntimeError::AccessDeniedSetComponentState {
             attempted_on: user_account.into(),
-            attempted_by: component_address.into(),
+            attempted_by: Box::new(component_address.into()),
         });
     }
 
diff --git a/dan_layer/engine/tests/confidential.rs b/dan_layer/engine/tests/confidential.rs
index 48b412ee9..aaef35449 100644
--- a/dan_layer/engine/tests/confidential.rs
+++ b/dan_layer/engine/tests/confidential.rs
@@ -126,10 +126,11 @@ fn transfer_confidential_amounts_between_accounts() {
     let diff = result.finalize.result.expect("Failed to execute manifest");
     assert_eq!(diff.up_iter().filter(|(addr, _)| *addr == account1).count(), 1);
     assert_eq!(diff.down_iter().filter(|(addr, _)| *addr == account1).count(), 1);
-    assert_eq!(diff.up_iter().filter(|(addr, _)| *addr == faucet).count(), 1);
-    assert_eq!(diff.down_iter().filter(|(addr, _)| *addr == faucet).count(), 1);
-    assert_eq!(diff.up_iter().count(), 5);
-    assert_eq!(diff.down_iter().count(), 3);
+    // Faucet is not changed, only the faucet vault.
+    assert_eq!(diff.up_iter().filter(|(addr, _)| *addr == faucet).count(), 0);
+    assert_eq!(diff.down_iter().filter(|(addr, _)| *addr == faucet).count(), 0);
+    assert_eq!(diff.up_iter().count(), 4);
+    assert_eq!(diff.down_iter().count(), 2);
 
     let withdraw_proof = generate_withdraw_proof(&proof.output_mask, Amount(100), Some(Amount(900)), Amount(0));
     let split_proof = generate_withdraw_proof(&withdraw_proof.output_mask, Amount(20), Some(Amount(80)), Amount(0));
@@ -165,12 +166,12 @@ fn transfer_confidential_amounts_between_accounts() {
         )
         .unwrap();
     let diff = result.finalize.result.expect("Failed to execute manifest");
-    assert_eq!(diff.up_iter().filter(|(addr, _)| *addr == account1).count(), 1);
-    assert_eq!(diff.down_iter().filter(|(addr, _)| *addr == account1).count(), 1);
+    assert_eq!(diff.up_iter().filter(|(addr, _)| *addr == account1).count(), 0);
+    assert_eq!(diff.down_iter().filter(|(addr, _)| *addr == account1).count(), 0);
     assert_eq!(diff.up_iter().filter(|(addr, _)| *addr == account2).count(), 1);
     assert_eq!(diff.down_iter().filter(|(addr, _)| *addr == account2).count(), 1);
-    assert_eq!(diff.up_iter().count(), 5);
-    assert_eq!(diff.down_iter().count(), 3);
+    assert_eq!(diff.up_iter().count(), 4);
+    assert_eq!(diff.down_iter().count(), 2);
 }
 
 #[test]
diff --git a/dan_layer/engine/tests/shenanigans.rs b/dan_layer/engine/tests/shenanigans.rs
index 7d7a4f2bb..0893a59e0 100644
--- a/dan_layer/engine/tests/shenanigans.rs
+++ b/dan_layer/engine/tests/shenanigans.rs
@@ -201,7 +201,7 @@ fn it_prevents_access_to_vault_id_in_component_context() {
     // take_bucket_zero fails because the component didnt create the vault
     assert_reject_reason(reason, RuntimeError::SubstateNotOwned {
         address: vault_id.into(),
-        requested_owner: shenanigans.into(),
+        requested_owner: Box::new(shenanigans.into()),
     });
 }
 
@@ -234,7 +234,7 @@ fn it_prevents_access_to_out_of_scope_component() {
     // Fails because the engine does not lock this component
     assert_reject_reason(reason, RuntimeError::AccessDeniedSetComponentState {
         attempted_on: account.into(),
-        attempted_by: shenanigans.into(),
+        attempted_by: Box::new(shenanigans.into()),
     });
 }
 
diff --git a/dan_layer/engine/tests/test.rs b/dan_layer/engine/tests/test.rs
index 44f8724cd..da933e015 100644
--- a/dan_layer/engine/tests/test.rs
+++ b/dan_layer/engine/tests/test.rs
@@ -559,8 +559,8 @@ mod basic_nft {
         assert_eq!(diff.up_iter().filter(|(addr, _)| addr.is_resource()).count(), 1);
 
         // NFT and account components changed
-        assert_eq!(diff.down_iter().filter(|(addr, _)| addr.is_component()).count(), 2);
-        assert_eq!(diff.up_iter().filter(|(addr, _)| addr.is_component()).count(), 2);
+        assert_eq!(diff.down_iter().filter(|(addr, _)| addr.is_component()).count(), 1);
+        assert_eq!(diff.up_iter().filter(|(addr, _)| addr.is_component()).count(), 1);
 
         // One new vault created
         assert_eq!(diff.down_iter().filter(|(addr, _)| addr.is_vault()).count(), 0);
@@ -1302,9 +1302,9 @@ mod nft_indexes {
         assert_eq!(diff.down_iter().filter(|(addr, _)| addr.is_resource()).count(), 1);
         assert_eq!(diff.up_iter().filter(|(addr, _)| addr.is_resource()).count(), 1);
 
-        // NFT and account components changed
-        assert_eq!(diff.down_iter().filter(|(addr, _)| addr.is_component()).count(), 2);
-        assert_eq!(diff.up_iter().filter(|(addr, _)| addr.is_component()).count(), 2);
+        // NFT component changed
+        assert_eq!(diff.down_iter().filter(|(addr, _)| addr.is_component()).count(), 1);
+        assert_eq!(diff.up_iter().filter(|(addr, _)| addr.is_component()).count(), 1);
 
         // One new vault created
         assert_eq!(diff.down_iter().filter(|(addr, _)| addr.is_vault()).count(), 0);
@@ -1354,43 +1354,6 @@ mod nft_indexes {
     }
 }
 
-// TODO: these tests can be removed when create free test coins is removed
-mod free_test_coins {
-    use tari_engine_types::component::new_component_address_from_public_key;
-
-    use super::*;
-    #[test]
-    fn it_creates_free_test_coins() {
-        let mut test = TemplateTest::new(Vec::<&str>::new());
-        test.enable_fees();
-        let account_template = test.get_template_address("Account");
-        let (other, _, _) = test.create_owner_proof();
-
-        let owner_token = test.get_test_proof();
-        let future_account_component =
-            new_component_address_from_public_key(&ACCOUNT_TEMPLATE_ADDRESS, test.get_test_public_key());
-
-        test.execute_expect_success(
-            Transaction::builder()
-                .with_fee_instructions_builder(|builder| {
-                    builder
-                        .add_instruction(Instruction::CreateFreeTestCoins {
-                            revealed_amount: Amount(1000),
-                            output: None,
-                        })
-                        .put_last_instruction_output_on_workspace("free")
-                        .create_account_with_bucket(test.get_test_public_key().clone(), "free")
-                        .call_method(future_account_component, "pay_fee", args![Amount(1000)])
-                })
-                // Checking we can create an account for another user in this transaction
-                .call_function(account_template, "create", args![other])
-                .sign(test.get_test_secret_key())
-                .build(),
-            vec![owner_token],
-        );
-    }
-}
-
 #[test]
 fn test_builtin_templates() {
     let mut template_test = TemplateTest::new(vec!["tests/templates/builtin_templates"]);
diff --git a/dan_layer/engine_types/Cargo.toml b/dan_layer/engine_types/Cargo.toml
index 424a53c13..4fb239773 100644
--- a/dan_layer/engine_types/Cargo.toml
+++ b/dan_layer/engine_types/Cargo.toml
@@ -30,9 +30,7 @@ thiserror = { workspace = true }
 ts-rs = { workspace = true, optional = true }
 
 [features]
-default = ["debugging"]
-# Includes the ability to create free test coins
-debugging = []
+default = []
 ts = ["ts-rs"]
 # This feature is used to temporarily fix the issue with the ts-rs crate. Because when we run cargo test --all-feature 
 # it will trigger the ts files generation. But there are some problems that are fixed during the npm run build. But 
diff --git a/dan_layer/engine_types/src/instruction.rs b/dan_layer/engine_types/src/instruction.rs
index b1ed67733..529feb6d5 100644
--- a/dan_layer/engine_types/src/instruction.rs
+++ b/dan_layer/engine_types/src/instruction.rs
@@ -8,15 +8,12 @@ use tari_common_types::types::PublicKey;
 use tari_crypto::tari_utilities::hex::Hex;
 use tari_template_lib::{
     args::{Arg, LogLevel},
-    models::{Amount, ComponentAddress, TemplateAddress},
+    models::{ComponentAddress, TemplateAddress},
 };
 #[cfg(feature = "ts")]
 use ts_rs::TS;
 
-use crate::{
-    confidential::{ConfidentialClaim, ConfidentialOutput},
-    serde_with,
-};
+use crate::{confidential::ConfidentialClaim, serde_with};
 
 #[derive(Debug, Clone, Deserialize, Serialize, PartialEq)]
 #[cfg_attr(feature = "ts", derive(TS), ts(export, export_to = "../../bindings/src/types/"))]
@@ -61,11 +58,6 @@ pub enum Instruction {
         validator_public_key: PublicKey,
     },
     DropAllProofsInWorkspace,
-    #[cfg(feature = "debugging")]
-    CreateFreeTestCoins {
-        revealed_amount: Amount,
-        output: Option,
-    },
 }
 
 impl Display for Instruction {
@@ -126,9 +118,7 @@ impl Display for Instruction {
                     epoch, validator_public_key
                 )
             },
-            Self::CreateFreeTestCoins { .. } => {
-                write!(f, "CreateFreeTestCoins")
-            },
+
             Self::DropAllProofsInWorkspace => {
                 write!(f, "DropAllProofsInWorkspace")
             },
diff --git a/dan_layer/p2p/proto/consensus.proto b/dan_layer/p2p/proto/consensus.proto
index 4e3d4a777..6a25deaec 100644
--- a/dan_layer/p2p/proto/consensus.proto
+++ b/dan_layer/p2p/proto/consensus.proto
@@ -14,8 +14,8 @@ message HotStuffMessage {
     ProposalMessage proposal = 2;
     ProposalMessage foreign_proposal = 3;
     VoteMessage vote = 4;
-    RequestMissingTransactionsMessage request_missing_transactions = 5;
-    RequestedTransactionMessage requested_transaction = 6;
+    MissingTransactionsRequest request_missing_transactions = 5;
+    MissingTransactionsResponse requested_transaction = 6;
     SyncRequest sync_request = 7;
     SyncResponse sync_response = 8;
   }
@@ -103,7 +103,6 @@ enum Decision {
   UNKNOWN = 0;
   COMMIT = 1;
   ABORT = 2;
-  DEFERRED = 3;
 }
 
 message Evidence {
@@ -182,16 +181,18 @@ message DownState {
   uint64 fees_accrued = 2;
 }
 
-message RequestMissingTransactionsMessage {
-  uint64 epoch = 1;
-  bytes block_id = 2;
-  repeated bytes transaction_ids = 3;
+message MissingTransactionsRequest {
+  uint32 request_id = 1;
+  uint64 epoch = 2;
+  bytes block_id = 3;
+  repeated bytes transaction_ids = 4;
 }
 
-message RequestedTransactionMessage {
-  uint64 epoch = 1;
-  bytes block_id = 2;
-  repeated tari.dan.transaction.Transaction transactions = 3;
+message MissingTransactionsResponse {
+  uint32 request_id = 1;
+  uint64 epoch = 2;
+  bytes block_id = 3;
+  repeated tari.dan.transaction.Transaction transactions = 4;
 }
 
 message Substate {
diff --git a/dan_layer/p2p/proto/transaction.proto b/dan_layer/p2p/proto/transaction.proto
index 365a4f620..260725b5b 100644
--- a/dan_layer/p2p/proto/transaction.proto
+++ b/dan_layer/p2p/proto/transaction.proto
@@ -42,7 +42,6 @@ message Instruction {
     CLAIM_VALIDATOR_FEES = 5;
     DROP_ALL_PROOFS_IN_WORKSPACE = 6;
     CREATE_ACCOUNT = 7;
-    CREATE_FREE_TEST_COINS = 101;
   }
   InstructionType instruction_type = 1;
 
@@ -75,9 +74,6 @@ message Instruction {
   bytes create_account_owner_public_key = 17;
   string create_account_workspace_bucket = 18;
 
-  // DEBUGGING: Test coins
-  uint64 create_free_test_coins_amount = 101;
-  bytes create_free_test_coins_output_blob = 102;
 }
 
 message Arg {
diff --git a/dan_layer/p2p/src/conversions/consensus.rs b/dan_layer/p2p/src/conversions/consensus.rs
index 8883fce40..25934facb 100644
--- a/dan_layer/p2p/src/conversions/consensus.rs
+++ b/dan_layer/p2p/src/conversions/consensus.rs
@@ -28,10 +28,10 @@ use tari_common_types::types::PublicKey;
 use tari_consensus::messages::{
     FullBlock,
     HotstuffMessage,
+    MissingTransactionsRequest,
+    MissingTransactionsResponse,
     NewViewMessage,
     ProposalMessage,
-    RequestMissingTransactionsMessage,
-    RequestedTransactionMessage,
     SyncRequestMessage,
     SyncResponseMessage,
     VoteMessage,
@@ -69,10 +69,10 @@ impl From<&HotstuffMessage> for proto::consensus::HotStuffMessage {
                 proto::consensus::hot_stuff_message::Message::ForeignProposal(msg.into())
             },
             HotstuffMessage::Vote(msg) => proto::consensus::hot_stuff_message::Message::Vote(msg.into()),
-            HotstuffMessage::RequestMissingTransactions(msg) => {
+            HotstuffMessage::MissingTransactionsRequest(msg) => {
                 proto::consensus::hot_stuff_message::Message::RequestMissingTransactions(msg.into())
             },
-            HotstuffMessage::RequestedTransaction(msg) => {
+            HotstuffMessage::MissingTransactionsResponse(msg) => {
                 proto::consensus::hot_stuff_message::Message::RequestedTransaction(msg.into())
             },
             HotstuffMessage::CatchUpSyncRequest(msg) => {
@@ -99,10 +99,10 @@ impl TryFrom for HotstuffMessage {
             },
             proto::consensus::hot_stuff_message::Message::Vote(msg) => HotstuffMessage::Vote(msg.try_into()?),
             proto::consensus::hot_stuff_message::Message::RequestMissingTransactions(msg) => {
-                HotstuffMessage::RequestMissingTransactions(msg.try_into()?)
+                HotstuffMessage::MissingTransactionsRequest(msg.try_into()?)
             },
             proto::consensus::hot_stuff_message::Message::RequestedTransaction(msg) => {
-                HotstuffMessage::RequestedTransaction(msg.try_into()?)
+                HotstuffMessage::MissingTransactionsResponse(msg.try_into()?)
             },
             proto::consensus::hot_stuff_message::Message::SyncRequest(msg) => {
                 HotstuffMessage::CatchUpSyncRequest(msg.try_into()?)
@@ -195,10 +195,11 @@ impl TryFrom for VoteMessage {
     }
 }
 
-//---------------------------------- RequestMissingTransactionsMessage --------------------------------------------//
-impl From<&RequestMissingTransactionsMessage> for proto::consensus::RequestMissingTransactionsMessage {
-    fn from(msg: &RequestMissingTransactionsMessage) -> Self {
+//---------------------------------- MissingTransactionsRequest --------------------------------------------//
+impl From<&MissingTransactionsRequest> for proto::consensus::MissingTransactionsRequest {
+    fn from(msg: &MissingTransactionsRequest) -> Self {
         Self {
+            request_id: msg.request_id,
             epoch: msg.epoch.as_u64(),
             block_id: msg.block_id.as_bytes().to_vec(),
             transaction_ids: msg.transactions.iter().map(|tx_id| tx_id.as_bytes().to_vec()).collect(),
@@ -206,11 +207,12 @@ impl From<&RequestMissingTransactionsMessage> for proto::consensus::RequestMissi
     }
 }
 
-impl TryFrom for RequestMissingTransactionsMessage {
+impl TryFrom for MissingTransactionsRequest {
     type Error = anyhow::Error;
 
-    fn try_from(value: proto::consensus::RequestMissingTransactionsMessage) -> Result {
-        Ok(RequestMissingTransactionsMessage {
+    fn try_from(value: proto::consensus::MissingTransactionsRequest) -> Result {
+        Ok(MissingTransactionsRequest {
+            request_id: value.request_id,
             epoch: Epoch(value.epoch),
             block_id: BlockId::try_from(value.block_id)?,
             transactions: value
@@ -221,11 +223,12 @@ impl TryFrom for RequestMis
         })
     }
 }
-//---------------------------------- RequestedTransactionMessage --------------------------------------------//
+//---------------------------------- MissingTransactionsResponse --------------------------------------------//
 
-impl From<&RequestedTransactionMessage> for proto::consensus::RequestedTransactionMessage {
-    fn from(msg: &RequestedTransactionMessage) -> Self {
+impl From<&MissingTransactionsResponse> for proto::consensus::MissingTransactionsResponse {
+    fn from(msg: &MissingTransactionsResponse) -> Self {
         Self {
+            request_id: msg.request_id,
             epoch: msg.epoch.as_u64(),
             block_id: msg.block_id.as_bytes().to_vec(),
             transactions: msg.transactions.iter().map(|tx| tx.into()).collect(),
@@ -233,11 +236,12 @@ impl From<&RequestedTransactionMessage> for proto::consensus::RequestedTransacti
     }
 }
 
-impl TryFrom for RequestedTransactionMessage {
+impl TryFrom for MissingTransactionsResponse {
     type Error = anyhow::Error;
 
-    fn try_from(value: proto::consensus::RequestedTransactionMessage) -> Result {
-        Ok(RequestedTransactionMessage {
+    fn try_from(value: proto::consensus::MissingTransactionsResponse) -> Result {
+        Ok(MissingTransactionsResponse {
+            request_id: value.request_id,
             epoch: Epoch(value.epoch),
             block_id: BlockId::try_from(value.block_id)?,
             transactions: value
@@ -493,7 +497,6 @@ impl From for proto::consensus::Decision {
         match value {
             Decision::Commit => proto::consensus::Decision::Commit,
             Decision::Abort => proto::consensus::Decision::Abort,
-            Decision::Deferred => proto::consensus::Decision::Deferred,
         }
     }
 }
@@ -505,7 +508,6 @@ impl TryFrom for Decision {
         match value {
             proto::consensus::Decision::Commit => Ok(Decision::Commit),
             proto::consensus::Decision::Abort => Ok(Decision::Abort),
-            proto::consensus::Decision::Deferred => Ok(Decision::Deferred),
             proto::consensus::Decision::Unknown => Err(anyhow!("Decision not provided")),
         }
     }
diff --git a/dan_layer/p2p/src/conversions/transaction.rs b/dan_layer/p2p/src/conversions/transaction.rs
index 49c1a0058..aa11601e2 100644
--- a/dan_layer/p2p/src/conversions/transaction.rs
+++ b/dan_layer/p2p/src/conversions/transaction.rs
@@ -27,11 +27,7 @@ use tari_bor::decode_exact;
 use tari_common_types::types::{Commitment, PrivateKey, PublicKey};
 use tari_crypto::{ristretto::RistrettoComSig, tari_utilities::ByteArray};
 use tari_dan_common_types::Epoch;
-use tari_engine_types::{
-    confidential::{ConfidentialClaim, ConfidentialOutput},
-    instruction::Instruction,
-    substate::SubstateId,
-};
+use tari_engine_types::{confidential::ConfidentialClaim, instruction::Instruction, substate::SubstateId};
 use tari_template_lib::{
     args::Arg,
     crypto::{BalanceProofSignature, PedersonCommitmentBytes, RistrettoPublicKeyBytes},
@@ -250,10 +246,6 @@ impl TryFrom for Instruction {
                 .map_err(|e| anyhow!("claim_validator_fees_validator_public_key: {}", e))?,
             },
             InstructionType::DropAllProofsInWorkspace => Instruction::DropAllProofsInWorkspace,
-            InstructionType::CreateFreeTestCoins => Instruction::CreateFreeTestCoins {
-                revealed_amount: request.create_free_test_coins_amount.try_into()?,
-                output: tari_bor::decode(&request.create_free_test_coins_output_blob)?,
-            },
         };
 
         Ok(instruction)
@@ -321,19 +313,6 @@ impl From for proto::transaction::Instruction {
             Instruction::DropAllProofsInWorkspace => {
                 result.instruction_type = InstructionType::DropAllProofsInWorkspace as i32;
             },
-            // TODO: debugging feature should not be the default. Perhaps a better way to create faucet coins is to mint
-            //       a faucet vault in the genesis state for dev networks and use faucet builtin template to withdraw
-            //       funds.
-            Instruction::CreateFreeTestCoins {
-                revealed_amount: amount,
-                output,
-            } => {
-                result.instruction_type = InstructionType::CreateFreeTestCoins as i32;
-                result.create_free_test_coins_amount = amount.value() as u64;
-                result.create_free_test_coins_output_blob = output
-                    .map(|o| tari_bor::encode(&o).unwrap())
-                    .unwrap_or_else(|| tari_bor::encode(&None::).unwrap());
-            },
         }
         result
     }
diff --git a/dan_layer/state_store_sqlite/migrations/2023-06-08-091819_create_state_store/up.sql b/dan_layer/state_store_sqlite/migrations/2023-06-08-091819_create_state_store/up.sql
index 622ccdf03..d1f7e3e43 100644
--- a/dan_layer/state_store_sqlite/migrations/2023-06-08-091819_create_state_store/up.sql
+++ b/dan_layer/state_store_sqlite/migrations/2023-06-08-091819_create_state_store/up.sql
@@ -93,7 +93,7 @@ create table block_diffs
     FOREIGN KEY (transaction_id) REFERENCES transactions (transaction_id),
     FOREIGN KEY (block_id) REFERENCES blocks (block_id)
 );
-create index block_diffs_idx_block_id on block_diffs (block_id);
+create index block_diffs_idx_block_id_substate_id on block_diffs (block_id, substate_id);
 
 create table substates
 (
@@ -251,9 +251,9 @@ create table transaction_pool
     original_decision   text      not null,
     local_decision      text      null,
     remote_decision     text      null,
-    evidence            text      not null,
+    evidence            text      null,
     remote_evidence     text      null,
-    transaction_fee     bigint    not null,
+    transaction_fee     bigint    null,
     leader_fee          bigint    null,
     global_exhaust_burn bigint    null,
     stage               text      not null,
@@ -392,8 +392,8 @@ CREATE TABLE transaction_pool_history
     original_decision   text      not null,
     local_decision      text      null,
     remote_decision     text      null,
-    evidence            text      not null,
-    transaction_fee     bigint    not null,
+    evidence            text      null,
+    transaction_fee     bigint    null,
     leader_fee          bigint    null,
     global_exhaust_burn bigint    null,
     stage               text      not null,
diff --git a/dan_layer/state_store_sqlite/src/reader.rs b/dan_layer/state_store_sqlite/src/reader.rs
index cee2cf6cf..b4811894f 100644
--- a/dan_layer/state_store_sqlite/src/reader.rs
+++ b/dan_layer/state_store_sqlite/src/reader.rs
@@ -53,6 +53,7 @@ use tari_dan_storage::{
         QuorumCertificate,
         StateTransition,
         StateTransitionId,
+        SubstateChange,
         SubstateRecord,
         TransactionExecution,
         TransactionPoolRecord,
@@ -1204,6 +1205,28 @@ impl<'tx, TAddr: NodeAddressable + Serialize + DeserializeOwned + 'tx> StateStor
         sql_models::BlockDiff::try_load(*block_id, block_diff)
     }
 
+    fn block_diffs_get_last_change_for_substate(
+        &self,
+        block_id: &BlockId,
+        substate_id: &SubstateId,
+    ) -> Result {
+        use crate::schema::block_diffs;
+        let commit_block = self.get_commit_block_id()?;
+        let block_ids = self.get_block_ids_that_change_state_between(&commit_block, block_id)?;
+
+        let diff = block_diffs::table
+            .filter(block_diffs::block_id.eq_any(block_ids))
+            .filter(block_diffs::substate_id.eq(substate_id.to_string()))
+            .order_by(block_diffs::id.desc())
+            .first::(self.connection())
+            .map_err(|e| SqliteStorageError::DieselError {
+                operation: "block_diffs_get_last_change_for_substate",
+                source: e,
+            })?;
+
+        sql_models::BlockDiff::try_convert_change(diff)
+    }
+
     fn parked_blocks_exists(&self, block_id: &BlockId) -> Result {
         use crate::schema::parked_blocks;
 
@@ -1285,21 +1308,6 @@ impl<'tx, TAddr: NodeAddressable + Serialize + DeserializeOwned + 'tx> StateStor
         deserialize_json(&qc_json)
     }
 
-    fn transaction_pool_get(&self, transaction_id: &TransactionId) -> Result {
-        use crate::schema::transaction_pool;
-
-        let transaction_id = serialize_hex(transaction_id);
-        let rec = transaction_pool::table
-            .filter(transaction_pool::transaction_id.eq(&transaction_id))
-            .first::(self.connection())
-            .map_err(|e| SqliteStorageError::DieselError {
-                operation: "transaction_pool_get",
-                source: e,
-            })?;
-
-        rec.try_convert(None)
-    }
-
     fn transaction_pool_get_for_blocks(
         &self,
         from_block_id: &BlockId,
diff --git a/dan_layer/state_store_sqlite/src/schema.rs b/dan_layer/state_store_sqlite/src/schema.rs
index 9a0cd2534..4cbdbed54 100644
--- a/dan_layer/state_store_sqlite/src/schema.rs
+++ b/dan_layer/state_store_sqlite/src/schema.rs
@@ -284,9 +284,9 @@ diesel::table! {
         original_decision -> Text,
         local_decision -> Nullable,
         remote_decision -> Nullable,
-        evidence -> Text,
+        evidence -> Nullable,
         remote_evidence -> Nullable,
-        transaction_fee -> BigInt,
+        transaction_fee -> Nullable,
         leader_fee -> Nullable,
         global_exhaust_burn -> Nullable,
         stage -> Text,
diff --git a/dan_layer/state_store_sqlite/src/sql_models/block_diff.rs b/dan_layer/state_store_sqlite/src/sql_models/block_diff.rs
index 71c3c9260..fee11a69c 100644
--- a/dan_layer/state_store_sqlite/src/sql_models/block_diff.rs
+++ b/dan_layer/state_store_sqlite/src/sql_models/block_diff.rs
@@ -22,34 +22,34 @@ pub struct BlockDiff {
 
 impl BlockDiff {
     pub fn try_load(block_id: BlockId, diff: Vec) -> Result {
-        let mut changes = Vec::with_capacity(diff.len());
-        for d in diff {
-            let substate_id = d.substate_id.parse().map_err(|err| StorageError::DataInconsistency {
-                details: format!("Invalid substate id {}: {}", d.substate_id, err),
-            })?;
-            let id = VersionedSubstateId::new(substate_id, d.version as u32);
-            let transaction_id = deserialize_hex_try_from(&d.transaction_id)?;
-            match d.change.as_str() {
-                "Up" => {
-                    let state = d.state.ok_or(StorageError::DataInconsistency {
-                        details: "Block diff change type is Up but state is missing".to_string(),
-                    })?;
-                    changes.push(consensus_models::SubstateChange::Up {
-                        id,
-                        transaction_id,
-                        substate: deserialize_json(&state)?,
-                    });
-                },
-                "Down" => {
-                    changes.push(consensus_models::SubstateChange::Down { id, transaction_id });
-                },
-                _ => {
-                    return Err(StorageError::DataInconsistency {
-                        details: format!("Invalid block diff change type: {}", d.change),
-                    });
-                },
-            }
-        }
+        let changes = diff
+            .into_iter()
+            .map(Self::try_convert_change)
+            .collect::, _>>()?;
         Ok(consensus_models::BlockDiff { block_id, changes })
     }
+
+    pub fn try_convert_change(d: Self) -> Result {
+        let substate_id = d.substate_id.parse().map_err(|err| StorageError::DataInconsistency {
+            details: format!("Invalid substate id {}: {}", d.substate_id, err),
+        })?;
+        let id = VersionedSubstateId::new(substate_id, d.version as u32);
+        let transaction_id = deserialize_hex_try_from(&d.transaction_id)?;
+        match d.change.as_str() {
+            "Up" => {
+                let state = d.state.ok_or(StorageError::DataInconsistency {
+                    details: "Block diff change type is Up but state is missing".to_string(),
+                })?;
+                Ok(consensus_models::SubstateChange::Up {
+                    id,
+                    transaction_id,
+                    substate: deserialize_json(&state)?,
+                })
+            },
+            "Down" => Ok(consensus_models::SubstateChange::Down { id, transaction_id }),
+            _ => Err(StorageError::DataInconsistency {
+                details: format!("Invalid block diff change type: {}", d.change),
+            }),
+        }
+    }
 }
diff --git a/dan_layer/state_store_sqlite/src/sql_models/transaction.rs b/dan_layer/state_store_sqlite/src/sql_models/transaction.rs
index a34ab89b6..435f72140 100644
--- a/dan_layer/state_store_sqlite/src/sql_models/transaction.rs
+++ b/dan_layer/state_store_sqlite/src/sql_models/transaction.rs
@@ -112,7 +112,7 @@ impl TryFrom for consensus_models::ExecutedTransaction {
     fn try_from(value: Transaction) -> Result {
         let rec = consensus_models::TransactionRecord::try_from(value)?;
 
-        if rec.result.is_none() {
+        if rec.execution_result.is_none() {
             return Err(StorageError::QueryError {
                 reason: format!("Transaction {} has not executed", rec.transaction.id()),
             });
diff --git a/dan_layer/state_store_sqlite/src/sql_models/transaction_pool.rs b/dan_layer/state_store_sqlite/src/sql_models/transaction_pool.rs
index 22af9f6f6..c75e92b1e 100644
--- a/dan_layer/state_store_sqlite/src/sql_models/transaction_pool.rs
+++ b/dan_layer/state_store_sqlite/src/sql_models/transaction_pool.rs
@@ -4,7 +4,7 @@
 use diesel::{Queryable, QueryableByName};
 use tari_dan_storage::{
     consensus_models,
-    consensus_models::{Decision, Evidence, LeaderFee, TransactionAtom},
+    consensus_models::{Evidence, LeaderFee},
     StorageError,
 };
 use time::PrimitiveDateTime;
@@ -18,9 +18,9 @@ pub struct TransactionPoolRecord {
     pub original_decision: String,
     pub local_decision: Option,
     pub remote_decision: Option,
-    pub evidence: String,
+    pub evidence: Option,
     pub remote_evidence: Option,
-    pub transaction_fee: i64,
+    pub transaction_fee: Option,
     pub leader_fee: Option,
     pub global_exhaust_burn: Option,
     pub stage: String,
@@ -35,16 +35,23 @@ pub struct TransactionPoolRecord {
 
 impl TransactionPoolRecord {
     pub fn try_convert(
-        mut self,
+        self,
         update: Option,
     ) -> Result {
-        let mut evidence = deserialize_json::(&self.evidence)?;
+        let mut evidence = self
+            .evidence
+            .as_deref()
+            .map(deserialize_json::)
+            .transpose()?
+            .unwrap_or_default();
         let mut pending_stage = None;
+        let mut local_decision = self.local_decision;
+        let mut is_ready = self.is_ready;
         if let Some(update) = update {
             evidence.merge(deserialize_json::(&update.evidence)?);
-            self.is_ready = update.is_ready;
+            is_ready = update.is_ready;
             pending_stage = Some(parse_from_string(&update.stage)?);
-            self.local_decision = update.local_decision;
+            local_decision = update.local_decision;
         }
 
         if let Some(ref remote_evidence) = self.remote_evidence {
@@ -68,31 +75,19 @@ impl TransactionPoolRecord {
             })
             .transpose()?;
         let original_decision = parse_from_string(&self.original_decision)?;
-        let local_decision = self.local_decision.as_deref().map(parse_from_string).transpose()?;
-        let remote_decision = self
-            .remote_decision
-            .as_deref()
-            .map(parse_from_string::)
-            .transpose()?;
-        // TODO: sucks to reimplement this logic here
-        let aggregate_decision = remote_decision
-            .filter(|d| d.is_abort())
-            .or(local_decision)
-            .unwrap_or(original_decision);
+        let remote_decision = self.remote_decision.as_deref().map(parse_from_string).transpose()?;
 
         Ok(consensus_models::TransactionPoolRecord::load(
-            TransactionAtom {
-                id: deserialize_hex_try_from(&self.transaction_id)?,
-                decision: aggregate_decision,
-                evidence,
-                transaction_fee: self.transaction_fee as u64,
-                leader_fee,
-            },
+            deserialize_hex_try_from(&self.transaction_id)?,
+            evidence,
+            self.transaction_fee.map(|f| f as u64),
+            leader_fee,
             parse_from_string(&self.stage)?,
             pending_stage,
-            local_decision,
+            original_decision,
+            local_decision.as_deref().map(parse_from_string).transpose()?,
             remote_decision,
-            self.is_ready,
+            is_ready,
         ))
     }
 }
diff --git a/dan_layer/state_store_sqlite/src/writer.rs b/dan_layer/state_store_sqlite/src/writer.rs
index 03163daea..55aa88ab0 100644
--- a/dan_layer/state_store_sqlite/src/writer.rs
+++ b/dan_layer/state_store_sqlite/src/writer.rs
@@ -14,7 +14,7 @@ use diesel::{
     SqliteConnection,
 };
 use log::*;
-use tari_dan_common_types::{optional::Optional, shard::Shard, Epoch, NodeAddressable, NodeHeight};
+use tari_dan_common_types::{shard::Shard, Epoch, NodeAddressable, NodeHeight};
 use tari_dan_storage::{
     consensus_models::{
         Block,
@@ -22,7 +22,6 @@ use tari_dan_storage::{
         BlockId,
         Decision,
         Evidence,
-        ExecutedTransaction,
         ForeignProposal,
         ForeignReceiveCounters,
         ForeignSendCounters,
@@ -281,29 +280,31 @@ impl<'tx, TAddr: NodeAddressable + 'tx> StateStoreWriteTransaction for SqliteSta
         use crate::schema::block_diffs;
 
         let block_id = serialize_hex(block_diff.block_id);
-        let values = block_diff
-            .changes
-            .iter()
-            .map(|ch| {
-                Ok((
-                    block_diffs::block_id.eq(&block_id),
-                    block_diffs::transaction_id.eq(serialize_hex(ch.transaction_id())),
-                    block_diffs::substate_id.eq(ch.versioned_substate_id().substate_id().to_string()),
-                    block_diffs::version.eq(ch.versioned_substate_id().version() as i32),
-                    block_diffs::change.eq(ch.as_change_string()),
-                    block_diffs::state.eq(ch.substate().map(serialize_json).transpose()?),
-                ))
-            })
-            .collect::, StorageError>>()?;
+        // We commit in chunks because we can hit the SQL variable limit
+        for chunk in block_diff.changes.chunks(1000) {
+            let values = chunk
+                .iter()
+                .map(|ch| {
+                    Ok((
+                        block_diffs::block_id.eq(&block_id),
+                        block_diffs::transaction_id.eq(serialize_hex(ch.transaction_id())),
+                        block_diffs::substate_id.eq(ch.versioned_substate_id().substate_id().to_string()),
+                        block_diffs::version.eq(ch.versioned_substate_id().version() as i32),
+                        block_diffs::change.eq(ch.as_change_string()),
+                        block_diffs::state.eq(ch.substate().map(serialize_json).transpose()?),
+                    ))
+                })
+                .collect::, StorageError>>()?;
 
-        diesel::insert_into(block_diffs::table)
-            .values(values)
-            .execute(self.connection())
-            .map(|_| ())
-            .map_err(|e| SqliteStorageError::DieselError {
-                operation: "block_diffs_insert",
-                source: e,
-            })?;
+            diesel::insert_into(block_diffs::table)
+                .values(values)
+                .execute(self.connection())
+                .map(|_| ())
+                .map_err(|e| SqliteStorageError::DieselError {
+                    operation: "block_diffs_insert",
+                    source: e,
+                })?;
+        }
 
         Ok(())
     }
@@ -610,7 +611,7 @@ impl<'tx, TAddr: NodeAddressable + 'tx> StateStoreWriteTransaction for SqliteSta
             transactions::filled_inputs.eq(serialize_json(transaction.filled_inputs())?),
             transactions::resolved_inputs.eq(tx_rec.resolved_inputs().map(serialize_json).transpose()?),
             transactions::resulting_outputs.eq(serialize_json(tx_rec.resulting_outputs())?),
-            transactions::result.eq(tx_rec.result().map(serialize_json).transpose()?),
+            transactions::result.eq(tx_rec.execution_result().map(serialize_json).transpose()?),
             transactions::execution_time_ms.eq(tx_rec
                 .execution_time()
                 .map(|d| i64::try_from(d.as_millis()).unwrap_or(i64::MAX))),
@@ -660,7 +661,7 @@ impl<'tx, TAddr: NodeAddressable + 'tx> StateStoreWriteTransaction for SqliteSta
         }
 
         let change_set = Changes {
-            result: transaction_rec.result().map(serialize_json).transpose()?,
+            result: transaction_rec.execution_result().map(serialize_json).transpose()?,
             filled_inputs: serialize_json(transaction.filled_inputs())?,
             resulting_outputs: serialize_json(transaction_rec.resulting_outputs())?,
             resolved_inputs: transaction_rec.resolved_inputs().map(serialize_json).transpose()?,
@@ -714,7 +715,7 @@ impl<'tx, TAddr: NodeAddressable + 'tx> StateStoreWriteTransaction for SqliteSta
                     transactions::resolved_inputs.eq(rec.resolved_inputs().map(serialize_json).transpose()?),
                     transactions::filled_inputs.eq(serialize_json(transaction.filled_inputs())?),
                     transactions::resulting_outputs.eq(serialize_json(rec.resulting_outputs())?),
-                    transactions::result.eq(rec.result().map(serialize_json).transpose()?),
+                    transactions::result.eq(rec.execution_result().map(serialize_json).transpose()?),
                 ))
             })
             .collect::, StorageError>>()?;
@@ -741,21 +742,20 @@ impl<'tx, TAddr: NodeAddressable + 'tx> StateStoreWriteTransaction for SqliteSta
             .into_iter()
             .map(|atom| {
                 // TODO(perf): 2n queries, query is slow
-                let exec = self
-                    .transaction_executions_get_pending_for_block(&atom.id, &block_id)
-                    .optional()?;
-
-                let exec = match exec {
-                    Some(exec) => exec,
-                    None => {
-                        // Executed in the mempool.
-                        // TODO: this is kinda hacky. Either the mempool should add a block_id=null execution or we
-                        // should remove mempool execution
-                        let transaction = self.transactions_get(&atom.id)?;
-                        let executed = ExecutedTransaction::try_from(transaction)?;
-                        executed.into_execution_for_block(block_id)
-                    },
-                };
+                let exec = self.transaction_executions_get_pending_for_block(&atom.id, &block_id)?;
+                // .optional()?;
+
+                // let exec = match exec {
+                //     Some(exec) => exec,
+                //     None => {
+                //         // Executed in the mempool.
+                //         // TODO: this is kinda hacky. Either the mempool should add a block_id=null execution or we
+                //         // should remove mempool execution
+                //         let transaction = self.transactions_get(&atom.id)?;
+                //         let executed = ExecutedTransaction::try_from(transaction)?;
+                //         executed.into_execution_for_block(block_id)
+                //     },
+                // };
 
                 Ok((
                     transactions::transaction_id.eq(serialize_hex(atom.id())),
@@ -813,24 +813,18 @@ impl<'tx, TAddr: NodeAddressable + 'tx> StateStoreWriteTransaction for SqliteSta
         Ok(())
     }
 
-    fn transaction_pool_insert(
+    fn transaction_pool_insert_new(
         &mut self,
-        transaction: TransactionAtom,
-        stage: TransactionPoolStage,
-        is_ready: bool,
+        transaction_id: TransactionId,
+        decision: Decision,
     ) -> Result<(), StorageError> {
         use crate::schema::transaction_pool;
 
         let insert = (
-            transaction_pool::transaction_id.eq(serialize_hex(transaction.id)),
-            transaction_pool::original_decision.eq(transaction.decision.to_string()),
-            transaction_pool::transaction_fee.eq(transaction.transaction_fee as i64),
-            transaction_pool::evidence.eq(serialize_json(&transaction.evidence)?),
-            transaction_pool::leader_fee.eq(transaction.leader_fee.as_ref().map(|f| f.fee as i64)),
-            transaction_pool::global_exhaust_burn
-                .eq(transaction.leader_fee.as_ref().map(|f| f.global_exhaust_burn as i64)),
-            transaction_pool::stage.eq(stage.to_string()),
-            transaction_pool::is_ready.eq(is_ready),
+            transaction_pool::transaction_id.eq(serialize_hex(transaction_id)),
+            transaction_pool::original_decision.eq(decision.to_string()),
+            transaction_pool::stage.eq(TransactionPoolStage::New.to_string()),
+            transaction_pool::is_ready.eq(true),
         );
 
         diesel::insert_into(transaction_pool::table)
@@ -1058,7 +1052,7 @@ impl<'tx, TAddr: NodeAddressable + 'tx> StateStoreWriteTransaction for SqliteSta
             })?;
 
         txs.into_iter()
-            .map(|tx| tx.try_convert(None).map(|t| t.into_atom()))
+            .map(|tx| tx.try_convert(None).map(|t| t.into_local_transaction_atom()))
             .collect()
     }
 
@@ -1261,29 +1255,44 @@ impl<'tx, TAddr: NodeAddressable + 'tx> StateStoreWriteTransaction for SqliteSta
     ) -> Result<(), StorageError> {
         use crate::schema::substate_locks;
 
-        let locks = locks
-            .into_iter()
-            .flat_map(|(id, locks)| {
-                locks.into_iter().map(move |lock| {
-                    (
-                        substate_locks::block_id.eq(serialize_hex(block_id)),
-                        substate_locks::substate_id.eq(id.to_string()),
-                        substate_locks::version.eq(lock.version() as i32),
-                        substate_locks::transaction_id.eq(serialize_hex(lock.transaction_id())),
-                        substate_locks::lock.eq(lock.substate_lock().to_string()),
-                        substate_locks::is_local_only.eq(lock.is_local_only()),
-                    )
+        let mut iter = locks.into_iter();
+        const CHUNK_SIZE: usize = 100;
+        // We have to break up into multiple queries because we can hit max SQL variable limit
+        loop {
+            let locks = iter
+                .by_ref()
+                .take(CHUNK_SIZE)
+                .flat_map(|(id, locks)| {
+                    locks.into_iter().map(move |lock| {
+                        (
+                            substate_locks::block_id.eq(serialize_hex(block_id)),
+                            substate_locks::substate_id.eq(id.to_string()),
+                            substate_locks::version.eq(lock.version() as i32),
+                            substate_locks::transaction_id.eq(serialize_hex(lock.transaction_id())),
+                            substate_locks::lock.eq(lock.substate_lock().to_string()),
+                            substate_locks::is_local_only.eq(lock.is_local_only()),
+                        )
+                    })
                 })
-            })
-            .collect::>();
+                .collect::>();
 
-        diesel::insert_into(substate_locks::table)
-            .values(locks)
-            .execute(self.connection())
-            .map_err(|e| SqliteStorageError::DieselError {
-                operation: "substate_locks_insert_all",
-                source: e,
-            })?;
+            let count = locks.len();
+            if count == 0 {
+                break;
+            }
+
+            diesel::insert_into(substate_locks::table)
+                .values(locks)
+                .execute(self.connection())
+                .map_err(|e| SqliteStorageError::DieselError {
+                    operation: "substate_locks_insert_all",
+                    source: e,
+                })?;
+
+            if count < CHUNK_SIZE {
+                break;
+            }
+        }
 
         Ok(())
     }
diff --git a/dan_layer/state_store_sqlite/tests/tests.rs b/dan_layer/state_store_sqlite/tests/tests.rs
index 97d2f5d41..7e36d1a21 100644
--- a/dan_layer/state_store_sqlite/tests/tests.rs
+++ b/dan_layer/state_store_sqlite/tests/tests.rs
@@ -3,7 +3,7 @@
 
 use rand::{rngs::OsRng, RngCore};
 use tari_common_types::types::FixedHash;
-use tari_dan_common_types::{Epoch, NodeHeight};
+use tari_dan_common_types::{shard::Shard, Epoch, NodeHeight};
 use tari_dan_storage::{
     consensus_models::{Block, Command, Decision, TransactionAtom, TransactionPoolStage, TransactionPoolStatusUpdate},
     StateStore,
@@ -12,6 +12,7 @@ use tari_dan_storage::{
 };
 use tari_state_store_sqlite::SqliteStateStore;
 use tari_transaction::TransactionId;
+use tari_utilities::epoch_time::EpochTime;
 
 fn create_db() -> SqliteStateStore {
     SqliteStateStore::connect(":memory:").unwrap()
@@ -30,8 +31,6 @@ fn create_tx_atom() -> TransactionAtom {
 }
 
 mod confirm_all_transitions {
-    use tari_dan_common_types::shard::Shard;
-    use tari_utilities::epoch_time::EpochTime;
 
     use super::*;
 
@@ -70,12 +69,9 @@ mod confirm_all_transitions {
         );
         block1.insert(&mut tx).unwrap();
 
-        tx.transaction_pool_insert(atom1.clone(), TransactionPoolStage::New, false)
-            .unwrap();
-        tx.transaction_pool_insert(atom2.clone(), TransactionPoolStage::New, false)
-            .unwrap();
-        tx.transaction_pool_insert(atom3.clone(), TransactionPoolStage::New, false)
-            .unwrap();
+        tx.transaction_pool_insert_new(atom1.id, atom1.decision).unwrap();
+        tx.transaction_pool_insert_new(atom2.id, atom2.decision).unwrap();
+        tx.transaction_pool_insert_new(atom3.id, atom3.decision).unwrap();
         let block_id = *block1.id();
 
         tx.transaction_pool_add_pending_update(&TransactionPoolStatusUpdate {
@@ -112,13 +108,13 @@ mod confirm_all_transitions {
         let rec = tx
             .transaction_pool_get_for_blocks(zero_block.id(), &block_id, &atom1.id)
             .unwrap();
-        assert!(rec.stage().is_new());
+        assert!(rec.committed_stage().is_new());
         assert!(rec.pending_stage().unwrap().is_local_prepared());
 
         let rec = tx
             .transaction_pool_get_for_blocks(zero_block.id(), &block_id, &atom2.id)
             .unwrap();
-        assert!(rec.stage().is_new());
+        assert!(rec.committed_stage().is_new());
         assert!(rec.pending_stage().unwrap().is_prepared());
 
         tx.transaction_pool_set_all_transitions(&zero_block.as_locked_block(), &block1.as_locked_block(), &[
@@ -129,19 +125,19 @@ mod confirm_all_transitions {
         let rec = tx
             .transaction_pool_get_for_blocks(zero_block.id(), &block_id, &atom1.id)
             .unwrap();
-        assert!(rec.stage().is_local_prepared());
+        assert!(rec.committed_stage().is_local_prepared());
         assert!(rec.pending_stage().is_none());
 
         let rec = tx
             .transaction_pool_get_for_blocks(zero_block.id(), &block_id, &atom2.id)
             .unwrap();
-        assert!(rec.stage().is_new());
+        assert!(rec.committed_stage().is_new());
         assert!(rec.pending_stage().unwrap().is_prepared());
 
         let rec = tx
             .transaction_pool_get_for_blocks(zero_block.id(), &block_id, &atom3.id)
             .unwrap();
-        assert!(rec.stage().is_prepared());
+        assert!(rec.committed_stage().is_prepared());
         assert!(rec.pending_stage().is_none());
 
         tx.rollback().unwrap();
diff --git a/dan_layer/storage/src/consensus_models/block.rs b/dan_layer/storage/src/consensus_models/block.rs
index a1da04691..ec3ed0467 100644
--- a/dan_layer/storage/src/consensus_models/block.rs
+++ b/dan_layer/storage/src/consensus_models/block.rs
@@ -606,7 +606,7 @@ impl Block {
             });
         }
 
-        // block_diff.remove(tx)?;
+        block_diff.remove(tx)?;
 
         for change in block_diff.into_changes() {
             match change {
@@ -922,7 +922,7 @@ impl Block {
         Ok(transactions
             .into_iter()
             // TODO: following two should never be None
-            .filter_map(|t_rec| t_rec.result)
+            .filter_map(|t_rec| t_rec.execution_result)
             .filter_map(|t_res| t_res.finalize.into_accept())
             .collect())
     }
diff --git a/dan_layer/storage/src/consensus_models/block_diff.rs b/dan_layer/storage/src/consensus_models/block_diff.rs
index 2eea187b6..51819a838 100644
--- a/dan_layer/storage/src/consensus_models/block_diff.rs
+++ b/dan_layer/storage/src/consensus_models/block_diff.rs
@@ -4,9 +4,11 @@
 use std::fmt::Debug;
 
 use tari_dan_common_types::committee::CommitteeInfo;
+use tari_engine_types::substate::SubstateId;
 
 use crate::{
     consensus_models::{substate_change::SubstateChange, BlockId},
+    StateStoreReadTransaction,
     StateStoreWriteTransaction,
     StorageError,
 };
@@ -67,4 +69,12 @@ impl BlockDiff {
     pub fn remove(&self, tx: &mut TTx) -> Result<(), StorageError> {
         tx.block_diffs_remove(&self.block_id)
     }
+
+    pub fn get_for_substate(
+        tx: &TTx,
+        block_id: &BlockId,
+        substate_id: &SubstateId,
+    ) -> Result {
+        tx.block_diffs_get_last_change_for_substate(block_id, substate_id)
+    }
 }
diff --git a/dan_layer/storage/src/consensus_models/command.rs b/dan_layer/storage/src/consensus_models/command.rs
index 45554b8c2..f33658aa8 100644
--- a/dan_layer/storage/src/consensus_models/command.rs
+++ b/dan_layer/storage/src/consensus_models/command.rs
@@ -3,7 +3,6 @@
 
 use std::{
     cmp::Ordering,
-    collections::HashMap,
     fmt::{Display, Formatter},
 };
 
@@ -11,8 +10,6 @@ use indexmap::{IndexMap, IndexSet};
 use serde::{Deserialize, Serialize};
 use tari_dan_common_types::SubstateAddress;
 use tari_transaction::{TransactionId, VersionedSubstateId};
-#[cfg(feature = "ts")]
-use ts_rs::TS;
 
 use super::{
     ExecutedTransaction,
@@ -29,7 +26,11 @@ use crate::{
 };
 
 #[derive(Debug, Clone, PartialEq, Eq, Serialize, Deserialize, Default)]
-#[cfg_attr(feature = "ts", derive(TS), ts(export, export_to = "../../bindings/src/types/"))]
+#[cfg_attr(
+    feature = "ts",
+    derive(ts_rs::TS),
+    ts(export, export_to = "../../bindings/src/types/")
+)]
 pub struct Evidence {
     evidence: IndexMap,
 }
@@ -42,34 +43,31 @@ impl Evidence {
     }
 
     pub fn from_inputs_and_outputs(
-        transaction_id: TransactionId,
         resolved_inputs: &[VersionedSubstateIdLockIntent],
         resulting_outputs: &[VersionedSubstateId],
     ) -> Self {
-        let mut deduped_evidence = HashMap::new();
-        deduped_evidence.extend(resolved_inputs.iter().map(|input| {
-            (input.to_substate_address(), ShardEvidence {
-                qc_ids: IndexSet::new(),
-                lock: input.lock_flag(),
+        resolved_inputs
+            .iter()
+            .map(|input| {
+                (input.to_substate_address(), ShardEvidence {
+                    qc_ids: IndexSet::new(),
+                    lock: input.lock_flag(),
+                })
             })
-        }));
-
-        let tx_reciept_address = SubstateAddress::for_transaction_receipt(transaction_id.into_receipt_address());
-        deduped_evidence.extend(
-            resulting_outputs
+            .chain(
+                resulting_outputs
                 .iter()
+                // Exclude transaction receipt from evidence since all involved shards will commit it
+                .filter(|output| !output.substate_id.is_transaction_receipt())
                 .map(|output| output.to_substate_address())
-                // Exclude transaction receipt address from evidence since all involved shards will commit it
-                .filter(|output| *output != tx_reciept_address)
                 .map(|output| {
                     (output, ShardEvidence {
                         qc_ids: IndexSet::new(),
                         lock: SubstateLockFlag::Write,
                     })
                 }),
-        );
-
-        deduped_evidence.into_iter().collect()
+            )
+            .collect()
     }
 
     pub fn all_shards_justified(&self) -> bool {
@@ -133,7 +131,11 @@ impl FromIterator<(SubstateAddress, ShardEvidence)> for Evidence {
 }
 
 #[derive(Debug, Clone, PartialEq, Eq, Serialize, Deserialize)]
-#[cfg_attr(feature = "ts", derive(TS), ts(export, export_to = "../../bindings/src/types/"))]
+#[cfg_attr(
+    feature = "ts",
+    derive(ts_rs::TS),
+    ts(export, export_to = "../../bindings/src/types/")
+)]
 pub struct ShardEvidence {
     #[cfg_attr(feature = "ts", ts(type = "Array"))]
     pub qc_ids: IndexSet,
@@ -159,7 +161,11 @@ impl ShardEvidence {
 }
 
 #[derive(Debug, Clone, PartialEq, Eq, Serialize, Deserialize)]
-#[cfg_attr(feature = "ts", derive(TS), ts(export, export_to = "../../bindings/src/types/"))]
+#[cfg_attr(
+    feature = "ts",
+    derive(ts_rs::TS),
+    ts(export, export_to = "../../bindings/src/types/")
+)]
 pub struct TransactionAtom {
     #[cfg_attr(feature = "ts", ts(type = "string"))]
     pub id: TransactionId,
@@ -171,16 +177,6 @@ pub struct TransactionAtom {
 }
 
 impl TransactionAtom {
-    pub fn deferred(transaction_id: TransactionId) -> Self {
-        Self {
-            id: transaction_id,
-            decision: Decision::Deferred,
-            evidence: Evidence::empty(),
-            transaction_fee: 0,
-            leader_fee: None,
-        }
-    }
-
     pub fn id(&self) -> &TransactionId {
         &self.id
     }
@@ -222,7 +218,11 @@ impl Display for TransactionAtom {
 }
 
 #[derive(Debug, Clone, PartialEq, Eq, Serialize, Deserialize)]
-#[cfg_attr(feature = "ts", derive(TS), ts(export, export_to = "../../bindings/src/types/"))]
+#[cfg_attr(
+    feature = "ts",
+    derive(ts_rs::TS),
+    ts(export, export_to = "../../bindings/src/types/")
+)]
 pub enum Command {
     /// Command to prepare a transaction.
     Prepare(TransactionAtom),
diff --git a/dan_layer/storage/src/consensus_models/executed_transaction.rs b/dan_layer/storage/src/consensus_models/executed_transaction.rs
index 47720e200..45ccec92e 100644
--- a/dan_layer/storage/src/consensus_models/executed_transaction.rs
+++ b/dan_layer/storage/src/consensus_models/executed_transaction.rs
@@ -164,7 +164,7 @@ impl ExecutedTransaction {
     }
 
     pub fn to_initial_evidence(&self) -> Evidence {
-        Evidence::from_inputs_and_outputs(*self.id(), &self.resolved_inputs, &self.resulting_outputs)
+        Evidence::from_inputs_and_outputs(&self.resolved_inputs, &self.resulting_outputs)
     }
 
     pub fn transaction_fee(&self) -> u64 {
@@ -239,7 +239,7 @@ impl ExecutedTransaction {
 
     pub fn get(tx: &TTx, tx_id: &TransactionId) -> Result {
         let rec = tx.transactions_get(tx_id)?;
-        if rec.result.is_none() {
+        if rec.execution_result.is_none() {
             return Err(StorageError::NotFound {
                 item: "ExecutedTransaction".to_string(),
                 key: tx_id.to_string(),
@@ -256,7 +256,7 @@ impl ExecutedTransaction {
     ) -> Result {
         // TODO(perf): consider optimising
         let rec = tx.transactions_get(tx_id)?;
-        let Some(result) = rec.result else {
+        let Some(result) = rec.execution_result else {
             return Err(StorageError::NotFound {
                 item: "ExecutedTransaction result".to_string(),
                 key: tx_id.to_string(),
@@ -292,7 +292,7 @@ impl ExecutedTransaction {
         tx_id: &TransactionId,
     ) -> Result {
         match tx.transactions_get(tx_id).optional()? {
-            Some(rec) => Ok(rec.result.is_some()),
+            Some(rec) => Ok(rec.execution_result.is_some()),
             None => Ok(false),
         }
     }
@@ -360,7 +360,7 @@ impl TryFrom for ExecutedTransaction {
 
         Ok(Self {
             transaction: value.transaction,
-            result: value.result.unwrap(),
+            result: value.execution_result.unwrap(),
             execution_time: value.execution_time.unwrap_or_default(),
             resolved_inputs,
             final_decision: value.final_decision,
diff --git a/dan_layer/storage/src/consensus_models/substate.rs b/dan_layer/storage/src/consensus_models/substate.rs
index 3837641e2..4781077d7 100644
--- a/dan_layer/storage/src/consensus_models/substate.rs
+++ b/dan_layer/storage/src/consensus_models/substate.rs
@@ -14,7 +14,7 @@ use std::{
 
 use serde::{Deserialize, Serialize};
 use tari_common_types::types::FixedHash;
-use tari_dan_common_types::{optional::Optional, shard::Shard, Epoch, NodeHeight, SubstateAddress};
+use tari_dan_common_types::{shard::Shard, Epoch, NodeHeight, SubstateAddress};
 use tari_engine_types::substate::{hash_substate, Substate, SubstateId, SubstateValue};
 use tari_transaction::{SubstateRequirement, TransactionId, VersionedSubstateId};
 
@@ -177,10 +177,9 @@ impl SubstateRecord {
 
     pub fn exists(
         tx: &TTx,
-        address: &SubstateAddress,
+        id: &VersionedSubstateId,
     ) -> Result {
-        // TODO: optimise
-        Ok(Self::get(tx, address).optional()?.is_some())
+        Self::any_exist(tx, Some(id))
     }
 
     pub fn any_exist<
diff --git a/dan_layer/storage/src/consensus_models/transaction.rs b/dan_layer/storage/src/consensus_models/transaction.rs
index d24d10f7d..69840fd13 100644
--- a/dan_layer/storage/src/consensus_models/transaction.rs
+++ b/dan_layer/storage/src/consensus_models/transaction.rs
@@ -18,7 +18,7 @@ use crate::{
 #[derive(Debug, Clone, Deserialize)]
 pub struct TransactionRecord {
     pub transaction: Transaction,
-    pub result: Option,
+    pub execution_result: Option,
     pub execution_time: Option,
     pub resulting_outputs: Vec,
     pub resolved_inputs: Option>,
@@ -31,7 +31,7 @@ impl TransactionRecord {
     pub fn new(transaction: Transaction) -> Self {
         Self {
             transaction,
-            result: None,
+            execution_result: None,
             resolved_inputs: None,
             execution_time: None,
             final_decision: None,
@@ -54,7 +54,7 @@ impl TransactionRecord {
         Self {
             transaction,
             resolved_inputs,
-            result,
+            execution_result: result,
             execution_time,
             final_decision,
             finalized_time,
@@ -79,12 +79,12 @@ impl TransactionRecord {
         self.transaction
     }
 
-    pub fn result(&self) -> Option<&ExecuteResult> {
-        self.result.as_ref()
+    pub fn execution_result(&self) -> Option<&ExecuteResult> {
+        self.execution_result.as_ref()
     }
 
     pub fn has_executed(&self) -> bool {
-        self.result.is_some()
+        self.execution_result.is_some()
     }
 
     pub fn resulting_outputs(&self) -> &[VersionedSubstateId] {
@@ -95,6 +95,18 @@ impl TransactionRecord {
         self.resolved_inputs.as_deref()
     }
 
+    pub fn execution_decision(&self) -> Option {
+        self.execution_result().map(|r| Decision::from(&r.finalize.result))
+    }
+
+    pub fn current_decision(&self) -> Decision {
+        self.final_decision
+            .or_else(|| self.abort_details.as_ref().map(|_| Decision::Abort))
+            .or_else(|| self.execution_decision())
+            // We will choose to commit a transaction unless (1) we aborted it, (2) the execution has failed
+            .unwrap_or(Decision::Commit)
+    }
+
     pub fn final_decision(&self) -> Option {
         self.final_decision
     }
@@ -112,7 +124,7 @@ impl TransactionRecord {
     }
 
     pub fn is_executed(&self) -> bool {
-        self.result.is_some()
+        self.execution_result.is_some()
     }
 
     pub fn abort_details(&self) -> Option<&String> {
@@ -125,6 +137,11 @@ impl TransactionRecord {
         self
     }
 
+    pub fn set_current_decision_to_abort>(&mut self, details: T) -> &mut Self {
+        self.abort_details = Some(details.into());
+        self
+    }
+
     pub fn into_final_result(self) -> Option {
         // TODO: This is hacky, result should be broken up into execution result, validation (mempool) result, finality
         //       result. These results are independent of each other.
@@ -132,12 +149,15 @@ impl TransactionRecord {
             if d.is_commit() {
                 // Is is expected that the result is ACCEPT.
                 // TODO: Handle (elsewhere) the edge-case where our execution failed but the committee decided to COMMIT
-                // (fetch the state transitions from a peer)
-                self.result
+                // (fetch the state transitions from a peer?)
+                self.execution_result
             } else {
                 // Only use rejected results for the transaction. If execution ACCEPTed but the final decision is ABORT,
                 // then use abort_details (which should have been set in this case).
-                let finalize_result = self.result.map(|r| r.finalize).filter(|f| !f.result.is_accept());
+                let finalize_result = self
+                    .execution_result
+                    .map(|r| r.finalize)
+                    .filter(|f| !f.result.is_accept());
                 Some(ExecuteResult {
                     finalize: finalize_result.unwrap_or_else(|| {
                         FinalizeResult::new_rejected(
@@ -234,6 +254,15 @@ impl TransactionRecord {
         Ok((recs, tx_ids))
     }
 
+    pub fn get_missing<'a, TTx: StateStoreReadTransaction, I: IntoIterator>(
+        tx: &TTx,
+        tx_ids: I,
+    ) -> Result, StorageError> {
+        // TODO(perf): optimise
+        let (_, missing) = Self::get_any(tx, tx_ids)?;
+        Ok(missing)
+    }
+
     pub fn get_paginated(
         tx: &TTx,
         limit: u64,
@@ -263,7 +292,7 @@ impl From for TransactionRecord {
 
         Self {
             transaction,
-            result: Some(result),
+            execution_result: Some(result),
             execution_time: Some(execution_time),
             resolved_inputs: Some(resolved_inputs),
             final_decision,
diff --git a/dan_layer/storage/src/consensus_models/transaction_decision.rs b/dan_layer/storage/src/consensus_models/transaction_decision.rs
index 1f2eea037..1e7b62a6a 100644
--- a/dan_layer/storage/src/consensus_models/transaction_decision.rs
+++ b/dan_layer/storage/src/consensus_models/transaction_decision.rs
@@ -19,8 +19,6 @@ pub enum Decision {
     Commit,
     /// Decision to ABORT the transaction
     Abort,
-    /// Decision has not yet been reached
-    Deferred,
 }
 
 impl Decision {
@@ -32,15 +30,10 @@ impl Decision {
         matches!(self, Decision::Abort)
     }
 
-    pub fn is_deferred(&self) -> bool {
-        matches!(self, Decision::Deferred)
-    }
-
     pub fn and(self, other: Self) -> Self {
         match self {
             Decision::Commit => other,
             Decision::Abort => Decision::Abort,
-            Decision::Deferred => Decision::Deferred,
         }
     }
 
@@ -48,7 +41,6 @@ impl Decision {
         match self {
             Decision::Commit => "Commit",
             Decision::Abort => "Abort",
-            Decision::Deferred => "Deferred",
         }
     }
 }
@@ -66,7 +58,6 @@ impl FromStr for Decision {
         match s {
             "Commit" => Ok(Decision::Commit),
             "Abort" => Ok(Decision::Abort),
-            "Deferred" => Ok(Decision::Deferred),
             _ => Err(()),
         }
     }
diff --git a/dan_layer/storage/src/consensus_models/transaction_execution.rs b/dan_layer/storage/src/consensus_models/transaction_execution.rs
index 33baefaf1..43f408c72 100644
--- a/dan_layer/storage/src/consensus_models/transaction_execution.rs
+++ b/dan_layer/storage/src/consensus_models/transaction_execution.rs
@@ -71,7 +71,7 @@ impl TransactionExecution {
     }
 
     pub fn to_initial_evidence(&self) -> Evidence {
-        Evidence::from_inputs_and_outputs(self.transaction_id, &self.resolved_inputs, &self.resulting_outputs)
+        Evidence::from_inputs_and_outputs(&self.resolved_inputs, &self.resulting_outputs)
     }
 
     pub fn transaction_fee(&self) -> u64 {
diff --git a/dan_layer/storage/src/consensus_models/transaction_pool.rs b/dan_layer/storage/src/consensus_models/transaction_pool.rs
index 9534792fb..793d3e6f3 100644
--- a/dan_layer/storage/src/consensus_models/transaction_pool.rs
+++ b/dan_layer/storage/src/consensus_models/transaction_pool.rs
@@ -18,12 +18,14 @@ use tari_transaction::TransactionId;
 
 use crate::{
     consensus_models::{
+        BlockId,
         Decision,
         Evidence,
         LeafBlock,
         LockedBlock,
         QcId,
         TransactionAtom,
+        TransactionExecution,
         TransactionPoolStatusUpdate,
         TransactionRecord,
     },
@@ -159,12 +161,13 @@ impl TransactionPool {
         Ok(exists)
     }
 
-    pub fn insert(
+    pub fn insert_new(
         &self,
         tx: &mut TStateStore::WriteTransaction<'_>,
-        transaction: TransactionAtom,
+        tx_id: TransactionId,
+        decision: Decision,
     ) -> Result<(), TransactionPoolError> {
-        tx.transaction_pool_insert(transaction, TransactionPoolStage::New, true)?;
+        tx.transaction_pool_insert_new(tx_id, decision)?;
         Ok(())
     }
 
@@ -271,9 +274,15 @@ impl TransactionPool {
     ts(export, export_to = "../../bindings/src/types/")
 )]
 pub struct TransactionPoolRecord {
-    atom: TransactionAtom,
+    #[cfg_attr(feature = "ts", ts(type = "string"))]
+    transaction_id: TransactionId,
+    evidence: Evidence,
+    #[cfg_attr(feature = "ts", ts(type = "number"))]
+    transaction_fee: u64,
+    leader_fee: Option,
     stage: TransactionPoolStage,
     pending_stage: Option,
+    original_decision: Decision,
     local_decision: Option,
     remote_decision: Option,
     is_ready: bool,
@@ -281,17 +290,25 @@ pub struct TransactionPoolRecord {
 
 impl TransactionPoolRecord {
     pub fn load(
-        transaction: TransactionAtom,
+        id: TransactionId,
+        evidence: Evidence,
+        transaction_fee: Option,
+        leader_fee: Option,
         stage: TransactionPoolStage,
         pending_stage: Option,
+        original_decision: Decision,
         local_decision: Option,
         remote_decision: Option,
         is_ready: bool,
     ) -> Self {
         Self {
-            atom: transaction,
+            transaction_id: id,
+            evidence,
+            transaction_fee: transaction_fee.unwrap_or(0),
+            leader_fee,
             stage,
             pending_stage,
+            original_decision,
             local_decision,
             remote_decision,
             is_ready,
@@ -302,12 +319,7 @@ impl TransactionPoolRecord {
         self.remote_decision()
             // Prioritize remote ABORT i.e. if accept we look at our local decision
             .filter(|d| d.is_abort())
-            .or_else(|| self.local_decision())
-            .unwrap_or(self.original_decision())
-    }
-
-    pub fn is_deferred(&self) -> bool {
-        self.current_local_decision().is_deferred()
+            .unwrap_or_else(|| self.current_local_decision())
     }
 
     pub fn current_local_decision(&self) -> Decision {
@@ -315,7 +327,7 @@ impl TransactionPoolRecord {
     }
 
     pub fn original_decision(&self) -> Decision {
-        self.atom.decision
+        self.original_decision
     }
 
     pub fn local_decision(&self) -> Option {
@@ -327,21 +339,24 @@ impl TransactionPoolRecord {
     }
 
     pub fn transaction_id(&self) -> &TransactionId {
-        &self.atom.id
+        &self.transaction_id
     }
 
-    pub fn atom(&self) -> &TransactionAtom {
-        &self.atom
+    pub fn evidence(&self) -> &Evidence {
+        &self.evidence
     }
 
-    pub fn into_atom(self) -> TransactionAtom {
-        self.atom
+    pub fn transaction_fee(&self) -> u64 {
+        self.transaction_fee
     }
 
-    pub fn stage(&self) -> TransactionPoolStage {
+    /// Returns the committed stage of the transaction. This is the stage that has been confirmed by the local shard.
+    pub fn committed_stage(&self) -> TransactionPoolStage {
         self.stage
     }
 
+    /// Returns the pending stage of the transaction. This is the stage that the transaction is current but has not been
+    /// confirmed by the local shard.
     pub fn pending_stage(&self) -> Option {
         self.pending_stage
     }
@@ -356,23 +371,37 @@ impl TransactionPoolRecord {
 
     pub fn get_final_transaction_atom(&self, leader_fee: LeaderFee) -> TransactionAtom {
         TransactionAtom {
+            id: self.transaction_id,
             decision: self.current_decision(),
+            evidence: self.evidence.clone(),
+            transaction_fee: self.transaction_fee,
             leader_fee: Some(leader_fee),
-            ..self.atom.clone()
         }
     }
 
     pub fn get_local_transaction_atom(&self) -> TransactionAtom {
         TransactionAtom {
+            id: self.transaction_id,
+            decision: self.current_local_decision(),
+            evidence: self.evidence.clone(),
+            transaction_fee: self.transaction_fee,
+            leader_fee: None,
+        }
+    }
+
+    pub fn into_local_transaction_atom(self) -> TransactionAtom {
+        TransactionAtom {
+            id: self.transaction_id,
             decision: self.current_local_decision(),
-            ..self.atom.clone()
+            evidence: self.evidence,
+            transaction_fee: self.transaction_fee,
+            leader_fee: None,
         }
     }
 
     pub fn calculate_leader_fee(&self, num_involved_shards: NonZeroU64, exhaust_divisor: u64) -> LeaderFee {
-        let transaction_fee = self.atom.transaction_fee;
-        let target_burn = transaction_fee.checked_div(exhaust_divisor).unwrap_or(0);
-        let block_fee_after_burn = transaction_fee - target_burn;
+        let target_burn = self.transaction_fee.checked_div(exhaust_divisor).unwrap_or(0);
+        let block_fee_after_burn = self.transaction_fee - target_burn;
 
         let mut leader_fee = block_fee_after_burn / num_involved_shards;
         // The extra amount that is burnt from dividing the number of shards involved
@@ -386,7 +415,7 @@ impl TransactionPoolRecord {
             // If the div floor burn accounts for 1 less fee for more than half of number of shards, and ...
             excess_remainder_burn >= num_involved_shards.get() / 2 &&
             // ... if there are enough fees to pay out an additional 1 to all shards
-            (leader_fee + 1) * num_involved_shards.get() <= transaction_fee
+            (leader_fee + 1) * num_involved_shards.get() <= self.transaction_fee
         {
             // Pay each leader 1 more
             leader_fee += 1;
@@ -415,18 +444,18 @@ impl TransactionPoolRecord {
         self
     }
 
-    pub fn set_initial_evidence(&mut self, evidence: Evidence) -> &mut Self {
-        self.atom.evidence = evidence;
+    pub fn set_evidence(&mut self, evidence: Evidence) -> &mut Self {
+        self.evidence = evidence;
         self
     }
 
     pub fn set_transaction_fee(&mut self, transaction_fee: u64) -> &mut Self {
-        self.atom.transaction_fee = transaction_fee;
+        self.transaction_fee = transaction_fee;
         self
     }
 
     pub fn add_evidence(&mut self, committee_info: &CommitteeInfo, qc_id: QcId) -> &mut Self {
-        let evidence = &mut self.atom.evidence;
+        let evidence = &mut self.evidence;
         for (address, evidence_mut) in evidence.iter_mut() {
             if committee_info.includes_substate_address(address) {
                 evidence_mut.qc_ids.insert(qc_id);
@@ -467,9 +496,9 @@ impl TransactionPoolRecord {
         let update = TransactionPoolStatusUpdate {
             block_id: block.block_id,
             block_height: block.height,
-            transaction_id: self.atom.id,
+            transaction_id: self.transaction_id,
             stage: pending_stage,
-            evidence: self.atom.evidence.clone(),
+            evidence: self.evidence.clone(),
             is_ready,
             local_decision: self.current_local_decision(),
         };
@@ -489,7 +518,7 @@ impl TransactionPoolRecord {
     ) -> Result<(), TransactionPoolError> {
         self.add_evidence(foreign_committee_info, foreign_qc_id);
         self.set_remote_decision(decision);
-        tx.transaction_pool_update(&self.atom.id, None, Some(decision), Some(&self.atom.evidence))?;
+        tx.transaction_pool_update(&self.transaction_id, None, Some(decision), Some(&self.evidence))?;
         Ok(())
     }
 
@@ -500,13 +529,13 @@ impl TransactionPoolRecord {
     ) -> Result<(), TransactionPoolError> {
         if self.local_decision.map(|d| d != decision).unwrap_or(true) {
             self.set_local_decision(decision);
-            tx.transaction_pool_update(&self.atom.id, Some(decision), None, None)?;
+            tx.transaction_pool_update(&self.transaction_id, Some(decision), None, None)?;
         }
         Ok(())
     }
 
     pub fn remove(&self, tx: &mut TTx) -> Result<(), TransactionPoolError> {
-        tx.transaction_pool_remove(&self.atom.id)?;
+        tx.transaction_pool_remove(&self.transaction_id)?;
         Ok(())
     }
 
@@ -542,12 +571,13 @@ impl TransactionPoolRecord {
         Ok(transaction)
     }
 
-    pub fn get(
+    pub fn get_execution_for_block(
+        &self,
         tx: &TTx,
-        id: &TransactionId,
-    ) -> Result {
-        let rec = tx.transaction_pool_get(id)?;
-        Ok(rec)
+        from_block_id: &BlockId,
+    ) -> Result {
+        let exec = TransactionExecution::get_pending_for_block(tx, self.transaction_id(), from_block_id)?;
+        Ok(exec)
     }
 }
 
@@ -612,13 +642,11 @@ mod tests {
 
         fn create_record_with_fee(fee: u64) -> TransactionPoolRecord {
             TransactionPoolRecord {
-                atom: TransactionAtom {
-                    id: TransactionId::new([0; 32]),
-                    decision: Decision::Commit,
-                    evidence: Default::default(),
-                    transaction_fee: fee,
-                    leader_fee: None,
-                },
+                transaction_id: TransactionId::new([0; 32]),
+                original_decision: Decision::Commit,
+                evidence: Default::default(),
+                transaction_fee: fee,
+                leader_fee: None,
                 stage: TransactionPoolStage::New,
                 pending_stage: None,
                 local_decision: None,
diff --git a/dan_layer/storage/src/state_store/mod.rs b/dan_layer/storage/src/state_store/mod.rs
index 91e26b740..d5ef26b0a 100644
--- a/dan_layer/storage/src/state_store/mod.rs
+++ b/dan_layer/storage/src/state_store/mod.rs
@@ -40,6 +40,7 @@ use crate::{
         QuorumCertificate,
         StateTransition,
         StateTransitionId,
+        SubstateChange,
         SubstateRecord,
         TransactionAtom,
         TransactionExecution,
@@ -179,6 +180,11 @@ pub trait StateStoreReadTransaction: Sized {
     fn blocks_max_height(&self) -> Result;
 
     fn block_diffs_get(&self, block_id: &BlockId) -> Result;
+    fn block_diffs_get_last_change_for_substate(
+        &self,
+        block_id: &BlockId,
+        substate_id: &SubstateId,
+    ) -> Result;
 
     fn parked_blocks_exists(&self, block_id: &BlockId) -> Result;
 
@@ -191,7 +197,6 @@ pub trait StateStoreReadTransaction: Sized {
     fn quorum_certificates_get_by_block_id(&self, block_id: &BlockId) -> Result;
 
     // -------------------------------- Transaction Pools -------------------------------- //
-    fn transaction_pool_get(&self, transaction_id: &TransactionId) -> Result;
     fn transaction_pool_get_for_blocks(
         &self,
         from_block_id: &BlockId,
@@ -351,12 +356,7 @@ pub trait StateStoreWriteTransaction {
     ) -> Result<(), StorageError>;
 
     // -------------------------------- Transaction Pool -------------------------------- //
-    fn transaction_pool_insert(
-        &mut self,
-        transaction: TransactionAtom,
-        stage: TransactionPoolStage,
-        is_ready: bool,
-    ) -> Result<(), StorageError>;
+    fn transaction_pool_insert_new(&mut self, tx_id: TransactionId, decision: Decision) -> Result<(), StorageError>;
     fn transaction_pool_set_atom(&mut self, transaction: TransactionAtom) -> Result<(), StorageError>;
     fn transaction_pool_add_pending_update(
         &mut self,
diff --git a/dan_layer/template_builtin/build.rs b/dan_layer/template_builtin/build.rs
index 6dfd477c2..6dc1265c1 100644
--- a/dan_layer/template_builtin/build.rs
+++ b/dan_layer/template_builtin/build.rs
@@ -11,7 +11,7 @@ use std::{
     process::Command,
 };
 
-const TEMPLATE_BUILTINS: &[&str] = &["templates/account", "templates/account_nfts"];
+const TEMPLATE_BUILTINS: &[&str] = &["templates/account", "templates/account_nfts", "templates/faucet"];
 
 fn main() -> Result<(), Box> {
     // Rebuild templates if abi or lib changes
diff --git a/dan_layer/template_builtin/src/lib.rs b/dan_layer/template_builtin/src/lib.rs
index 47834baf1..b965d4fc0 100644
--- a/dan_layer/template_builtin/src/lib.rs
+++ b/dan_layer/template_builtin/src/lib.rs
@@ -25,13 +25,32 @@ pub const ACCOUNT_TEMPLATE_ADDRESS: TemplateAddress = TemplateAddress::from_arra
 pub const ACCOUNT_NFT_TEMPLATE_ADDRESS: TemplateAddress = TemplateAddress::from_array([
     0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 1,
 ]);
+pub const FAUCET_TEMPLATE_ADDRESS: TemplateAddress = TemplateAddress::from_array([
+    1, 2, 3, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0,
+]);
 
 pub fn get_template_builtin(address: &TemplateAddress) -> &'static [u8] {
-    if *address == ACCOUNT_TEMPLATE_ADDRESS {
-        include_bytes!("../templates/account/account.wasm")
-    } else if *address == ACCOUNT_NFT_TEMPLATE_ADDRESS {
-        include_bytes!("../templates/account_nfts/account_nfts.wasm")
-    } else {
-        panic!("Unknown builtin template address")
-    }
+    try_get_template_builtin(address).unwrap_or_else(|| panic!("Unknown builtin template address {address}"))
+}
+
+pub fn try_get_template_builtin(address: &TemplateAddress) -> Option<&'static [u8]> {
+    all_builtin_templates().find(|(a, _)| a == address).map(|(_, b)| b)
+}
+
+pub fn all_builtin_templates() -> impl Iterator {
+    [
+        (
+            ACCOUNT_TEMPLATE_ADDRESS,
+            include_bytes!("../templates/account/account.wasm").as_slice(),
+        ),
+        (
+            ACCOUNT_NFT_TEMPLATE_ADDRESS,
+            include_bytes!("../templates/account_nfts/account_nfts.wasm").as_slice(),
+        ),
+        (
+            FAUCET_TEMPLATE_ADDRESS,
+            include_bytes!("../templates/faucet/faucet.wasm").as_slice(),
+        ),
+    ]
+    .into_iter()
 }
diff --git a/dan_layer/template_builtin/templates/.gitignore b/dan_layer/template_builtin/templates/.gitignore
index 2568bd685..ea5a805b1 100644
--- a/dan_layer/template_builtin/templates/.gitignore
+++ b/dan_layer/template_builtin/templates/.gitignore
@@ -1,3 +1,4 @@
 # Ignore the generated wasms
 account/account.wasm
-account_nfts/account_nfts.wasm
\ No newline at end of file
+account_nfts/account_nfts.wasm
+faucet/faucet.wasm
diff --git a/dan_layer/template_builtin/templates/faucet/Cargo.toml b/dan_layer/template_builtin/templates/faucet/Cargo.toml
new file mode 100644
index 000000000..bf974d68d
--- /dev/null
+++ b/dan_layer/template_builtin/templates/faucet/Cargo.toml
@@ -0,0 +1,20 @@
+[workspace]
+[package]
+name = "faucet"
+version = "0.1.0"
+edition = "2021"
+
+# See more keys and their definitions at https://doc.rust-lang.org/cargo/reference/manifest.html
+
+[dependencies]
+tari_template_lib = { path = "../../../../dan_layer/template_lib" }
+
+[profile.release]
+opt-level = 's'     # Optimize for size.
+lto = true          # Enable Link Time Optimization.
+codegen-units = 1   # Reduce number of codegen units to increase optimizations.
+panic = 'abort'     # Abort on panic.
+strip = "debuginfo" # Strip debug info.
+
+[lib]
+crate-type = ["cdylib", "lib"]
\ No newline at end of file
diff --git a/dan_layer/template_builtin/templates/faucet/src/lib.rs b/dan_layer/template_builtin/templates/faucet/src/lib.rs
new file mode 100644
index 000000000..b2987e472
--- /dev/null
+++ b/dan_layer/template_builtin/templates/faucet/src/lib.rs
@@ -0,0 +1,34 @@
+//   Copyright 2024 The Tari Project
+//   SPDX-License-Identifier: BSD-3-Clause
+
+use tari_template_lib::prelude::*;
+
+#[template]
+mod template {
+    use tari_template_lib::crypto::BalanceProofSignature;
+
+    use super::*;
+
+    pub struct XtrFaucet {
+        vault: Vault,
+    }
+
+    impl XtrFaucet {
+        pub fn take(&self, amount: Amount) -> Bucket {
+            debug!("Withdrawing {} coins from faucet", amount);
+            self.vault.withdraw(amount)
+        }
+
+        pub fn take_confidential(
+            &self,
+            amount: Amount,
+            output: ConfidentialOutputStatement,
+            balance_proof: BalanceProofSignature,
+        ) -> Bucket {
+            // Withdraws revealed funds into the given confidential output
+            let proof = ConfidentialWithdrawProof::revealed_to_confidential(amount, output, balance_proof);
+            debug!("Withdrawing {} coins from faucet into confidential output", amount);
+            self.vault.withdraw_confidential(proof)
+        }
+    }
+}
diff --git a/dan_layer/template_lib/src/auth/access_rules.rs b/dan_layer/template_lib/src/auth/access_rules.rs
index eda246815..498b6c677 100644
--- a/dan_layer/template_lib/src/auth/access_rules.rs
+++ b/dan_layer/template_lib/src/auth/access_rules.rs
@@ -9,7 +9,7 @@ use ts_rs::TS;
 use crate::models::{ComponentAddress, NonFungibleAddress, ResourceAddress, TemplateAddress};
 
 /// Represents the types of possible access control rules over a component method or resource
-#[derive(Debug, Clone, Serialize, Deserialize)]
+#[derive(Debug, Clone, Serialize, Deserialize, PartialEq, Eq)]
 #[cfg_attr(feature = "ts", derive(TS), ts(export, export_to = "../../bindings/src/types/"))]
 pub enum AccessRule {
     AllowAll,
@@ -40,7 +40,7 @@ impl AccessRule {
 }
 
 /// An enum that represents the possible ways to restrict access to components or resources
-#[derive(Debug, Clone, Serialize, Deserialize)]
+#[derive(Debug, Clone, Serialize, Deserialize, PartialEq, Eq)]
 #[cfg_attr(feature = "ts", derive(TS), ts(export, export_to = "../../bindings/src/types/"))]
 pub enum RestrictedAccessRule {
     Require(RequireRule),
@@ -59,7 +59,7 @@ impl RestrictedAccessRule {
 }
 
 /// Specifies a requirement for a [RequireRule].
-#[derive(Debug, Clone, Serialize, Deserialize)]
+#[derive(Debug, Clone, Serialize, Deserialize, PartialEq, Eq)]
 #[cfg_attr(feature = "ts", derive(TS), ts(export, export_to = "../../bindings/src/types/"))]
 pub enum RuleRequirement {
     /// Requires ownership of a specific resource
@@ -97,7 +97,7 @@ impl From for RuleRequirement {
 }
 
 /// An enum that represents the possible ways to require access to components or resources
-#[derive(Debug, Clone, Serialize, Deserialize)]
+#[derive(Debug, Clone, Serialize, Deserialize, PartialEq, Eq)]
 #[cfg_attr(feature = "ts", derive(TS), ts(export, export_to = "../../bindings/src/types/"))]
 pub enum RequireRule {
     Require(RuleRequirement),
@@ -106,7 +106,7 @@ pub enum RequireRule {
 }
 
 /// Information needed to specify access rules to methods of a component
-#[derive(Debug, Clone, Serialize, Deserialize)]
+#[derive(Debug, Clone, Serialize, Deserialize, PartialEq, Eq)]
 #[cfg_attr(feature = "ts", derive(TS), ts(export, export_to = "../../bindings/src/types/"))]
 pub struct ComponentAccessRules {
     #[cfg_attr(feature = "ts", ts(type = "Record"))]
diff --git a/dan_layer/template_lib/src/constants.rs b/dan_layer/template_lib/src/constants.rs
index b8d8d06af..5d524341b 100644
--- a/dan_layer/template_lib/src/constants.rs
+++ b/dan_layer/template_lib/src/constants.rs
@@ -3,7 +3,7 @@
 
 //! A collection of convenient constant values
 
-use crate::models::{ObjectKey, ResourceAddress};
+use crate::models::{ComponentAddress, ObjectKey, ResourceAddress, VaultId};
 
 // TODO: This is set pretty arbitrarily.
 
@@ -19,3 +19,13 @@ pub const CONFIDENTIAL_TARI_RESOURCE_ADDRESS: ResourceAddress =
 
 /// Shorthand version of the `CONFIDENTIAL_TARI_RESOURCE_ADDRESS` constant
 pub const XTR: ResourceAddress = CONFIDENTIAL_TARI_RESOURCE_ADDRESS;
+
+/// Address of testnet faucet component
+pub const XTR_FAUCET_COMPONENT_ADDRESS: ComponentAddress = ComponentAddress::new(ObjectKey::from_array([
+    1, 2, 3, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0,
+]));
+
+/// Address of the faucet vault
+pub const XTR_FAUCET_VAULT_ADDRESS: VaultId = VaultId::new(ObjectKey::from_array([
+    1, 2, 3, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 1,
+]));
diff --git a/dan_layer/template_lib/src/models/confidential_proof.rs b/dan_layer/template_lib/src/models/confidential_proof.rs
index e1deaba1e..e1f273dcd 100644
--- a/dan_layer/template_lib/src/models/confidential_proof.rs
+++ b/dan_layer/template_lib/src/models/confidential_proof.rs
@@ -159,6 +159,19 @@ impl ConfidentialWithdrawProof {
         }
     }
 
+    pub fn revealed_to_confidential>(
+        input_revealed_amount: T,
+        output_proof: ConfidentialOutputStatement,
+        balance_proof: BalanceProofSignature,
+    ) -> Self {
+        Self {
+            inputs: vec![],
+            input_revealed_amount: input_revealed_amount.into(),
+            output_proof,
+            balance_proof,
+        }
+    }
+
     pub fn revealed_input_amount(&self) -> Amount {
         self.input_revealed_amount
     }
diff --git a/dan_layer/template_test_tooling/src/lib.rs b/dan_layer/template_test_tooling/src/lib.rs
index 617df7741..7dcb5f8b8 100644
--- a/dan_layer/template_test_tooling/src/lib.rs
+++ b/dan_layer/template_test_tooling/src/lib.rs
@@ -6,6 +6,7 @@ mod read_only_state_store;
 pub mod support;
 mod template_test;
 mod track_calls;
+
 pub use package_builder::Package;
 pub use template_test::{test_faucet_component, SubstateType, TemplateTest};
 
diff --git a/dan_layer/template_test_tooling/src/template_test.rs b/dan_layer/template_test_tooling/src/template_test.rs
index b6cfd0b60..3c485dd8e 100644
--- a/dan_layer/template_test_tooling/src/template_test.rs
+++ b/dan_layer/template_test_tooling/src/template_test.rs
@@ -20,11 +20,11 @@ use tari_crypto::{
 };
 use tari_dan_common_types::crypto::create_key_pair_from_seed;
 use tari_dan_engine::{
-    bootstrap_state,
     fees::{FeeModule, FeeTable},
     runtime::{AuthParams, RuntimeModule},
     state_store::{
         memory::{MemoryStateStore, MemoryWriteTransaction},
+        new_memory_store,
         AtomicDb,
         StateWriter,
     },
@@ -95,11 +95,11 @@ impl TemplateTest {
         let package = builder.build();
 
         let test = Self::from_package(package);
-        test.bootstrap_faucet(100_000.into());
+        test.bootstrap_state(100_000.into());
         test
     }
 
-    pub fn from_package(package: Package) -> Self {
+    fn from_package(package: Package) -> Self {
         let secret_key =
             RistrettoSecretKey::from_hex("8a39567509bf2f7074e5fd153337405292cdc9f574947313b62fbf8fb4cffc02").unwrap();
 
@@ -116,13 +116,6 @@ impl TemplateTest {
             }
         }
 
-        let state_store = MemoryStateStore::default();
-        {
-            let mut tx = state_store.write_access().unwrap();
-            bootstrap_state(&mut tx).unwrap();
-            tx.commit().unwrap();
-        }
-
         let mut virtual_substates = VirtualSubstates::new();
         virtual_substates.insert(VirtualSubstateId::CurrentEpoch, VirtualSubstate::CurrentEpoch(0));
 
@@ -133,7 +126,7 @@ impl TemplateTest {
             secret_key,
             name_to_template,
             last_outputs: HashSet::new(),
-            state_store,
+            state_store: new_memory_store(),
             virtual_substates,
             enable_fees: false,
             fee_table: FeeTable {
@@ -146,7 +139,7 @@ impl TemplateTest {
         }
     }
 
-    pub fn bootstrap_faucet(&self, amount: Amount) {
+    pub fn bootstrap_state(&self, amount: Amount) {
         let mut tx = self.state_store.write_access().unwrap();
         Self::initial_tari_faucet_supply(
             &mut tx,
@@ -480,7 +473,6 @@ impl TemplateTest {
 
         {
             let access = self.state_store.read_access().unwrap();
-
             transaction.filled_inputs_mut().extend(
                 access
                     .iter_raw()
diff --git a/dan_layer/transaction/src/substate.rs b/dan_layer/transaction/src/substate.rs
index 8d674831b..58ae6a553 100644
--- a/dan_layer/transaction/src/substate.rs
+++ b/dan_layer/transaction/src/substate.rs
@@ -27,9 +27,16 @@ impl SubstateRequirement {
         }
     }
 
-    pub fn with_version(address: SubstateId, version: u32) -> Self {
+    pub fn unversioned>(id: T) -> Self {
         Self {
-            substate_id: address,
+            substate_id: id.into(),
+            version: None,
+        }
+    }
+
+    pub fn with_version>(id: T, version: u32) -> Self {
+        Self {
+            substate_id: id.into(),
             version: Some(version),
         }
     }
diff --git a/dan_layer/wallet/sdk/src/apis/substate.rs b/dan_layer/wallet/sdk/src/apis/substate.rs
index d30c4c5d1..ecf3f12f0 100644
--- a/dan_layer/wallet/sdk/src/apis/substate.rs
+++ b/dan_layer/wallet/sdk/src/apis/substate.rs
@@ -14,7 +14,7 @@ use tari_engine_types::{
     transaction_receipt::TransactionReceiptAddress,
     TemplateAddress,
 };
-use tari_transaction::TransactionId;
+use tari_transaction::{SubstateRequirement, TransactionId};
 
 use crate::{
     models::{SubstateModel, VersionedSubstateId},
@@ -79,7 +79,7 @@ where
     pub async fn locate_dependent_substates(
         &self,
         parents: &[SubstateId],
-    ) -> Result, SubstateApiError> {
+    ) -> Result, SubstateApiError> {
         let mut substate_addresses = HashMap::with_capacity(parents.len());
 
         for parent_addr in parents {
@@ -151,10 +151,7 @@ where
 
         Ok(substate_addresses
             .into_iter()
-            .map(|(address, version)| VersionedSubstateId {
-                substate_id: address,
-                version,
-            })
+            .map(|(address, version)| SubstateRequirement::with_version(address, version))
             .collect())
     }
 
diff --git a/dan_layer/wallet/sdk/src/apis/transaction.rs b/dan_layer/wallet/sdk/src/apis/transaction.rs
index e24f66941..8f5fc3ab3 100644
--- a/dan_layer/wallet/sdk/src/apis/transaction.rs
+++ b/dan_layer/wallet/sdk/src/apis/transaction.rs
@@ -333,11 +333,22 @@ where
             }
         }
 
-        for (addr, substate) in rest {
+        for (id, substate) in rest {
+            if id.is_vault() {
+                if let Some(vault) = tx.vaults_get(id).optional()? {
+                    // The vault for an account may have been mutated without mutating the account component
+                    // If we know this vault, set it as a child of the account
+                    tx.substates_upsert_child(transaction_id, vault.account_address, VersionedSubstateId {
+                        substate_id: id.clone(),
+                        version: substate.version(),
+                    })?;
+                    continue;
+                }
+            }
             tx.substates_upsert_root(
                 transaction_id,
                 VersionedSubstateId {
-                    substate_id: addr.clone(),
+                    substate_id: id.clone(),
                     version: substate.version(),
                 },
                 None,
diff --git a/integration_tests/src/wallet_daemon_cli.rs b/integration_tests/src/wallet_daemon_cli.rs
index 45fa27227..ab02e27a4 100644
--- a/integration_tests/src/wallet_daemon_cli.rs
+++ b/integration_tests/src/wallet_daemon_cli.rs
@@ -699,7 +699,7 @@ pub async fn confidential_transfer(
         resource_address: CONFIDENTIAL_TARI_RESOURCE_ADDRESS,
         proof_from_badge_resource: None,
         dry_run: false,
-        input_selection: ConfidentialTransferInputSelection::ConfidentialOnly,
+        input_selection: ConfidentialTransferInputSelection::PreferRevealed,
         output_to_revealed: false,
     };
 
diff --git a/integration_tests/tests/features/claim_fees.feature b/integration_tests/tests/features/claim_fees.feature.ignore
similarity index 97%
rename from integration_tests/tests/features/claim_fees.feature
rename to integration_tests/tests/features/claim_fees.feature.ignore
index fb183cc95..34d1c4448 100644
--- a/integration_tests/tests/features/claim_fees.feature
+++ b/integration_tests/tests/features/claim_fees.feature.ignore
@@ -1,5 +1,8 @@
 # Copyright 2022 The Tari Project
 # SPDX-License-Identifier: BSD-3-Clause
+
+# TODO: This feature is currently ignored because the fee claiming needs to be reworked
+
 @claim_fees
 Feature: Claim Fees
 
diff --git a/integration_tests/tests/features/transfer.feature b/integration_tests/tests/features/transfer.feature
index 16e234489..7e4f02752 100644
--- a/integration_tests/tests/features/transfer.feature
+++ b/integration_tests/tests/features/transfer.feature
@@ -56,14 +56,14 @@ Feature: Account transfers
     # Fund the sender account with faucet tokens
     When I print the cucumber world
     When I submit a transaction manifest via wallet daemon WALLET_D with inputs "FAUCET, ACCOUNT" named "TX1"
-    ```
-    let faucet = global!["FAUCET/components/TestFaucet"];
-    let mut acc1 = global!["ACCOUNT/components/Account"];
+  ```
+  let faucet = global!["FAUCET/components/TestFaucet"];
+  let mut acc1 = global!["ACCOUNT/components/Account"];
 
-    // get tokens from the faucet
-    let faucet_bucket = faucet.take_free_coins();
-    acc1.deposit(faucet_bucket);
-    ```
+  // get tokens from the faucet
+  let faucet_bucket = faucet.take_free_coins();
+  acc1.deposit(faucet_bucket);
+  ```
 
     # Wait for the wallet daemon account monitor to update the sender account information
 
@@ -76,11 +76,11 @@ Feature: Account transfers
 
     # Check that ACC_2 component was created and has funds
     When I submit a transaction manifest via wallet daemon WALLET_D with inputs "FAUCET, TRANSFER" named "TX2"
-    ```
-    let mut acc2 = global!["TRANSFER/components/Account"];
-    let faucet_resource = global!["FAUCET/resources/0"];
-    acc2.balance(faucet_resource);
-    ```
+  ```
+  let mut acc2 = global!["TRANSFER/components/Account"];
+  let faucet_resource = global!["FAUCET/resources/0"];
+  acc2.balance(faucet_resource);
+  ```
     When I print the cucumber world
 
   @serial
@@ -137,14 +137,14 @@ Feature: Account transfers
     # Fund the sender account with faucet tokens
     When I print the cucumber world
     When I submit a transaction manifest via wallet daemon WALLET_D with inputs "FAUCET, ACCOUNT_1" named "TX1"
-    ```
-    let faucet = global!["FAUCET/components/TestFaucet"];
-    let mut acc1 = global!["ACCOUNT_1/components/Account"];
+  ```
+  let faucet = global!["FAUCET/components/TestFaucet"];
+  let mut acc1 = global!["ACCOUNT_1/components/Account"];
 
-    // get tokens from the faucet
-    let faucet_bucket = faucet.take_free_coins();
-    acc1.deposit(faucet_bucket);
-    ```
+  // get tokens from the faucet
+  let faucet_bucket = faucet.take_free_coins();
+  acc1.deposit(faucet_bucket);
+  ```
 
     When I wait 3 seconds
 
@@ -153,11 +153,11 @@ Feature: Account transfers
 
     # Check that ACCOUNT_2 component now has funds
     When I submit a transaction manifest via wallet daemon WALLET_D with inputs "FAUCET, ACCOUNT_2" named "TX2"
-    ```
-    let mut acc2 = global!["ACCOUNT_2/components/Account"];
-    let faucet_resource = global!["FAUCET/resources/0"];
-    acc2.balance(faucet_resource);
-    ```
+  ```
+  let mut acc2 = global!["ACCOUNT_2/components/Account"];
+  let faucet_resource = global!["FAUCET/resources/0"];
+  acc2.balance(faucet_resource);
+  ```
     When I print the cucumber world
 
   @serial
diff --git a/networking/rpc_framework/src/client/mod.rs b/networking/rpc_framework/src/client/mod.rs
index 9d241e12c..aac9e8c91 100644
--- a/networking/rpc_framework/src/client/mod.rs
+++ b/networking/rpc_framework/src/client/mod.rs
@@ -466,9 +466,9 @@ where TSubstream: AsyncRead + AsyncWrite + Unpin + Send
                 _ = &mut self.shutdown_signal => {
                     break;
                 },
-                Some(server_msg) = self.framed.next() => {
+                server_msg = self.framed.next() => {
                     match server_msg {
-                        Ok(msg) => {
+                        Some(Ok(msg)) => {
                             if let Err(err) = self.handle_interrupt_server_message(msg) {
                                 #[cfg(feature = "metrics")]
                                 metrics::handshake_errors(&self.peer_id, &self.protocol_id).inc();
@@ -476,10 +476,14 @@ where TSubstream: AsyncRead + AsyncWrite + Unpin + Send
                                 break;
                             }
                         },
-                        Err(err) => {
+                        Some(Err(err)) => {
                             debug!(target: LOG_TARGET, "(peer={}) IO Error: {}. Worker is terminating.", self.peer_id, err);
                             break;
                         },
+                        None => {
+                            debug!(target: LOG_TARGET, "(peer={}) Substream closed. Worker is terminating.", self.peer_id);
+                            break;
+                        }
                     }
                 },
                 req = self.request_rx.recv() => {
diff --git a/utilities/tariswap_test_bench/src/accounts.rs b/utilities/tariswap_test_bench/src/accounts.rs
index 265db1a7c..2da601092 100644
--- a/utilities/tariswap_test_bench/src/accounts.rs
+++ b/utilities/tariswap_test_bench/src/accounts.rs
@@ -7,8 +7,13 @@ use tari_crypto::{keys::PublicKey as _, ristretto::RistrettoPublicKey};
 use tari_dan_wallet_sdk::{apis::key_manager::TRANSACTION_BRANCH, models::Account};
 use tari_engine_types::component::new_component_address_from_public_key;
 use tari_template_builtin::ACCOUNT_TEMPLATE_ADDRESS;
-use tari_template_lib::{args, models::Amount};
-use tari_transaction::{Instruction, Transaction};
+use tari_template_lib::{
+    args,
+    constants::{XTR, XTR_FAUCET_COMPONENT_ADDRESS, XTR_FAUCET_VAULT_ADDRESS},
+    models::Amount,
+    resource::ResourceType,
+};
+use tari_transaction::{SubstateRequirement, Transaction};
 
 use crate::{faucet::Faucet, runner::Runner};
 
@@ -22,22 +27,31 @@ impl Runner {
         let transaction = Transaction::builder()
             .with_fee_instructions_builder(|builder| {
                 builder
-                    .add_instruction(Instruction::CreateFreeTestCoins {
-                        revealed_amount: 1_000_000_000.into(),
-                        output: None,
-                    })
+                    .call_method(XTR_FAUCET_COMPONENT_ADDRESS, "take", args![Amount(1_000_000_000)])
                     .put_last_instruction_output_on_workspace("coins")
                     .create_account_with_bucket(owner_public_key, "coins")
                     .call_method(account_address, "pay_fee", args![Amount(1000)])
             })
+            .with_inputs([
+                SubstateRequirement::unversioned(XTR_FAUCET_COMPONENT_ADDRESS),
+                SubstateRequirement::unversioned(XTR_FAUCET_VAULT_ADDRESS),
+            ])
             .sign(&key.key)
             .build();
 
         let finalize = self.submit_transaction_and_wait(transaction).await?;
         let diff = finalize.result.accept().unwrap();
         let (account, _) = diff.up_iter().find(|(addr, _)| addr.is_component()).unwrap();
+        let (vault, _) = diff.up_iter().find(|(addr, _)| addr.is_vault()).unwrap();
 
         self.sdk.accounts_api().add_account(None, account, 0, true)?;
+        self.sdk.accounts_api().add_vault(
+            account.clone(),
+            vault.clone(),
+            XTR,
+            ResourceType::Confidential,
+            Some("XTR".to_string()),
+        )?;
         let account = self.sdk.accounts_api().get_account_by_address(account)?;
 
         Ok(account)
@@ -65,7 +79,10 @@ impl Runner {
         for owner in &owners {
             builder = builder.create_account(RistrettoPublicKey::from_secret_key(&owner.key));
         }
-        let transaction = builder.sign(&key.key).build();
+        let transaction = builder
+            .with_inputs([SubstateRequirement::unversioned(pay_fee_account.address.clone())])
+            .sign(&key.key)
+            .build();
 
         let finalize = self.submit_transaction_and_wait(transaction).await?;
         let diff = finalize.result.accept().unwrap();
@@ -113,17 +130,20 @@ impl Runner {
                 .call_method(account.address.as_component_address().unwrap(), "deposit", args![
                     Workspace("faucet")
                 ])
-                .add_instruction(Instruction::CreateFreeTestCoins {
-                    revealed_amount: 1_000_000.into(),
-                    output: None,
-                })
+                .call_method(XTR_FAUCET_COMPONENT_ADDRESS, "take", args![Amount(1_000_000)])
                 .put_last_instruction_output_on_workspace("xtr")
                 .call_method(account.address.as_component_address().unwrap(), "deposit", args![
                     Workspace("xtr")
                 ]);
         }
 
-        let transaction = builder.sign(&key.key).build();
+        let transaction = builder
+            .with_inputs([
+                SubstateRequirement::unversioned(faucet.component_address),
+                SubstateRequirement::unversioned(faucet.resource_address),
+            ])
+            .sign(&key.key)
+            .build();
 
         self.submit_transaction_and_wait(transaction).await?;
 
diff --git a/utilities/tariswap_test_bench/src/cli.rs b/utilities/tariswap_test_bench/src/cli.rs
index 1874ca602..af79e98b5 100644
--- a/utilities/tariswap_test_bench/src/cli.rs
+++ b/utilities/tariswap_test_bench/src/cli.rs
@@ -4,6 +4,7 @@
 use std::path::PathBuf;
 
 use clap::{Args, Parser, Subcommand};
+use tari_engine_types::TemplateAddress;
 use url::Url;
 
 #[derive(Parser, Debug)]
@@ -35,6 +36,8 @@ pub struct CommonArgs {
     pub indexer_url: Url,
     #[clap(long, short = 'v', alias = "vn", default_value = "http://localhost:18200/json_rpc")]
     pub validator_node_url: Url,
+    #[clap(long, short = 't', alias = "faucet")]
+    pub faucet_template: Option,
 }
 
 #[derive(Subcommand, Debug)]
diff --git a/utilities/tariswap_test_bench/src/faucet.rs b/utilities/tariswap_test_bench/src/faucet.rs
index fdb8a79f0..78fdcf58a 100644
--- a/utilities/tariswap_test_bench/src/faucet.rs
+++ b/utilities/tariswap_test_bench/src/faucet.rs
@@ -21,7 +21,7 @@ impl Runner {
 
         let transaction = Transaction::builder()
             .fee_transaction_pay_from_component(in_account.address.as_component_address().unwrap(), Amount(1000))
-            .call_function(self.faucet_template.address, "mint", args![Amount(1_000_000_000)])
+            .call_function(self._faucet_template.address, "mint", args![Amount(1_000_000_000)])
             .sign(&key.key)
             .build();
 
diff --git a/utilities/tariswap_test_bench/src/runner.rs b/utilities/tariswap_test_bench/src/runner.rs
index 7c81e4558..c9301b54c 100644
--- a/utilities/tariswap_test_bench/src/runner.rs
+++ b/utilities/tariswap_test_bench/src/runner.rs
@@ -19,7 +19,7 @@ type WalletSdk = DanWalletSdk
 pub struct Runner {
     pub(crate) sdk: WalletSdk,
     pub(crate) _cli: CommonArgs,
-    pub(crate) faucet_template: TemplateMetadata,
+    pub(crate) _faucet_template: TemplateMetadata,
     pub(crate) tariswap_template: TemplateMetadata,
     pub(crate) stats: Stats,
 }
@@ -27,11 +27,11 @@ pub struct Runner {
 impl Runner {
     pub async fn init(cli: CommonArgs) -> anyhow::Result {
         let sdk = initialize_wallet_sdk(&cli.db_path, cli.indexer_url.clone())?;
-        let (faucet_template, tariswap_template) = get_templates(&cli.validator_node_url).await?;
+        let (faucet_template, tariswap_template) = get_templates(&cli).await?;
         Ok(Self {
             sdk,
             _cli: cli,
-            faucet_template,
+            _faucet_template: faucet_template,
             tariswap_template,
             stats: Stats::default(),
         })
@@ -44,6 +44,7 @@ impl Runner {
     }
 
     pub async fn submit_transaction(&mut self, transaction: Transaction) -> anyhow::Result {
+        // TODO: remove the filled inputs here and allow consensus to figure out input versions
         let inputs = transaction
             .to_referenced_substates()?
             .into_iter()
diff --git a/utilities/tariswap_test_bench/src/templates.rs b/utilities/tariswap_test_bench/src/templates.rs
index 2f0596b3f..26287cfd9 100644
--- a/utilities/tariswap_test_bench/src/templates.rs
+++ b/utilities/tariswap_test_bench/src/templates.rs
@@ -2,24 +2,33 @@
 //   SPDX-License-Identifier: BSD-3-Clause
 
 use tari_validator_node_client::types::{GetTemplatesRequest, GetTemplatesResponse, TemplateMetadata};
-use url::Url;
 
-pub async fn get_templates(vn_url: &Url) -> anyhow::Result<(TemplateMetadata, TemplateMetadata)> {
-    let mut client = tari_validator_node_client::ValidatorNodeClient::connect(vn_url.clone())?;
+use crate::cli::CommonArgs;
+
+pub async fn get_templates(cli: &CommonArgs) -> anyhow::Result<(TemplateMetadata, TemplateMetadata)> {
+    let mut client = tari_validator_node_client::ValidatorNodeClient::connect(cli.validator_node_url.clone())?;
     let GetTemplatesResponse { templates } = client.get_active_templates(GetTemplatesRequest { limit: 100 }).await?;
 
+    let tariswap = if let Some(template_address) = cli.faucet_template {
+        templates
+            .iter()
+            .find(|t| t.address == template_address)
+            .ok_or(anyhow::anyhow!("Tariswap template not found"))?
+            .clone()
+    } else {
+        templates
+            .iter()
+            .find(|t| t.name == "TariSwapPool")
+            .ok_or(anyhow::anyhow!("Tariswap template not found"))?
+            .clone()
+    };
+
     let faucet = templates
         .iter()
-        .find(|t| t.name.to_ascii_lowercase().contains("faucet"))
+        .find(|t| t.name == "TestFaucet")
         .ok_or(anyhow::anyhow!("Faucet template not found"))?
         .clone();
 
-    let tariswap = templates
-        .iter()
-        .find(|t| t.name.to_ascii_lowercase().contains("tariswap"))
-        .ok_or(anyhow::anyhow!("Tariswap template not found"))?
-        .clone();
-
     log::info!("Faucet template: {}", faucet.address);
     log::info!("Tariswap template: {}", tariswap.address);
 
diff --git a/utilities/tariswap_test_bench/templates/faucet/Cargo.toml b/utilities/tariswap_test_bench/templates/faucet/Cargo.toml
new file mode 100644
index 000000000..bf974d68d
--- /dev/null
+++ b/utilities/tariswap_test_bench/templates/faucet/Cargo.toml
@@ -0,0 +1,20 @@
+[workspace]
+[package]
+name = "faucet"
+version = "0.1.0"
+edition = "2021"
+
+# See more keys and their definitions at https://doc.rust-lang.org/cargo/reference/manifest.html
+
+[dependencies]
+tari_template_lib = { path = "../../../../dan_layer/template_lib" }
+
+[profile.release]
+opt-level = 's'     # Optimize for size.
+lto = true          # Enable Link Time Optimization.
+codegen-units = 1   # Reduce number of codegen units to increase optimizations.
+panic = 'abort'     # Abort on panic.
+strip = "debuginfo" # Strip debug info.
+
+[lib]
+crate-type = ["cdylib", "lib"]
\ No newline at end of file
diff --git a/utilities/tariswap_test_bench/templates/faucet/src/lib.rs b/utilities/tariswap_test_bench/templates/faucet/src/lib.rs
new file mode 100644
index 000000000..da5b4e92f
--- /dev/null
+++ b/utilities/tariswap_test_bench/templates/faucet/src/lib.rs
@@ -0,0 +1,55 @@
+//   Copyright 2022. The Tari Project
+//
+//   Redistribution and use in source and binary forms, with or without modification, are permitted provided that the
+//   following conditions are met:
+//
+//   1. Redistributions of source code must retain the above copyright notice, this list of conditions and the following
+//   disclaimer.
+//
+//   2. Redistributions in binary form must reproduce the above copyright notice, this list of conditions and the
+//   following disclaimer in the documentation and/or other materials provided with the distribution.
+//
+//   3. Neither the name of the copyright holder nor the names of its contributors may be used to endorse or promote
+//   products derived from this software without specific prior written permission.
+//
+//   THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS" AND ANY EXPRESS OR IMPLIED WARRANTIES,
+//   INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
+//   DISCLAIMED. IN NO EVENT SHALL THE COPYRIGHT HOLDER OR CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL,
+//   SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR
+//   SERVICES; LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY,
+//   WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE
+//   USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+
+use tari_template_lib::prelude::*;
+
+#[template]
+mod template {
+    use super::*;
+
+    pub struct TestFaucet {
+        vault: Vault,
+    }
+
+    impl TestFaucet {
+        pub fn mint(initial_supply: Amount) -> Component {
+            let coins = ResourceBuilder::fungible()
+                .with_token_symbol("FAUCET")
+                .initial_supply(initial_supply);
+
+            Component::new(Self {
+                vault: Vault::from_bucket(coins),
+            })
+            .with_access_rules(AccessRules::allow_all())
+            .create()
+        }
+
+        pub fn take_free_coins(&self) -> Bucket {
+            self.take_amount_of_free_coins(Amount(1000))
+        }
+
+        pub fn take_amount_of_free_coins(&self, amount: Amount) -> Bucket {
+            debug!("Withdrawing {} coins from faucet", amount);
+            self.vault.withdraw(amount)
+        }
+    }
+}
diff --git a/utilities/transaction_generator/src/transaction_builders/free_coins.rs b/utilities/transaction_generator/src/transaction_builders/free_coins.rs
index 764280fec..31cd32a56 100644
--- a/utilities/transaction_generator/src/transaction_builders/free_coins.rs
+++ b/utilities/transaction_generator/src/transaction_builders/free_coins.rs
@@ -5,8 +5,12 @@ use rand::rngs::OsRng;
 use tari_crypto::{keys::PublicKey, ristretto::RistrettoPublicKey};
 use tari_engine_types::{component::new_component_address_from_public_key, instruction::Instruction};
 use tari_template_builtin::ACCOUNT_TEMPLATE_ADDRESS;
-use tari_template_lib::{args, models::Amount};
-use tari_transaction::Transaction;
+use tari_template_lib::{
+    args,
+    constants::{XTR_FAUCET_COMPONENT_ADDRESS, XTR_FAUCET_VAULT_ADDRESS},
+    models::Amount,
+};
+use tari_transaction::{SubstateRequirement, Transaction};
 
 pub fn builder(_: u64) -> Transaction {
     let (signer_secret_key, signer_public_key) = RistrettoPublicKey::random_keypair(&mut OsRng);
@@ -16,14 +20,19 @@ pub fn builder(_: u64) -> Transaction {
     Transaction::builder()
         .with_fee_instructions_builder(|builder| {
             builder
-                .add_instruction(Instruction::CreateFreeTestCoins {
-                    revealed_amount: Amount::new(1000),
-                    output: None,
+                .add_instruction(Instruction::CallMethod {
+                    component_address: XTR_FAUCET_COMPONENT_ADDRESS,
+                    method: "take".to_string(),
+                    args: args![Amount(5000)],
                 })
                 .put_last_instruction_output_on_workspace(b"free_coins")
                 .create_account_with_bucket(signer_public_key, "free_coins")
                 .call_method(account_address, "pay_fee", args![Amount(1000)])
         })
+        .with_inputs([
+            SubstateRequirement::unversioned(XTR_FAUCET_COMPONENT_ADDRESS),
+            SubstateRequirement::unversioned(XTR_FAUCET_VAULT_ADDRESS),
+        ])
         .sign(&signer_secret_key)
         .build()
 }
diff --git a/utilities/transaction_submitter/Cargo.toml b/utilities/transaction_submitter/Cargo.toml
index 129c3dd57..8d06a9a4b 100644
--- a/utilities/transaction_submitter/Cargo.toml
+++ b/utilities/transaction_submitter/Cargo.toml
@@ -12,6 +12,7 @@ license.workspace = true
 transaction_generator = { workspace = true }
 tari_validator_node_client = { workspace = true }
 tari_transaction = { workspace = true }
+tari_dan_common_types = { workspace = true }
 
 anyhow = { workspace = true }
 # if we set clap version 4 in the workspace it would break other crates
diff --git a/utilities/transaction_submitter/src/main.rs b/utilities/transaction_submitter/src/main.rs
index 39dd4af13..c8a97889f 100644
--- a/utilities/transaction_submitter/src/main.rs
+++ b/utilities/transaction_submitter/src/main.rs
@@ -4,6 +4,7 @@
 use std::{cmp, fs::File, io::Write, time::Duration};
 
 use anyhow::bail;
+use tari_dan_common_types::optional::Optional;
 use tari_transaction::TransactionId;
 use tari_validator_node_client::{
     types::{GetTransactionResultRequest, SubmitTransactionRequest, SubmitTransactionResponse},
@@ -132,6 +133,7 @@ async fn stress_test(args: StressTestArgs) -> anyhow::Result,
     mut submitted_rx: mpsc::UnboundedReceiver,
@@ -183,8 +185,9 @@ async fn fetch_result_summary(
                     match client
                         .get_transaction_result(GetTransactionResultRequest { transaction_id })
                         .await
+                        .optional()
                     {
-                        Ok(result) => {
+                        Ok(Some(result)) => {
                             if let Some(ref exec_result) = result.result {
                                 let result = if let Some(diff) = exec_result.finalize.result.accept() {
                                     TxFinalized {
@@ -210,6 +213,14 @@ async fn fetch_result_summary(
                                 sleep(Duration::from_secs(1)).await;
                             }
                         },
+                        Ok(None) => {
+                            println!(
+                                "Transaction result not found: {}. This is likely due to a race condition. Retrying \
+                                 later...",
+                                transaction_id
+                            );
+                            sleep(Duration::from_secs(1)).await;
+                        },
                         Err(e) => {
                             println!("Failed to get transaction result: {}", e);
                             results_tx