diff --git a/Cargo.lock b/Cargo.lock
index e7bc9cb2f..4a0b2c4e0 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -554,7 +554,6 @@ dependencies = [
  "ethcore-network 1.9.0",
  "ethcore-transaction 0.1.0",
  "ethereum-types 0.2.2 (registry+https://github.com/rust-lang/crates.io-index)",
- "evm 0.1.0",
  "futures 0.1.18 (registry+https://github.com/rust-lang/crates.io-index)",
  "hashdb 0.1.1",
  "heapsize 0.4.2 (registry+https://github.com/rust-lang/crates.io-index)",
diff --git a/ethcore/evm/src/factory.rs b/ethcore/evm/src/factory.rs
index 7db4fd20e..140f1620a 100644
--- a/ethcore/evm/src/factory.rs
+++ b/ethcore/evm/src/factory.rs
@@ -33,7 +33,7 @@ impl Factory {
 	/// Create fresh instance of VM
 	/// Might choose implementation depending on supplied gas.
 	#[cfg(feature = "jit")]
-	pub fn create(&self, gas: U256) -> Box<Vm> {
+	pub fn create(&self, gas: &U256) -> Box<Vm> {
 		match self.evm {
 			VMType::Jit => {
 				Box::new(super::jit::JitEvm::default())
@@ -49,7 +49,7 @@ impl Factory {
 	/// Create fresh instance of VM
 	/// Might choose implementation depending on supplied gas.
 	#[cfg(not(feature = "jit"))]
-	pub fn create(&self, gas: U256) -> Box<Vm> {
+	pub fn create(&self, gas: &U256) -> Box<Vm> {
 		match self.evm {
 			VMType::Interpreter => if Self::can_fit_in_usize(gas) {
 				Box::new(super::interpreter::Interpreter::<usize>::new(self.evm_cache.clone()))
@@ -68,8 +68,8 @@ impl Factory {
 		}
 	}
 
-	fn can_fit_in_usize(gas: U256) -> bool {
-		gas == U256::from(gas.low_u64() as usize)
+	fn can_fit_in_usize(gas: &U256) -> bool {
+		gas == &U256::from(gas.low_u64() as usize)
 	}
 }
 
@@ -95,7 +95,7 @@ impl Default for Factory {
 
 #[test]
 fn test_create_vm() {
-	let _vm = Factory::default().create(U256::zero());
+	let _vm = Factory::default().create(&U256::zero());
 }
 
 /// Create tests by injecting different VM factories
diff --git a/ethcore/evm/src/interpreter/mod.rs b/ethcore/evm/src/interpreter/mod.rs
index 32d9dbee5..05d1fb788 100644
--- a/ethcore/evm/src/interpreter/mod.rs
+++ b/ethcore/evm/src/interpreter/mod.rs
@@ -913,8 +913,13 @@ mod tests {
 	use rustc_hex::FromHex;
 	use vmtype::VMType;
 	use factory::Factory;
-	use vm::{ActionParams, ActionValue};
+	use vm::{Vm, ActionParams, ActionValue};
 	use vm::tests::{FakeExt, test_finalize};
+	use ethereum_types::U256;
+
+	fn interpreter(gas: &U256) -> Box<Vm> {
+		Factory::new(VMType::Interpreter, 1).create(gas)
+	}
 
 	#[test]
 	fn should_not_fail_on_tracing_mem() {
@@ -931,7 +936,7 @@ mod tests {
 		ext.tracing = true;
 
 		let gas_left = {
-			let mut vm = Factory::new(VMType::Interpreter, 1).create(params.gas);
+			let mut vm = interpreter(&params.gas);
 			test_finalize(vm.exec(params, &mut ext)).unwrap()
 		};
 
@@ -953,7 +958,7 @@ mod tests {
 		ext.tracing = true;
 
 		let err = {
-			let mut vm = Factory::new(VMType::Interpreter, 1).create(params.gas);
+			let mut vm = interpreter(&params.gas);
 			test_finalize(vm.exec(params, &mut ext)).err().unwrap()
 		};
 
diff --git a/ethcore/evm/src/tests.rs b/ethcore/evm/src/tests.rs
index 1eafb8d0e..a219ae988 100644
--- a/ethcore/evm/src/tests.rs
+++ b/ethcore/evm/src/tests.rs
@@ -38,7 +38,7 @@ fn test_add(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -58,7 +58,7 @@ fn test_sha3(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -78,7 +78,7 @@ fn test_address(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -100,7 +100,7 @@ fn test_origin(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -122,7 +122,7 @@ fn test_sender(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -157,7 +157,7 @@ fn test_extcodecopy(factory: super::Factory) {
 	ext.codes.insert(sender, Arc::new(sender_code));
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -177,7 +177,7 @@ fn test_log_empty(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -209,7 +209,7 @@ fn test_log_sender(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -234,7 +234,7 @@ fn test_blockhash(factory: super::Factory) {
 	ext.blockhashes.insert(U256::zero(), blockhash.clone());
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -256,7 +256,7 @@ fn test_calldataload(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -277,7 +277,7 @@ fn test_author(factory: super::Factory) {
 	ext.info.author = author;
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -297,7 +297,7 @@ fn test_timestamp(factory: super::Factory) {
 	ext.info.timestamp = timestamp;
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -317,7 +317,7 @@ fn test_number(factory: super::Factory) {
 	ext.info.number = number;
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -337,7 +337,7 @@ fn test_difficulty(factory: super::Factory) {
 	ext.info.difficulty = difficulty;
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -357,7 +357,7 @@ fn test_gas_limit(factory: super::Factory) {
 	ext.info.gas_limit = gas_limit;
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -375,7 +375,7 @@ fn test_mul(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -393,7 +393,7 @@ fn test_sub(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -411,7 +411,7 @@ fn test_div(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -429,7 +429,7 @@ fn test_div_zero(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -447,7 +447,7 @@ fn test_mod(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -466,7 +466,7 @@ fn test_smod(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -485,7 +485,7 @@ fn test_sdiv(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -504,7 +504,7 @@ fn test_exp(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -524,7 +524,7 @@ fn test_comparison(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -545,7 +545,7 @@ fn test_signed_comparison(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -566,7 +566,7 @@ fn test_bitops(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -589,7 +589,7 @@ fn test_addmod_mulmod(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -610,7 +610,7 @@ fn test_byte(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -629,7 +629,7 @@ fn test_signextend(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -649,7 +649,7 @@ fn test_badinstruction_int() {
 	let mut ext = FakeExt::new();
 
 	let err = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap_err()
 	};
 
@@ -669,7 +669,7 @@ fn test_pop(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -689,7 +689,7 @@ fn test_extops(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -712,7 +712,7 @@ fn test_jumps(factory: super::Factory) {
 	let mut ext = FakeExt::new();
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -740,7 +740,7 @@ fn test_calls(factory: super::Factory) {
 	};
 
 	let gas_left = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap()
 	};
 
@@ -779,7 +779,7 @@ fn test_create_in_staticcall(factory: super::Factory) {
 	ext.is_static = true;
 
 	let err = {
-		let mut vm = factory.create(params.gas);
+		let mut vm = factory.create(&params.gas);
 		test_finalize(vm.exec(params, &mut ext)).unwrap_err()
 	};
 
diff --git a/ethcore/light/Cargo.toml b/ethcore/light/Cargo.toml
index 0aea8d3bf..0a5572fc4 100644
--- a/ethcore/light/Cargo.toml
+++ b/ethcore/light/Cargo.toml
@@ -16,7 +16,6 @@ memorydb = { path = "../../util/memorydb" }
 patricia-trie = { path = "../../util/patricia_trie" }
 ethcore-network = { path = "../../util/network" }
 ethcore-io = { path = "../../util/io" }
-evm = { path = "../evm" }
 hashdb = { path = "../../util/hashdb" }
 heapsize = "0.4"
 vm = { path = "../vm" }
diff --git a/ethcore/light/src/lib.rs b/ethcore/light/src/lib.rs
index c6ea7826a..0e73969be 100644
--- a/ethcore/light/src/lib.rs
+++ b/ethcore/light/src/lib.rs
@@ -60,7 +60,6 @@ extern crate ethcore_bytes as bytes;
 extern crate ethcore_transaction as transaction;
 extern crate ethereum_types;
 extern crate ethcore;
-extern crate evm;
 extern crate hashdb;
 extern crate heapsize;
 extern crate futures;
diff --git a/ethcore/res/ethereum/kovan_wasm_test.json b/ethcore/res/ethereum/kovan_wasm_test.json
new file mode 100644
index 000000000..9be03a769
--- /dev/null
+++ b/ethcore/res/ethereum/kovan_wasm_test.json
@@ -0,0 +1,74 @@
+{
+	"name": "Kovan (Test)",
+	"dataDir": "kovan-test",
+	"engine": {
+		"authorityRound": {
+			"params": {
+			"stepDuration": "4",
+			"blockReward": "0x4563918244F40000",
+				"validators" : {
+					"list": [
+						"0x00D6Cc1BA9cf89BD2e58009741f4F7325BAdc0ED",
+						"0x00427feae2419c15b89d1c21af10d1b6650a4d3d",
+						"0x4Ed9B08e6354C70fE6F8CB0411b0d3246b424d6c",
+						"0x0020ee4Be0e2027d76603cB751eE069519bA81A1",
+						"0x0010f94b296a852aaac52ea6c5ac72e03afd032d",
+						"0x007733a1FE69CF3f2CF989F81C7b4cAc1693387A",
+						"0x00E6d2b931F55a3f1701c7389d592a7778897879",
+						"0x00e4a10650e5a6D6001C38ff8E64F97016a1645c",
+						"0x00a0a24b9f0e5ec7aa4c7389b8302fd0123194de"
+					]
+				},
+				"validateScoreTransition": 1000000,
+				"validateStepTransition": 1500000,
+				"maximumUncleCountTransition": 5067000,
+				"maximumUncleCount": 0
+			}
+		}
+	},
+	"params": {
+		"gasLimitBoundDivisor": "0x400",
+		"registrar" : "0xfAb104398BBefbd47752E7702D9fE23047E1Bca3",
+		"maximumExtraDataSize": "0x20",
+		"minGasLimit": "0x1388",
+		"networkID" : "0x2A",
+		"forkBlock": 4297256,
+		"forkCanonHash": "0x0a66d93c2f727dca618fabaf70c39b37018c73d78b939d8b11efbbd09034778f",
+		"validateReceiptsTransition" : 1000000,
+		"eip155Transition": 1000000,
+		"validateChainIdTransition": 1000000,
+		"eip140Transition": 5067000,
+		"eip211Transition": 5067000,
+		"eip214Transition": 5067000,
+		"eip658Transition": 5067000,
+		"wasmActivationTransition": 10
+	},
+	"genesis": {
+		"seal": {
+			"authorityRound": {
+				"step": "0x0",
+				"signature": "0x0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000"
+			}
+		},
+		"difficulty": "0x20000",
+		"gasLimit": "0x5B8D80"
+	},
+	"accounts": {
+		"0x0000000000000000000000000000000000000001": { "balance": "1", "builtin": { "name": "ecrecover", "pricing": { "linear": { "base": 3000, "word": 0 } } } },
+		"0x0000000000000000000000000000000000000002": { "balance": "1", "builtin": { "name": "sha256", "pricing": { "linear": { "base": 60, "word": 12 } } } },
+		"0x0000000000000000000000000000000000000003": { "balance": "1", "builtin": { "name": "ripemd160", "pricing": { "linear": { "base": 600, "word": 120 } } } },
+		"0x0000000000000000000000000000000000000004": { "balance": "1", "builtin": { "name": "identity", "pricing": { "linear": { "base": 15, "word": 3 } } } },
+		"0x0000000000000000000000000000000000000005": { "builtin": { "name": "modexp", "activate_at": 5067000, "pricing": { "modexp": { "divisor": 20 } } } },
+		"0x0000000000000000000000000000000000000006": { "builtin": { "name": "alt_bn128_add", "activate_at": 5067000, "pricing": { "linear": { "base": 500, "word": 0 } } } },
+		"0x0000000000000000000000000000000000000007": { "builtin": { "name": "alt_bn128_mul", "activate_at": 5067000, "pricing": { "linear": { "base": 40000, "word": 0 } } } },
+		"0x0000000000000000000000000000000000000008": { "builtin": { "name": "alt_bn128_pairing", "activate_at": 5067000, "pricing": { "alt_bn128_pairing": { "base": 100000, "pair": 80000 } } } },
+		"0x00521965e7bd230323c423d96c657db5b79d099f": { "balance": "1606938044258990275541962092341162602522202993782792835301376" }
+	},
+	"nodes": [
+		"enode://56abaf065581a5985b8c5f4f88bd202526482761ba10be9bfdcd14846dd01f652ec33fde0f8c0fd1db19b59a4c04465681fcef50e11380ca88d25996191c52de@40.71.221.215:30303",
+		"enode://d07827483dc47b368eaf88454fb04b41b7452cf454e194e2bd4c14f98a3278fed5d819dbecd0d010407fc7688d941ee1e58d4f9c6354d3da3be92f55c17d7ce3@52.166.117.77:30303",
+		"enode://8fa162563a8e5a05eef3e1cd5abc5828c71344f7277bb788a395cce4a0e30baf2b34b92fe0b2dbbba2313ee40236bae2aab3c9811941b9f5a7e8e90aaa27ecba@52.165.239.18:30303",
+		"enode://7e2e7f00784f516939f94e22bdc6cf96153603ca2b5df1c7cc0f90a38e7a2f218ffb1c05b156835e8b49086d11fdd1b3e2965be16baa55204167aa9bf536a4d9@52.243.47.56:30303",
+		"enode://0518a3d35d4a7b3e8c433e7ffd2355d84a1304ceb5ef349787b556197f0c87fad09daed760635b97d52179d645d3e6d16a37d2cc0a9945c2ddf585684beb39ac@40.68.248.100:30303"
+	]
+}
diff --git a/ethcore/src/client/client.rs b/ethcore/src/client/client.rs
index ca2901aac..0245238ce 100644
--- a/ethcore/src/client/client.rs
+++ b/ethcore/src/client/client.rs
@@ -46,9 +46,9 @@ use encoded;
 use engines::{EthEngine, EpochTransition};
 use error::{ImportError, ExecutionError, CallError, BlockError, ImportResult, Error as EthcoreError};
 use vm::{EnvInfo, LastHashes};
-use evm::{Factory as EvmFactory, Schedule};
+use evm::Schedule;
 use executive::{Executive, Executed, TransactOptions, contract_address};
-use factory::Factories;
+use factory::{Factories, VmFactory};
 use header::{BlockNumber, Header, Seal};
 use io::*;
 use log_entry::LocalizedLogEntry;
@@ -186,7 +186,7 @@ impl Client {
 
 		let trie_factory = TrieFactory::new(trie_spec);
 		let factories = Factories {
-			vm: EvmFactory::new(config.vm_type.clone(), config.jump_table_size),
+			vm: VmFactory::new(config.vm_type.clone(), config.jump_table_size),
 			trie: trie_factory,
 			accountdb: Default::default(),
 		};
@@ -1912,7 +1912,7 @@ impl MiningBlockChainClient for Client {
 		block
 	}
 
-	fn vm_factory(&self) -> &EvmFactory {
+	fn vm_factory(&self) -> &VmFactory {
 		&self.factories.vm
 	}
 
diff --git a/ethcore/src/client/evm_test_client.rs b/ethcore/src/client/evm_test_client.rs
index 00f2af816..c6cd54c7f 100644
--- a/ethcore/src/client/evm_test_client.rs
+++ b/ethcore/src/client/evm_test_client.rs
@@ -19,12 +19,11 @@
 use std::fmt;
 use std::sync::Arc;
 use ethereum_types::{H256, U256};
-use journaldb;
-use {trie, kvdb_memorydb, bytes};
+use {factory, journaldb, trie, kvdb_memorydb, bytes};
 use kvdb::{self, KeyValueDB};
 use {state, state_db, client, executive, trace, transaction, db, spec, pod_state};
 use factory::Factories;
-use evm::{self, VMType, FinalizationResult};
+use evm::{VMType, FinalizationResult};
 use vm::{self, ActionParams};
 
 /// EVM test Error.
@@ -119,7 +118,7 @@ impl<'a> EvmTestClient<'a> {
 
 	fn factories() -> Factories {
 		Factories {
-			vm: evm::Factory::new(VMType::Interpreter, 5 * 1024),
+			vm: factory::VmFactory::new(VMType::Interpreter, 5 * 1024),
 			trie: trie::TrieFactory::new(trie::TrieSpec::Secure),
 			accountdb: Default::default(),
 		}
diff --git a/ethcore/src/client/test_client.rs b/ethcore/src/client/test_client.rs
index f1561f3e6..b80d005b5 100644
--- a/ethcore/src/client/test_client.rs
+++ b/ethcore/src/client/test_client.rs
@@ -45,7 +45,8 @@ use filter::Filter;
 use log_entry::LocalizedLogEntry;
 use receipt::{Receipt, LocalizedReceipt, TransactionOutcome};
 use error::{ImportResult, Error as EthcoreError};
-use evm::{Factory as EvmFactory, VMType};
+use evm::VMType;
+use factory::VmFactory;
 use vm::Schedule;
 use miner::{Miner, MinerService};
 use spec::Spec;
@@ -96,7 +97,7 @@ pub struct TestBlockChainClient {
 	/// Spec
 	pub spec: Spec,
 	/// VM Factory
-	pub vm_factory: EvmFactory,
+	pub vm_factory: VmFactory,
 	/// Timestamp assigned to latest sealed block
 	pub latest_block_timestamp: RwLock<u64>,
 	/// Ancient block info.
@@ -167,7 +168,7 @@ impl TestBlockChainClient {
 			queue_size: AtomicUsize::new(0),
 			miner: Arc::new(Miner::with_spec(&spec)),
 			spec: spec,
-			vm_factory: EvmFactory::new(VMType::Interpreter, 1024 * 1024),
+			vm_factory: VmFactory::new(VMType::Interpreter, 1024 * 1024),
 			latest_block_timestamp: RwLock::new(10_000_000),
 			ancient_block: RwLock::new(None),
 			first_block: RwLock::new(None),
@@ -394,7 +395,7 @@ impl MiningBlockChainClient for TestBlockChainClient {
 		block.reopen(&*self.spec.engine)
 	}
 
-	fn vm_factory(&self) -> &EvmFactory {
+	fn vm_factory(&self) -> &VmFactory {
 		&self.vm_factory
 	}
 
diff --git a/ethcore/src/client/traits.rs b/ethcore/src/client/traits.rs
index eecf23a4b..1c623fd05 100644
--- a/ethcore/src/client/traits.rs
+++ b/ethcore/src/client/traits.rs
@@ -22,7 +22,8 @@ use blockchain::TreeRoute;
 use encoded;
 use vm::LastHashes;
 use error::{ImportResult, CallError, Error as EthcoreError, BlockImportError};
-use evm::{Factory as EvmFactory, Schedule};
+use evm::Schedule;
+use factory::VmFactory;
 use executive::Executed;
 use filter::Filter;
 use header::{BlockNumber};
@@ -298,7 +299,7 @@ pub trait MiningBlockChainClient: BlockChainClient {
 	fn reopen_block(&self, block: ClosedBlock) -> OpenBlock;
 
 	/// Returns EvmFactory.
-	fn vm_factory(&self) -> &EvmFactory;
+	fn vm_factory(&self) -> &VmFactory;
 
 	/// Broadcast a block proposal.
 	fn broadcast_proposal_block(&self, block: SealedBlock);
diff --git a/ethcore/src/engines/mod.rs b/ethcore/src/engines/mod.rs
index 7964c55a4..05d3e1c83 100644
--- a/ethcore/src/engines/mod.rs
+++ b/ethcore/src/engines/mod.rs
@@ -385,11 +385,6 @@ pub trait EthEngine: Engine<::machine::EthereumMachine> {
 		self.machine().verify_transaction_basic(t, header)
 	}
 
-	/// If this machine supports wasm.
-	fn supports_wasm(&self) -> bool {
-		self.machine().supports_wasm()
-	}
-
 	/// Additional information.
 	fn additional_params(&self) -> HashMap<String, String> {
 		self.machine().additional_params()
diff --git a/ethcore/src/ethereum/mod.rs b/ethcore/src/ethereum/mod.rs
index 169c45751..03a7a1ad1 100644
--- a/ethcore/src/ethereum/mod.rs
+++ b/ethcore/src/ethereum/mod.rs
@@ -132,6 +132,9 @@ pub fn new_constantinople_test_machine() -> EthereumMachine { load_machine(inclu
 /// Create a new Musicoin-MCIP3-era spec.
 pub fn new_mcip3_test_machine() -> EthereumMachine { load_machine(include_bytes!("../../res/ethereum/mcip3_test.json")) }
 
+/// Create new Kovan spec with wasm activated at certain block
+pub fn new_kovan_wasm_test_machine() -> EthereumMachine { load_machine(include_bytes!("../../res/ethereum/kovan_wasm_test.json")) }
+
 #[cfg(test)]
 mod tests {
 	use ethereum_types::U256;
diff --git a/ethcore/src/executive.rs b/ethcore/src/executive.rs
index 231f7b416..c8b27576f 100644
--- a/ethcore/src/executive.rs
+++ b/ethcore/src/executive.rs
@@ -22,11 +22,12 @@ use ethereum_types::{H256, U256, U512, Address};
 use bytes::{Bytes, BytesRef};
 use state::{Backend as StateBackend, State, Substate, CleanupMode};
 use machine::EthereumMachine as Machine;
-use vm::EnvInfo;
 use error::ExecutionError;
-use evm::{CallType, Factory, Finalize, FinalizationResult};
-use vm::{self, Ext, CreateContractAddress, ReturnData, CleanDustMode, ActionParams, ActionValue};
-use wasm;
+use evm::{CallType, Finalize, FinalizationResult};
+use vm::{
+	self, Ext, EnvInfo, CreateContractAddress, ReturnData, CleanDustMode, ActionParams,
+	ActionValue, Schedule,
+};
 use externalities::*;
 use trace::{self, Tracer, VMTracer};
 use transaction::{Action, SignedTransaction};
@@ -38,8 +39,6 @@ pub use executed::{Executed, ExecutionResult};
 /// Maybe something like here: `https://github.com/ethereum/libethereum/blob/4db169b8504f2b87f7d5a481819cfb959fc65f6c/libethereum/ExtVM.cpp`
 const STACK_SIZE_PER_DEPTH: usize = 24*1024;
 
-const WASM_MAGIC_NUMBER: &'static [u8; 4] = b"\0asm";
-
 /// Returns new address created from address, nonce, and code hash
 pub fn contract_address(address_scheme: CreateContractAddress, sender: &Address, nonce: &U256, code: &[u8]) -> (Address, Option<H256>) {
 	use rlp::RlpStream;
@@ -152,14 +151,6 @@ impl TransactOptions<trace::NoopTracer, trace::NoopVMTracer> {
 	}
 }
 
-pub fn executor(machine: &Machine, vm_factory: &Factory, params: &ActionParams) -> Box<vm::Vm> {
-	if machine.supports_wasm() && params.code.as_ref().map_or(false, |code| code.len() > 4 && &code[0..4] == WASM_MAGIC_NUMBER) {
-		Box::new(wasm::WasmInterpreter)
-	} else {
-		vm_factory.create(params.gas)
-	}
-}
-
 /// Transaction executor.
 pub struct Executive<'a, B: 'a + StateBackend> {
 	state: &'a mut State<B>,
@@ -334,6 +325,7 @@ impl<'a, B: 'a + StateBackend> Executive<'a, B> {
 
 	fn exec_vm<T, V>(
 		&mut self,
+		schedule: Schedule,
 		params: ActionParams,
 		unconfirmed_substate: &mut Substate,
 		output_policy: OutputPolicy,
@@ -349,19 +341,20 @@ impl<'a, B: 'a + StateBackend> Executive<'a, B> {
 			let vm_factory = self.state.vm_factory();
 			let mut ext = self.as_externalities(OriginInfo::from(&params), unconfirmed_substate, output_policy, tracer, vm_tracer, static_call);
 			trace!(target: "executive", "ext.schedule.have_delegate_call: {}", ext.schedule().have_delegate_call);
-			return executor(self.machine, &vm_factory, &params).exec(params, &mut ext).finalize(ext);
+			let mut vm = vm_factory.create(&params, &schedule);
+			return vm.exec(params, &mut ext).finalize(ext);
 		}
 
 		// Start in new thread to reset stack
 		// TODO [todr] No thread builder yet, so we need to reset once for a while
 		// https://github.com/aturon/crossbeam/issues/16
 		crossbeam::scope(|scope| {
-			let machine = self.machine;
 			let vm_factory = self.state.vm_factory();
 			let mut ext = self.as_externalities(OriginInfo::from(&params), unconfirmed_substate, output_policy, tracer, vm_tracer, static_call);
 
 			scope.spawn(move || {
-				executor(machine, &vm_factory, &params).exec(params, &mut ext).finalize(ext)
+				let mut vm = vm_factory.create(&params, &schedule);
+				vm.exec(params, &mut ext).finalize(ext)
 			})
 		}).join()
 	}
@@ -471,7 +464,7 @@ impl<'a, B: 'a + StateBackend> Executive<'a, B> {
 				let mut subvmtracer = vm_tracer.prepare_subtrace(params.code.as_ref().expect("scope is conditional on params.code.is_some(); qed"));
 
 				let res = {
-					self.exec_vm(params, &mut unconfirmed_substate, OutputPolicy::Return(output, trace_output.as_mut()), &mut subtracer, &mut subvmtracer)
+					self.exec_vm(schedule, params, &mut unconfirmed_substate, OutputPolicy::Return(output, trace_output.as_mut()), &mut subtracer, &mut subvmtracer)
 				};
 
 				vm_tracer.done_subtrace(subvmtracer);
@@ -562,9 +555,14 @@ impl<'a, B: 'a + StateBackend> Executive<'a, B> {
 
 		let mut subvmtracer = vm_tracer.prepare_subtrace(params.code.as_ref().expect("two ways into create (Externalities::create and Executive::transact_with_tracer); both place `Some(...)` `code` in `params`; qed"));
 
-		let res = {
-			self.exec_vm(params, &mut unconfirmed_substate, OutputPolicy::InitContract(output.as_mut().or(trace_output.as_mut())), &mut subtracer, &mut subvmtracer)
-		};
+		let res = self.exec_vm(
+			schedule,
+			params,
+			&mut unconfirmed_substate,
+			OutputPolicy::InitContract(output.as_mut().or(trace_output.as_mut())),
+			&mut subtracer,
+			&mut subvmtracer
+		);
 
 		vm_tracer.done_subtrace(subvmtracer);
 
@@ -1481,8 +1479,6 @@ mod tests {
 		params.gas = U256::from(20025);
 		params.code = Some(Arc::new(code));
 		params.value = ActionValue::Transfer(U256::zero());
-		let mut state = get_temp_state_with_factory(factory);
-		state.add_balance(&sender, &U256::from_str("152d02c7e14af68000000").unwrap(), CleanupMode::NoEmpty).unwrap();
 		let info = EnvInfo::default();
 		let machine = ::ethereum::new_byzantium_test_machine();
 		let mut substate = Substate::new();
@@ -1497,4 +1493,60 @@ mod tests {
 		assert_eq!(output[..], returns[..]);
 		assert_eq!(state.storage_at(&contract_address, &H256::from(&U256::zero())).unwrap(), H256::from(&U256::from(0)));
 	}
+
+	fn wasm_sample_code() -> Arc<Vec<u8>> {
+		Arc::new(
+			"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"
+			.from_hex()
+			.unwrap()
+		)
+	}
+
+	#[test]
+	fn wasm_activated_test() {
+		let contract_address = Address::from_str("cd1722f3947def4cf144679da39c4c32bdc35681").unwrap();
+		let sender = Address::from_str("0f572e5295c57f15886f9b263e2f6d2d6c7b5ec6").unwrap();
+
+		let mut state = get_temp_state();
+		state.add_balance(&sender, &U256::from(10000000000u64), CleanupMode::NoEmpty).unwrap();
+		state.commit().unwrap();
+
+		let mut params = ActionParams::default();
+		params.origin = sender.clone();
+		params.sender = sender.clone();
+		params.address = contract_address.clone();
+		params.gas = U256::from(20025);
+		params.code = Some(wasm_sample_code());
+
+		let mut info = EnvInfo::default();
+
+		// 100 > 10
+		info.number = 100;
+
+		// Network with wasm activated at block 10
+		let machine = ::ethereum::new_kovan_wasm_test_machine();
+
+		let mut output = [0u8; 20];
+		let FinalizationResult { gas_left: result, .. } = {
+			let mut ex = Executive::new(&mut state, &info, &machine);
+			ex.call(params.clone(), &mut Substate::new(), BytesRef::Fixed(&mut output), &mut NoopTracer, &mut NoopVMTracer).unwrap()
+		};
+
+		assert_eq!(result, U256::from(18433));
+		// Transaction successfully returned sender
+		assert_eq!(output[..], sender[..]);
+
+		// 1 < 10
+		info.number = 1;
+
+		let mut output = [0u8; 20];
+		let FinalizationResult { gas_left: result, .. } = {
+			let mut ex = Executive::new(&mut state, &info, &machine);
+			ex.call(params, &mut Substate::new(), BytesRef::Fixed(&mut output), &mut NoopTracer, &mut NoopVMTracer).unwrap()
+		};
+
+		assert_eq!(result, U256::from(20025));
+		// Since transaction errored due to wasm was not activated, result is just empty
+		assert_eq!(output[..], [0u8; 20][..]);
+	}
 }
diff --git a/ethcore/src/factory.rs b/ethcore/src/factory.rs
index e9edfa3bd..68a15f164 100644
--- a/ethcore/src/factory.rs
+++ b/ethcore/src/factory.rs
@@ -15,14 +15,44 @@
 // along with Parity.  If not, see <http://www.gnu.org/licenses/>.
 
 use trie::TrieFactory;
-use evm::Factory as EvmFactory;
 use account_db::Factory as AccountFactory;
+use evm::{Factory as EvmFactory, VMType};
+use vm::{Vm, ActionParams, Schedule};
+use wasm::WasmInterpreter;
+
+const WASM_MAGIC_NUMBER: &'static [u8; 4] = b"\0asm";
+
+/// Virtual machine factory
+#[derive(Default, Clone)]
+pub struct VmFactory {
+	evm: EvmFactory,
+}
+
+impl VmFactory {
+	pub fn create(&self, params: &ActionParams, schedule: &Schedule) -> Box<Vm> {
+		if schedule.wasm.is_some() && params.code.as_ref().map_or(false, |code| code.len() > 4 && &code[0..4] == WASM_MAGIC_NUMBER) {
+			Box::new(WasmInterpreter)
+		} else {
+			self.evm.create(&params.gas)
+		}
+	}
+
+	pub fn new(evm: VMType, cache_size: usize) -> Self {
+		VmFactory { evm: EvmFactory::new(evm, cache_size) }
+	}
+}
+
+impl From<EvmFactory> for VmFactory {
+	fn from(evm: EvmFactory) -> Self {
+		VmFactory { evm: evm }
+	}
+}
 
 /// Collection of factories.
 #[derive(Default, Clone)]
 pub struct Factories {
 	/// factory for evm.
-	pub vm: EvmFactory,
+	pub vm: VmFactory,
 	/// factory for tries.
 	pub trie: TrieFactory,
 	/// factory for account databases.
diff --git a/ethcore/src/json_tests/executive.rs b/ethcore/src/json_tests/executive.rs
index a962ca04f..4a6309cac 100644
--- a/ethcore/src/json_tests/executive.rs
+++ b/ethcore/src/json_tests/executive.rs
@@ -259,7 +259,7 @@ fn do_json_test_for(vm_type: &VMType, json_data: &[u8]) -> Vec<String> {
 				&mut tracer,
 				&mut vm_tracer,
 			));
-			let mut evm = vm_factory.create(params.gas);
+			let mut evm = vm_factory.create(&params, &machine.schedule(0u64.into()));
 			let res = evm.exec(params, &mut ex);
 			// a return in finalize will not alter callcreates
 			let callcreates = ex.callcreates.clone();
diff --git a/ethcore/src/machine.rs b/ethcore/src/machine.rs
index 62b9a13b4..fe7d964ef 100644
--- a/ethcore/src/machine.rs
+++ b/ethcore/src/machine.rs
@@ -376,11 +376,6 @@ impl EthereumMachine {
 		Ok(())
 	}
 
-	/// If this machine supports wasm.
-	pub fn supports_wasm(&self) -> bool {
-		self.params().wasm
-	}
-
 	/// Additional params.
 	pub fn additional_params(&self) -> HashMap<String, String> {
 		hash_map![
diff --git a/ethcore/src/spec/spec.rs b/ethcore/src/spec/spec.rs
index 92e35de54..ba9e578db 100644
--- a/ethcore/src/spec/spec.rs
+++ b/ethcore/src/spec/spec.rs
@@ -109,8 +109,8 @@ pub struct CommonParams {
 	pub nonce_cap_increment: u64,
 	/// Enable dust cleanup for contracts.
 	pub remove_dust_contracts: bool,
-	/// Wasm support
-	pub wasm: bool,
+	/// Wasm activation blocknumber, if any disabled initially.
+	pub wasm_activation_transition: BlockNumber,
 	/// Gas limit bound divisor (how much gas limit can change per block)
 	pub gas_limit_bound_divisor: U256,
 	/// Registrar contract address.
@@ -146,6 +146,9 @@ impl CommonParams {
 				false => ::vm::CleanDustMode::BasicOnly,
 			};
 		}
+		if block_number >= self.wasm_activation_transition {
+			schedule.wasm = Some(Default::default());
+		}
 	}
 
 	/// Whether these params contain any bug-fix hard forks.
@@ -220,12 +223,15 @@ impl From<ethjson::spec::Params> for CommonParams {
 			),
 			nonce_cap_increment: p.nonce_cap_increment.map_or(64, Into::into),
 			remove_dust_contracts: p.remove_dust_contracts.unwrap_or(false),
-			wasm: p.wasm.unwrap_or(false),
 			gas_limit_bound_divisor: p.gas_limit_bound_divisor.into(),
 			registrar: p.registrar.map_or_else(Address::new, Into::into),
 			node_permission_contract: p.node_permission_contract.map(Into::into),
 			max_code_size: p.max_code_size.map_or(u64::max_value(), Into::into),
 			transaction_permission_contract: p.transaction_permission_contract.map(Into::into),
+			wasm_activation_transition: p.wasm_activation_transition.map_or(
+				BlockNumber::max_value(),
+				Into::into
+			),
 		}
 	}
 }
diff --git a/ethcore/src/state/mod.rs b/ethcore/src/state/mod.rs
index a6de903dd..1b868c97b 100644
--- a/ethcore/src/state/mod.rs
+++ b/ethcore/src/state/mod.rs
@@ -40,7 +40,7 @@ use executed::{Executed, ExecutionError};
 use types::state_diff::StateDiff;
 use transaction::SignedTransaction;
 use state_db::StateDB;
-use evm::{Factory as EvmFactory};
+use factory::VmFactory;
 
 use ethereum_types::{H256, U256, Address};
 use hashdb::{HashDB, AsHashDB};
@@ -376,7 +376,7 @@ impl<B: Backend> State<B> {
 	}
 
 	/// Get a VM factory that can execute on this state.
-	pub fn vm_factory(&self) -> EvmFactory {
+	pub fn vm_factory(&self) -> VmFactory {
 		self.factories.vm.clone()
 	}
 
diff --git a/ethcore/src/tests/helpers.rs b/ethcore/src/tests/helpers.rs
index 9a88b0b3d..b23245b61 100644
--- a/ethcore/src/tests/helpers.rs
+++ b/ethcore/src/tests/helpers.rs
@@ -275,7 +275,7 @@ pub fn get_temp_state() -> State<::state_db::StateDB> {
 pub fn get_temp_state_with_factory(factory: EvmFactory) -> State<::state_db::StateDB> {
 	let journal_db = get_temp_state_db();
 	let mut factories = Factories::default();
-	factories.vm = factory;
+	factories.vm = factory.into();
 	State::new(journal_db, U256::from(0), factories)
 }
 
diff --git a/ethcore/vm/src/lib.rs b/ethcore/vm/src/lib.rs
index 368bcdedc..67fc59bab 100644
--- a/ethcore/vm/src/lib.rs
+++ b/ethcore/vm/src/lib.rs
@@ -37,7 +37,7 @@ pub mod tests;
 pub use action_params::{ActionParams, ActionValue, ParamsType};
 pub use call_type::CallType;
 pub use env_info::{EnvInfo, LastHashes};
-pub use schedule::{Schedule, CleanDustMode};
+pub use schedule::{Schedule, CleanDustMode, WasmCosts};
 pub use ext::{Ext, MessageCallResult, ContractCreateResult, CreateContractAddress};
 pub use return_data::{ReturnData, GasLeft};
 pub use error::{Error, Result};
diff --git a/ethcore/vm/src/schedule.rs b/ethcore/vm/src/schedule.rs
index 11a049dfc..cc184825c 100644
--- a/ethcore/vm/src/schedule.rs
+++ b/ethcore/vm/src/schedule.rs
@@ -113,8 +113,8 @@ pub struct Schedule {
 	pub kill_dust: CleanDustMode,
 	/// Enable EIP-86 rules
 	pub eip86: bool,
-	/// Wasm extra schedule settings
-	pub wasm: WasmCosts,
+	/// Wasm extra schedule settings, if wasm activated
+	pub wasm: Option<WasmCosts>,
 }
 
 /// Wasm cost table
@@ -231,7 +231,7 @@ impl Schedule {
 			have_static_call: false,
 			kill_dust: CleanDustMode::Off,
 			eip86: false,
-			wasm: Default::default(),
+			wasm: None,
 		}
 	}
 
@@ -294,9 +294,17 @@ impl Schedule {
 			have_static_call: false,
 			kill_dust: CleanDustMode::Off,
 			eip86: false,
-			wasm: Default::default(),
+			wasm: None,
 		}
 	}
+
+	/// Returns wasm schedule
+	///
+	/// May panic if there is no wasm schedule
+	pub fn wasm(&self) -> &WasmCosts {
+		// *** Prefer PANIC here instead of silently breaking consensus! ***
+		self.wasm.as_ref().expect("Wasm schedule expected to exist while checking wasm contract. Misconfigured client?")
+	}
 }
 
 impl Default for Schedule {
diff --git a/ethcore/vm/src/tests.rs b/ethcore/vm/src/tests.rs
index f141a0f96..ce4712145 100644
--- a/ethcore/vm/src/tests.rs
+++ b/ethcore/vm/src/tests.rs
@@ -76,15 +76,23 @@ pub fn test_finalize(res: Result<GasLeft>) -> Result<U256> {
 }
 
 impl FakeExt {
+	/// New fake externalities
 	pub fn new() -> Self {
 		FakeExt::default()
 	}
 
+	/// New fake externalities with byzantium schedule rules
 	pub fn new_byzantium() -> Self {
 		let mut ext = FakeExt::default();
 		ext.schedule = Schedule::new_byzantium();
 		ext
 	}
+
+	/// Alter fake externalities to allow wasm
+	pub fn with_wasm(mut self) -> Self {
+		self.schedule.wasm = Some(Default::default());
+		self
+	}
 }
 
 impl Ext for FakeExt {
diff --git a/ethcore/wasm/src/lib.rs b/ethcore/wasm/src/lib.rs
index a0ba29f48..322a59132 100644
--- a/ethcore/wasm/src/lib.rs
+++ b/ethcore/wasm/src/lib.rs
@@ -68,7 +68,7 @@ impl From<runtime::Error> for vm::Error {
 impl vm::Vm for WasmInterpreter {
 
 	fn exec(&mut self, params: ActionParams, ext: &mut vm::Ext) -> vm::Result<GasLeft> {
-		let (module, data) = parser::payload(&params, ext.schedule())?;
+		let (module, data) = parser::payload(&params, ext.schedule().wasm())?;
 
 		let loaded_module = wasmi::Module::from_parity_wasm_module(module).map_err(Error)?;
 
@@ -79,8 +79,8 @@ impl vm::Vm for WasmInterpreter {
 			&wasmi::ImportsBuilder::new().with_resolver("env", &instantiation_resolover)
 		).map_err(Error)?;
 
-		let adjusted_gas = params.gas * U256::from(ext.schedule().wasm.opcodes_div) /
-			U256::from(ext.schedule().wasm.opcodes_mul);
+		let adjusted_gas = params.gas * U256::from(ext.schedule().wasm().opcodes_div) /
+			U256::from(ext.schedule().wasm().opcodes_mul);
 
 		if adjusted_gas > ::std::u64::MAX.into()
 		{
@@ -111,8 +111,8 @@ impl vm::Vm for WasmInterpreter {
 			// total_charge <- static_region * 2^32 * 2^16
 			// total_charge ∈ [0..2^64) if static_region ∈ [0..2^16)
 			// qed
-			assert!(runtime.schedule().wasm.initial_mem < 1 << 16);
-			runtime.charge(|s| initial_memory as u64 * s.wasm.initial_mem as u64)?;
+			assert!(runtime.schedule().wasm().initial_mem < 1 << 16);
+			runtime.charge(|s| initial_memory as u64 * s.wasm().initial_mem as u64)?;
 
 			let module_instance = module_instance.run_start(&mut runtime).map_err(Error)?;
 
@@ -148,8 +148,8 @@ impl vm::Vm for WasmInterpreter {
 		};
 
 		let gas_left =
-			U256::from(gas_left) * U256::from(ext.schedule().wasm.opcodes_mul)
-				/ U256::from(ext.schedule().wasm.opcodes_div);
+			U256::from(gas_left) * U256::from(ext.schedule().wasm().opcodes_mul)
+				/ U256::from(ext.schedule().wasm().opcodes_div);
 
 		if result.is_empty() {
 			trace!(target: "wasm", "Contract execution result is empty.");
diff --git a/ethcore/wasm/src/parser.rs b/ethcore/wasm/src/parser.rs
index 13e055529..8ba7a7098 100644
--- a/ethcore/wasm/src/parser.rs
+++ b/ethcore/wasm/src/parser.rs
@@ -21,21 +21,21 @@ use wasm_utils::{self, rules};
 use parity_wasm::elements::{self, Deserialize};
 use parity_wasm::peek_size;
 
-fn gas_rules(schedule: &vm::Schedule) -> rules::Set {
+fn gas_rules(wasm_costs: &vm::WasmCosts) -> rules::Set {
 	rules::Set::new({
 		let mut vals = ::std::collections::HashMap::with_capacity(4);
-		vals.insert(rules::InstructionType::Load, schedule.wasm.mem as u32);
-		vals.insert(rules::InstructionType::Store, schedule.wasm.mem as u32);
-		vals.insert(rules::InstructionType::Div, schedule.wasm.div as u32);
-		vals.insert(rules::InstructionType::Mul, schedule.wasm.mul as u32);
+		vals.insert(rules::InstructionType::Load, wasm_costs.mem as u32);
+		vals.insert(rules::InstructionType::Store, wasm_costs.mem as u32);
+		vals.insert(rules::InstructionType::Div, wasm_costs.div as u32);
+		vals.insert(rules::InstructionType::Mul, wasm_costs.mul as u32);
 		vals
-	}).with_grow_cost(schedule.wasm.grow_mem)
+	}).with_grow_cost(wasm_costs.grow_mem)
 }
 
 /// Splits payload to code and data according to params.params_type, also
 /// loads the module instance from payload and injects gas counter according
 /// to schedule.
-pub fn payload<'a>(params: &'a vm::ActionParams, schedule: &vm::Schedule)
+pub fn payload<'a>(params: &'a vm::ActionParams, wasm_costs: &vm::WasmCosts)
 	-> Result<(elements::Module, &'a [u8]), vm::Error>
 {
 	let code = match params.code {
@@ -70,7 +70,7 @@ pub fn payload<'a>(params: &'a vm::ActionParams, schedule: &vm::Schedule)
 
 	let contract_module = wasm_utils::inject_gas_counter(
 		deserialized_module,
-		&gas_rules(schedule),
+		&gas_rules(wasm_costs),
 	);
 
 	let data = match params.params_type {
diff --git a/ethcore/wasm/src/runtime.rs b/ethcore/wasm/src/runtime.rs
index 3bec3479f..adac12089 100644
--- a/ethcore/wasm/src/runtime.rs
+++ b/ethcore/wasm/src/runtime.rs
@@ -168,7 +168,7 @@ impl<'a> Runtime<'a> {
 	pub fn adjusted_charge<F>(&mut self, f: F) -> Result<()>
 		where F: FnOnce(&vm::Schedule) -> u64
 	{
-		self.charge(|schedule| f(schedule) * schedule.wasm.opcodes_div as u64 / schedule.wasm.opcodes_mul as u64)
+		self.charge(|schedule| f(schedule) * schedule.wasm().opcodes_div as u64 / schedule.wasm().opcodes_mul as u64)
 	}
 
 	/// Charge gas provided by the closure
@@ -195,8 +195,8 @@ impl<'a> Runtime<'a> {
 	{
 		self.overflow_charge(|schedule|
 			f(schedule)
-				.and_then(|x| x.checked_mul(schedule.wasm.opcodes_div as u64))
-				.map(|x| x / schedule.wasm.opcodes_mul as u64)
+				.and_then(|x| x.checked_mul(schedule.wasm().opcodes_div as u64))
+				.map(|x| x / schedule.wasm().opcodes_mul as u64)
 		)
 	}
 
@@ -373,8 +373,8 @@ impl<'a> Runtime<'a> {
 		// todo: optimize to use memory views once it's in
 		let payload = self.memory.get(input_ptr, input_len as usize)?;
 
-		let adjusted_gas = match gas.checked_mul(self.ext.schedule().wasm.opcodes_div as u64)
-			.map(|x| x / self.ext.schedule().wasm.opcodes_mul as u64)
+		let adjusted_gas = match gas.checked_mul(self.ext.schedule().wasm().opcodes_div as u64)
+			.map(|x| x / self.ext.schedule().wasm().opcodes_mul as u64)
 		{
 			Some(x) => x,
 			None => {
@@ -400,8 +400,8 @@ impl<'a> Runtime<'a> {
 			vm::MessageCallResult::Success(gas_left, _) => {
 				// cannot overflow, before making call gas_counter was incremented with gas, and gas_left < gas
 				self.gas_counter = self.gas_counter -
-					gas_left.low_u64() * self.ext.schedule().wasm.opcodes_div as u64
-						/ self.ext.schedule().wasm.opcodes_mul as u64;
+					gas_left.low_u64() * self.ext.schedule().wasm().opcodes_div as u64
+						/ self.ext.schedule().wasm().opcodes_mul as u64;
 
 				self.memory.set(result_ptr, &result)?;
 				Ok(0i32.into())
@@ -409,8 +409,8 @@ impl<'a> Runtime<'a> {
 			vm::MessageCallResult::Reverted(gas_left, _) => {
 				// cannot overflow, before making call gas_counter was incremented with gas, and gas_left < gas
 				self.gas_counter = self.gas_counter -
-					gas_left.low_u64() * self.ext.schedule().wasm.opcodes_div as u64
-						/ self.ext.schedule().wasm.opcodes_mul as u64;
+					gas_left.low_u64() * self.ext.schedule().wasm().opcodes_div as u64
+						/ self.ext.schedule().wasm().opcodes_mul as u64;
 
 				self.memory.set(result_ptr, &result)?;
 				Ok((-1i32).into())
@@ -438,14 +438,14 @@ impl<'a> Runtime<'a> {
 
 	fn return_address_ptr(&mut self, ptr: u32, val: Address) -> Result<()>
 	{
-		self.charge(|schedule| schedule.wasm.static_address as u64)?;
+		self.charge(|schedule| schedule.wasm().static_address as u64)?;
 		self.memory.set(ptr, &*val)?;
 		Ok(())
 	}
 
 	fn return_u256_ptr(&mut self, ptr: u32, val: U256) -> Result<()> {
 		let value: H256 = val.into();
-		self.charge(|schedule| schedule.wasm.static_u256 as u64)?;
+		self.charge(|schedule| schedule.wasm().static_u256 as u64)?;
 		self.memory.set(ptr, &*value)?;
 		Ok(())
 	}
@@ -485,8 +485,8 @@ impl<'a> Runtime<'a> {
 		self.adjusted_charge(|schedule| schedule.create_data_gas as u64 * code.len() as u64)?;
 
 		let gas_left: U256 = U256::from(self.gas_left()?)
-			* U256::from(self.ext.schedule().wasm.opcodes_mul)
-			/ U256::from(self.ext.schedule().wasm.opcodes_div);
+			* U256::from(self.ext.schedule().wasm().opcodes_mul)
+			/ U256::from(self.ext.schedule().wasm().opcodes_div);
 
 		match self.ext.create(&gas_left, &endowment, &code, vm::CreateContractAddress::FromSenderAndCodeHash) {
 			vm::ContractCreateResult::Created(address, gas_left) => {
@@ -494,8 +494,8 @@ impl<'a> Runtime<'a> {
 				self.gas_counter = self.gas_limit -
 					// this cannot overflow, since initial gas is in [0..u64::max) range,
 					// and gas_left cannot be bigger
-					gas_left.low_u64() * self.ext.schedule().wasm.opcodes_div as u64
-						/ self.ext.schedule().wasm.opcodes_mul as u64;
+					gas_left.low_u64() * self.ext.schedule().wasm().opcodes_div as u64
+						/ self.ext.schedule().wasm().opcodes_mul as u64;
 				trace!(target: "wasm", "runtime: create contract success (@{:?})", address);
 				Ok(0i32.into())
 			},
@@ -508,8 +508,8 @@ impl<'a> Runtime<'a> {
 				self.gas_counter = self.gas_limit -
 					// this cannot overflow, since initial gas is in [0..u64::max) range,
 					// and gas_left cannot be bigger
-					gas_left.low_u64() * self.ext.schedule().wasm.opcodes_div as u64
-						/ self.ext.schedule().wasm.opcodes_mul as u64;
+					gas_left.low_u64() * self.ext.schedule().wasm().opcodes_div as u64
+						/ self.ext.schedule().wasm().opcodes_mul as u64;
 
 				Ok((-1i32).into())
 			},
diff --git a/ethcore/wasm/src/tests.rs b/ethcore/wasm/src/tests.rs
index 84ef28339..af2bbe367 100644
--- a/ethcore/wasm/src/tests.rs
+++ b/ethcore/wasm/src/tests.rs
@@ -43,7 +43,7 @@ macro_rules! reqrep_test {
 			params.code = Some(Arc::new(code));
 			params.data = Some($input);
 
-			let mut fake_ext = FakeExt::new();
+			let mut fake_ext = FakeExt::new().with_wasm();
 			fake_ext.info = $info;
 			fake_ext.blockhashes = $block_hashes;
 
@@ -79,7 +79,7 @@ fn empty() {
 	params.address = address.clone();
 	params.gas = U256::from(100_000);
 	params.code = Some(Arc::new(code));
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let gas_left = {
 		let mut interpreter = wasm_interpreter();
@@ -108,7 +108,7 @@ fn logger() {
 	params.gas = U256::from(100_000);
 	params.value = ActionValue::transfer(1_000_000_000);
 	params.code = Some(Arc::new(code));
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let gas_left = {
 		let mut interpreter = wasm_interpreter();
@@ -157,7 +157,7 @@ fn identity() {
 	params.sender = sender.clone();
 	params.gas = U256::from(100_000);
 	params.code = Some(Arc::new(code));
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let (gas_left, result) = {
 		let mut interpreter = wasm_interpreter();
@@ -192,7 +192,7 @@ fn dispersion() {
 	params.data = Some(vec![
 		0u8, 125, 197, 255, 19
 	]);
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let (gas_left, result) = {
 		let mut interpreter = wasm_interpreter();
@@ -220,7 +220,7 @@ fn suicide_not() {
 	params.data = Some(vec![
 		0u8
 	]);
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let (gas_left, result) = {
 		let mut interpreter = wasm_interpreter();
@@ -253,7 +253,7 @@ fn suicide() {
 	args.extend(refund.to_vec());
 	params.data = Some(args);
 
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let gas_left = {
 		let mut interpreter = wasm_interpreter();
@@ -280,7 +280,7 @@ fn create() {
 	params.data = Some(vec![0u8, 2, 4, 8, 16, 32, 64, 128]);
 	params.value = ActionValue::transfer(1_000_000_000);
 
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let gas_left = {
 		let mut interpreter = wasm_interpreter();
@@ -324,7 +324,7 @@ fn call_msg() {
 	params.code = Some(Arc::new(load_sample!("call.wasm")));
 	params.data = Some(Vec::new());
 
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 	ext.balances.insert(receiver.clone(), U256::from(10000000000u64));
 
 	let gas_left = {
@@ -367,7 +367,7 @@ fn call_code() {
 	params.data = Some(Vec::new());
 	params.value = ActionValue::transfer(1_000_000_000);
 
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let (gas_left, result) = {
 		let mut interpreter = wasm_interpreter();
@@ -414,7 +414,7 @@ fn call_static() {
 	params.value = ActionValue::transfer(1_000_000_000);
 	params.code_address = contract_address.clone();
 
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let (gas_left, result) = {
 		let mut interpreter = wasm_interpreter();
@@ -454,7 +454,7 @@ fn realloc() {
 	params.gas = U256::from(100_000);
 	params.code = Some(Arc::new(code));
 	params.data = Some(vec![0u8]);
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let (gas_left, result) = {
 		let mut interpreter = wasm_interpreter();
@@ -476,7 +476,7 @@ fn alloc() {
 	params.gas = U256::from(10_000_000);
 	params.code = Some(Arc::new(code));
 	params.data = Some(vec![0u8]);
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let (gas_left, result) = {
 		let mut interpreter = wasm_interpreter();
@@ -502,7 +502,7 @@ fn storage_read() {
 	let mut params = ActionParams::default();
 	params.gas = U256::from(100_000);
 	params.code = Some(Arc::new(code));
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 	ext.store.insert("0100000000000000000000000000000000000000000000000000000000000000".into(), address.into());
 
 	let (gas_left, result) = {
@@ -529,7 +529,7 @@ fn keccak() {
 	params.gas = U256::from(100_000);
 	params.code = Some(Arc::new(code));
 	params.data = Some(b"something".to_vec());
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let (gas_left, result) = {
 		let mut interpreter = wasm_interpreter();
@@ -664,7 +664,7 @@ fn storage_metering() {
 	::ethcore_logger::init_log();
 
 	// #1
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let code = Arc::new(load_sample!("setter.wasm"));
 	let address: Address = "0f572e5295c57f15886f9b263e2f6d2d6c7b5ec6".parse().unwrap();
@@ -805,7 +805,7 @@ fn embedded_keccak() {
 	params.code = Some(Arc::new(code));
 	params.params_type = vm::ParamsType::Embedded;
 
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let (gas_left, result) = {
 		let mut interpreter = wasm_interpreter();
@@ -833,7 +833,7 @@ fn events() {
 	params.code = Some(Arc::new(code));
 	params.data = Some(b"something".to_vec());
 
-	let mut ext = FakeExt::new();
+	let mut ext = FakeExt::new().with_wasm();
 
 	let (gas_left, result) = {
 		let mut interpreter = wasm_interpreter();
diff --git a/json/src/spec/params.rs b/json/src/spec/params.rs
index 8e5fd9f00..53d88255b 100644
--- a/json/src/spec/params.rs
+++ b/json/src/spec/params.rs
@@ -98,8 +98,6 @@ pub struct Params {
 	pub nonce_cap_increment: Option<Uint>,
 	/// See `CommonParams` docs.
 	pub remove_dust_contracts : Option<bool>,
-	/// Wasm support flag
-	pub wasm: Option<bool>,
 	/// See `CommonParams` docs.
 	#[serde(rename="gasLimitBoundDivisor")]
 	#[serde(deserialize_with="uint::validate_non_zero")]
@@ -118,6 +116,9 @@ pub struct Params {
 	/// Transaction permission contract address.
 	#[serde(rename="transactionPermissionContract")]
 	pub transaction_permission_contract: Option<Address>,
+	/// Wasm activation block height, if not activated from start
+	#[serde(rename="wasmActivationTransition")]
+	pub wasm_activation_transition: Option<Uint>,
 }
 
 #[cfg(test)]
@@ -137,7 +138,8 @@ mod tests {
 			"minGasLimit": "0x1388",
 			"accountStartNonce": "0x01",
 			"gasLimitBoundDivisor": "0x20",
-			"maxCodeSize": "0x1000"
+			"maxCodeSize": "0x1000",
+			"wasmActivationTransition": "0x1010"
 		}"#;
 
 		let deserialized: Params = serde_json::from_str(s).unwrap();
@@ -149,6 +151,7 @@ mod tests {
 		assert_eq!(deserialized.account_start_nonce, Some(Uint(U256::from(0x01))));
 		assert_eq!(deserialized.gas_limit_bound_divisor, Uint(U256::from(0x20)));
 		assert_eq!(deserialized.max_code_size, Some(Uint(U256::from(0x1000))));
+		assert_eq!(deserialized.wasm_activation_transition, Some(Uint(U256::from(0x1010))));
 	}
 
 	#[test]