Merge branch 'master' into ui-2

2017-06-28 14:27:25 +02:00 · 2017-06-28 14:27:25 +02:00 · 8798ed4499
commit 8798ed4499
parent 6dfa097752 d069b98b45
103 changed files with 2950 additions and 1121 deletions
--- a/.gitlab-ci.yml
+++ b/.gitlab-ci.yml
@ -25,8 +25,8 @@ linux-stable:
    - rustup default stable
    - cargo build -j $(nproc) --release --features final $CARGOFLAGS
    - cargo build -j $(nproc) --release -p evmbin
-    - cargo build -j $(nproc) --release -p ethstore
-    - cargo build -j $(nproc) --release -p ethkey
+    - cargo build -j $(nproc) --release -p ethstore-cli
+    - cargo build -j $(nproc) --release -p ethkey-cli
    - strip target/release/parity
    - strip target/release/parity-evm
    - strip target/release/ethstore
@ -105,8 +105,8 @@ linux-stable-debian:
  script:
    - cargo build -j $(nproc) --release --features final $CARGOFLAGS
    - cargo build -j $(nproc) --release -p evmbin
-    - cargo build -j $(nproc) --release -p ethstore
-    - cargo build -j $(nproc) --release -p ethkey
+    - cargo build -j $(nproc) --release -p ethstore-cli
+    - cargo build -j $(nproc) --release -p ethkey-cli
    - strip target/release/parity
    - strip target/release/parity-evm
    - strip target/release/ethstore
@ -191,8 +191,17 @@ linux-centos:
    - export CC="gcc"
    - export PLATFORM=x86_64-unknown-centos-gnu
    - cargo build -j $(nproc) --release --features final $CARGOFLAGS
+    - cargo build -j $(nproc) --release -p evmbin
+    - cargo build -j $(nproc) --release -p ethstore-cli
+    - cargo build -j $(nproc) --release -p ethkey-cli
    - strip target/release/parity
+    - strip target/release/parity-evm
+    - strip target/release/ethstore
+    - strip target/release/ethkey
    - md5sum target/release/parity > parity.md5
+    - md5sum target/release/parity-evm > parity-evm.md5
+    - md5sum target/release/ethstore > ethstore.md5
+    - md5sum target/release/ethkey > ethkey.md5
    - export SHA3=$(target/release/parity tools hash target/release/parity)
    - aws configure set aws_access_key_id $s3_key
    - aws configure set aws_secret_access_key $s3_secret
@ -200,6 +209,12 @@ linux-centos:
    - aws s3 rm --recursive s3://$S3_BUCKET/$CI_BUILD_REF_NAME/x86_64-unknown-centos-gnu
    - aws s3api put-object --bucket builds-parity --key $CI_BUILD_REF_NAME/x86_64-unknown-centos-gnu/parity --body target/release/parity
    - aws s3api put-object --bucket builds-parity --key $CI_BUILD_REF_NAME/x86_64-unknown-centos-gnu/parity.md5 --body parity.md5
+    - aws s3api put-object --bucket builds-parity --key $CI_BUILD_REF_NAME/x86_64-unknown-centos-gnu/parity-evm --body target/release/parity-evm
+    - aws s3api put-object --bucket builds-parity --key $CI_BUILD_REF_NAME/x86_64-unknown-centos-gnu/parity-evm.md5 --body parity-evm.md5
+    - aws s3api put-object --bucket builds-parity --key $CI_BUILD_REF_NAME/x86_64-unknown-centos-gnu/ethstore --body target/release/ethstore
+    - aws s3api put-object --bucket builds-parity --key $CI_BUILD_REF_NAME/x86_64-unknown-centos-gnu/ethstore.md5 --body ethstore.md5
+    - aws s3api put-object --bucket builds-parity --key $CI_BUILD_REF_NAME/x86_64-unknown-centos-gnu/ethkey --body target/release/ethkey
+    - aws s3api put-object --bucket builds-parity --key $CI_BUILD_REF_NAME/x86_64-unknown-centos-gnu/ethkey.md5 --body ethkey.md5
    - curl --data "commit=$CI_BUILD_REF&sha3=$SHA3&filename=parity&secret=$RELEASES_SECRET" http://update.parity.io:1337/push-build/$CI_BUILD_REF_NAME/$PLATFORM
    - curl --data "commit=$CI_BUILD_REF&sha3=$SHA3&filename=parity&secret=$RELEASES_SECRET" http://update.parity.io:1338/push-build/$CI_BUILD_REF_NAME/$PLATFORM
  tags:
@ -222,12 +237,22 @@ linux-i686:
    - export HOST_CXX=g++
    - export COMMIT=$(git rev-parse HEAD)
    - export PLATFORM=i686-unknown-linux-gnu
-    - cargo build -j $(nproc) --target i686-unknown-linux-gnu --features final --release $CARGOFLAGS
+    - cargo build -j $(nproc) --target $PLATFORM --features final --release $CARGOFLAGS
+    - cargo build -j $(nproc) --target $PLATFORM --release -p evmbin
+    - cargo build -j $(nproc) --target $PLATFORM --release -p ethstore-cli
+    - cargo build -j $(nproc) --target $PLATFORM --release -p ethkey-cli
+    - strip target/$PLATFORM/release/parity
+    - strip target/$PLATFORM/release/parity-evm
+    - strip target/$PLATFORM/release/ethstore
+    - strip target/$PLATFORM/release/ethkey   
    - strip target/$PLATFORM/release/parity
    - md5sum target/$PLATFORM/release/parity > parity.md5
    - export SHA3=$(target/$PLATFORM/release/parity tools hash target/$PLATFORM/release/parity)
    - sh scripts/deb-build.sh i386
    - cp target/$PLATFORM/release/parity deb/usr/bin/parity
+    - cp target/$PLATFORM/release/parity-evm deb/usr/bin/parity-evm
+    - cp target/$PLATFORM/release/ethstore deb/usr/bin/ethstore
+    - cp target/$PLATFORM/release/ethkey deb/usr/bin/ethkey
    - export VER=$(grep -m 1 version Cargo.toml | awk '{print $3}' | tr -d '"' | tr -d "\n")
    - dpkg-deb -b deb "parity_"$VER"_i386.deb"
    - md5sum "parity_"$VER"_i386.deb" > "parity_"$VER"_i386.deb.md5"
@ -269,11 +294,23 @@ linux-armv7:
    - echo "linker= \"arm-linux-gnueabihf-gcc\"" >> .cargo/config
    - cat .cargo/config
    - cargo build -j $(nproc) --target $PLATFORM --features final --release $CARGOFLAGS
+    - cargo build -j $(nproc) --target $PLATFORM --release -p evmbin
+    - cargo build -j $(nproc) --target $PLATFORM --release -p ethstore-cli
+    - cargo build -j $(nproc) --target $PLATFORM --release -p ethkey-cli
+    - md5sum target/$PLATFORM/release/parity > parity.md5
+    - export SHA3=$(target/$PLATFORM/release/parity tools hash target/$PLATFORM/release/parity)
+    - sh scripts/deb-build.sh i386
    - arm-linux-gnueabihf-strip target/$PLATFORM/release/parity
+    - arm-linux-gnueabihf-strip target/$PLATFORM/release/parity-evm
+    - arm-linux-gnueabihf-strip target/$PLATFORM/release/ethstore
+    - arm-linux-gnueabihf-strip target/$PLATFORM/release/ethkey
    - export SHA3=$(rhash --sha3-256 target/$PLATFORM/release/parity -p %h)
    - md5sum target/$PLATFORM/release/parity > parity.md5
    - sh scripts/deb-build.sh armhf
    - cp target/$PLATFORM/release/parity deb/usr/bin/parity
+    - cp target/$PLATFORM/release/parity-evm deb/usr/bin/parity-evm
+    - cp target/$PLATFORM/release/ethstore deb/usr/bin/ethstore
+    - cp target/$PLATFORM/release/ethkey deb/usr/bin/ethkey
    - export VER=$(grep -m 1 version Cargo.toml | awk '{print $3}' | tr -d '"' | tr -d "\n")
    - dpkg-deb -b deb "parity_"$VER"_armhf.deb"
    - md5sum "parity_"$VER"_armhf.deb" > "parity_"$VER"_armhf.deb.md5"
@ -315,11 +352,20 @@ linux-arm:
    - echo "linker= \"arm-linux-gnueabihf-gcc\"" >> .cargo/config
    - cat .cargo/config
    - cargo build -j $(nproc) --target $PLATFORM --features final --release $CARGOFLAGS
+    - cargo build -j $(nproc) --target $PLATFORM --release -p evmbin
+    - cargo build -j $(nproc) --target $PLATFORM --release -p ethstore-cli
+    - cargo build -j $(nproc) --target $PLATFORM --release -p ethkey-cli
    - arm-linux-gnueabihf-strip target/$PLATFORM/release/parity
+    - arm-linux-gnueabihf-strip target/$PLATFORM/release/parity-evm
+    - arm-linux-gnueabihf-strip target/$PLATFORM/release/ethstore
+    - arm-linux-gnueabihf-strip target/$PLATFORM/release/ethkey
    - export SHA3=$(rhash --sha3-256 target/$PLATFORM/release/parity -p %h)
    - md5sum target/$PLATFORM/release/parity > parity.md5
    - sh scripts/deb-build.sh armhf
    - cp target/$PLATFORM/release/parity deb/usr/bin/parity
+    - cp target/$PLATFORM/release/parity-evm deb/usr/bin/parity-evm
+    - cp target/$PLATFORM/release/ethstore deb/usr/bin/ethstore
+    - cp target/$PLATFORM/release/ethkey deb/usr/bin/ethkey
    - export VER=$(grep -m 1 version Cargo.toml | awk '{print $3}' | tr -d '"' | tr -d "\n")
    - dpkg-deb -b deb "parity_"$VER"_armhf.deb"
    - md5sum "parity_"$VER"_armhf.deb" > "parity_"$VER"_armhf.deb.md5"
@ -341,45 +387,6 @@ linux-arm:
    - target/arm-unknown-linux-gnueabihf/release/parity
    name: "arm-unknown-linux-gnueabihf_parity"
  allow_failure: true
-linux-armv6:
-  stage: build
-  image: ethcore/rust-armv6:latest
-  only:
-    - beta
-#    - tags
-#    - stable
-#    - triggers
-  script:
-    - export CC=arm-linux-gnueabi-gcc
-    - export CXX=arm-linux-gnueabi-g++
-    - export HOST_CC=gcc
-    - export HOST_CXX=g++
-    - export PLATFORM=arm-unknown-linux-gnueabi
-    - rm -rf .cargo
-    - mkdir -p .cargo
-    - echo "[target.$PLATFORM]" >> .cargo/config
-    - echo "linker= \"arm-linux-gnueabi-gcc\"" >> .cargo/config
-    - cat .cargo/config
-    - cargo build -j $(nproc) --target $PLATFORM --features final --release $CARGOFLAGS
-    - arm-linux-gnueabi-strip target/$PLATFORM/release/parity
-    - export SHA3=$(rhash --sha3-256 target/$PLATFORM/release/parity -p %h)
-    - md5sum target/$PLATFORM/release/parity > parity.md5
-    - aws configure set aws_access_key_id $s3_key
-    - aws configure set aws_secret_access_key $s3_secret
-    - if [[ $CI_BUILD_REF_NAME =~ ^(master|beta|stable|nightly)$ ]]; then export S3_BUCKET=builds-parity-published; else export S3_BUCKET=builds-parity; fi
-    - aws s3 rm --recursive s3://$S3_BUCKET/$CI_BUILD_REF_NAME/$PLATFORM
-    - aws s3api put-object --bucket $S3_BUCKET --key $CI_BUILD_REF_NAME/$PLATFORM/parity --body target/$PLATFORM/release/parity
-    - aws s3api put-object --bucket $S3_BUCKET --key $CI_BUILD_REF_NAME/$PLATFORM/parity.md5 --body parity.md5
-    - curl --data "commit=$CI_BUILD_REF&sha3=$SHA3&filename=parity&secret=$RELEASES_SECRET" http://update.parity.io:1337/push-build/$CI_BUILD_REF_NAME/$PLATFORM
-    - curl --data "commit=$CI_BUILD_REF&sha3=$SHA3&filename=parity&secret=$RELEASES_SECRET" http://update.parity.io:1338/push-build/$CI_BUILD_REF_NAME/$PLATFORM
-  tags:
-    - rust
-    - rust-arm
-  artifacts:
-    paths:
-    - target/arm-unknown-linux-gnueabi/release/parity
-    name: "arm-unknown-linux-gnueabi_parity"
-  allow_failure: true
 linux-aarch64:
  stage: build
  image: parity/rust-arm64:gitlab-ci
@ -400,11 +407,20 @@ linux-aarch64:
    - echo "linker= \"aarch64-linux-gnu-gcc\"" >> .cargo/config
    - cat .cargo/config
    - cargo build -j $(nproc) --target $PLATFORM --features final --release $CARGOFLAGS
+    - cargo build -j $(nproc) --target $PLATFORM --release -p evmbin
+    - cargo build -j $(nproc) --target $PLATFORM --release -p ethstore-cli
+    - cargo build -j $(nproc) --target $PLATFORM --release -p ethkey-cli
    - aarch64-linux-gnu-strip target/$PLATFORM/release/parity
+    - aarch64-linux-gnu-strip target/$PLATFORM/release/parity-evm
+    - aarch64-linux-gnu-strip target/$PLATFORM/release/ethstore
+    - aarch64-linux-gnu-strip target/$PLATFORM/release/ethkey
    - export SHA3=$(rhash --sha3-256 target/$PLATFORM/release/parity -p %h)
    - md5sum target/$PLATFORM/release/parity > parity.md5
    - sh scripts/deb-build.sh arm64
    - cp target/$PLATFORM/release/parity deb/usr/bin/parity
+    - cp target/$PLATFORM/release/parity-evm deb/usr/bin/parity-evm
+    - cp target/$PLATFORM/release/ethstore deb/usr/bin/ethstore
+    - cp target/$PLATFORM/release/ethkey deb/usr/bin/ethkey
    - export VER=$(grep -m 1 version Cargo.toml | awk '{print $3}' | tr -d '"' | tr -d "\n")
    - dpkg-deb -b deb "parity_"$VER"_arm64.deb"
    - md5sum "parity_"$VER"_arm64.deb" > "parity_"$VER"_arm64.deb.md5"
@ -436,8 +452,11 @@ darwin:
      export COMMIT=$(git rev-parse HEAD)
      export PLATFORM=x86_64-apple-darwin
      rustup default stable
+      cargo clean
      cargo build -j 8 --features final --release #$CARGOFLAGS
-      cargo build -j 8 --features final --release -p ethstore #$CARGOFLAGS
+      cargo build -j 8 --release -p ethstore-cli #$CARGOFLAGS
+      cargo build -j 8 --release -p ethkey-cli #$CARGOFLAGS
+      cargo build -j 8 --release -p evmbin #$CARGOFLAGS
      rm -rf parity.md5
      md5sum target/release/parity > parity.md5
      export SHA3=$(target/release/parity tools hash target/release/parity)
@ -482,7 +501,11 @@ windows:
    - set RUST_BACKTRACE=1
    - set RUSTFLAGS=%RUSTFLAGS%
    - rustup default stable-x86_64-pc-windows-msvc
+    - cargo clean
    - cargo build --features final --release #%CARGOFLAGS%
+    - cargo build --release -p ethstore-cli #%CARGOFLAGS%
+    - cargo build --release -p ethkey-cli #%CARGOFLAGS%
+    - cargo build --release -p evmbin #%CARGOFLAGS%
    - signtool sign /f %keyfile% /p %certpass% target\release\parity.exe
    - target\release\parity.exe tools hash target\release\parity.exe > parity.sha3
    - set /P SHA3=<parity.sha3
--- a/Cargo.lock
+++ b/Cargo.lock
@ -1833,7 +1833,7 @@ dependencies = [
 [[package]]
 name = "parity-ui-precompiled"
 version = "1.4.0"
-source = "git+https://github.com/paritytech/js-precompiled.git#6bc749402a9dd05ce41f97a4cc4f1ee48512e6df"
+source = "git+https://github.com/paritytech/js-precompiled.git#7dc30d69a4e15b1fc22d3d25939a177f0979df07"
 dependencies = [
 "parity-dapps-glue 1.7.0 (registry+https://github.com/rust-lang/crates.io-index)",
 ]
--- a/Cargo.toml
+++ b/Cargo.toml
@ -95,7 +95,7 @@ secretstore = ["ethcore-secretstore"]
 path = "parity/main.rs"
 name = "parity"

-[profile.debug]
+[profile.dev]
 panic = "abort"

 [profile.release]
--- a/README.md
+++ b/README.md
@ -89,6 +89,18 @@ cargo install --git https://github.com/paritytech/parity.git parity

 ----

+## Install from the snap store
+
+In any of the [supported Linux distros](https://snapcraft.io/docs/core/install):
+
+```bash
+sudo snap install parity --edge
+```
+
+(Note that this is an experimental and unstable release, at the moment)
+
+----
+
 ## Build from source

 ```bash
--- a/dapps/src/handlers/mod.rs
+++ b/dapps/src/handlers/mod.rs
@ -38,15 +38,53 @@ pub fn add_security_headers(headers: &mut header::Headers, embeddable_on: Option
 	headers.set_raw("X-Content-Type-Options", vec![b"nosniff".to_vec()]);

 	// Embedding header:
-	if let Some(embeddable_on) = embeddable_on {
-		headers.set_raw(
-			"X-Frame-Options",
-			vec![format!("ALLOW-FROM http://{}", address(&embeddable_on)).into_bytes()]
-			);
+	if let Some(ref embeddable_on) = embeddable_on {
+		headers.set_raw("X-Frame-Options", vec![
+			format!("ALLOW-FROM http://{}", address(embeddable_on)).into_bytes()
+		]);
 	} else {
 		// TODO [ToDr] Should we be more strict here (DENY?)?
 		headers.set_raw("X-Frame-Options",  vec![b"SAMEORIGIN".to_vec()]);
 	}
+
+	// Content Security Policy headers
+	headers.set_raw("Content-Security-Policy", vec![
+		// Allow connecting to WS servers and HTTP(S) servers.
+		// We could be more restrictive and allow only RPC server URL.
+		b"connect-src http: https: ws: wss:;".to_vec(),
+		// Allow framing any content from HTTP(S).
+		// Again we could only allow embedding from RPC server URL.
+		// (deprecated)
+		b"frame-src 'self' http: https:;".to_vec(),
+		// Allow framing and web workers from HTTP(S).
+		b"child-src 'self' http: https:;".to_vec(),
+		// We allow data: blob: and HTTP(s) images.
+		// We could get rid of wildcarding HTTP and only allow RPC server URL.
+		// (http require for local dapps icons)
+		b"img-src 'self' 'unsafe-inline' data: blob: http: https:;".to_vec(),
+		// Allow style from data: blob: and HTTPS.
+		b"style-src 'self' 'unsafe-inline' data: blob: https:;".to_vec(),
+		// Allow fonts from data: and HTTPS.
+		b"font-src 'self' data: https:;".to_vec(),
+		// Allow inline scripts and scripts eval (webpack/jsconsole)
+		b"script-src 'self' 'unsafe-inline' 'unsafe-eval';".to_vec(),
+		// Restrict everything else to the same origin.
+		b"default-src 'self';".to_vec(),
+		// Run in sandbox mode (although it's not fully safe since we allow same-origin and script)
+		b"sandbox allow-same-origin allow-forms allow-modals allow-popups allow-presentation allow-scripts;".to_vec(),
+		// Disallow subitting forms from any dapps
+		b"form-action 'none';".to_vec(),
+		// Never allow mixed content
+		b"block-all-mixed-content;".to_vec(),
+		// Specify if the site can be embedded.
+		match embeddable_on {
+			Some((ref host, ref port)) if host == "127.0.0.1" => {
+				format!("frame-ancestors {} {};", address(&(host.to_owned(), *port)), address(&("localhost".to_owned(), *port)))
+			},
+			Some(ref embed) => format!("frame-ancestors {};", address(embed)),
+			None => format!("frame-ancestors 'self';"),
+		}.into_bytes(),
+	]);
 }


--- a/devtools/src/http_client.rs
+++ b/devtools/src/http_client.rs
@ -121,4 +121,8 @@ pub fn assert_security_headers_present(headers: &[String], port: Option<u16>) {
 		headers.iter().find(|header|  header.as_str() == "X-Content-Type-Options: nosniff").is_some(),
 		"X-Content-Type-Options missing: {:?}", headers
 	);
+	assert!(
+		headers.iter().find(|header| header.starts_with("Content-Security-Policy: ")).is_some(),
+		"Content-Security-Policy missing: {:?}", headers
+	)
 }
--- a/ethcore/native_contracts/build.rs
+++ b/ethcore/native_contracts/build.rs
@ -28,7 +28,7 @@ const SECRETSTORE_ACL_STORAGE_ABI: &'static str = include_str!("res/secretstore_
 const VALIDATOR_SET_ABI: &'static str = include_str!("res/validator_set.json");
 const VALIDATOR_REPORT_ABI: &'static str = include_str!("res/validator_report.json");

-const TEST_VALIDATOR_SET_ABI: &'static str = r#"[{"constant":true,"inputs":[],"name":"transitionNonce","outputs":[{"name":"n","type":"uint256"}],"payable":false,"type":"function"},{"constant":false,"inputs":[{"name":"newValidators","type":"address[]"}],"name":"setValidators","outputs":[],"payable":false,"type":"function"},{"constant":true,"inputs":[],"name":"getValidators","outputs":[{"name":"vals","type":"address[]"}],"payable":false,"type":"function"},{"inputs":[],"payable":false,"type":"constructor"},{"anonymous":false,"inputs":[{"indexed":true,"name":"_parent_hash","type":"bytes32"},{"indexed":true,"name":"_nonce","type":"uint256"},{"indexed":false,"name":"_new_set","type":"address[]"}],"name":"ValidatorsChanged","type":"event"}]"#;
+const TEST_VALIDATOR_SET_ABI: &'static str = include_str!("res/test_validator_set.json");

 fn build_file(name: &str, abi: &str, filename: &str) {
 	let code = ::native_contract_generator::generate_module(name, abi).unwrap();
--- a/ethcore/native_contracts/generator/src/lib.rs
+++ b/ethcore/native_contracts/generator/src/lib.rs
@ -108,7 +108,7 @@ fn generate_functions(contract: &Contract) -> Result<String, Error> {
 /// Outputs: {abi_outputs:?}
 pub fn {snake_name}<F, U>(&self, call: F, {params}) -> BoxFuture<{output_type}, String>
 	where
-	    F: Fn(util::Address, Vec<u8>) -> U,
+	    F: FnOnce(util::Address, Vec<u8>) -> U,
 	    U: IntoFuture<Item=Vec<u8>, Error=String>,
 		U::Future: Send + 'static
 {{
--- a/ethcore/native_contracts/res/test_validator_set.json
+++ b/ethcore/native_contracts/res/test_validator_set.json
@ -0,0 +1,8 @@
+[
+	{"constant":false,"inputs":[{"name":"_validators","type":"address[]"}],"name":"setValidators","outputs":[],"payable":false,"type":"function"},
+	{"constant":false,"inputs":[{"name":"","type":"address"},{"name":"","type":"bytes"}],"name":"reportMalicious","outputs":[],"payable":false,"type":"function"},
+	{"constant":false,"inputs":[],"name":"finalizeChange","outputs":[],"payable":false,"type":"function"},
+	{"constant":true,"inputs":[],"name":"getValidators","outputs":[{"name":"_validators","type":"address[]"}],"payable":false,"type":"function"},
+	{"constant":false,"inputs":[{"name":"","type":"address"}],"name":"reportBenign","outputs":[],"payable":false,"type":"function"},
+	{"anonymous":false,"inputs":[{"indexed":true,"name":"_parent_hash","type":"bytes32"},{"indexed":false,"name":"_new_set","type":"address[]"}],"name":"InitiateChange","type":"event"}
+]
--- a/ethcore/native_contracts/res/validator_set.json
+++ b/ethcore/native_contracts/res/validator_set.json
@ -1,5 +1,5 @@
 [
-	{"constant":true,"inputs":[],"name":"transitionNonce","outputs":[{"name":"nonce","type":"uint256"}],"payable":false,"type":"function"},
+	{"constant":false,"inputs":[],"name":"finalizeChange","outputs":[],"payable":false,"type":"function"},
 	{"constant":true,"inputs":[],"name":"getValidators","outputs":[{"name":"validators","type":"address[]"}],"payable":false,"type":"function"},
-	{"anonymous":false,"inputs":[{"indexed":true,"name":"_parent_hash","type":"bytes32"},{"indexed":true,"name":"_nonce","type":"uint256"},{"indexed":false,"name":"_new_set","type":"address[]"}],"name":"ValidatorsChanged","type":"event"}
+	{"anonymous":false,"inputs":[{"indexed":true,"name":"_parent_hash","type":"bytes32"},{"indexed":false,"name":"_new_set","type":"address[]"}],"name":"InitiateChange","type":"event"}
 ]
--- a/ethcore/res/authority_round.json
+++ b/ethcore/res/authority_round.json
@ -11,7 +11,8 @@
 						"0x7d577a597b2742b498cb5cf0c26cdcd726d39e6e",
 						"0x82a978b3f5962a5b0957d9ee9eef472ee55b42f1"
 					]
-				}
+				},
+				"immediateTransitions": true
 			}
 		}
 	},
--- a/ethcore/res/validator_contract.json
+++ b/ethcore/res/validator_contract.json
@ -8,7 +8,8 @@
 				"startStep": 2,
 				"validators": {
 					"contract": "0x0000000000000000000000000000000000000005"
-				}
+				},
+				"immediateTransitions": true
 			}
 		}
 	},
--- a/ethcore/src/block.rs
+++ b/ethcore/src/block.rs
@ -260,8 +260,10 @@ impl<'x> OpenBlock<'x> {
 		author: Address,
 		gas_range_target: (U256, U256),
 		extra_data: Bytes,
+		is_epoch_begin: bool,
 	) -> Result<Self, Error> {
-		let state = State::from_existing(db, parent.state_root().clone(), engine.account_start_nonce(), factories)?;
+		let number = parent.number() + 1;
+		let state = State::from_existing(db, parent.state_root().clone(), engine.account_start_nonce(number), factories)?;
 		let mut r = OpenBlock {
 			block: ExecutedBlock::new(state, tracing),
 			engine: engine,
@ -269,7 +271,7 @@ impl<'x> OpenBlock<'x> {
 		};

 		r.block.header.set_parent_hash(parent.hash());
-		r.block.header.set_number(parent.number() + 1);
+		r.block.header.set_number(number);
 		r.block.header.set_author(author);
 		r.block.header.set_timestamp_now(parent.timestamp());
 		r.block.header.set_extra_data(extra_data);
@ -278,7 +280,8 @@ impl<'x> OpenBlock<'x> {
 		let gas_floor_target = cmp::max(gas_range_target.0, engine.params().min_gas_limit);
 		let gas_ceil_target = cmp::max(gas_range_target.1, gas_floor_target);
 		engine.populate_from_parent(&mut r.block.header, parent, gas_floor_target, gas_ceil_target);
-		engine.on_new_block(&mut r.block, last_hashes)?;
+		engine.on_new_block(&mut r.block, last_hashes, is_epoch_begin)?;
+
 		Ok(r)
 	}

@ -429,7 +432,7 @@ impl<'x> OpenBlock<'x> {

 	#[cfg(test)]
 	/// Return mutable block reference. To be used in tests only.
-	pub fn block_mut (&mut self) -> &mut ExecutedBlock { &mut self.block }
+	pub fn block_mut(&mut self) -> &mut ExecutedBlock { &mut self.block }
 }

 impl<'x> IsBlock for OpenBlock<'x> {
@ -553,16 +556,29 @@ pub fn enact(
 	parent: &Header,
 	last_hashes: Arc<LastHashes>,
 	factories: Factories,
+	is_epoch_begin: bool,
 ) -> Result<LockedBlock, Error> {
 	{
 		if ::log::max_log_level() >= ::log::LogLevel::Trace {
-			let s = State::from_existing(db.boxed_clone(), parent.state_root().clone(), engine.account_start_nonce(), factories.clone())?;
+			let s = State::from_existing(db.boxed_clone(), parent.state_root().clone(), engine.account_start_nonce(parent.number() + 1), factories.clone())?;
 			trace!(target: "enact", "num={}, root={}, author={}, author_balance={}\n",
 				header.number(), s.root(), header.author(), s.balance(&header.author())?);
 		}
 	}

-	let mut b = OpenBlock::new(engine, factories, tracing, db, parent, last_hashes, Address::new(), (3141562.into(), 31415620.into()), vec![])?;
+	let mut b = OpenBlock::new(
+		engine,
+		factories,
+		tracing,
+		db,
+		parent,
+		last_hashes,
+		Address::new(),
+		(3141562.into(), 31415620.into()),
+		vec![],
+		is_epoch_begin,
+	)?;
+
 	b.set_difficulty(*header.difficulty());
 	b.set_gas_limit(*header.gas_limit());
 	b.set_timestamp(header.timestamp());
@ -617,9 +633,22 @@ pub fn enact_verified(
 	parent: &Header,
 	last_hashes: Arc<LastHashes>,
 	factories: Factories,
+	is_epoch_begin: bool,
 ) -> Result<LockedBlock, Error> {
 	let view = BlockView::new(&block.bytes);
-	enact(&block.header, &block.transactions, &view.uncles(), engine, tracing, db, parent, last_hashes, factories)
+
+	enact(
+		&block.header,
+		&block.transactions,
+		&view.uncles(),
+		engine,
+		tracing,
+		db,
+		parent,
+		last_hashes,
+		factories,
+		is_epoch_begin,
+	)
 }

 #[cfg(test)]
@ -652,7 +681,7 @@ mod tests {
 		let header = block.header();
 		let transactions: Result<Vec<_>, Error> = block.transactions().into_iter().map(SignedTransaction::new).collect();
 		let transactions = transactions?;
-		enact(&header, &transactions, &block.uncles(), engine, tracing, db, parent, last_hashes, factories)
+		enact(&header, &transactions, &block.uncles(), engine, tracing, db, parent, last_hashes, factories, false)
 	}

 	/// Enact the block given by `block_bytes` using `engine` on the database `db` with given `parent` block header. Seal the block aferwards
@ -677,7 +706,7 @@ mod tests {
 		let genesis_header = spec.genesis_header();
 		let db = spec.ensure_db_good(get_temp_state_db(), &Default::default()).unwrap();
 		let last_hashes = Arc::new(vec![genesis_header.hash()]);
-		let b = OpenBlock::new(&*spec.engine, Default::default(), false, db, &genesis_header, last_hashes, Address::zero(), (3141562.into(), 31415620.into()), vec![]).unwrap();
+		let b = OpenBlock::new(&*spec.engine, Default::default(), false, db, &genesis_header, last_hashes, Address::zero(), (3141562.into(), 31415620.into()), vec![], false).unwrap();
 		let b = b.close_and_lock();
 		let _ = b.seal(&*spec.engine, vec![]);
 	}
@ -691,7 +720,7 @@ mod tests {

 		let db = spec.ensure_db_good(get_temp_state_db(), &Default::default()).unwrap();
 		let last_hashes = Arc::new(vec![genesis_header.hash()]);
-		let b = OpenBlock::new(engine, Default::default(), false, db, &genesis_header, last_hashes.clone(), Address::zero(), (3141562.into(), 31415620.into()), vec![]).unwrap()
+		let b = OpenBlock::new(engine, Default::default(), false, db, &genesis_header, last_hashes.clone(), Address::zero(), (3141562.into(), 31415620.into()), vec![], false).unwrap()
 			.close_and_lock().seal(engine, vec![]).unwrap();
 		let orig_bytes = b.rlp_bytes();
 		let orig_db = b.drain();
@ -715,7 +744,7 @@ mod tests {

 		let db = spec.ensure_db_good(get_temp_state_db(), &Default::default()).unwrap();
 		let last_hashes = Arc::new(vec![genesis_header.hash()]);
-		let mut open_block = OpenBlock::new(engine, Default::default(), false, db, &genesis_header, last_hashes.clone(), Address::zero(), (3141562.into(), 31415620.into()), vec![]).unwrap();
+		let mut open_block = OpenBlock::new(engine, Default::default(), false, db, &genesis_header, last_hashes.clone(), Address::zero(), (3141562.into(), 31415620.into()), vec![], false).unwrap();
 		let mut uncle1_header = Header::new();
 		uncle1_header.set_extra_data(b"uncle1".to_vec());
 		let mut uncle2_header = Header::new();
--- a/ethcore/src/blockchain/blockchain.rs
+++ b/ethcore/src/blockchain/blockchain.rs
@ -35,6 +35,7 @@ use blockchain::{CacheSize, ImportRoute, Config};
 use db::{self, Writable, Readable, CacheUpdatePolicy};
 use cache_manager::CacheManager;
 use encoded;
+use engines::epoch::{Transition as EpochTransition, PendingTransition as PendingEpochTransition};

 const LOG_BLOOMS_LEVELS: usize = 3;
 const LOG_BLOOMS_ELEMENTS_PER_INDEX: usize = 16;
@ -145,6 +146,10 @@ pub trait BlockProvider {
 		where F: Fn(&LogEntry) -> bool, Self: Sized;
 }

+macro_rules! otry {
+	($e:expr) => { match $e { Some(x) => x, None => return None } }
+}
+
 #[derive(Debug, Hash, Eq, PartialEq, Clone)]
 enum CacheId {
 	BlockHeader(H256),
@ -508,7 +513,7 @@ impl BlockChain {
 					number: header.number(),
 					total_difficulty: header.difficulty(),
 					parent: header.parent_hash(),
-					children: vec![]
+					children: vec![],
 				};

 				let mut batch = DBTransaction::new();
@ -698,10 +703,6 @@ impl BlockChain {
 	/// If the tree route verges into pruned or unknown blocks,
 	/// `None` is returned.
 	pub fn tree_route(&self, from: H256, to: H256) -> Option<TreeRoute> {
-		macro_rules! otry {
-			($e:expr) => { match $e { Some(x) => x, None => return None } }
-		}
-
 		let mut from_branch = vec![];
 		let mut to_branch = vec![];

@ -878,16 +879,60 @@ impl BlockChain {
 		}
 	}

-	/// Get a specific epoch transition by epoch number and provided block hash.
-	pub fn epoch_transition(&self, epoch_num: u64, block_hash: H256) -> Option<EpochTransition> {
-		trace!(target: "blockchain", "Loading epoch {} transition at block {}",
-			epoch_num, block_hash);
+	/// Get a specific epoch transition by block number and provided block hash.
+	pub fn epoch_transition(&self, block_num: u64, block_hash: H256) -> Option<EpochTransition> {
+		trace!(target: "blockchain", "Loading epoch transition at block {}, {}",
+			block_num, block_hash);

-		self.db.read(db::COL_EXTRA, &epoch_num).and_then(|transitions: EpochTransitions| {
+		self.db.read(db::COL_EXTRA, &block_num).and_then(|transitions: EpochTransitions| {
 			transitions.candidates.into_iter().find(|c| c.block_hash == block_hash)
 		})
 	}

+	/// Get the transition to the epoch the given parent hash is part of
+	/// or transitions to.
+	/// This will give the epoch that any children of this parent belong to.
+	///
+	/// The block corresponding the the parent hash must be stored already.
+	pub fn epoch_transition_for(&self, parent_hash: H256) -> Option<EpochTransition> {
+		// slow path: loop back block by block
+		for hash in otry!(self.ancestry_iter(parent_hash)) {
+			let details = otry!(self.block_details(&hash));
+
+			// look for transition in database.
+			if let Some(transition) = self.epoch_transition(details.number, hash) {
+				return Some(transition)
+			}
+
+			// canonical hash -> fast breakout:
+			// get the last epoch transition up to this block.
+			//
+			// if `block_hash` is canonical it will only return transitions up to
+			// the parent.
+			if otry!(self.block_hash(details.number)) == hash {
+				return self.epoch_transitions()
+					.map(|(_, t)| t)
+					.take_while(|t| t.block_number <= details.number)
+					.last()
+			}
+		}
+
+		// should never happen as the loop will encounter genesis before concluding.
+		None
+	}
+
+	/// Write a pending epoch transition by block hash.
+	pub fn insert_pending_transition(&self, batch: &mut DBTransaction, hash: H256, t: PendingEpochTransition) {
+		batch.write(db::COL_EXTRA, &hash, &t);
+	}
+
+	/// Get a pending epoch transition by block hash.
+	// TODO: implement removal safely: this can only be done upon finality of a block
+	// that _uses_ the pending transition.
+	pub fn get_pending_transition(&self, hash: H256) -> Option<PendingEpochTransition> {
+		self.db.read(db::COL_EXTRA, &hash)
+	}
+
 	/// Add a child to a given block. Assumes that the block hash is in
 	/// the chain and the child's parent is this block.
 	///
@ -1165,12 +1210,12 @@ impl BlockChain {
 		let mut parent_details = self.block_details(&parent_hash).unwrap_or_else(|| panic!("Invalid parent hash: {:?}", parent_hash));
 		parent_details.children.push(info.hash.clone());

-		// create current block details
+		// create current block details.
 		let details = BlockDetails {
 			number: header.number(),
 			total_difficulty: info.total_difficulty,
 			parent: parent_hash.clone(),
-			children: vec![]
+			children: vec![],
 		};

 		// write to batch
@ -2201,7 +2246,7 @@ mod tests {

 	#[test]
 	fn epoch_transitions_iter() {
-		use blockchain::extras::EpochTransition;
+		use ::engines::EpochTransition;

 		let mut canon_chain = ChainGenerator::default();
 		let mut finalizer = BlockFinalizer::default();
@ -2223,7 +2268,6 @@ mod tests {
 					block_hash: hash,
 					block_number: i + 1,
 					proof: vec![],
-					state_proof: vec![],
 				});
 				bc.commit();
 			}
@ -2236,7 +2280,6 @@ mod tests {
 				block_hash: hash,
 				block_number: 1,
 				proof: vec![],
-				state_proof: vec![]
 			});

 			db.write(batch).unwrap();
@ -2252,4 +2295,85 @@ mod tests {
 		assert_eq!(bc.best_block_number(), 5);
 		assert_eq!(bc.epoch_transitions().map(|(i, _)| i).collect::<Vec<_>>(), vec![0, 1, 2, 3, 4]);
 	}
+
+	#[test]
+	fn epoch_transition_for() {
+		use ::engines::EpochTransition;
+
+		let mut canon_chain = ChainGenerator::default();
+		let mut finalizer = BlockFinalizer::default();
+		let genesis = canon_chain.generate(&mut finalizer).unwrap();
+
+		let db = new_db();
+
+		let bc = new_chain(&genesis, db.clone());
+
+		let mut batch = db.transaction();
+		bc.insert_epoch_transition(&mut batch, 0, EpochTransition {
+			block_hash: bc.genesis_hash(),
+			block_number: 0,
+			proof: vec![],
+		});
+		db.write(batch).unwrap();
+
+		// set up a chain where we have a canonical chain of 10 blocks
+		// and a non-canonical fork of 8 from genesis.
+		let fork_hash = {
+			let mut fork_chain = canon_chain.fork(1);
+			let mut fork_finalizer = finalizer.fork();
+
+			for _ in 0..7 {
+				let mut batch = db.transaction();
+				let fork_block = fork_chain.generate(&mut fork_finalizer).unwrap();
+
+				bc.insert_block(&mut batch, &fork_block, vec![]);
+				bc.commit();
+				db.write(batch).unwrap();
+			}
+
+			assert_eq!(bc.best_block_number(), 7);
+			bc.chain_info().best_block_hash
+		};
+
+		for _ in 0..10 {
+			let mut batch = db.transaction();
+			let canon_block = canon_chain.generate(&mut finalizer).unwrap();
+
+			bc.insert_block(&mut batch, &canon_block, vec![]);
+			bc.commit();
+
+			db.write(batch).unwrap();
+		}
+
+		assert_eq!(bc.best_block_number(), 10);
+
+		let mut batch = db.transaction();
+		bc.insert_epoch_transition(&mut batch, 4, EpochTransition {
+			block_hash: bc.block_hash(4).unwrap(),
+			block_number: 4,
+			proof: vec![],
+		});
+		db.write(batch).unwrap();
+
+		// blocks where the parent is one of the first 4 will be part of genesis epoch.
+		for i in 0..4 {
+			let hash = bc.block_hash(i).unwrap();
+			assert_eq!(bc.epoch_transition_for(hash).unwrap().block_number, 0);
+		}
+
+		// blocks where the parent is the transition at 4 or after will be
+		// part of that epoch.
+		for i in 4..11 {
+			let hash = bc.block_hash(i).unwrap();
+			assert_eq!(bc.epoch_transition_for(hash).unwrap().block_number, 4);
+		}
+
+		let fork_hashes = bc.ancestry_iter(fork_hash).unwrap().collect::<Vec<_>>();
+		assert_eq!(fork_hashes.len(), 8);
+
+		// non-canonical fork blocks should all have genesis transition
+		for fork_hash in fork_hashes {
+			assert_eq!(bc.epoch_transition_for(fork_hash).unwrap().block_number, 0);
+		}
+	}
 }
--- a/ethcore/src/blockchain/extras.rs
+++ b/ethcore/src/blockchain/extras.rs
@ -17,13 +17,16 @@
 //! Blockchain DB extras.

 use bloomchain;
-use util::*;
-use util::kvdb::PREFIX_LEN as DB_PREFIX_LEN;
-use rlp::*;
+use blooms::{GroupPosition, BloomGroup};
+use db::Key;
+use engines::epoch::{Transition as EpochTransition};
 use header::BlockNumber;
 use receipt::Receipt;
-use db::Key;
-use blooms::{GroupPosition, BloomGroup};
+
+use rlp::*;
+use util::*;
+use util::kvdb::PREFIX_LEN as DB_PREFIX_LEN;
+

 /// Represents index of extra data in database
 #[derive(Copy, Debug, Hash, Eq, PartialEq, Clone)]
@ -40,6 +43,8 @@ pub enum ExtrasIndex {
 	BlockReceipts = 4,
 	/// Epoch transition data index.
 	EpochTransitions = 5,
+	/// Pending epoch transition data index.
+	PendingEpochTransition = 6,
 }

 fn with_index(hash: &H256, i: ExtrasIndex) -> H264 {
@ -137,6 +142,14 @@ impl Key<BlockReceipts> for H256 {
 	}
 }

+impl Key<::engines::epoch::PendingTransition> for H256 {
+	type Target = H264;
+
+	fn key(&self) -> H264 {
+		with_index(self, ExtrasIndex::PendingEpochTransition)
+	}
+}
+
 /// length of epoch keys.
 pub const EPOCH_KEY_LEN: usize = DB_PREFIX_LEN + 16;

@ -296,41 +309,6 @@ impl Decodable for EpochTransitions {
 	}
 }

-#[derive(Debug, Clone)]
-pub struct EpochTransition {
-	pub block_hash: H256, // block hash at which the transition occurred.
-	pub block_number: BlockNumber, // block number at which the tranition occurred.
-	pub proof: Vec<u8>, // "transition/epoch" proof from the engine.
-	pub state_proof: Vec<DBValue>, // state items necessary to regenerate proof.
-}
-
-impl Encodable for EpochTransition {
-	fn rlp_append(&self, s: &mut RlpStream) {
-		s.begin_list(4)
-			.append(&self.block_hash)
-			.append(&self.block_number)
-			.append(&self.proof)
-			.begin_list(self.state_proof.len());
-
-		for item in &self.state_proof {
-			s.append(&&**item);
-		}
-	}
-}
-
-impl Decodable for EpochTransition {
-	fn decode(rlp: &UntrustedRlp) -> Result<Self, DecoderError> {
-		Ok(EpochTransition {
-			block_hash: rlp.val_at(0)?,
-			block_number: rlp.val_at(1)?,
-			proof: rlp.val_at(2)?,
-			state_proof: rlp.at(3)?.iter().map(|x| {
-				Ok(DBValue::from_slice(x.data()?))
-			}).collect::<Result<Vec<_>, _>>()?,
-		})
-	}
-}
-
 #[cfg(test)]
 mod tests {
 	use rlp::*;
--- a/ethcore/src/blockchain/mod.rs
+++ b/ethcore/src/blockchain/mod.rs
@ -31,6 +31,5 @@ pub mod generator;
 pub use self::blockchain::{BlockProvider, BlockChain};
 pub use self::cache::CacheSize;
 pub use self::config::Config;
-pub use self::extras::EpochTransition;
 pub use types::tree_route::TreeRoute;
 pub use self::import_route::ImportRoute;
--- a/ethcore/src/client/ancient_import.rs
+++ b/ethcore/src/client/ancient_import.rs
@ -18,8 +18,8 @@

 use std::sync::Arc;

-use engines::{Engine, EpochVerifier, EpochChange};
-use error::Error;
+use blockchain::BlockChain;
+use engines::{Engine, EpochVerifier};
 use header::Header;

 use rand::Rng;
@ -46,21 +46,21 @@ impl AncientVerifier {

 	/// Verify the next block header, randomly choosing whether to do heavy or light
 	/// verification. If the block is the end of an epoch, updates the epoch verifier.
-	pub fn verify<R: Rng, F: Fn(u64) -> Result<Box<EpochVerifier>, Error>>(
+	pub fn verify<R: Rng>(
 		&self,
 		rng: &mut R,
 		header: &Header,
-		block: &[u8],
-		receipts: &[::receipt::Receipt],
-		load_verifier: F,
+		chain: &BlockChain,
 	) -> Result<(), ::error::Error> {
 		match rng.gen::<f32>() <= HEAVY_VERIFY_RATE {
 			true => self.cur_verifier.read().verify_heavy(header)?,
 			false => self.cur_verifier.read().verify_light(header)?,
 		}

-		if let EpochChange::Yes(num) = self.engine.is_epoch_end(header, Some(block), Some(receipts)) {
-			*self.cur_verifier.write() = load_verifier(num)?;
+		// ancient import will only use transitions obtained from the snapshot.
+		if let Some(transition) = chain.epoch_transition(header.number(), header.hash()) {
+			let v = self.engine.epoch_verifier(&header, &transition.proof).known_confirmed()?;
+			*self.cur_verifier.write() = v;
 		}

 		Ok(())
--- a/ethcore/src/client/client.rs
+++ b/ethcore/src/client/client.rs
@ -32,7 +32,7 @@ use util::kvdb::*;
 // other
 use basic_types::Seal;
 use block::*;
-use blockchain::{BlockChain, BlockProvider, EpochTransition, TreeRoute, ImportRoute};
+use blockchain::{BlockChain, BlockProvider,  TreeRoute, ImportRoute};
 use blockchain::extras::TransactionAddress;
 use client::ancient_import::AncientVerifier;
 use client::Error as ClientError;
@ -42,7 +42,7 @@ use client::{
 	ChainNotify, PruningInfo, ProvingBlockChainClient,
 };
 use encoded;
-use engines::Engine;
+use engines::{Engine, EpochTransition};
 use env_info::EnvInfo;
 use env_info::LastHashes;
 use error::{ImportError, ExecutionError, CallError, BlockError, ImportResult, Error as EthcoreError};
@ -256,9 +256,31 @@ impl Client {
 		{
 			let chain = client.chain.read();
 			let gh = spec.genesis_header();
-			if chain.epoch_transition(0, spec.genesis_header().hash()).is_none() {
+			if chain.epoch_transition(0, gh.hash()).is_none() {
 				trace!(target: "client", "No genesis transition found.");
-				client.generate_epoch_proof(&gh, 0, &*chain);
+
+				let proof = client.with_proving_caller(
+					BlockId::Number(0),
+					|call| client.engine.genesis_epoch_data(&gh, call)
+				);
+				let proof = match proof {
+					Ok(proof) => proof,
+					Err(e) => {
+						warn!(target: "client", "Error generating genesis epoch data: {}. Snapshots generated may not be complete.", e);
+						Vec::new()
+					}
+				};
+
+				debug!(target: "client", "Obtained genesis transition proof: {:?}", proof);
+
+				let mut batch = DBTransaction::new();
+				chain.insert_epoch_transition(&mut batch, 0, EpochTransition {
+					block_hash: gh.hash(),
+					block_number: 0,
+					proof: proof,
+				});
+
+				client.db.read().write_buffered(batch);
 			}
 		}

@ -405,7 +427,16 @@ impl Client {
 			let last_hashes = self.build_last_hashes(header.parent_hash().clone());
 			let db = self.state_db.lock().boxed_clone_canon(header.parent_hash());

-			let enact_result = enact_verified(block, engine, self.tracedb.read().tracing_enabled(), db, &parent, last_hashes, self.factories.clone());
+			let is_epoch_begin = chain.epoch_transition(parent.number(), *header.parent_hash()).is_some();
+			let enact_result = enact_verified(block,
+				engine,
+				self.tracedb.read().tracing_enabled(),
+				db,
+				&parent,
+				last_hashes,
+				self.factories.clone(),
+				is_epoch_begin,
+			);
 			let mut locked_block = enact_result.map_err(|e| {
 				warn!(target: "client", "Block import failed for #{} ({})\nError: {:?}", header.number(), header.hash(), e);
 			})?;
@ -555,18 +586,9 @@ impl Client {
 			{
 				// closure for verifying a block.
 				let verify_with = |verifier: &AncientVerifier| -> Result<(), ::error::Error> {
-					// verify the block, passing a closure used to load an epoch verifier
-					// by number.
-					verifier.verify(
-						&mut *self.rng.lock(),
-						&header,
-						&block_bytes,
-						&receipts,
-						|epoch_num| chain.epoch_transition(epoch_num, hash)
-							.ok_or(BlockError::UnknownEpochTransition(epoch_num))
-							.map_err(Into::into)
-							.and_then(|t| self.engine.epoch_verifier(&header, &t.proof))
-					)
+					// verify the block, passing the chain for updating the epoch
+					// verifier.
+					verifier.verify(&mut *self.rng.lock(), &header, &chain)
 				};

 				// initialize the ancient block verifier if we don't have one already.
@ -583,7 +605,8 @@ impl Client {
 							.map(|(_, t)| t.proof)
 							.expect("At least one epoch entry (genesis) always stored; qed");

-						let current_verifier = self.engine.epoch_verifier(&header, &current_epoch_data)?;
+						let current_verifier = self.engine.epoch_verifier(&header, &current_epoch_data)
+							.known_confirmed()?;
 						let current_verifier = AncientVerifier::new(self.engine.clone(), current_verifier);

 						verify_with(&current_verifier)?;
@ -606,6 +629,7 @@ impl Client {
 	fn commit_block<B>(&self, block: B, hash: &H256, block_data: &[u8]) -> ImportRoute where B: IsBlock + Drain {
 		let number = block.header().number();
 		let parent = block.header().parent_hash().clone();
+		let header = block.header().clone(); // TODO: optimize and avoid copy.
 		let chain = self.chain.read();

 		// Commit results
@ -619,28 +643,13 @@ impl Client {

 		let mut batch = DBTransaction::new();

-		// generate validation proof if the engine requires them.
-		// TODO: make conditional?
-		let entering_new_epoch = {
-			use engines::EpochChange;
-			match self.engine.is_epoch_end(block.header(), Some(block_data), Some(&receipts)) {
-				EpochChange::Yes(e) => Some((block.header().clone(), e)),
-				EpochChange::No => None,
-				EpochChange::Unsure(_) => {
-					warn!(target: "client", "Detected invalid engine implementation.");
-					warn!(target: "client", "Engine claims to require more block data, but everything provided.");
-					None
-				}
-			}
-		};
-
 		// CHECK! I *think* this is fine, even if the state_root is equal to another
 		// already-imported block of the same number.
 		// TODO: Prove it with a test.
 		let mut state = block.drain();

 		state.journal_under(&mut batch, number, hash).expect("DB commit failed");
-		let route = chain.insert_block(&mut batch, block_data, receipts);
+		let route = chain.insert_block(&mut batch, block_data, receipts.clone());

 		self.tracedb.read().import(&mut batch, TraceImportRequest {
 			traces: traces.into(),
@ -655,65 +664,102 @@ impl Client {
 		// Final commit to the DB
 		self.db.read().write_buffered(batch);
 		chain.commit();
+
+		// check for epoch end. do this after writing first batch so we can prove
+		// transactions on the block's state.
+		// TODO: work these changes into the existing DBTransaction.
+		self.check_epoch_end_signal(&header, block_data, &receipts, &chain);
+		self.check_epoch_end(&header, &chain);
+
 		self.update_last_hashes(&parent, hash);

 		if let Err(e) = self.prune_ancient(state, &chain) {
 			warn!("Failed to prune ancient state data: {}", e);
 		}

-		if let Some((header, epoch)) = entering_new_epoch {
-			self.generate_epoch_proof(&header, epoch, &chain);
-		}
-
 		route
 	}

-	// generate an epoch transition proof at the given block, and write it into the given blockchain.
-	fn generate_epoch_proof(&self, header: &Header, epoch_number: u64, chain: &BlockChain) {
-		use std::cell::RefCell;
-		use std::collections::BTreeSet;
+	// check for epoch end signal and write pending transition if it occurs.
+	// state for the given block must be available.
+	fn check_epoch_end_signal(&self, header: &Header, block: &[u8], receipts: &[Receipt], chain: &BlockChain) {
+		use engines::EpochChange;

-		let mut batch = DBTransaction::new();
 		let hash = header.hash();
-		debug!(target: "client", "Generating validation proof for epoch {} at block {}",
-			epoch_number, hash);
+		match self.engine.signals_epoch_end(header, Some(block), Some(&receipts)) {
+			EpochChange::Yes(proof) => {
+				use engines::epoch::PendingTransition;
+				use engines::Proof;

-		// proof is two-part. state items read in lexicographical order,
-		// and the secondary "proof" part.
-		let read_values = RefCell::new(BTreeSet::new());
-		let block_id = BlockId::Hash(hash.clone());
-		let proof = {
-			let call = |a, d| {
-				let tx = self.contract_call_tx(block_id, a, d);
-				let (result, items) = self.prove_transaction(tx, block_id)
-					.ok_or_else(|| format!("Unable to make call to generate epoch proof."))?;
+				let proof = match proof {
+					Proof::Known(proof) => proof,
+					Proof::WithState(with_state) =>
+						match self.with_proving_caller(BlockId::Hash(hash), move |c| with_state(c)) {
+							Ok(proof) => proof,
+							Err(e) => {
+								warn!(target: "client", "Failed to generate transition proof for block {}: {}", hash, e);
+								warn!(target: "client", "Snapshots produced by this client may be incomplete");

-				read_values.borrow_mut().extend(items);
-				Ok(result)
-			};
+								Vec::new()
+							}
+						},
+				};

-			self.engine.epoch_proof(&header, &call)
-		};
+				debug!(target: "client", "Block {} signals epoch end.", hash);

-		// insert into database, using the generated proof.
-		match proof {
-			Ok(proof) => {
-				chain.insert_epoch_transition(&mut batch, epoch_number, EpochTransition {
-					block_hash: hash.clone(),
-					block_number: header.number(),
-					proof: proof,
-					state_proof: read_values.into_inner().into_iter().collect(),
-				});
+				// write pending transition to DB.
+				let mut batch = DBTransaction::new();
+
+				let pending = PendingTransition { proof: proof };
+				chain.insert_pending_transition(&mut batch, hash, pending);

 				self.db.read().write_buffered(batch);
-			}
-			Err(e) => {
-				warn!(target: "client", "Error generating epoch change proof for block {}: {}", hash, e);
-				warn!(target: "client", "Snapshots generated by this node will be incomplete.");
+			},
+			EpochChange::No => {},
+			EpochChange::Unsure(_) => {
+				warn!(target: "client", "Detected invalid engine implementation.");
+				warn!(target: "client", "Engine claims to require more block data, but everything provided.");
 			}
 		}
 	}

+	// check for ending of epoch and write transition if it occurs.
+	fn check_epoch_end<'a>(&self, header: &'a Header, chain: &BlockChain) {
+		let is_epoch_end = self.engine.is_epoch_end(
+			header,
+			&(|hash| chain.block_header(&hash)),
+			&(|hash| chain.get_pending_transition(hash)), // TODO: limit to current epoch.
+		);
+
+		if let Some(proof) = is_epoch_end {
+			debug!(target: "client", "Epoch transition at block {}", header.hash());
+
+			let mut batch = DBTransaction::new();
+			chain.insert_epoch_transition(&mut batch, header.number(), EpochTransition {
+				block_hash: header.hash(),
+				block_number: header.number(),
+				proof: proof,
+			});
+			self.db.read().write_buffered(batch);
+		}
+	}
+
+	// use a state-proving closure for the given block.
+	fn with_proving_caller<F, T>(&self, id: BlockId, with_call: F) -> T
+		where F: FnOnce(&::engines::Call) -> T
+	{
+		let call = |a, d| {
+			let tx = self.contract_call_tx(id, a, d);
+			let (result, items) = self.prove_transaction(tx, id)
+				.ok_or_else(|| format!("Unable to make call. State unavailable?"))?;
+
+			let items = items.into_iter().map(|x| x.to_vec()).collect();
+			Ok((result, items))
+		};
+
+		with_call(&call)
+	}
+
 	// prune ancient states until below the memory limit or only the minimum amount remain.
 	fn prune_ancient(&self, mut state_db: StateDB, chain: &BlockChain) -> Result<(), ClientError> {
 		let number = match state_db.journal_db().latest_era() {
@ -810,7 +856,7 @@ impl Client {
 			}

 			let root = header.state_root();
-			State::from_existing(db, root, self.engine.account_start_nonce(), self.factories.clone()).ok()
+			State::from_existing(db, root, self.engine.account_start_nonce(block_number), self.factories.clone()).ok()
 		})
 	}

@ -835,7 +881,7 @@ impl Client {
 		State::from_existing(
 			self.state_db.lock().boxed_clone_canon(&header.hash()),
 			header.state_root(),
-			self.engine.account_start_nonce(),
+			self.engine.account_start_nonce(header.number()),
 			self.factories.clone())
 		.expect("State root of best block header always valid.")
 	}
@ -987,7 +1033,7 @@ impl Client {
 	fn contract_call_tx(&self, block_id: BlockId, address: Address, data: Bytes) -> SignedTransaction {
 		let from = Address::default();
 		Transaction {
-			nonce: self.nonce(&from, block_id).unwrap_or_else(|| self.engine.account_start_nonce()),
+			nonce: self.nonce(&from, block_id).unwrap_or_else(|| self.engine.account_start_nonce(0)),
 			action: Action::Call(address),
 			gas: U256::from(50_000_000),
 			gas_price: U256::default(),
@ -1622,17 +1668,21 @@ impl MiningBlockChainClient for Client {
 		let engine = &*self.engine;
 		let chain = self.chain.read();
 		let h = chain.best_block_hash();
+		let best_header = &chain.block_header(&h)
+			.expect("h is best block hash: so its header must exist: qed");

+		let is_epoch_begin = chain.epoch_transition(best_header.number(), h).is_some();
 		let mut open_block = OpenBlock::new(
 			engine,
 			self.factories.clone(),
 			false,	// TODO: this will need to be parameterised once we want to do immediate mining insertion.
 			self.state_db.lock().boxed_clone_canon(&h),
-			&chain.block_header(&h).expect("h is best block hash: so its header must exist: qed"),
+			best_header,
 			self.build_last_hashes(h.clone()),
 			author,
 			gas_range_target,
 			extra_data,
+			is_epoch_begin,
 		).expect("OpenBlock::new only fails if parent state root invalid; state root of best block's header is never invalid; qed");

 		// Add uncles
@ -1717,6 +1767,10 @@ impl EngineClient for Client {
 	fn broadcast_consensus_message(&self, message: Bytes) {
 		self.notify(|notify| notify.broadcast(message.clone()));
 	}
+
+	fn epoch_transition_for(&self, parent_hash: H256) -> Option<::engines::EpochTransition> {
+		self.chain.read().epoch_transition_for(parent_hash)
+	}
 }

 impl ProvingBlockChainClient for Client {
@ -1746,7 +1800,10 @@ impl ProvingBlockChainClient for Client {

 		match res {
 			Err(ExecutionError::Internal(_)) => None,
-			Err(_) => Some((Vec::new(), state.drop().1.extract_proof())),
+			Err(e) => {
+				trace!(target: "client", "Proved call failed: {}", e);
+				Some((Vec::new(), state.drop().1.extract_proof()))
+			}
 			Ok(res) => Some((res.output, state.drop().1.extract_proof())),
 		}
 	}
--- a/ethcore/src/client/evm_test_client.rs
+++ b/ethcore/src/client/evm_test_client.rs
@ -89,7 +89,7 @@ impl EvmTestClient {
 		-> Result<(U256, Vec<u8>), EvmTestError>
 	{
 		let genesis = self.spec.genesis_header();
-		let mut state = state::State::from_existing(self.state_db.boxed_clone(), *genesis.state_root(), self.spec.engine.account_start_nonce(), self.factories.clone())
+		let mut state = state::State::from_existing(self.state_db.boxed_clone(), *genesis.state_root(), self.spec.engine.account_start_nonce(0), self.factories.clone())
 			.map_err(EvmTestError::Trie)?;
 		let info = client::EnvInfo {
 			number: genesis.number(),
--- a/ethcore/src/client/test_client.rs
+++ b/ethcore/src/client/test_client.rs
@ -372,7 +372,8 @@ impl MiningBlockChainClient for TestBlockChainClient {
 			Arc::new(last_hashes),
 			author,
 			gas_range_target,
-			extra_data
+			extra_data,
+			false,
 		).expect("Opening block for tests will not fail.");
 		// TODO [todr] Override timestamp for predictability (set_timestamp_now kind of sucks)
 		open_block.set_timestamp(*self.latest_block_timestamp.read());
@ -786,4 +787,8 @@ impl EngineClient for TestBlockChainClient {
 	}

 	fn broadcast_consensus_message(&self, _message: Bytes) {}
+
+	fn epoch_transition_for(&self, _block_hash: H256) -> Option<::engines::EpochTransition> {
+		None
+	}
 }
--- a/ethcore/src/client/traits.rs
+++ b/ethcore/src/client/traits.rs
@ -311,6 +311,13 @@ pub trait EngineClient: MiningBlockChainClient {

 	/// Broadcast a consensus message to the network.
 	fn broadcast_consensus_message(&self, message: Bytes);
+
+	/// Get the transition to the epoch the given parent hash is part of
+	/// or transitions to.
+	/// This will give the epoch that any children of this parent belong to.
+	///
+	/// The block corresponding the the parent hash must be stored already.
+	fn epoch_transition_for(&self, parent_hash: H256) -> Option<::engines::EpochTransition>;
 }

 /// Extended client interface for providing proofs of the state.
--- a/ethcore/src/engines/authority_round/finality.rs
+++ b/ethcore/src/engines/authority_round/finality.rs
@ -0,0 +1,187 @@
+// Copyright 2015-2017 Parity Technologies (UK) Ltd.
+// This file is part of Parity.
+
+// Parity is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+
+// Parity is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+
+// You should have received a copy of the GNU General Public License
+// along with Parity.  If not, see <http://www.gnu.org/licenses/>.
+
+//! Finality proof generation and checking.
+
+use std::collections::{VecDeque};
+use std::collections::hash_map::{HashMap, Entry};
+
+use util::{Address, H256};
+
+use engines::validator_set::SimpleList;
+
+/// Error indicating unknown validator.
+#[derive(Debug, PartialEq, Eq, Clone, Copy)]
+pub struct UnknownValidator;
+
+/// Rolling finality checker for authority round consensus.
+/// Stores a chain of unfinalized hashes that can be pushed onto.
+pub struct RollingFinality {
+	headers: VecDeque<(H256, Address)>,
+	signers: SimpleList,
+	sign_count: HashMap<Address, usize>,
+	last_pushed: Option<H256>,
+}
+
+impl RollingFinality {
+	/// Create a blank finality checker under the given validator set.
+	pub fn blank(signers: Vec<Address>) -> Self {
+		RollingFinality {
+			headers: VecDeque::new(),
+			signers: SimpleList::new(signers),
+			sign_count: HashMap::new(),
+			last_pushed: None,
+		}
+	}
+
+	/// Extract unfinalized subchain from ancestry iterator.
+	/// Clears the current subchain.
+	///
+	/// Fails if any provided signature isn't part of the signers set.
+	pub fn build_ancestry_subchain<I>(&mut self, iterable: I) -> Result<(), UnknownValidator>
+		where I: IntoIterator<Item=(H256, Address)>
+	{
+		self.clear();
+		for (hash, signer) in iterable {
+			if !self.signers.contains(&signer) { return Err(UnknownValidator) }
+			if self.last_pushed.is_none() { self.last_pushed = Some(hash) }
+
+			// break when we've got our first finalized block.
+			{
+				let current_signed = self.sign_count.len();
+				let would_be_finalized = (current_signed + 1) * 2 > self.signers.len();
+
+				let entry = self.sign_count.entry(signer);
+				if let (true, &Entry::Vacant(_)) = (would_be_finalized, &entry) {
+					break
+				}
+
+				*entry.or_insert(0) += 1;
+			}
+
+			self.headers.push_front((hash, signer));
+		}
+
+		Ok(())
+	}
+
+	/// Clear the finality status, but keeps the validator set.
+	pub fn clear(&mut self) {
+		self.headers.clear();
+		self.sign_count.clear();
+		self.last_pushed = None;
+	}
+
+	/// Returns the last pushed hash.
+	pub fn subchain_head(&self) -> Option<H256> {
+		self.last_pushed
+	}
+
+	/// Get an iterator over stored hashes in order.
+	pub fn unfinalized_hashes(&self) -> Iter { Iter(self.headers.iter()) }
+
+	/// Get the validator set.
+	pub fn validators(&self) -> &SimpleList { &self.signers }
+
+	/// Push a hash onto the rolling finality checker (implying `subchain_head` == head.parent)
+	///
+	/// Fails if `signer` isn't a member of the active validator set.
+	/// Returns a list of all newly finalized headers.
+	// TODO: optimize with smallvec.
+	pub fn push_hash(&mut self, head: H256, signer: Address) -> Result<Vec<H256>, UnknownValidator> {
+		if !self.signers.contains(&signer) { return Err(UnknownValidator) }
+
+		self.headers.push_back((head, signer));
+		*self.sign_count.entry(signer).or_insert(0) += 1;
+
+		let mut newly_finalized = Vec::new();
+
+		while self.sign_count.len() * 2 > self.signers.len() {
+			let (hash, signer) = self.headers.pop_front()
+				.expect("headers length always greater than sign count length; qed");
+
+			newly_finalized.push(hash);
+
+			match self.sign_count.entry(signer) {
+				Entry::Occupied(mut entry) => {
+					// decrement count for this signer and purge on zero.
+					*entry.get_mut() -= 1;
+
+					if *entry.get() == 0 {
+						entry.remove();
+					}
+				}
+				Entry::Vacant(_) => panic!("all hashes in `header` should have an entry in `sign_count` for their signer; qed"),
+			}
+		}
+
+		Ok(newly_finalized)
+	}
+}
+
+pub struct Iter<'a>(::std::collections::vec_deque::Iter<'a, (H256, Address)>);
+
+impl<'a> Iterator for Iter<'a> {
+	type Item = H256;
+
+	fn next(&mut self) -> Option<H256> {
+		self.0.next().map(|&(h, _)| h)
+	}
+}
+
+#[cfg(test)]
+mod tests {
+	use util::{Address, H256};
+	use super::RollingFinality;
+
+	#[test]
+	fn rejects_unknown_signer() {
+		let signers = (0..3).map(|_| Address::random()).collect();
+		let mut finality = RollingFinality::blank(signers);
+		assert!(finality.push_hash(H256::random(), Address::random()).is_err());
+	}
+
+	#[test]
+	fn finalize_multiple() {
+		let signers: Vec<_> = (0..6).map(|_| Address::random()).collect();
+
+		let mut finality = RollingFinality::blank(signers.clone());
+		let hashes: Vec<_> = (0..7).map(|_| H256::random()).collect();
+
+		// 3 / 6 signers is < 51% so no finality.
+		for (i, hash) in hashes.iter().take(6).cloned().enumerate() {
+			let i = i % 3;
+			assert!(finality.push_hash(hash, signers[i]).unwrap().len() == 0);
+		}
+
+		// after pushing a block signed by a fourth validator, the first four
+		// blocks of the unverified chain become verified.
+		assert_eq!(finality.push_hash(hashes[6], signers[4]).unwrap(),
+			vec![hashes[0], hashes[1], hashes[2], hashes[3]]);
+	}
+
+	#[test]
+	fn from_ancestry() {
+		let signers: Vec<_> = (0..6).map(|_| Address::random()).collect();
+		let hashes: Vec<_> = (0..12).map(|i| (H256::random(), signers[i % 6])).collect();
+
+		let mut finality = RollingFinality::blank(signers.clone());
+		finality.build_ancestry_subchain(hashes.iter().rev().cloned()).unwrap();
+
+		assert_eq!(finality.unfinalized_hashes().count(), 3);
+		assert_eq!(finality.subchain_head(), Some(hashes[11].0));
+	}
+}
--- a/ethcore/src/engines/authority_round/mod.rs
+++ b/ethcore/src/engines/authority_round/mod.rs
@ -19,24 +19,32 @@
 use std::sync::atomic::{AtomicUsize, AtomicBool, Ordering as AtomicOrdering};
 use std::sync::Weak;
 use std::time::{UNIX_EPOCH, Duration};
-use util::*;
-use ethkey::{verify_address, Signature};
-use rlp::{UntrustedRlp, encode};
+
 use account_provider::AccountProvider;
 use block::*;
-use spec::CommonParams;
-use engines::{Call, Engine, Seal, EngineError};
-use header::Header;
+use builtin::Builtin;
+use client::{Client, EngineClient};
+use engines::{Call, Engine, Seal, EngineError, ConstructedVerifier};
 use error::{Error, TransactionError, BlockError};
 use ethjson;
-use io::{IoContext, IoHandler, TimerToken, IoService};
-use builtin::Builtin;
-use transaction::UnverifiedTransaction;
-use client::{Client, EngineClient};
+use header::{Header, BlockNumber};
+use spec::CommonParams;
 use state::CleanupMode;
+use transaction::UnverifiedTransaction;
+
 use super::signer::EngineSigner;
 use super::validator_set::{ValidatorSet, SimpleList, new_validator_set};

+use self::finality::RollingFinality;
+
+use ethkey::{verify_address, Signature};
+use io::{IoContext, IoHandler, TimerToken, IoService};
+use itertools::{self, Itertools};
+use rlp::{UntrustedRlp, encode};
+use util::*;
+
+mod finality;
+
 /// `AuthorityRound` params.
 pub struct AuthorityRoundParams {
 	/// Gas limit divisor.
@ -57,6 +65,8 @@ pub struct AuthorityRoundParams {
 	pub eip155_transition: u64,
 	/// Monotonic step validation transition block.
 	pub validate_step_transition: u64,
+	/// Immediate transitions.
+	pub immediate_transitions: bool,
 }

 impl From<ethjson::spec::AuthorityRoundParams> for AuthorityRoundParams {
@ -71,6 +81,7 @@ impl From<ethjson::spec::AuthorityRoundParams> for AuthorityRoundParams {
 			validate_score_transition: p.validate_score_transition.map_or(0, Into::into),
 			eip155_transition: p.eip155_transition.map_or(0, Into::into),
 			validate_step_transition: p.validate_step_transition.map_or(0, Into::into),
+			immediate_transitions: p.immediate_transitions.unwrap_or(false),
 		}
 	}
 }
@ -114,6 +125,92 @@ impl Step {
 	}
 }

+struct EpochManager {
+	epoch_transition_hash: H256,
+	epoch_transition_number: BlockNumber,
+	finality_checker: RollingFinality,
+	force: bool,
+}
+
+impl EpochManager {
+	fn blank() -> Self {
+		EpochManager {
+			epoch_transition_hash: H256::default(),
+			epoch_transition_number: 0,
+			finality_checker: RollingFinality::blank(Vec::new()),
+			force: true,
+		}
+	}
+
+	// zoom to epoch for given header. returns true if succeeded, false otherwise.
+	fn zoom_to(&mut self, client: &EngineClient, engine: &Engine, validators: &ValidatorSet, header: &Header) -> bool {
+		let last_was_parent = self.finality_checker.subchain_head() == Some(header.parent_hash().clone());
+
+		// early exit for current target == chain head, but only if the epochs are
+		// the same.
+		if last_was_parent && !self.force {
+			return true;
+		}
+
+		self.force = false;
+		debug!(target: "engine", "Zooming to epoch for block {}", header.hash());
+
+		// epoch_transition_for can be an expensive call, but in the absence of
+		// forks it will only need to be called for the block directly after
+		// epoch transition, in which case it will be O(1) and require a single
+		// DB lookup.
+		let last_transition = match client.epoch_transition_for(*header.parent_hash()) {
+			Some(t) => t,
+			None => {
+				// this really should never happen unless the block passed
+				// hasn't got a parent in the database.
+				debug!(target: "engine", "No genesis transition found.");
+				return false;
+			}
+		};
+
+
+		// extract other epoch set if it's not the same as the last.
+		if last_transition.block_hash != self.epoch_transition_hash {
+			let (signal_number, set_proof, _) = destructure_proofs(&last_transition.proof)
+				.expect("proof produced by this engine; therefore it is valid; qed");
+
+			trace!(target: "engine", "extracting epoch set for epoch ({}, {}) signalled at #{}",
+				last_transition.block_number, last_transition.block_hash, signal_number);
+
+			let first = signal_number == 0;
+			let epoch_set = validators.epoch_set(
+				first,
+				engine,
+				signal_number, // use signal number so multi-set first calculation is correct.
+				set_proof,
+			)
+				.ok()
+				.map(|(list, _)| list.into_inner())
+				.expect("proof produced by this engine; therefore it is valid; qed");
+
+			self.finality_checker = RollingFinality::blank(epoch_set);
+		}
+
+		self.epoch_transition_hash = last_transition.block_hash;
+		self.epoch_transition_number = last_transition.block_number;
+
+		true
+	}
+
+	// note new epoch hash. this will force the next block to re-load
+	// the epoch set
+	// TODO: optimize and don't require re-loading after epoch change.
+	fn note_new_epoch(&mut self) {
+		self.force = true;
+	}
+
+	/// Get validator set. Zoom to the correct epoch first.
+	fn validators(&self) -> &SimpleList {
+		self.finality_checker.validators()
+	}
+}
+
 /// Engine using `AuthorityRound` proof-of-authority BFT consensus.
 pub struct AuthorityRound {
 	params: CommonParams,
@ -130,22 +227,63 @@ pub struct AuthorityRound {
 	validate_score_transition: u64,
 	eip155_transition: u64,
 	validate_step_transition: u64,
+	epoch_manager: Mutex<EpochManager>,
+	immediate_transitions: bool,
 }

 // header-chain validator.
 struct EpochVerifier {
-	epoch_number: u64,
 	step: Arc<Step>,
 	subchain_validators: SimpleList,
 }

 impl super::EpochVerifier for EpochVerifier {
-	fn epoch_number(&self) -> u64 { self.epoch_number.clone() }
 	fn verify_light(&self, header: &Header) -> Result<(), Error> {
 		// always check the seal since it's fast.
 		// nothing heavier to do.
-		verify_external(header, &self.subchain_validators, &*self.step)
+		verify_external(header, &self.subchain_validators, &*self.step, |_| {})
 	}
+
+	fn check_finality_proof(&self, proof: &[u8]) -> Option<Vec<H256>> {
+		macro_rules! otry {
+			($e: expr) => {
+				match $e {
+					Some(x) => x,
+					None => return None,
+				}
+			}
+		}
+
+		let mut finality_checker = RollingFinality::blank(self.subchain_validators.clone().into_inner());
+		let mut finalized = Vec::new();
+
+		let headers: Vec<Header> = otry!(UntrustedRlp::new(proof).as_list().ok());
+
+
+		for header in &headers {
+			// ensure all headers have correct number of seal fields so we can `verify_external`
+			// without panic.
+			//
+			// `verify_external` checks that signature is correct and author == signer.
+			if header.seal().len() != 2 { return None }
+			otry!(verify_external(header, &self.subchain_validators, &*self.step, |_| {}).ok());
+
+			let newly_finalized = otry!(finality_checker.push_hash(header.hash(), header.author().clone()).ok());
+			finalized.extend(newly_finalized);
+		}
+
+		if finalized.is_empty() { None } else { Some(finalized) }
+	}
+}
+
+// Report misbehavior
+#[derive(Debug)]
+#[allow(dead_code)]
+enum Report {
+	// Malicious behavior
+	Malicious(Address, BlockNumber, Bytes),
+	// benign misbehavior
+	Benign(Address, BlockNumber),
 }

 fn header_step(header: &Header) -> Result<usize, ::rlp::DecoderError> {
@ -156,13 +294,25 @@ fn header_signature(header: &Header) -> Result<Signature, ::rlp::DecoderError> {
 	UntrustedRlp::new(&header.seal().get(1).expect("was checked with verify_block_basic; has 2 fields; qed")).as_val::<H520>().map(Into::into)
 }

-fn verify_external(header: &Header, validators: &ValidatorSet, step: &Step) -> Result<(), Error> {
+fn step_proposer(validators: &ValidatorSet, bh: &H256, step: usize) -> Address {
+	let proposer = validators.get(bh, step);
+	trace!(target: "engine", "Fetched proposer for step {}: {}", step, proposer);
+	proposer
+}
+
+fn is_step_proposer(validators: &ValidatorSet, bh: &H256, step: usize, address: &Address) -> bool {
+	step_proposer(validators, bh, step) == *address
+}
+
+fn verify_external<F: Fn(Report)>(header: &Header, validators: &ValidatorSet, step: &Step, report: F)
+	-> Result<(), Error>
+{
 	let header_step = header_step(header)?;

 	// Give one step slack if step is lagging, double vote is still not possible.
 	if step.is_future(header_step) {
 		trace!(target: "engine", "verify_block_unordered: block from the future");
-		validators.report_benign(header.author(), header.number());
+		report(Report::Benign(*header.author(), header.number()));
 		Err(BlockError::InvalidSeal)?
 	} else {
 		let proposer_signature = header_signature(header)?;
@ -179,6 +329,21 @@ fn verify_external(header: &Header, validators: &ValidatorSet, step: &Step) -> R
 	}
 }

+fn combine_proofs(signal_number: BlockNumber, set_proof: &[u8], finality_proof: &[u8]) -> Vec<u8> {
+	let mut stream = ::rlp::RlpStream::new_list(3);
+	stream.append(&signal_number).append(&set_proof).append(&finality_proof);
+	stream.out()
+}
+
+fn destructure_proofs(combined: &[u8]) -> Result<(BlockNumber, &[u8], &[u8]), Error> {
+	let rlp = UntrustedRlp::new(combined);
+	Ok((
+		rlp.at(0)?.as_val()?,
+		rlp.at(1)?.data()?,
+		rlp.at(2)?.data()?,
+	))
+}
+
 trait AsMillis {
 	fn as_millis(&self) -> u64;
 }
@ -214,7 +379,10 @@ impl AuthorityRound {
 				validate_score_transition: our_params.validate_score_transition,
 				eip155_transition: our_params.eip155_transition,
 				validate_step_transition: our_params.validate_step_transition,
+				epoch_manager: Mutex::new(EpochManager::blank()),
+				immediate_transitions: our_params.immediate_transitions,
 			});
+
 		// Do not initialize timeouts for tests.
 		if should_timeout {
 			let handler = TransitionHandler { engine: Arc::downgrade(&engine) };
@ -222,14 +390,6 @@ impl AuthorityRound {
 		}
 		Ok(engine)
 	}
-
-	fn step_proposer(&self, bh: &H256, step: usize) -> Address {
-		self.validators.get(bh, step)
-	}
-
-	fn is_step_proposer(&self, bh: &H256, step: usize, address: &Address) -> bool {
-		self.step_proposer(bh, step) == *address
-	}
 }

 fn unix_now() -> Duration {
@ -325,7 +485,33 @@ impl Engine for AuthorityRound {

 		let header = block.header();
 		let step = self.step.load();
-		if self.is_step_proposer(header.parent_hash(), step, header.author()) {
+
+		// fetch correct validator set for current epoch, taking into account
+		// finality of previous transitions.
+		let active_set;
+
+		let validators = if self.immediate_transitions {
+			&*self.validators
+		} else {
+			let mut epoch_manager = self.epoch_manager.lock();
+			let client = match self.client.read().as_ref().and_then(|weak| weak.upgrade()) {
+				Some(client) => client,
+				None => {
+					warn!(target: "engine", "Unable to generate seal: missing client ref.");
+					return Seal::None;
+				}
+			};
+
+			if !epoch_manager.zoom_to(&*client, self, &*self.validators, header) {
+				debug!(target: "engine", "Unable to zoom to epoch.");
+				return Seal::None;
+			}
+
+			active_set = epoch_manager.validators().clone();
+			&active_set as &_
+		};
+
+		if is_step_proposer(validators, header.parent_hash(), step, header.author()) {
 			if let Ok(signature) = self.signer.sign(header.bare_hash()) {
 				trace!(target: "engine", "generate_seal: Issuing a block for step {}.", step);

@ -337,11 +523,43 @@ impl Engine for AuthorityRound {
 				warn!(target: "engine", "generate_seal: FAIL: Accounts secret key unavailable.");
 			}
 		} else {
-			trace!(target: "engine", "generate_seal: Not a proposer for step {}.", step);
+			trace!(target: "engine", "generate_seal: {} not a proposer for step {}.",
+				header.author(), step);
 		}
 		Seal::None
 	}

+	fn on_new_block(
+		&self,
+		block: &mut ExecutedBlock,
+		last_hashes: Arc<::env_info::LastHashes>,
+		epoch_begin: bool,
+	) -> Result<(), Error> {
+		let parent_hash = block.fields().header.parent_hash().clone();
+		::engines::common::push_last_hash(block, last_hashes.clone(), self, &parent_hash)?;
+
+		if !epoch_begin { return Ok(()) }
+
+		// genesis is never a new block, but might as well check.
+		let header = block.fields().header.clone();
+		let first = header.number() == 0;
+
+		let mut call = |to, data| {
+			let result = ::engines::common::execute_as_system(
+				block,
+				last_hashes.clone(),
+				self,
+				to,
+				U256::max_value(), // unbounded gas? maybe make configurable.
+				Some(data),
+			);
+
+			result.map_err(|e| format!("{}", e))
+		};
+
+		self.validators.on_epoch_begin(first, &header, &mut call)
+	}
+
 	/// Apply the block reward on finalisation of the block.
 	fn on_close_block(&self, block: &mut ExecutedBlock) -> Result<(), Error> {
 		let fields = block.fields_mut();
@ -386,19 +604,26 @@ impl Engine for AuthorityRound {
 		}

 		let parent_step = header_step(parent)?;
+
 		// Ensure header is from the step after parent.
 		if step == parent_step
 			|| (header.number() >= self.validate_step_transition && step <= parent_step) {
 			trace!(target: "engine", "Multiple blocks proposed for step {}.", parent_step);
-			self.validators.report_malicious(header.author(), header.number(), Default::default());
+
+			self.validators.report_malicious(header.author(), header.number(), header.number(), Default::default());
 			Err(EngineError::DoubleVote(header.author().clone()))?;
 		}
 		// Report skipped primaries.
 		if step > parent_step + 1 {
+			// TODO: use epochmanager to get correct validator set for reporting?
+			// or just rely on the fact that in general these will be the same
+			// and some reports might go missing?
+			trace!(target: "engine", "Author {} built block with step gap. current step: {}, parent step: {}",
+				header.author(), step, parent_step);
+
 			for s in parent_step + 1..step {
-				let skipped_primary = self.step_proposer(&parent.hash(), s);
-				trace!(target: "engine", "Author {} did not build his block on top of the intermediate designated primary {}.", header.author(), skipped_primary);
-				self.validators.report_benign(&skipped_primary, header.number());
+				let skipped_primary = step_proposer(&*self.validators, &parent.hash(), s);
+				self.validators.report_benign(&skipped_primary, header.number(), header.number());
 			}
 		}

@ -413,30 +638,164 @@ impl Engine for AuthorityRound {

 	// Check the validators.
 	fn verify_block_external(&self, header: &Header, _block: Option<&[u8]>) -> Result<(), Error> {
-		verify_external(header, &*self.validators, &*self.step)
+		// fetch correct validator set for current epoch, taking into account
+		// finality of previous transitions.
+		let active_set;
+
+		let (validators, set_number) = if self.immediate_transitions {
+			(&*self.validators, header.number())
+		} else {
+			// get correct validator set for epoch.
+			let client = match self.client.read().as_ref().and_then(|weak| weak.upgrade()) {
+				Some(client) => client,
+				None => {
+					debug!(target: "engine", "Unable to verify sig: missing client ref.");
+					return Err(EngineError::RequiresClient.into())
+				}
+			};
+
+			let mut epoch_manager = self.epoch_manager.lock();
+			if !epoch_manager.zoom_to(&*client, self, &*self.validators, header) {
+				debug!(target: "engine", "Unable to zoom to epoch.");
+				return Err(EngineError::RequiresClient.into())
+			}
+
+			active_set = epoch_manager.validators().clone();
+			(&active_set as &_, epoch_manager.epoch_transition_number)
+		};
+
+		let report = |report| match report {
+			Report::Benign(address, block_number) =>
+				self.validators.report_benign(&address, set_number, block_number),
+			Report::Malicious(address, block_number, proof) =>
+				self.validators.report_malicious(&address, set_number, block_number, proof),
+		};
+
+		// verify signature against fixed list, but reports should go to the
+		// contract itself.
+		verify_external(header, validators, &*self.step, report)
 	}

-	// the proofs we need just allow us to get the full validator set.
-	fn epoch_proof(&self, header: &Header, caller: &Call) -> Result<Bytes, Error> {
-		self.validators.epoch_proof(header, caller)
-			.map_err(|e| EngineError::InsufficientProof(e).into())
+	fn genesis_epoch_data(&self, header: &Header, call: &Call) -> Result<Vec<u8>, String> {
+		self.validators.genesis_epoch_data(header, call)
+			.map(|set_proof| combine_proofs(0, &set_proof, &[]))
 	}

-	fn is_epoch_end(&self, header: &Header, block: Option<&[u8]>, receipts: Option<&[::receipt::Receipt]>)
+	fn signals_epoch_end(&self, header: &Header, block: Option<&[u8]>, receipts: Option<&[::receipt::Receipt]>)
 		-> super::EpochChange
 	{
-		self.validators.is_epoch_end(header, block, receipts)
+		if self.immediate_transitions { return super::EpochChange::No }
+
+		let first = header.number() == 0;
+		self.validators.signals_epoch_end(first, header, block, receipts)
 	}

-	fn epoch_verifier(&self, header: &Header, proof: &[u8]) -> Result<Box<super::EpochVerifier>, Error> {
-		// extract a simple list from the proof.
-		let (num, simple_list) = self.validators.epoch_set(header, proof)?;
+	fn is_epoch_end(
+		&self,
+		chain_head: &Header,
+		chain: &super::Headers,
+		transition_store: &super::PendingTransitionStore,
+	) -> Option<Vec<u8>> {
+		// epochs only matter if we want to support light clients.
+		if self.immediate_transitions { return None }

-		Ok(Box::new(EpochVerifier {
-			epoch_number: num,
-			step: self.step.clone(),
-			subchain_validators: simple_list,
-		}))
+		let first = chain_head.number() == 0;
+
+		// apply immediate transitions.
+		if let Some(change) = self.validators.is_epoch_end(first, chain_head) {
+			return Some(change)
+		}
+
+		let client = match self.client.read().as_ref().and_then(|weak| weak.upgrade()) {
+			Some(client) => client,
+			None => {
+				warn!(target: "engine", "Unable to check for epoch end: missing client ref.");
+				return None;
+			}
+		};
+
+		// find most recently finalized blocks, then check transition store for pending transitions.
+		let mut epoch_manager = self.epoch_manager.lock();
+		if !epoch_manager.zoom_to(&*client, self, &*self.validators, chain_head) {
+			return None;
+		}
+
+		if epoch_manager.finality_checker.subchain_head() != Some(*chain_head.parent_hash()) {
+			// build new finality checker from ancestry of chain head,
+			// not including chain head itself yet.
+			let mut hash = chain_head.parent_hash().clone();
+			let epoch_transition_hash = epoch_manager.epoch_transition_hash;
+
+			// walk the chain within current epoch backwards.
+			// author == ec_recover(sig) known since
+			// the blocks are in the DB.
+			let ancestry_iter = itertools::repeat_call(move || {
+				chain(hash).and_then(|header| {
+					if header.number() == 0 { return None }
+
+					let res = (hash, header.author().clone());
+					hash = header.parent_hash().clone();
+					Some(res)
+				})
+			})
+				.while_some()
+				.take_while(|&(h, _)| h != epoch_transition_hash);
+
+			if let Err(_) = epoch_manager.finality_checker.build_ancestry_subchain(ancestry_iter) {
+				debug!(target: "engine", "inconsistent validator set within epoch");
+				return None;
+			}
+		}
+
+		{
+			if let Ok(finalized) = epoch_manager.finality_checker.push_hash(chain_head.hash(), *chain_head.author()) {
+				let mut finalized = finalized.into_iter();
+				while let Some(hash) = finalized.next() {
+					if let Some(pending) = transition_store(hash) {
+						let finality_proof = ::std::iter::once(hash)
+							.chain(finalized)
+							.chain(epoch_manager.finality_checker.unfinalized_hashes())
+							.map(|hash| chain(hash)
+								.expect("these headers fetched before when constructing finality checker; qed"))
+							.collect::<Vec<Header>>();
+
+						// this gives us the block number for `hash`, assuming it's ancestry.
+						let signal_number = chain_head.number()
+							- finality_proof.len() as BlockNumber
+							+ 1;
+						let finality_proof = ::rlp::encode_list(&finality_proof);
+						epoch_manager.note_new_epoch();
+
+						return Some(combine_proofs(signal_number, &pending.proof, &*finality_proof));
+					}
+				}
+			}
+		}
+
+		None
+	}
+
+	fn epoch_verifier<'a>(&self, _header: &Header, proof: &'a [u8]) -> ConstructedVerifier<'a> {
+		let (signal_number, set_proof, finality_proof) = match destructure_proofs(proof) {
+			Ok(x) => x,
+			Err(e) => return ConstructedVerifier::Err(e),
+		};
+
+		let first = signal_number == 0;
+		match self.validators.epoch_set(first, self, signal_number, set_proof) {
+			Ok((list, finalize)) => {
+				let verifier = Box::new(EpochVerifier {
+					step: self.step.clone(),
+					subchain_validators: list,
+				});
+
+				match finalize {
+					Some(finalize) => ConstructedVerifier::Unconfirmed(verifier, finality_proof, finalize),
+					None => ConstructedVerifier::Trusted(verifier),
+				}
+			}
+			Err(e) => ConstructedVerifier::Err(e),
+		}
 	}

 	fn verify_transaction_basic(&self, t: &UnverifiedTransaction, header: &Header) -> result::Result<(), Error> {
@ -465,7 +824,11 @@ impl Engine for AuthorityRound {
 	}

 	fn snapshot_components(&self) -> Option<Box<::snapshot::SnapshotComponents>> {
-		Some(Box::new(::snapshot::PoaSnapshot))
+		if self.immediate_transitions {
+			None
+		} else {
+			Some(Box::new(::snapshot::PoaSnapshot))
+		}
 	}
 }

@ -535,9 +898,9 @@ mod tests {
 		let db1 = spec.ensure_db_good(get_temp_state_db(), &Default::default()).unwrap();
 		let db2 = spec.ensure_db_good(get_temp_state_db(), &Default::default()).unwrap();
 		let last_hashes = Arc::new(vec![genesis_header.hash()]);
-		let b1 = OpenBlock::new(engine, Default::default(), false, db1, &genesis_header, last_hashes.clone(), addr1, (3141562.into(), 31415620.into()), vec![]).unwrap();
+		let b1 = OpenBlock::new(engine, Default::default(), false, db1, &genesis_header, last_hashes.clone(), addr1, (3141562.into(), 31415620.into()), vec![], false).unwrap();
 		let b1 = b1.close_and_lock();
-		let b2 = OpenBlock::new(engine, Default::default(), false, db2, &genesis_header, last_hashes, addr2, (3141562.into(), 31415620.into()), vec![]).unwrap();
+		let b2 = OpenBlock::new(engine, Default::default(), false, db2, &genesis_header, last_hashes, addr2, (3141562.into(), 31415620.into()), vec![], false).unwrap();
 		let b2 = b2.close_and_lock();

 		engine.set_signer(tap.clone(), addr1, "1".into());
@ -643,6 +1006,7 @@ mod tests {
 			validate_score_transition: 0,
 			validate_step_transition: 0,
 			eip155_transition: 0,
+			immediate_transitions: true,
 		};
 		let aura = AuthorityRound::new(Default::default(), params, Default::default()).unwrap();

--- a/ethcore/src/engines/basic_authority.rs
+++ b/ethcore/src/engines/basic_authority.rs
@ -23,7 +23,7 @@ use account_provider::AccountProvider;
 use block::*;
 use builtin::Builtin;
 use spec::CommonParams;
-use engines::{Engine, EngineError, Seal, Call, EpochChange};
+use engines::{Engine, Seal, Call, ConstructedVerifier, EngineError};
 use error::{BlockError, Error};
 use evm::Schedule;
 use ethjson;
@ -51,12 +51,10 @@ impl From<ethjson::spec::BasicAuthorityParams> for BasicAuthorityParams {
 }

 struct EpochVerifier {
-	epoch_number: u64,
 	list: SimpleList,
 }

 impl super::EpochVerifier for EpochVerifier {
-	fn epoch_number(&self) -> u64 { self.epoch_number.clone() }
 	fn verify_light(&self, header: &Header) -> Result<(), Error> {
 		verify_external(header, &self.list)
 	}
@ -187,26 +185,54 @@ impl Engine for BasicAuthority {
 		verify_external(header, &*self.validators)
 	}

-	// the proofs we need just allow us to get the full validator set.
-	fn epoch_proof(&self, header: &Header, caller: &Call) -> Result<Bytes, Error> {
-		self.validators.epoch_proof(header, caller)
-			.map_err(|e| EngineError::InsufficientProof(e).into())
+	fn genesis_epoch_data(&self, header: &Header, call: &Call) -> Result<Vec<u8>, String> {
+		self.validators.genesis_epoch_data(header, call)
 	}

-	fn is_epoch_end(&self, header: &Header, block: Option<&[u8]>, receipts: Option<&[::receipt::Receipt]>)
-		-> EpochChange
+	#[cfg(not(test))]
+	fn signals_epoch_end(&self, _header: &Header, _block: Option<&[u8]>, _receipts: Option<&[::receipt::Receipt]>)
+		-> super::EpochChange
 	{
-		self.validators.is_epoch_end(header, block, receipts)
+		// don't bother signalling even though a contract might try.
+		super::EpochChange::No
 	}

-	fn epoch_verifier(&self, header: &Header, proof: &[u8]) -> Result<Box<super::EpochVerifier>, Error> {
-		// extract a simple list from the proof.
-		let (num, simple_list) = self.validators.epoch_set(header, proof)?;
+	#[cfg(test)]
+	fn signals_epoch_end(&self, header: &Header, block: Option<&[u8]>, receipts: Option<&[::receipt::Receipt]>)
+		-> super::EpochChange
+	{
+		// in test mode, always signal even though they don't be finalized.
+		let first = header.number() == 0;
+		self.validators.signals_epoch_end(first, header, block, receipts)
+	}

-		Ok(Box::new(EpochVerifier {
-			epoch_number: num,
-			list: simple_list,
-		}))
+	fn is_epoch_end(
+		&self,
+		chain_head: &Header,
+		_chain: &super::Headers,
+		_transition_store: &super::PendingTransitionStore,
+	) -> Option<Vec<u8>> {
+		let first = chain_head.number() == 0;
+
+		// finality never occurs so only apply immediate transitions.
+		self.validators.is_epoch_end(first, chain_head)
+	}
+
+	fn epoch_verifier<'a>(&self, header: &Header, proof: &'a [u8]) -> ConstructedVerifier<'a> {
+		let first = header.number() == 0;
+
+		match self.validators.epoch_set(first, self, header.number(), proof) {
+			Ok((list, finalize)) => {
+				let verifier = Box::new(EpochVerifier { list: list });
+
+				// our epoch verifier will ensure no unverified verifier is ever verified.
+				match finalize {
+					Some(finalize) => ConstructedVerifier::Unconfirmed(verifier, proof, finalize),
+					None => ConstructedVerifier::Trusted(verifier),
+				}
+			}
+			Err(e) => ConstructedVerifier::Err(e),
+		}
 	}

 	fn register_client(&self, client: Weak<Client>) {
@ -222,7 +248,7 @@ impl Engine for BasicAuthority {
 	}

 	fn snapshot_components(&self) -> Option<Box<::snapshot::SnapshotComponents>> {
-		Some(Box::new(::snapshot::PoaSnapshot))
+		None
 	}
 }

@ -292,7 +318,7 @@ mod tests {
 		let genesis_header = spec.genesis_header();
 		let db = spec.ensure_db_good(get_temp_state_db(), &Default::default()).unwrap();
 		let last_hashes = Arc::new(vec![genesis_header.hash()]);
-		let b = OpenBlock::new(engine, Default::default(), false, db, &genesis_header, last_hashes, addr, (3141562.into(), 31415620.into()), vec![]).unwrap();
+		let b = OpenBlock::new(engine, Default::default(), false, db, &genesis_header, last_hashes, addr, (3141562.into(), 31415620.into()), vec![], false).unwrap();
 		let b = b.close_and_lock();
 		if let Seal::Regular(seal) = engine.generate_seal(b.block()) {
 			assert!(b.try_seal(engine, seal).is_ok());
--- a/ethcore/src/engines/epoch.rs
+++ b/ethcore/src/engines/epoch.rs
@ -0,0 +1,102 @@
+// Copyright 2015-2017 Parity Technologies (UK) Ltd.
+// This file is part of Parity.
+
+// Parity is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+
+// Parity is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+
+// You should have received a copy of the GNU General Public License
+// along with Parity.  If not, see <http://www.gnu.org/licenses/>.
+
+//! Epoch verifiers and transitions.
+
+use error::Error;
+use header::Header;
+
+use rlp::{Encodable, Decodable, DecoderError, RlpStream, UntrustedRlp};
+use util::H256;
+
+/// A full epoch transition.
+#[derive(Debug, Clone)]
+pub struct Transition {
+	/// Block hash at which the transition occurred.
+	pub block_hash: H256,
+	/// Block number at which the transition occurred.
+	pub block_number: u64,
+	/// "transition/epoch" proof from the engine combined with a finality proof.
+	pub proof: Vec<u8>,
+}
+
+impl Encodable for Transition {
+	fn rlp_append(&self, s: &mut RlpStream) {
+		s.begin_list(3)
+			.append(&self.block_hash)
+			.append(&self.block_number)
+			.append(&self.proof);
+	}
+}
+
+impl Decodable for Transition {
+	fn decode(rlp: &UntrustedRlp) -> Result<Self, DecoderError> {
+		Ok(Transition {
+			block_hash: rlp.val_at(0)?,
+			block_number: rlp.val_at(1)?,
+			proof: rlp.val_at(2)?,
+		})
+	}
+}
+
+/// An epoch transition pending a finality proof.
+/// Not all transitions need one.
+pub struct PendingTransition {
+	/// "transition/epoch" proof from the engine.
+	pub proof: Vec<u8>,
+}
+
+impl Encodable for PendingTransition {
+	fn rlp_append(&self, s: &mut RlpStream) {
+		s.append(&self.proof);
+	}
+}
+
+impl Decodable for PendingTransition {
+	fn decode(rlp: &UntrustedRlp) -> Result<Self, DecoderError> {
+		Ok(PendingTransition {
+			proof: rlp.as_val()?,
+		})
+	}
+}
+
+/// Verifier for all blocks within an epoch with self-contained state.
+///
+/// See docs on `Engine` relating to proving functions for more details.
+pub trait EpochVerifier: Send + Sync {
+	/// Lightly verify the next block header.
+	/// This may not be a header belonging to a different epoch.
+	fn verify_light(&self, header: &Header) -> Result<(), Error>;
+
+	/// Perform potentially heavier checks on the next block header.
+	fn verify_heavy(&self, header: &Header) -> Result<(), Error> {
+		self.verify_light(header)
+	}
+
+	/// Check a finality proof against this epoch verifier.
+	/// Returns `Some(hashes)` if the proof proves finality of these hashes.
+	/// Returns `None` if the proof doesn't prove anything.
+	fn check_finality_proof(&self, _proof: &[u8]) -> Option<Vec<H256>> {
+		None
+	}
+}
+
+/// Special "no-op" verifier for stateless, epoch-less engines.
+pub struct NoOp;
+
+impl EpochVerifier for NoOp {
+	fn verify_light(&self, _header: &Header) -> Result<(), Error> { Ok(()) }
+}
--- a/ethcore/src/engines/epoch_verifier.rs
+++ b/ethcore/src/engines/epoch_verifier.rs
@ -1,45 +0,0 @@
-// Copyright 2015-2017 Parity Technologies (UK) Ltd.
-// This file is part of Parity.
-
-// Parity is free software: you can redistribute it and/or modify
-// it under the terms of the GNU General Public License as published by
-// the Free Software Foundation, either version 3 of the License, or
-// (at your option) any later version.
-
-// Parity is distributed in the hope that it will be useful,
-// but WITHOUT ANY WARRANTY; without even the implied warranty of
-// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
-// GNU General Public License for more details.
-
-// You should have received a copy of the GNU General Public License
-// along with Parity.  If not, see <http://www.gnu.org/licenses/>.
-
-// Epoch verifiers.
-
-use error::Error;
-use header::Header;
-
-/// Verifier for all blocks within an epoch with self-contained state.
-///
-/// See docs on `Engine` relating to proving functions for more details.
-pub trait EpochVerifier: Send + Sync {
-	/// Get the epoch number.
-	fn epoch_number(&self) -> u64;
-
-	/// Lightly verify the next block header.
-	/// This may not be a header belonging to a different epoch.
-	fn verify_light(&self, header: &Header) -> Result<(), Error>;
-
-	/// Perform potentially heavier checks on the next block header.
-	fn verify_heavy(&self, header: &Header) -> Result<(), Error> {
-		self.verify_light(header)
-	}
-}
-
-/// Special "no-op" verifier for stateless, epoch-less engines.
-pub struct NoOp;
-
-impl EpochVerifier for NoOp {
-	fn epoch_number(&self) -> u64 { 0 }
-	fn verify_light(&self, _header: &Header) -> Result<(), Error> { Ok(()) }
-}
--- a/ethcore/src/engines/instant_seal.rs
+++ b/ethcore/src/engines/instant_seal.rs
@ -79,7 +79,7 @@ mod tests {
 		let db = spec.ensure_db_good(get_temp_state_db(), &Default::default()).unwrap();
 		let genesis_header = spec.genesis_header();
 		let last_hashes = Arc::new(vec![genesis_header.hash()]);
-		let b = OpenBlock::new(engine, Default::default(), false, db, &genesis_header, last_hashes, Address::default(), (3141562.into(), 31415620.into()), vec![]).unwrap();
+		let b = OpenBlock::new(engine, Default::default(), false, db, &genesis_header, last_hashes, Address::default(), (3141562.into(), 31415620.into()), vec![], false).unwrap();
 		let b = b.close_and_lock();
 		if let Seal::Regular(seal) = engine.generate_seal(b.block()) {
 			assert!(b.try_seal(engine, seal).is_ok());
--- a/ethcore/src/engines/mod.rs
+++ b/ethcore/src/engines/mod.rs
@ -18,7 +18,6 @@

 mod authority_round;
 mod basic_authority;
-mod epoch_verifier;
 mod instant_seal;
 mod null_engine;
 mod signer;
@ -27,15 +26,19 @@ mod transition;
 mod validator_set;
 mod vote_collector;

+pub mod epoch;
+
 pub use self::authority_round::AuthorityRound;
 pub use self::basic_authority::BasicAuthority;
-pub use self::epoch_verifier::EpochVerifier;
+pub use self::epoch::{EpochVerifier, Transition as EpochTransition};
 pub use self::instant_seal::InstantSeal;
 pub use self::null_engine::NullEngine;
 pub use self::tendermint::Tendermint;

 use std::sync::Weak;

+use self::epoch::PendingTransition;
+
 use account_provider::AccountProvider;
 use block::ExecutedBlock;
 use builtin::Builtin;
@ -72,6 +75,10 @@ pub enum EngineError {
 	BadSealFieldSize(OutOfBounds<usize>),
 	/// Validation proof insufficient.
 	InsufficientProof(String),
+	/// Failed system call.
+	FailedSystemCall(String),
+	/// Requires client ref, but none registered.
+	RequiresClient,
 }

 impl fmt::Display for EngineError {
@ -84,6 +91,8 @@ impl fmt::Display for EngineError {
 			UnexpectedMessage => "This Engine should not be fed messages.".into(),
 			BadSealFieldSize(ref oob) => format!("Seal field has an unexpected length: {}", oob),
 			InsufficientProof(ref msg) => format!("Insufficient validation proof: {}", msg),
+			FailedSystemCall(ref msg) => format!("Failed to make system call: {}", msg),
+			RequiresClient => format!("Call requires client but none registered"),
 		};

 		f.write_fmt(format_args!("Engine error ({})", msg))
@ -102,17 +111,53 @@ pub enum Seal {
 }

 /// Type alias for a function we can make calls through synchronously.
-pub type Call<'a> = Fn(Address, Bytes) -> Result<Bytes, String> + 'a;
+/// Returns the call result and state proof for each call.
+pub type Call<'a> = Fn(Address, Bytes) -> Result<(Bytes, Vec<Vec<u8>>), String> + 'a;
+
+/// Type alias for a function we can get headers by hash through.
+pub type Headers<'a> = Fn(H256) -> Option<Header> + 'a;
+
+/// Type alias for a function we can query pending transitions by block hash through.
+pub type PendingTransitionStore<'a> = Fn(H256) -> Option<PendingTransition> + 'a;
+
+/// Proof generated on epoch change.
+pub enum Proof {
+	/// Known proof (exctracted from signal)
+	Known(Vec<u8>),
+	/// Extract proof from caller.
+	WithState(Box<Fn(&Call) -> Result<Vec<u8>, String>>),
+}
+
+/// Generated epoch verifier.
+pub enum ConstructedVerifier<'a> {
+	/// Fully trusted verifier.
+	Trusted(Box<EpochVerifier>),
+	/// Verifier unconfirmed. Check whether given finality proof finalizes given hash
+	/// under previous epoch.
+	Unconfirmed(Box<EpochVerifier>, &'a [u8], H256),
+	/// Error constructing verifier.
+	Err(Error),
+}
+
+impl<'a> ConstructedVerifier<'a> {
+	/// Convert to a result, indicating that any necessary confirmation has been done
+	/// already.
+	pub fn known_confirmed(self) -> Result<Box<EpochVerifier>, Error> {
+		match self {
+			ConstructedVerifier::Trusted(v) | ConstructedVerifier::Unconfirmed(v, _, _) => Ok(v),
+			ConstructedVerifier::Err(e) => Err(e),
+		}
+	}
+}

 /// Results of a query of whether an epoch change occurred at the given block.
-#[derive(Debug, Clone, PartialEq)]
 pub enum EpochChange {
 	/// Cannot determine until more data is passed.
 	Unsure(Unsure),
 	/// No epoch change.
 	No,
-	/// Validation proof required, and the new epoch number.
-	Yes(u64),
+	/// The epoch will change, with proof.
+	Yes(Proof),
 }

 /// More data required to determine if an epoch change occurred at a given block.
@ -161,11 +206,23 @@ pub trait Engine : Sync + Send {
 	fn maximum_uncle_count(&self) -> usize { 2 }
 	/// The number of generations back that uncles can be.
 	fn maximum_uncle_age(&self) -> usize { 6 }
-	/// The nonce with which accounts begin.
-	fn account_start_nonce(&self) -> U256 { self.params().account_start_nonce }
+	/// The nonce with which accounts begin at given block.
+	fn account_start_nonce(&self, block: u64) -> U256 {
+		if block >= self.params().dust_protection_transition {
+			U256::from(self.params().nonce_cap_increment) * U256::from(block)
+		} else {
+			self.params().account_start_nonce
+		}
+	}

 	/// Block transformation functions, before the transactions.
-	fn on_new_block(&self, block: &mut ExecutedBlock, last_hashes: Arc<LastHashes>) -> Result<(), Error> {
+	/// `epoch_begin` set to true if this block kicks off an epoch.
+	fn on_new_block(
+		&self,
+		block: &mut ExecutedBlock,
+		last_hashes: Arc<LastHashes>,
+		_epoch_begin: bool,
+	) -> Result<(), Error> {
 		let parent_hash = block.fields().header.parent_hash().clone();
 		common::push_last_hash(block, last_hashes, self, &parent_hash)
 	}
@ -227,46 +284,44 @@ pub trait Engine : Sync + Send {
 		self.verify_block_basic(header, None).and_then(|_| self.verify_block_unordered(header, None))
 	}

-	/// Generate epoch change proof.
-	///
-	/// This will be used to generate proofs of epoch change as well as verify them.
-	/// Must be called on blocks that have already passed basic verification.
-	///
-	/// Return the "epoch proof" generated.
-	/// This must be usable to generate a `EpochVerifier` for verifying all blocks
-	/// from the supplied header up to the next one where proof is required.
-	///
-	/// For example, for PoA chains the proof will be a validator set,
-	/// and the corresponding `EpochVerifier` can be used to correctly validate
-	/// all blocks produced under that `ValidatorSet`
-	///
-	/// It must be possible to generate an epoch proof for any block in an epoch,
-	/// and it should always be equivalent to the proof of the transition block.
-	fn epoch_proof(&self, _header: &Header, _caller: &Call)
-		-> Result<Vec<u8>, Error>
-	{
-		Ok(Vec::new())
-	}
+	/// Genesis epoch data.
+	fn genesis_epoch_data(&self, _header: &Header, _call: &Call) -> Result<Vec<u8>, String> { Ok(Vec::new()) }

-	/// Whether an epoch change occurred at the given header.
+	/// Whether an epoch change is signalled at the given header but will require finality.
+	/// If a change can be enacted immediately then return `No` from this function but
+	/// `Yes` from `is_epoch_end`.
 	///
 	/// If the block or receipts are required, return `Unsure` and the function will be
 	/// called again with them.
 	/// Return `Yes` or `No` when the answer is definitively known.
 	///
 	/// Should not interact with state.
-	fn is_epoch_end(&self, _header: &Header, _block: Option<&[u8]>, _receipts: Option<&[Receipt]>)
+	fn signals_epoch_end(&self, _header: &Header, _block: Option<&[u8]>, _receipts: Option<&[Receipt]>)
 		-> EpochChange
 	{
 		EpochChange::No
 	}

-	/// Create an epoch verifier from validation proof.
+	/// Whether a block is the end of an epoch.
 	///
-	/// The proof should be one generated by `epoch_proof`.
-	/// See docs of `epoch_proof` for description.
-	fn epoch_verifier(&self, _header: &Header, _proof: &[u8]) -> Result<Box<EpochVerifier>, Error> {
-		Ok(Box::new(self::epoch_verifier::NoOp))
+	/// This either means that an immediate transition occurs or a block signalling transition
+	/// has reached finality. The `Headers` given are not guaranteed to return any blocks
+	/// from any epoch other than the current.
+	///
+	/// Return optional transition proof.
+	fn is_epoch_end(
+		&self,
+		_chain_head: &Header,
+		_chain: &Headers,
+		_transition_store: &PendingTransitionStore,
+	) -> Option<Vec<u8>> {
+		None
+	}
+
+	/// Create an epoch verifier from validation proof and a flag indicating
+	/// whether finality is required.
+	fn epoch_verifier<'a>(&self, _header: &Header, _proof: &'a [u8]) -> ConstructedVerifier<'a> {
+		ConstructedVerifier::Trusted(Box::new(self::epoch::NoOp))
 	}

 	/// Populate a header's fields based on its parent's header.
@ -323,7 +378,11 @@ pub trait Engine : Sync + Send {

 	/// Returns new contract address generation scheme at given block number.
 	fn create_address_scheme(&self, number: BlockNumber) -> CreateContractAddress {
-		if number >= self.params().eip86_transition { CreateContractAddress::FromCodeHash } else { CreateContractAddress::FromSenderAndNonce }
+		if number >= self.params().eip86_transition {
+			CreateContractAddress::FromCodeHash
+		} else {
+			CreateContractAddress::FromSenderAndNonce
+		}
 	}
 }

@ -343,6 +402,52 @@ pub mod common {
 	use util::*;
 	use super::Engine;

+	/// Execute a call as the system address.
+	pub fn execute_as_system<E: Engine + ?Sized>(
+		block: &mut ExecutedBlock,
+		last_hashes: Arc<LastHashes>,
+		engine: &E,
+		contract_address: Address,
+		gas: U256,
+		data: Option<Bytes>,
+	) -> Result<Bytes, Error> {
+		let env_info = {
+			let header = block.fields().header;
+			EnvInfo {
+				number: header.number(),
+				author: header.author().clone(),
+				timestamp: header.timestamp(),
+				difficulty: header.difficulty().clone(),
+				last_hashes: last_hashes,
+				gas_used: U256::zero(),
+				gas_limit: gas,
+			}
+		};
+
+		let mut state = block.fields_mut().state;
+		let params = ActionParams {
+			code_address: contract_address.clone(),
+			address: contract_address.clone(),
+			sender: SYSTEM_ADDRESS.clone(),
+			origin: SYSTEM_ADDRESS.clone(),
+			gas: gas,
+			gas_price: 0.into(),
+			value: ActionValue::Transfer(0.into()),
+			code: state.code(&contract_address)?,
+			code_hash: state.code_hash(&contract_address)?,
+			data: data,
+			call_type: CallType::Call,
+		};
+		let mut ex = Executive::new(&mut state, &env_info, engine);
+		let mut substate = Substate::new();
+		let mut output = Vec::new();
+		if let Err(e) = ex.call(params, &mut substate, BytesRef::Flexible(&mut output), &mut NoopTracer, &mut NoopVMTracer) {
+			warn!("Encountered error on making system call: {}", e);
+		}
+
+		Ok(output)
+	}
+
 	/// Push last known block hash to the state.
 	pub fn push_last_hash<E: Engine + ?Sized>(block: &mut ExecutedBlock, last_hashes: Arc<LastHashes>, engine: &E, hash: &H256) -> Result<(), Error> {
 		if block.fields().header.number() == engine.params().eip210_transition {
@ -350,39 +455,14 @@ pub mod common {
 			state.init_code(&engine.params().eip210_contract_address, engine.params().eip210_contract_code.clone())?;
 		}
 		if block.fields().header.number() >= engine.params().eip210_transition {
-			let env_info = {
-				let header = block.fields().header;
-				EnvInfo {
-					number: header.number(),
-					author: header.author().clone(),
-					timestamp: header.timestamp(),
-					difficulty: header.difficulty().clone(),
-					last_hashes: last_hashes,
-					gas_used: U256::zero(),
-					gas_limit: engine.params().eip210_contract_gas,
-				}
-			};
-			let mut state = block.fields_mut().state;
-			let contract_address = engine.params().eip210_contract_address;
-			let params = ActionParams {
-				code_address: contract_address.clone(),
-				address: contract_address.clone(),
-				sender: SYSTEM_ADDRESS.clone(),
-				origin: SYSTEM_ADDRESS.clone(),
-				gas: engine.params().eip210_contract_gas,
-				gas_price: 0.into(),
-				value: ActionValue::Transfer(0.into()),
-				code: state.code(&contract_address)?,
-				code_hash: state.code_hash(&contract_address)?,
-				data: Some(hash.to_vec()),
-				call_type: CallType::Call,
-			};
-			let mut ex = Executive::new(&mut state, &env_info, engine);
-			let mut substate = Substate::new();
-			let mut output = [];
-			if let Err(e) = ex.call(params, &mut substate, BytesRef::Fixed(&mut output), &mut NoopTracer, &mut NoopVMTracer) {
-				warn!("Encountered error on updating last hashes: {}", e);
-			}
+			let _ = execute_as_system(
+				block,
+				last_hashes,
+				engine,
+				engine.params().eip210_contract_address,
+				engine.params().eip210_contract_gas,
+				Some(hash.to_vec()),
+			)?;
 		}
 		Ok(())
 	}
--- a/ethcore/src/engines/tendermint/mod.rs
+++ b/ethcore/src/engines/tendermint/mod.rs
@ -466,7 +466,8 @@ impl Engine for Tendermint {
 			}
 			self.broadcast_message(rlp.as_raw().to_vec());
 			if let Some(double) = self.votes.vote(message.clone(), &sender) {
-				self.validators.report_malicious(&sender, message.vote_step.height as BlockNumber, ::rlp::encode(&double).to_vec());
+				let height = message.vote_step.height as BlockNumber;
+				self.validators.report_malicious(&sender, height, height, ::rlp::encode(&double).to_vec());
 				return Err(EngineError::DoubleVote(sender).into());
 			}
 			trace!(target: "engine", "Handling a valid {:?} from {}.", message, sender);
@ -493,8 +494,8 @@ impl Engine for Tendermint {
 		let seal_length = header.seal().len();
 		if seal_length == self.seal_fields() {
 			// Either proposal or commit.
-			if (header.seal()[1] == ::rlp::NULL_RLP.to_vec())
-				!= (header.seal()[2] == ::rlp::EMPTY_LIST_RLP.to_vec()) {
+			if (header.seal()[1] == ::rlp::NULL_RLP)
+				!= (header.seal()[2] == ::rlp::EMPTY_LIST_RLP) {
 				Ok(())
 			} else {
 				warn!(target: "engine", "verify_block_basic: Block is neither a Commit nor Proposal.");
@ -555,7 +556,7 @@ impl Engine for Tendermint {
 		let min_gas = parent.gas_limit().clone() - parent.gas_limit().clone() / gas_limit_divisor;
 		let max_gas = parent.gas_limit().clone() + parent.gas_limit().clone() / gas_limit_divisor;
 		if header.gas_limit() <= &min_gas || header.gas_limit() >= &max_gas {
-			self.validators.report_malicious(header.author(), header.number(), Default::default());
+			self.validators.report_malicious(header.author(), header.number(), header.number(), Default::default());
 			return Err(BlockError::InvalidGasLimit(OutOfBounds { min: Some(min_gas), max: Some(max_gas), found: header.gas_limit().clone() }).into());
 		}

@ -607,7 +608,7 @@ impl Engine for Tendermint {
 					// Report the proposer if no proposal was received.
 					let height = self.height.load(AtomicOrdering::SeqCst);
 					let current_proposer = self.view_proposer(&*self.proposal_parent.read(), height, self.view.load(AtomicOrdering::SeqCst));
-					self.validators.report_benign(&current_proposer, height as BlockNumber);
+					self.validators.report_benign(&current_proposer, height as BlockNumber, height as BlockNumber);
 				}
 				Step::Prevote
 			},
@ -674,7 +675,7 @@ mod tests {
 		let db = spec.ensure_db_good(db, &Default::default()).unwrap();
 		let genesis_header = spec.genesis_header();
 		let last_hashes = Arc::new(vec![genesis_header.hash()]);
-		let b = OpenBlock::new(spec.engine.as_ref(), Default::default(), false, db.boxed_clone(), &genesis_header, last_hashes, proposer, (3141562.into(), 31415620.into()), vec![]).unwrap();
+		let b = OpenBlock::new(spec.engine.as_ref(), Default::default(), false, db.boxed_clone(), &genesis_header, last_hashes, proposer, (3141562.into(), 31415620.into()), vec![], false).unwrap();
 		let b = b.close();
 		if let Seal::Proposal(seal) = spec.engine.generate_seal(b.block()) {
 			(b, seal)
--- a/ethcore/src/engines/transition.rs
+++ b/ethcore/src/engines/transition.rs
@ -36,7 +36,7 @@ pub struct TransitionHandler<S: Sync + Send + Clone>  {
 	timeouts: Box<Timeouts<S>>,
 }

-impl <S> TransitionHandler<S> where S: Sync + Send + Clone {
+impl<S> TransitionHandler<S> where S: Sync + Send + Clone {
 	/// New step caller by timeouts.
 	pub fn new(engine: Weak<Engine>, timeouts: Box<Timeouts<S>>) -> Self {
 		TransitionHandler {
@ -54,7 +54,7 @@ fn set_timeout<S: Sync + Send + Clone>(io: &IoContext<S>, timeout: Duration) {
 		.unwrap_or_else(|e| warn!(target: "engine", "Failed to set consensus step timeout: {}.", e))
 }

-impl <S> IoHandler<S> for TransitionHandler<S> where S: Sync + Send + Clone + 'static {
+impl<S> IoHandler<S> for TransitionHandler<S> where S: Sync + Send + Clone + 'static {
 	fn initialize(&self, io: &IoContext<S>) {
 		let initial = self.timeouts.initial();
 		trace!(target: "engine", "Setting the initial timeout to {}.", initial);
--- a/ethcore/src/engines/validator_set/contract.rs
+++ b/ethcore/src/engines/validator_set/contract.rs
@ -24,10 +24,10 @@ use futures::Future;
 use native_contracts::ValidatorReport as Provider;

 use client::{Client, BlockChainClient};
-use engines::Call;
+use engines::{Call, Engine};
 use header::{Header, BlockNumber};

-use super::ValidatorSet;
+use super::{ValidatorSet, SimpleList, SystemCall};
 use super::safe_contract::ValidatorSafeContract;

 /// A validator contract with reporting.
@ -51,7 +51,7 @@ impl ValidatorContract {
 	// could be `impl Trait`.
 	// note: dispatches transactions to network as well as execute.
 	// TODO [keorn]: Make more general.
-	fn transact(&self) -> Box<Call> {
+	fn transact(&self) -> Box<Fn(Address, Bytes) -> Result<Bytes, String>> {
 		let client = self.client.read().clone();
 		Box::new(move |a, d| client.as_ref()
 			.and_then(Weak::upgrade)
@ -66,18 +66,30 @@ impl ValidatorSet for ValidatorContract {
 		self.validators.default_caller(id)
 	}

-	fn is_epoch_end(&self, header: &Header, block: Option<&[u8]>, receipts: Option<&[::receipt::Receipt]>)
-		-> ::engines::EpochChange
-	{
-		self.validators.is_epoch_end(header, block, receipts)
+	fn on_epoch_begin(&self, first: bool, header: &Header, call: &mut SystemCall) -> Result<(), ::error::Error> {
+		self.validators.on_epoch_begin(first, header, call)
 	}

-	fn epoch_proof(&self, header: &Header, caller: &Call) -> Result<Vec<u8>, String> {
-		self.validators.epoch_proof(header, caller)
+	fn genesis_epoch_data(&self, header: &Header, call: &Call) -> Result<Vec<u8>, String> {
+		self.validators.genesis_epoch_data(header, call)
 	}

-	fn epoch_set(&self, header: &Header, proof: &[u8]) -> Result<(u64, super::SimpleList), ::error::Error> {
-		self.validators.epoch_set(header, proof)
+	fn is_epoch_end(&self, first: bool, chain_head: &Header) -> Option<Vec<u8>> {
+		self.validators.is_epoch_end(first, chain_head)
+	}
+
+	fn signals_epoch_end(
+		&self,
+		first: bool,
+		header: &Header,
+		block: Option<&[u8]>,
+		receipts: Option<&[::receipt::Receipt]>,
+	) -> ::engines::EpochChange {
+		self.validators.signals_epoch_end(first, header, block, receipts)
+	}
+
+	fn epoch_set(&self, first: bool, engine: &Engine, number: BlockNumber, proof: &[u8]) -> Result<(SimpleList, Option<H256>), ::error::Error> {
+		self.validators.epoch_set(first, engine, number, proof)
 	}

 	fn contains_with_caller(&self, bh: &H256, address: &Address, caller: &Call) -> bool {
@ -92,14 +104,14 @@ impl ValidatorSet for ValidatorContract {
 		self.validators.count_with_caller(bh, caller)
 	}

-	fn report_malicious(&self, address: &Address, block: BlockNumber, proof: Bytes) {
+	fn report_malicious(&self, address: &Address, _set_block: BlockNumber, block: BlockNumber, proof: Bytes) {
 		match self.provider.report_malicious(&*self.transact(), *address, block.into(), proof).wait() {
 			Ok(_) => warn!(target: "engine", "Reported malicious validator {}", address),
 			Err(s) => warn!(target: "engine", "Validator {} could not be reported {}", address, s),
 		}
 	}

-	fn report_benign(&self, address: &Address, block: BlockNumber) {
+	fn report_benign(&self, address: &Address, _set_block: BlockNumber, block: BlockNumber) {
 		match self.provider.report_benign(&*self.transact(), *address, block.into()).wait() {
 			Ok(_) => warn!(target: "engine", "Reported benign validator misbehaviour {}", address),
 			Err(s) => warn!(target: "engine", "Validator {} could not be reported {}", address, s),
--- a/ethcore/src/engines/validator_set/mod.rs
+++ b/ethcore/src/engines/validator_set/mod.rs
@ -37,7 +37,10 @@ use self::contract::ValidatorContract;
 use self::safe_contract::ValidatorSafeContract;
 use self::multi::Multi;

-use super::Call;
+use super::{Call, Engine};
+
+/// A system-calling closure. Enacts calls on a block's state from the system address.
+pub type SystemCall<'a> = FnMut(Address, Bytes) -> Result<Bytes, String> + 'a;

 /// Creates a validator set from spec.
 pub fn new_validator_set(spec: ValidatorSpec) -> Box<ValidatorSet> {
@ -64,6 +67,7 @@ pub trait ValidatorSet: Send + Sync {
 		let default = self.default_caller(BlockId::Hash(*parent));
 		self.contains_with_caller(parent, address, &*default)
 	}
+
 	/// Draws an validator nonce modulo number of validators.
 	fn get(&self, parent: &H256, nonce: usize) -> Address {
 		let default = self.default_caller(BlockId::Hash(*parent));
@ -76,48 +80,66 @@ pub trait ValidatorSet: Send + Sync {
 		self.count_with_caller(parent, &*default)
 	}

+	/// Signalling that a new epoch has begun.
+	///
+	/// All calls here will be from the `SYSTEM_ADDRESS`: 2^160 - 2
+	/// and will have an effect on the block's state.
+	/// The caller provided here may not generate proofs.
+	///
+	/// `first` is true if this is the first block in the set.
+	fn on_epoch_begin(&self, _first: bool, _header: &Header, _call: &mut SystemCall) -> Result<(), ::error::Error> {
+		Ok(())
+	}
+
+	/// Extract genesis epoch data from the genesis state and header.
+	fn genesis_epoch_data(&self, _header: &Header, _call: &Call) -> Result<Vec<u8>, String> { Ok(Vec::new()) }
+
 	/// Whether this block is the last one in its epoch.
-	/// Usually indicates that the validator set changed at the given block.
 	///
-	/// Should not inspect state! This is used in situations where
-	/// state is not generally available.
+	/// Indicates that the validator set changed at the given block in a manner
+	/// that doesn't require finality.
 	///
-	/// Return `Yes` or `No` indicating whether it changed at the given header,
-	/// or `Unsure` indicating a need for more information.
-	///
-	/// If block or receipts are provided, do not return `Unsure` indicating
-	/// need for them.
-	fn is_epoch_end(&self, header: &Header, block: Option<&[u8]>, receipts: Option<&[::receipt::Receipt]>)
-		-> super::EpochChange;
+	/// `first` is true if this is the first block in the set.
+	fn is_epoch_end(&self, first: bool, chain_head: &Header) -> Option<Vec<u8>>;

-	/// Generate epoch proof.
-	/// Must interact with state only through the given caller!
-	/// Otherwise, generated proofs may be wrong.
-	fn epoch_proof(&self, header: &Header, caller: &Call) -> Result<Vec<u8>, String>;
+	/// Whether the given block signals the end of an epoch, but change won't take effect
+	/// until finality.
+	///
+	/// Engine should set `first` only if the header is genesis. Multiplexing validator
+	/// sets can set `first` to internal changes.
+	fn signals_epoch_end(
+		&self,
+		first: bool,
+		header: &Header,
+		block: Option<&[u8]>,
+		receipts: Option<&[::receipt::Receipt]>,
+	) -> ::engines::EpochChange;

-	/// Recover the validator set for all
+	/// Recover the validator set from the given proof, the block number, and
+	/// whether this header is first in its set.
 	///
 	/// May fail if the given header doesn't kick off an epoch or
 	/// the proof is invalid.
 	///
-	/// Returns the epoch number and proof.
-	fn epoch_set(&self, header: &Header, proof: &[u8]) -> Result<(u64, SimpleList), ::error::Error>;
+	/// Returns the set, along with a flag indicating whether finality of a specific
+	/// hash should be proven.
+	fn epoch_set(&self, first: bool, engine: &Engine, number: BlockNumber, proof: &[u8])
+		-> Result<(SimpleList, Option<H256>), ::error::Error>;

 	/// Checks if a given address is a validator, with the given function
 	/// for executing synchronous calls to contracts.
 	fn contains_with_caller(&self, parent_block_hash: &H256, address: &Address, caller: &Call) -> bool;

 	/// Draws an validator nonce modulo number of validators.
-	///
 	fn get_with_caller(&self, parent_block_hash: &H256, nonce: usize, caller: &Call) -> Address;

 	/// Returns the current number of validators.
 	fn count_with_caller(&self, parent_block_hash: &H256, caller: &Call) -> usize;

 	/// Notifies about malicious behaviour.
-	fn report_malicious(&self, _validator: &Address, _block: BlockNumber, _proof: Bytes) {}
+	fn report_malicious(&self, _validator: &Address, _set_block: BlockNumber, _block: BlockNumber, _proof: Bytes) {}
 	/// Notifies about benign misbehaviour.
-	fn report_benign(&self, _validator: &Address, _block: BlockNumber) {}
+	fn report_benign(&self, _validator: &Address, _set_block: BlockNumber, _block: BlockNumber) {}
 	/// Allows blockchain state access.
 	fn register_contract(&self, _client: Weak<Client>) {}
 }
--- a/ethcore/src/engines/validator_set/multi.rs
+++ b/ethcore/src/engines/validator_set/multi.rs
@ -18,12 +18,12 @@

 use std::collections::BTreeMap;
 use std::sync::Weak;
-use engines::{Call, EpochChange};
+use engines::{Call, Engine};
 use util::{Bytes, H256, Address, RwLock};
 use ids::BlockId;
 use header::{BlockNumber, Header};
 use client::{Client, BlockChainClient};
-use super::ValidatorSet;
+use super::{SystemCall, ValidatorSet};

 type BlockNumberLookup = Box<Fn(BlockId) -> Result<BlockNumber, String> + Send + Sync + 'static>;

@ -72,49 +72,38 @@ impl ValidatorSet for Multi {
 			.unwrap_or(Box::new(|_, _| Err("No validator set for given ID.".into())))
 	}

-	fn is_epoch_end(&self, header: &Header, block: Option<&[u8]>, receipts: Option<&[::receipt::Receipt]>)
-		-> EpochChange
+	fn on_epoch_begin(&self, _first: bool, header: &Header, call: &mut SystemCall) -> Result<(), ::error::Error> {
+		let (set_block, set) = self.correct_set_by_number(header.number());
+		let first = set_block == header.number();
+
+		set.on_epoch_begin(first, header, call)
+	}
+
+	fn genesis_epoch_data(&self, header: &Header, call: &Call) -> Result<Vec<u8>, String> {
+		self.correct_set_by_number(0).1.genesis_epoch_data(header, call)
+	}
+
+	fn is_epoch_end(&self, _first: bool, chain_head: &Header) -> Option<Vec<u8>> {
+		let (set_block, set) = self.correct_set_by_number(chain_head.number());
+		let first = set_block == chain_head.number();
+
+		set.is_epoch_end(first, chain_head)
+	}
+
+	fn signals_epoch_end(&self, _first: bool, header: &Header, block: Option<&[u8]>, receipts: Option<&[::receipt::Receipt]>)
+		-> ::engines::EpochChange
 	{
 		let (set_block, set) = self.correct_set_by_number(header.number());
-		let (next_set_block, _) = self.correct_set_by_number(header.number() + 1);
+		let first = set_block == header.number();

-		// multi-set transitions require epoch changes.
-		if next_set_block != set_block {
-			return EpochChange::Yes(next_set_block);
-		}
-
-		match set.is_epoch_end(header, block, receipts) {
-			EpochChange::Yes(num) => EpochChange::Yes(set_block + num),
-			other => other,
-		}
+		set.signals_epoch_end(first, header, block, receipts)
 	}

-	fn epoch_proof(&self, header: &Header, caller: &Call) -> Result<Vec<u8>, String> {
-		let (set_block, set) = self.correct_set_by_number(header.number());
-		let (next_set_block, next_set) = self.correct_set_by_number(header.number() + 1);
+	fn epoch_set(&self, _first: bool, engine: &Engine, number: BlockNumber, proof: &[u8]) -> Result<(super::SimpleList, Option<H256>), ::error::Error> {
+		let (set_block, set) = self.correct_set_by_number(number);
+		let first = set_block == number;

-		if next_set_block != set_block {
-			return next_set.epoch_proof(header, caller);
-		}
-
-		set.epoch_proof(header, caller)
-	}
-
-	fn epoch_set(&self, header: &Header, proof: &[u8]) -> Result<(u64, super::SimpleList), ::error::Error> {
-		// "multi" epoch is the inner set's epoch plus the transition block to that set.
-		// ensures epoch increases monotonically.
-		let (set_block, set) = self.correct_set_by_number(header.number());
-		let (next_set_block, next_set) = self.correct_set_by_number(header.number() + 1);
-
-		// this block kicks off a new validator set -- get the validator set
-		// starting there.
-		if next_set_block != set_block {
-			let (inner_epoch, list) = next_set.epoch_set(header, proof)?;
-			Ok((next_set_block + inner_epoch, list))
-		} else {
-			let (inner_epoch, list) = set.epoch_set(header, proof)?;
-			Ok((set_block + inner_epoch, list))
-		}
+		set.epoch_set(first, engine, number, proof)
 	}

 	fn contains_with_caller(&self, bh: &H256, address: &Address, caller: &Call) -> bool {
@ -132,12 +121,12 @@ impl ValidatorSet for Multi {
 			.map_or_else(usize::max_value, |set| set.count_with_caller(bh, caller))
 	}

-	fn report_malicious(&self, validator: &Address, block: BlockNumber, proof: Bytes) {
-		self.correct_set_by_number(block).1.report_malicious(validator, block, proof);
+	fn report_malicious(&self, validator: &Address, set_block: BlockNumber, block: BlockNumber, proof: Bytes) {
+		self.correct_set_by_number(set_block).1.report_malicious(validator, set_block, block, proof);
 	}

-	fn report_benign(&self, validator: &Address, block: BlockNumber) {
-		self.correct_set_by_number(block).1.report_benign(validator, block);
+	fn report_benign(&self, validator: &Address, set_block: BlockNumber, block: BlockNumber) {
+		self.correct_set_by_number(set_block).1.report_benign(validator, set_block, block);
 	}

 	fn register_contract(&self, client: Weak<Client>) {
@ -153,18 +142,24 @@ impl ValidatorSet for Multi {

 #[cfg(test)]
 mod tests {
-	use util::*;
-	use types::ids::BlockId;
-	use spec::Spec;
 	use account_provider::AccountProvider;
 	use client::{BlockChainClient, EngineClient};
+	use engines::EpochChange;
+	use engines::validator_set::ValidatorSet;
 	use ethkey::Secret;
+	use header::Header;
 	use miner::MinerService;
+	use spec::Spec;
 	use tests::helpers::{generate_dummy_client_with_spec_and_accounts, generate_dummy_client_with_spec_and_data};
+	use types::ids::BlockId;
+	use util::*;
+
+	use super::Multi;

 	#[test]
 	fn uses_current_set() {
-		::env_logger::init().unwrap();
+		let _ = ::env_logger::init();
+
 		let tap = Arc::new(AccountProvider::transient_provider());
 		let s0: Secret = "0".sha3().into();
 		let v0 = tap.insert_account(s0.clone(), "").unwrap();
@ -205,4 +200,39 @@ mod tests {
 		sync_client.flush_queue();
 		assert_eq!(sync_client.chain_info().best_block_number, 3);
 	}
+
+	#[test]
+	fn transition_to_fixed_list_instant() {
+		use super::super::SimpleList;
+
+		let mut map: BTreeMap<_, Box<ValidatorSet>> = BTreeMap::new();
+		let list1: Vec<_> = (0..10).map(|_| Address::random()).collect();
+		let list2 = {
+			let mut list = list1.clone();
+			list.push(Address::random());
+			list
+		};
+
+		map.insert(0, Box::new(SimpleList::new(list1)));
+		map.insert(500, Box::new(SimpleList::new(list2)));
+
+		let multi = Multi::new(map);
+
+		let mut header = Header::new();
+		header.set_number(499);
+
+		match multi.signals_epoch_end(false, &header, None, None) {
+			EpochChange::No => {},
+			_ => panic!("Expected no epoch signal change."),
+		}
+		assert!(multi.is_epoch_end(false, &header).is_none());
+
+		header.set_number(500);
+
+		match multi.signals_epoch_end(false, &header, None, None) {
+			EpochChange::No => {},
+			_ => panic!("Expected no epoch signal change."),
+		}
+		assert!(multi.is_epoch_end(false, &header).is_some());
+	}
 }
--- a/ethcore/src/engines/validator_set/safe_contract.rs
+++ b/ethcore/src/engines/validator_set/safe_contract.rs
@ -22,21 +22,23 @@ use native_contracts::ValidatorSet as Provider;

 use util::*;
 use util::cache::MemoryLruCache;
+use rlp::{UntrustedRlp, RlpStream};

 use basic_types::LogBloom;
 use client::{Client, BlockChainClient};
-use engines::Call;
+use engines::{Call, Engine};
 use header::Header;
 use ids::BlockId;
 use log_entry::LogEntry;
+use receipt::Receipt;

-use super::ValidatorSet;
+use super::{SystemCall, ValidatorSet};
 use super::simple_list::SimpleList;

 const MEMOIZE_CAPACITY: usize = 500;

 // TODO: ethabi should be able to generate this.
-const EVENT_NAME: &'static [u8] = &*b"ValidatorsChanged(bytes32,uint256,address[])";
+const EVENT_NAME: &'static [u8] = &*b"InitiateChange(bytes32,address[])";

 lazy_static! {
 	static ref EVENT_NAME_HASH: H256 = EVENT_NAME.sha3();
@ -50,14 +52,68 @@ pub struct ValidatorSafeContract {
 	client: RwLock<Option<Weak<Client>>>, // TODO [keorn]: remove
 }

-fn encode_proof(nonce: U256, validators: &[Address]) -> Bytes {
-	use rlp::RlpStream;
-
+// first proof is just a state proof call of `getValidators` at header's state.
+fn encode_first_proof(header: &Header, state_items: &[Vec<u8>]) -> Bytes {
 	let mut stream = RlpStream::new_list(2);
-	stream.append(&nonce).append_list(validators);
+	stream.append(header).begin_list(state_items.len());
+	for item in state_items {
+		stream.append(item);
+	}
+
+	stream.out()
+}
+
+fn decode_first_proof(rlp: &UntrustedRlp) -> Result<(Header, Vec<DBValue>), ::error::Error> {
+	let header = rlp.val_at(0)?;
+	let state_items = rlp.at(1)?.iter().map(|x| {
+		let mut val = DBValue::new();
+		val.append_slice(x.data()?);
+		Ok(val)
+	}).collect::<Result<_, ::error::Error>>()?;
+
+	Ok((header, state_items))
+}
+
+// inter-contract proofs are a header and receipts.
+// checking will involve ensuring that the receipts match the header and
+// extracting the validator set from the receipts.
+fn encode_proof(header: &Header, receipts: &[Receipt]) -> Bytes {
+	let mut stream = RlpStream::new_list(2);
+	stream.append(header).append_list(receipts);
 	stream.drain().to_vec()
 }

+fn decode_proof(rlp: &UntrustedRlp) -> Result<(Header, Vec<Receipt>), ::error::Error> {
+	Ok((rlp.val_at(0)?, rlp.list_at(1)?))
+}
+
+// given a provider and caller, generate proof. this will just be a state proof
+// of `getValidators`.
+fn prove_initial(provider: &Provider, header: &Header, caller: &Call) -> Result<Vec<u8>, String> {
+	use std::cell::RefCell;
+
+	let epoch_proof = RefCell::new(None);
+	let res = {
+		let caller = |a, d| {
+			let (result, proof) = caller(a, d)?;
+			*epoch_proof.borrow_mut() = Some(encode_first_proof(header, &proof));
+			Ok(result)
+		};
+
+		provider.get_validators(caller)
+			.wait()
+	};
+
+	res.map(|validators| {
+		let proof = epoch_proof.into_inner().expect("epoch_proof always set after call; qed");
+
+		trace!(target: "engine", "obtained proof for initial set: {} validators, {} bytes",
+			validators.len(), proof.len());
+
+		proof
+	})
+}
+
 impl ValidatorSafeContract {
 	pub fn new(contract_address: Address) -> Self {
 		ValidatorSafeContract {
@ -70,6 +126,7 @@ impl ValidatorSafeContract {

 	/// Queries the state and gets the set of validators.
 	fn get_list(&self, caller: &Call) -> Option<SimpleList> {
+		let caller = move |a, d| caller(a, d).map(|x| x.0);
 		match self.provider.get_validators(caller).wait() {
 			Ok(new) => {
 				debug!(target: "engine", "Set of validators obtained: {:?}", new);
@ -82,17 +139,6 @@ impl ValidatorSafeContract {
 		}
 	}

-	/// Queries for the current validator set transition nonce.
-	fn get_nonce(&self, caller: &Call) -> Option<::util::U256> {
-		match self.provider.transition_nonce(caller).wait() {
-			Ok(nonce) => Some(nonce),
-			Err(s) => {
-				debug!(target: "engine", "Unable to fetch transition nonce: {}", s);
-				None
-			}
-		}
-	}
-
 	// Whether the header matches the expected bloom.
 	//
 	// The expected log should have 3 topics:
@ -109,12 +155,70 @@ impl ValidatorSafeContract {
 	//
 	// The log data is an array of all new validator addresses.
 	fn expected_bloom(&self, header: &Header) -> LogBloom {
+		let topics = vec![*EVENT_NAME_HASH, *header.parent_hash()];
+
+		debug!(target: "engine", "Expected topics for header {}: {:?}",
+			header.hash(), topics);
+
 		LogEntry {
 			address: self.address,
-			topics: vec![*EVENT_NAME_HASH, *header.parent_hash()],
+			topics: topics,
 			data: Vec::new(), // irrelevant for bloom.
 		}.bloom()
 	}
+
+	// check receipts for log event. bloom should be `expected_bloom` for the
+	// header the receipts correspond to.
+	fn extract_from_event(&self, bloom: LogBloom, header: &Header, receipts: &[Receipt]) -> Option<SimpleList> {
+		let check_log = |log: &LogEntry| {
+			log.address == self.address &&
+				log.topics.len() == 2 &&
+				log.topics[0] == *EVENT_NAME_HASH &&
+				log.topics[1] == *header.parent_hash()
+		};
+
+		let event = Provider::contract(&self.provider)
+			.event("InitiateChange".into())
+			.expect("Contract known ahead of time to have `InitiateChange` event; qed");
+
+		// iterate in reverse because only the _last_ change in a given
+		// block actually has any effect.
+		// the contract should only increment the nonce once.
+		let mut decoded_events = receipts.iter()
+			.rev()
+			.filter(|r| &bloom & &r.log_bloom == bloom)
+			.flat_map(|r| r.logs.iter())
+			.filter(move |l| check_log(l))
+			.filter_map(|log| {
+				let topics = log.topics.iter().map(|x| x.0.clone()).collect();
+				event.decode_log(topics, log.data.clone()).ok()
+			});
+
+		match decoded_events.next() {
+			None => None,
+			Some(matched_event) => {
+
+				// decode log manually until the native contract generator is
+				// good enough to do it for us.
+				let &(_, _, ref validators_token) = &matched_event.params[1];
+
+				let validators = validators_token.clone().to_array()
+					.and_then(|a| a.into_iter()
+						.map(|x| x.to_address().map(H160))
+						.collect::<Option<Vec<_>>>()
+					)
+					.map(SimpleList::new);
+
+				if validators.is_none() {
+					debug!(target: "engine", "Successfully decoded log turned out to be bad.");
+				}
+
+				trace!(target: "engine", "decoded log. validators: {:?}", validators);
+
+				validators
+			}
+		}
+	}
 }

 impl ValidatorSet for ValidatorSafeContract {
@ -123,97 +227,144 @@ impl ValidatorSet for ValidatorSafeContract {
 		Box::new(move |addr, data| client.as_ref()
 			.and_then(Weak::upgrade)
 			.ok_or("No client!".into())
-			.and_then(|c| c.call_contract(id, addr, data)))
+			.and_then(|c| c.call_contract(id, addr, data))
+			.map(|out| (out, Vec::new()))) // generate no proofs in general
 	}

-	fn is_epoch_end(&self, header: &Header, _block: Option<&[u8]>, receipts: Option<&[::receipt::Receipt]>)
+	fn on_epoch_begin(&self, first: bool, _header: &Header, caller: &mut SystemCall) -> Result<(), ::error::Error> {
+		if first { return Ok(()) } // only signalled changes need to be noted.
+
+		self.provider.finalize_change(caller)
+			.wait()
+			.map_err(::engines::EngineError::FailedSystemCall)
+			.map_err(Into::into)
+	}
+
+	fn genesis_epoch_data(&self, header: &Header, call: &Call) -> Result<Vec<u8>, String> {
+		prove_initial(&self.provider, header, call)
+	}
+
+	fn is_epoch_end(&self, _first: bool, _chain_head: &Header) -> Option<Vec<u8>> {
+		None // no immediate transitions to contract.
+	}
+
+	fn signals_epoch_end(&self, first: bool, header: &Header, _block: Option<&[u8]>, receipts: Option<&[Receipt]>)
 		-> ::engines::EpochChange
 	{
+		// transition to the first block of a contract requires finality but has no log event.
+		if first {
+			debug!(target: "engine", "signalling transition to fresh contract.");
+			let (provider, header) = (self.provider.clone(), header.clone());
+			let with_caller: Box<Fn(&Call) -> _> = Box::new(move |caller| prove_initial(&provider, &header, caller));
+			return ::engines::EpochChange::Yes(::engines::Proof::WithState(with_caller))
+		}
+
+		// otherwise, we're checking for logs.
 		let bloom = self.expected_bloom(header);
 		let header_bloom = header.log_bloom();

 		if &bloom & header_bloom != bloom { return ::engines::EpochChange::No }

+		trace!(target: "engine", "detected epoch change event bloom");
+
 		match receipts {
 			None => ::engines::EpochChange::Unsure(::engines::Unsure::NeedsReceipts),
-			Some(receipts) => {
-				let check_log = |log: &LogEntry| {
-					log.address == self.address &&
-						log.topics.len() == 3 &&
-						log.topics[0] == *EVENT_NAME_HASH &&
-						log.topics[1] == *header.parent_hash()
-						// don't have anything to compare nonce to yet.
-				};
+			Some(receipts) => match self.extract_from_event(bloom, header, receipts) {
+				None => ::engines::EpochChange::No,
+				Some(_) => {
+					debug!(target: "engine", "signalling transition within contract");

-				let event = Provider::contract(&self.provider)
-					.event("ValidatorsChanged".into())
-					.expect("Contract known ahead of time to have `ValidatorsChanged` event; qed");
-
-				// iterate in reverse because only the _last_ change in a given
-				// block actually has any effect.
-				// the contract should only increment the nonce once.
-				let mut decoded_events = receipts.iter()
-					.rev()
-					.filter(|r| &bloom & &r.log_bloom == bloom)
-					.flat_map(|r| r.logs.iter())
-					.filter(move |l| check_log(l))
-					.filter_map(|log| {
-						let topics = log.topics.iter().map(|x| x.0.clone()).collect();
-						match event.decode_log(topics, log.data.clone()) {
-							Ok(decoded) => Some(decoded),
-							Err(_) => None,
-						}
-					});
-
-				match decoded_events.next() {
-					None => ::engines::EpochChange::No,
-					Some(matched_event) => {
-						// decode log manually until the native contract generator is
-						// good enough to do it for us.
-						let &(_, _, ref nonce_token) = &matched_event.params[1];
-						let &(_, _, ref validators_token) = &matched_event.params[2];
-
-						let nonce: Option<U256> = nonce_token.clone().to_uint()
-							.map(H256).map(Into::into);
-						let validators = validators_token.clone().to_array()
-							.and_then(|a| a.into_iter()
-								.map(|x| x.to_address().map(H160))
-								.collect::<Option<Vec<_>>>()
-							);
-
-						match (nonce, validators) {
-							(Some(nonce), Some(_)) => {
-								let new_epoch = nonce.low_u64();
-								::engines::EpochChange::Yes(new_epoch)
-							}
-							_ => {
-								debug!(target: "engine", "Successfully decoded log turned out to be bad.");
-								::engines::EpochChange::No
-							}
-						}
-					}
+					let proof = encode_proof(&header, receipts);
+					::engines::EpochChange::Yes(::engines::Proof::Known(proof))
 				}
-			}
+			},
 		}
 	}

-	// the proof we generate is an RLP list containing two parts.
-	//   (nonce, validators)
-	fn epoch_proof(&self, _header: &Header, caller: &Call) -> Result<Vec<u8>, String> {
-		match (self.get_nonce(caller), self.get_list(caller)) {
-			(Some(nonce), Some(list)) => Ok(encode_proof(nonce, &list.into_inner())),
-			_ => Err("Caller insufficient to generate validator proof.".into()),
-		}
-	}
-
-	fn epoch_set(&self, _header: &Header, proof: &[u8]) -> Result<(u64, SimpleList), ::error::Error> {
-		use rlp::UntrustedRlp;
+	fn epoch_set(&self, first: bool, engine: &Engine, _number: ::header::BlockNumber, proof: &[u8])
+		-> Result<(SimpleList, Option<H256>), ::error::Error>
+	{
+		use transaction::{Action, Transaction};

 		let rlp = UntrustedRlp::new(proof);
-		let nonce: u64 = rlp.val_at(0)?;
-		let validators: Vec<Address> = rlp.list_at(1)?;

-		Ok((nonce, SimpleList::new(validators)))
+		if first {
+			trace!(target: "engine", "Recovering initial epoch set");
+
+			// TODO: match client contract_call_tx more cleanly without duplication.
+			const PROVIDED_GAS: u64 = 50_000_000;
+
+			let (old_header, state_items) = decode_first_proof(&rlp)?;
+			let old_hash = old_header.hash();
+
+			let env_info = ::env_info::EnvInfo {
+				number: old_header.number(),
+				author: *old_header.author(),
+				difficulty: *old_header.difficulty(),
+				gas_limit: PROVIDED_GAS.into(),
+				timestamp: old_header.timestamp(),
+				last_hashes: {
+					// this will break if we don't inclue all 256 last hashes.
+					let mut last_hashes: Vec<_> = (0..256).map(|_| H256::default()).collect();
+					last_hashes[255] = *old_header.parent_hash();
+					Arc::new(last_hashes)
+				},
+				gas_used: 0.into(),
+			};
+
+			// check state proof using given engine.
+			let number = old_header.number();
+			let addresses = self.provider.get_validators(move |a, d| {
+				let from = Address::default();
+				let tx = Transaction {
+					nonce: engine.account_start_nonce(number),
+					action: Action::Call(a),
+					gas: PROVIDED_GAS.into(),
+					gas_price: U256::default(),
+					value: U256::default(),
+					data: d,
+				}.fake_sign(from);
+
+				let res = ::state::check_proof(
+					&state_items,
+					*old_header.state_root(),
+					&tx,
+					engine,
+					&env_info,
+				);
+
+				match res {
+					::state::ProvedExecution::BadProof => Err("Bad proof".into()),
+					::state::ProvedExecution::Failed(e) => Err(format!("Failed call: {}", e)),
+					::state::ProvedExecution::Complete(e) => Ok(e.output),
+				}
+			}).wait().map_err(::engines::EngineError::InsufficientProof)?;
+
+			trace!(target: "engine", "extracted epoch set at #{}: {} addresses",
+				number, addresses.len());
+
+			Ok((SimpleList::new(addresses), Some(old_hash)))
+		} else {
+			let (old_header, receipts) = decode_proof(&rlp)?;
+
+			// ensure receipts match header.
+			// TODO: optimize? these were just decoded.
+			let found_root = ::util::triehash::ordered_trie_root(
+				receipts.iter().map(::rlp::encode).map(|x| x.to_vec())
+			);
+			if found_root != *old_header.receipts_root() {
+				return Err(::error::BlockError::InvalidReceiptsRoot(
+					Mismatch { expected: *old_header.receipts_root(), found: found_root }
+				).into());
+			}
+
+			let bloom = self.expected_bloom(&old_header);
+
+			match self.extract_from_event(bloom, &old_header, &receipts) {
+				Some(list) => Ok((list, Some(old_header.hash()))),
+				None => Err(::engines::EngineError::InsufficientProof("No log event in proof.".into()).into()),
+			}
+		}
 	}

 	fn contains_with_caller(&self, block_hash: &H256, address: &Address, caller: &Call) -> bool {
@ -371,6 +522,7 @@ mod tests {
 		let last_hash = client.best_block_header().hash();
 		let mut new_header = Header::default();
 		new_header.set_parent_hash(last_hash);
+		new_header.set_number(1); // so the validator set looks for a log.

 		// first, try without the parent hash.
 		let mut event = LogEntry {
@ -380,12 +532,35 @@ mod tests {
 		};

 		new_header.set_log_bloom(event.bloom());
-		assert_eq!(engine.is_epoch_end(&new_header, None, None), EpochChange::No);
+		match engine.signals_epoch_end(&new_header, None, None) {
+			EpochChange::No => {},
+			_ => panic!("Expected bloom to be unrecognized."),
+		};

 		// with the last hash, it should need the receipts.
 		event.topics.push(last_hash);
 		new_header.set_log_bloom(event.bloom());
-		assert_eq!(engine.is_epoch_end(&new_header, None, None),
-			EpochChange::Unsure(Unsure::NeedsReceipts));
+
+		match engine.signals_epoch_end(&new_header, None, None) {
+			EpochChange::Unsure(Unsure::NeedsReceipts) => {},
+			_ => panic!("Expected bloom to be recognized."),
+		};
+	}
+
+	#[test]
+	fn initial_contract_is_signal() {
+		use header::Header;
+		use engines::{EpochChange, Proof};
+
+		let client = generate_dummy_client_with_spec_and_accounts(Spec::new_validator_safe_contract, None);
+		let engine = client.engine().clone();
+
+		let mut new_header = Header::default();
+		new_header.set_number(0); // so the validator set doesn't look for a log
+
+		match engine.signals_epoch_end(&new_header, None, None) {
+			EpochChange::Yes(Proof::WithState(_)) => {},
+			_ => panic!("Expected state to be required to prove initial signal"),
+		};
 	}
 }
--- a/ethcore/src/engines/validator_set/simple_list.rs
+++ b/ethcore/src/engines/validator_set/simple_list.rs
@ -18,8 +18,8 @@

 use util::{H256, Address, HeapSizeOf};

-use engines::Call;
-use header::Header;
+use engines::{Call, Engine};
+use header::{BlockNumber, Header};
 use super::ValidatorSet;

 /// Validator set containing a known set of addresses.
@ -42,6 +42,20 @@ impl SimpleList {
 	}
 }

+impl ::std::ops::Deref for SimpleList {
+	type Target = [Address];
+
+	fn deref(&self) -> &[Address] { &self.validators }
+}
+
+impl From<Vec<Address>> for SimpleList {
+	fn from(validators: Vec<Address>) -> Self {
+		SimpleList {
+			validators: validators,
+		}
+	}
+}
+
 impl HeapSizeOf for SimpleList {
 	fn heap_size_of_children(&self) -> usize {
 		self.validators.heap_size_of_children()
@ -53,18 +67,21 @@ impl ValidatorSet for SimpleList {
 		Box::new(|_, _| Err("Simple list doesn't require calls.".into()))
 	}

-	fn is_epoch_end(&self, _header: &Header, _block: Option<&[u8]>, _receipts: Option<&[::receipt::Receipt]>)
+	fn is_epoch_end(&self, first: bool, _chain_head: &Header) -> Option<Vec<u8>> {
+		match first {
+			true => Some(Vec::new()), // allow transition to fixed list, and instantly
+			false => None,
+		}
+	}
+
+	fn signals_epoch_end(&self, _: bool, _: &Header, _: Option<&[u8]>, _: Option<&[::receipt::Receipt]>)
 		-> ::engines::EpochChange
 	{
 		::engines::EpochChange::No
 	}

-	fn epoch_proof(&self, _header: &Header, _caller: &Call) -> Result<Vec<u8>, String> {
-		Ok(Vec::new())
-	}
-
-	fn epoch_set(&self, _header: &Header, _: &[u8]) -> Result<(u64, SimpleList), ::error::Error> {
-		Ok((0, self.clone()))
+	fn epoch_set(&self, _first: bool, _: &Engine, _: BlockNumber, _: &[u8]) -> Result<(SimpleList, Option<H256>), ::error::Error> {
+		Ok((self.clone(), None))
 	}

 	fn contains_with_caller(&self, _bh: &H256, address: &Address, _: &Call) -> bool {
@ -73,6 +90,11 @@ impl ValidatorSet for SimpleList {

 	fn get_with_caller(&self, _bh: &H256, nonce: usize, _: &Call) -> Address {
 		let validator_n = self.validators.len();
+
+		if validator_n == 0 {
+			panic!("Cannot operate with an empty validator set.");
+		}
+
 		self.validators.get(nonce % validator_n).expect("There are validator_n authorities; taking number modulo validator_n gives number in validator_n range; qed").clone()
 	}

--- a/ethcore/src/engines/validator_set/test.rs
+++ b/ethcore/src/engines/validator_set/test.rs
@ -20,7 +20,7 @@ use std::str::FromStr;
 use std::sync::atomic::{AtomicUsize, Ordering as AtomicOrdering};
 use util::{Arc, Bytes, H256, Address, HeapSizeOf};

-use engines::Call;
+use engines::{Call, Engine};
 use header::{Header, BlockNumber};
 use super::{ValidatorSet, SimpleList};

@ -52,18 +52,16 @@ impl ValidatorSet for TestSet {
 		Box::new(|_, _| Err("Test set doesn't require calls.".into()))
 	}

-	fn is_epoch_end(&self, _header: &Header, _block: Option<&[u8]>, _receipts: Option<&[::receipt::Receipt]>)
+	fn is_epoch_end(&self, _first: bool, _chain_head: &Header) -> Option<Vec<u8>> { None }
+
+	fn signals_epoch_end(&self, _: bool, _: &Header, _: Option<&[u8]>, _: Option<&[::receipt::Receipt]>)
 		-> ::engines::EpochChange
 	{
 		::engines::EpochChange::No
 	}

-	fn epoch_proof(&self, _header: &Header, _caller: &Call) -> Result<Vec<u8>, String> {
-		Ok(Vec::new())
-	}
-
-	fn epoch_set(&self, _header: &Header, _: &[u8]) -> Result<(u64, SimpleList), ::error::Error> {
-		Ok((0, self.validator.clone()))
+	fn epoch_set(&self, _: bool, _: &Engine, _: BlockNumber, _: &[u8]) -> Result<(SimpleList, Option<H256>), ::error::Error> {
+		Ok((self.validator.clone(), None))
 	}

 	fn contains_with_caller(&self, bh: &H256, address: &Address, _: &Call) -> bool {
@ -78,11 +76,11 @@ impl ValidatorSet for TestSet {
 		1
 	}

-	fn report_malicious(&self, _validator: &Address, block: BlockNumber, _proof: Bytes) {
+	fn report_malicious(&self, _validator: &Address, _set_block: BlockNumber, block: BlockNumber, _proof: Bytes) {
 		self.last_malicious.store(block as usize, AtomicOrdering::SeqCst)
 	}

-	fn report_benign(&self, _validator: &Address, block: BlockNumber) {
+	fn report_benign(&self, _validator: &Address, _set_block: BlockNumber, block: BlockNumber) {
 		self.last_benign.store(block as usize, AtomicOrdering::SeqCst)
 	}
 }
--- a/ethcore/src/error.rs
+++ b/ethcore/src/error.rs
@ -165,6 +165,8 @@ pub enum BlockError {
 	InvalidNumber(Mismatch<BlockNumber>),
 	/// Block number isn't sensible.
 	RidiculousNumber(OutOfBounds<BlockNumber>),
+	/// Too many transactions from a particular address.
+	TooManyTransactions(Address),
 	/// Parent given is unknown.
 	UnknownParent(H256),
 	/// Uncle parent given is unknown.
@ -205,6 +207,7 @@ impl fmt::Display for BlockError {
 			UnknownParent(ref hash) => format!("Unknown parent: {}", hash),
 			UnknownUncleParent(ref hash) => format!("Unknown uncle parent: {}", hash),
 			UnknownEpochTransition(ref num) => format!("Unknown transition to epoch number: {}", num),
+			TooManyTransactions(ref address) => format!("Too many transactions from: {}", address),
 		};

 		f.write_fmt(format_args!("Block error ({})", msg))
--- a/ethcore/src/ethereum/ethash.rs
+++ b/ethcore/src/ethereum/ethash.rs
@ -166,7 +166,6 @@ impl Ethash {
 // in the future, we might move the Ethash epoch
 // caching onto this mechanism as well.
 impl ::engines::EpochVerifier for Arc<Ethash> {
-	fn epoch_number(&self) -> u64 { 0 }
 	fn verify_light(&self, _header: &Header) -> Result<(), Error> { Ok(()) }
 	fn verify_heavy(&self, header: &Header) -> Result<(), Error> {
 		self.verify_block_unordered(header, None)
@ -256,7 +255,12 @@ impl Engine for Arc<Ethash> {
 //		info!("ethash: populate_from_parent #{}: difficulty={} and gas_limit={}", header.number(), header.difficulty(), header.gas_limit());
 	}

-	fn on_new_block(&self, block: &mut ExecutedBlock, last_hashes: Arc<LastHashes>) -> Result<(), Error> {
+	fn on_new_block(
+		&self,
+		block: &mut ExecutedBlock,
+		last_hashes: Arc<LastHashes>,
+		_begins_epoch: bool,
+	) -> Result<(), Error> {
 		let parent_hash = block.fields().header.parent_hash().clone();
 		::engines::common::push_last_hash(block, last_hashes, self, &parent_hash)?;
 		if block.fields().header.number() == self.ethash_params.dao_hardfork_transition {
@ -400,8 +404,8 @@ impl Engine for Arc<Ethash> {
 		Ok(())
 	}

-	fn epoch_verifier(&self, _header: &Header, _proof: &[u8]) -> Result<Box<::engines::EpochVerifier>, Error> {
-		Ok(Box::new(self.clone()))
+	fn epoch_verifier<'a>(&self, _header: &Header, _proof: &'a [u8]) -> ::engines::ConstructedVerifier<'a> {
+		::engines::ConstructedVerifier::Trusted(Box::new(self.clone()))
 	}

 	fn snapshot_components(&self) -> Option<Box<::snapshot::SnapshotComponents>> {
@ -559,7 +563,7 @@ mod tests {
 		let genesis_header = spec.genesis_header();
 		let db = spec.ensure_db_good(get_temp_state_db(), &Default::default()).unwrap();
 		let last_hashes = Arc::new(vec![genesis_header.hash()]);
-		let b = OpenBlock::new(engine, Default::default(), false, db, &genesis_header, last_hashes, Address::zero(), (3141562.into(), 31415620.into()), vec![]).unwrap();
+		let b = OpenBlock::new(engine, Default::default(), false, db, &genesis_header, last_hashes, Address::zero(), (3141562.into(), 31415620.into()), vec![], false).unwrap();
 		let b = b.close();
 		assert_eq!(b.state().balance(&Address::zero()).unwrap(), U256::from_str("4563918244f40000").unwrap());
 	}
@ -571,7 +575,7 @@ mod tests {
 		let genesis_header = spec.genesis_header();
 		let db = spec.ensure_db_good(get_temp_state_db(), &Default::default()).unwrap();
 		let last_hashes = Arc::new(vec![genesis_header.hash()]);
-		let mut b = OpenBlock::new(engine, Default::default(), false, db, &genesis_header, last_hashes, Address::zero(), (3141562.into(), 31415620.into()), vec![]).unwrap();
+		let mut b = OpenBlock::new(engine, Default::default(), false, db, &genesis_header, last_hashes, Address::zero(), (3141562.into(), 31415620.into()), vec![], false).unwrap();
 		let mut uncle = Header::new();
 		let uncle_author: Address = "ef2d6d194084c2de36e0dabfce45d046b37d1106".into();
 		uncle.set_author(uncle_author);
--- a/ethcore/src/ethereum/mod.rs
+++ b/ethcore/src/ethereum/mod.rs
@ -98,8 +98,7 @@ mod tests {
 		let engine = &spec.engine;
 		let genesis_header = spec.genesis_header();
 		let db = spec.ensure_db_good(get_temp_state_db(), &Default::default()).unwrap();
-
-		let s = State::from_existing(db, genesis_header.state_root().clone(), engine.account_start_nonce(), Default::default()).unwrap();
+		let s = State::from_existing(db, genesis_header.state_root().clone(), engine.account_start_nonce(0), Default::default()).unwrap();
 		assert_eq!(s.balance(&"0000000000000000000000000000000000000001".into()).unwrap(), 1u64.into());
 		assert_eq!(s.balance(&"0000000000000000000000000000000000000002".into()).unwrap(), 1u64.into());
 		assert_eq!(s.balance(&"0000000000000000000000000000000000000003".into()).unwrap(), 1u64.into());
--- a/ethcore/src/evm/mod.rs
+++ b/ethcore/src/evm/mod.rs
@ -38,5 +38,5 @@ pub use self::ext::{Ext, ContractCreateResult, MessageCallResult, CreateContract
 pub use self::instructions::{InstructionInfo, INSTRUCTIONS, push_bytes};
 pub use self::vmtype::VMType;
 pub use self::factory::Factory;
-pub use self::schedule::Schedule;
+pub use self::schedule::{Schedule, CleanDustMode};
 pub use types::executed::CallType;
--- a/ethcore/src/evm/schedule.rs
+++ b/ethcore/src/evm/schedule.rs
@ -108,6 +108,19 @@ pub struct Schedule {
 	pub blockhash_gas: usize,
 	/// Static Call opcode enabled.
 	pub have_static_call: bool,
+	/// Kill basic accounts below this balance if touched.
+	pub kill_dust: CleanDustMode,
+}
+
+/// Dust accounts cleanup mode.
+#[derive(PartialEq, Eq)]
+pub enum CleanDustMode {
+	/// Dust cleanup is disabled.
+	Off,
+	/// Basic dust accounts will be removed.
+	BasicOnly,
+	/// Basic and contract dust accounts will be removed.
+	WithCodeAndStorage,
 }

 impl Schedule {
@ -168,15 +181,16 @@ impl Schedule {
 			kill_empty: kill_empty,
 			blockhash_gas: 20,
 			have_static_call: false,
+			kill_dust: CleanDustMode::Off,
 		}
 	}

-	/// Schedule for the Metropolis era from common spec params.
+	/// Schedule for the post-EIP-150-era of the Ethereum main net.
 	pub fn from_params(block_number: u64, params: &CommonParams) -> Schedule {
 		let mut schedule = Schedule::new_post_eip150(usize::max_value(), true, true, true);
 		schedule.apply_params(block_number, params);
 		schedule
- 	}
+	}

 	/// Apply common spec config parameters to the schedule.
 	pub fn apply_params(&mut self, block_number: u64, params: &CommonParams) {
@ -186,6 +200,9 @@ impl Schedule {
 		if block_number >= params.eip210_transition {
 			self.blockhash_gas = 350;
 		}
+		if block_number >= params.dust_protection_transition {
+			self.kill_dust = if params.remove_dust_contracts { CleanDustMode::WithCodeAndStorage } else { CleanDustMode::BasicOnly };
+		}
 	}

 	/// Schedule for the Metropolis of the Ethereum main net.
@ -244,6 +261,7 @@ impl Schedule {
 			kill_empty: false,
 			blockhash_gas: 20,
 			have_static_call: false,
+			kill_dust: CleanDustMode::Off,
 		}
 	}
 }
--- a/ethcore/src/executive.rs
+++ b/ethcore/src/executive.rs
@ -22,7 +22,7 @@ use engines::Engine;
 use types::executed::CallType;
 use env_info::EnvInfo;
 use error::ExecutionError;
-use evm::{self, Ext, Finalize, CreateContractAddress, FinalizationResult, ReturnData};
+use evm::{self, Ext, Finalize, CreateContractAddress, FinalizationResult, ReturnData, CleanDustMode};
 use externalities::*;
 use trace::{FlatTrace, Tracer, NoopTracer, ExecutiveTracer, VMTrace, VMTracer, ExecutiveVMTracer, NoopVMTracer};
 use transaction::{Action, SignedTransaction};
@ -164,6 +164,10 @@ impl<'a, B: 'a + StateBackend, E: Engine + ?Sized> Executive<'a, B, E> {
 			return Err(From::from(ExecutionError::NotEnoughBaseGas { required: base_gas_required, got: t.gas }));
 		}

+		if !t.is_unsigned() && check_nonce && schedule.kill_dust != CleanDustMode::Off && !self.state.exists(&sender)? {
+			return Err(From::from(ExecutionError::SenderMustExist));
+		}
+
 		let init_gas = t.gas - base_gas_required;

 		// validate transaction nonce
@ -191,13 +195,13 @@ impl<'a, B: 'a + StateBackend, E: Engine + ?Sized> Executive<'a, B, E> {
 			return Err(From::from(ExecutionError::NotEnoughCash { required: total_cost, got: balance512 }));
 		}

+		let mut substate = Substate::new();
+
 		// NOTE: there can be no invalid transactions from this point.
 		if !t.is_unsigned() {
 			self.state.inc_nonce(&sender)?;
 		}
-		self.state.sub_balance(&sender, &U256::from(gas_cost))?;
-
-		let mut substate = Substate::new();
+		self.state.sub_balance(&sender, &U256::from(gas_cost), &mut substate.to_cleanup_mode(&schedule))?;

 		let (result, output) = match t.action {
 			Action::Create => {
@ -434,7 +438,7 @@ impl<'a, B: 'a + StateBackend, E: Engine + ?Sized> Executive<'a, B, E> {
 		let nonce_offset = if schedule.no_empty {1} else {0}.into();
 		let prev_bal = self.state.balance(&params.address)?;
 		if let ActionValue::Transfer(val) = params.value {
-			self.state.sub_balance(&params.sender, &val)?;
+			self.state.sub_balance(&params.sender, &val, &mut substate.to_cleanup_mode(&schedule))?;
 			self.state.new_contract(&params.address, val + prev_bal, nonce_offset);
 		} else {
 			self.state.new_contract(&params.address, prev_bal, nonce_offset);
@ -512,11 +516,8 @@ impl<'a, B: 'a + StateBackend, E: Engine + ?Sized> Executive<'a, B, E> {
 		}

 		// perform garbage-collection
-		for address in &substate.garbage {
-			if self.state.exists(address)? && !self.state.exists_and_not_null(address)? {
-				self.state.kill_account(address);
-			}
-		}
+		let min_balance = if schedule.kill_dust != CleanDustMode::Off { Some(U256::from(schedule.tx_gas) * t.gas_price) } else { None };
+		self.state.kill_garbage(&substate.touched, schedule.kill_empty, &min_balance, schedule.kill_dust == CleanDustMode::WithCodeAndStorage)?;

 		match result {
 			Err(evm::Error::Internal(msg)) => Err(ExecutionError::Internal(msg)),
--- a/ethcore/src/externalities.rs
+++ b/ethcore/src/externalities.rs
@ -17,7 +17,7 @@
 //! Transaction Execution environment.
 use util::*;
 use action_params::{ActionParams, ActionValue};
-use state::{Backend as StateBackend, State, Substate};
+use state::{Backend as StateBackend, State, Substate, CleanupMode};
 use engines::Engine;
 use env_info::EnvInfo;
 use executive::*;
@ -347,7 +347,7 @@ impl<'a, T: 'a, V: 'a, B: 'a, E: 'a> Ext for Externalities<'a, T, V, B, E>
 		let balance = self.balance(&address)?;
 		if &address == refund_address {
 			// TODO [todr] To be consistent with CPP client we set balance to 0 in that case.
-			self.state.sub_balance(&address, &balance)?;
+			self.state.sub_balance(&address, &balance, &mut CleanupMode::NoEmpty)?;
 		} else {
 			trace!(target: "ext", "Suiciding {} -> {} (xfer: {})", address, refund_address, balance);
 			self.state.transfer_balance(
--- a/ethcore/src/migrations/v9.rs
+++ b/ethcore/src/migrations/v9.rs
@ -51,7 +51,6 @@ impl ToV9 {
 }

 impl Migration for ToV9 {
-
 	fn columns(&self) -> Option<u32> { Some(5) }

 	fn version(&self) -> u32 { 9 }
--- a/ethcore/src/miner/miner.rs
+++ b/ethcore/src/miner/miner.rs
@ -328,7 +328,10 @@ impl Miner {
 		let _timer = PerfTimer::new("prepare_block");
 		let chain_info = chain.chain_info();
 		let (transactions, mut open_block, original_work_hash) = {
-			let transactions = {self.transaction_queue.read().top_transactions_at(chain_info.best_block_number, chain_info.best_block_timestamp)};
+			let nonce_cap = if chain_info.best_block_number + 1 >= self.engine.params().dust_protection_transition {
+				Some((self.engine.params().nonce_cap_increment * (chain_info.best_block_number + 1)).into())
+			} else { None };
+			let transactions = {self.transaction_queue.read().top_transactions_at(chain_info.best_block_number, chain_info.best_block_timestamp, nonce_cap)};
 			let mut sealing_work = self.sealing_work.lock();
 			let last_work_hash = sealing_work.queue.peek_last_ref().map(|pb| pb.block().fields().header.hash());
 			let best_hash = chain_info.best_block_hash;
--- a/ethcore/src/miner/transaction_queue.rs
+++ b/ethcore/src/miner/transaction_queue.rs
@ -1084,11 +1084,11 @@ impl TransactionQueue {

 	/// Returns top transactions from the queue ordered by priority.
 	pub fn top_transactions(&self) -> Vec<SignedTransaction> {
-		self.top_transactions_at(BlockNumber::max_value(), u64::max_value())
+		self.top_transactions_at(BlockNumber::max_value(), u64::max_value(), None)

 	}

-	fn filter_pending_transaction<F>(&self, best_block: BlockNumber, best_timestamp: u64, mut f: F)
+	fn filter_pending_transaction<F>(&self, best_block: BlockNumber, best_timestamp: u64, nonce_cap: Option<U256>, mut f: F)
 		where F: FnMut(&VerifiedTransaction) {

 		let mut delayed = HashSet::new();
@ -1098,6 +1098,11 @@ impl TransactionQueue {
 			if delayed.contains(&sender) {
 				continue;
 			}
+			if let Some(max_nonce) = nonce_cap {
+				if tx.nonce() >= max_nonce {
+					continue;
+				}
+			}
 			let delay = match tx.condition {
 				Some(Condition::Number(n)) => n > best_block,
 				Some(Condition::Timestamp(t)) => t > best_timestamp,
@ -1112,16 +1117,16 @@ impl TransactionQueue {
 	}

 	/// Returns top transactions from the queue ordered by priority.
-	pub fn top_transactions_at(&self, best_block: BlockNumber, best_timestamp: u64) -> Vec<SignedTransaction> {
+	pub fn top_transactions_at(&self, best_block: BlockNumber, best_timestamp: u64, nonce_cap: Option<U256>) -> Vec<SignedTransaction> {
 		let mut r = Vec::new();
-		self.filter_pending_transaction(best_block, best_timestamp, |tx| r.push(tx.transaction.clone()));
+		self.filter_pending_transaction(best_block, best_timestamp, nonce_cap, |tx| r.push(tx.transaction.clone()));
 		r
 	}

 	/// Return all ready transactions.
 	pub fn pending_transactions(&self, best_block: BlockNumber, best_timestamp: u64) -> Vec<PendingTransaction> {
 		let mut r = Vec::new();
-		self.filter_pending_transaction(best_block, best_timestamp, |tx| r.push(PendingTransaction::new(tx.transaction.clone(), tx.condition.clone())));
+		self.filter_pending_transaction(best_block, best_timestamp, None, |tx| r.push(PendingTransaction::new(tx.transaction.clone(), tx.condition.clone())));
 		r
 	}

@ -2205,9 +2210,9 @@ pub mod test {
 		// then
 		assert_eq!(res1, TransactionImportResult::Current);
 		assert_eq!(res2, TransactionImportResult::Current);
-		let top = txq.top_transactions_at(0, 0);
+		let top = txq.top_transactions_at(0, 0, None);
 		assert_eq!(top.len(), 0);
-		let top = txq.top_transactions_at(1, 0);
+		let top = txq.top_transactions_at(1, 0, None);
 		assert_eq!(top.len(), 2);
 	}

@ -2809,4 +2814,19 @@ pub mod test {
 		// then
 		assert_eq!(txq.top_transactions().len(), 1);
 	}
+
+	#[test]
+	fn should_not_return_transactions_over_nonce_cap() {
+		// given
+		let keypair = Random.generate().unwrap();
+		let mut txq = TransactionQueue::default();
+		// when
+		for nonce in 123..130 {
+			let tx = new_unsigned_tx(nonce.into(), default_gas_val(), default_gas_price()).sign(keypair.secret(), None);
+			txq.add(tx, TransactionOrigin::External, 0, None, &default_tx_provider()).unwrap();
+		}
+
+		// then
+		assert_eq!(txq.top_transactions_at(BlockNumber::max_value(), u64::max_value(), Some(127.into())).len(), 4);
+	}
 }
--- a/ethcore/src/snapshot/consensus/authority.rs
+++ b/ethcore/src/snapshot/consensus/authority.rs
@ -24,34 +24,28 @@ use super::{SnapshotComponents, Rebuilder, ChunkSink};
 use std::sync::atomic::{AtomicBool, Ordering};
 use std::sync::Arc;

-use blockchain::{BlockChain, BlockProvider, EpochTransition};
-use engines::{Engine, EpochVerifier};
-use env_info::EnvInfo;
+use blockchain::{BlockChain, BlockProvider};
+use engines::{Engine, EpochVerifier, EpochTransition};
 use ids::BlockId;
 use header::Header;
 use receipt::Receipt;
 use snapshot::{Error, ManifestData};
-use state_db::StateDB;

 use itertools::{Position, Itertools};
 use rlp::{RlpStream, UntrustedRlp};
-use util::{Address, Bytes, H256, KeyValueDB, DBValue};
+use util::{Bytes, H256, KeyValueDB};

 /// Snapshot creation and restoration for PoA chains.
 /// Chunk format:
 ///
-/// [FLAG, [header, epoch_number, epoch data, state proof, last hashes], ...]
+/// [FLAG, [header, epoch data], ...]
 ///   - Header data at which transition occurred,
-///   - epoch data (usually list of validators)
-///   - state items required to check epoch data
-///   - last 256 hashes before the transition; required for checking state changes.
+///   - epoch data (usually list of validators and proof of change)
 ///
 /// FLAG is a bool: true for last chunk, false otherwise.
 ///
 /// The last item of the last chunk will be a list containing data for the warp target block:
-/// [header, transactions, uncles, receipts, last_hashes, parent_td].
-/// If this block is not a transition block, the epoch data should be the same as that
-/// for the last transition.
+/// [header, transactions, uncles, receipts, parent_td].
 pub struct PoaSnapshot;

 impl SnapshotComponents for PoaSnapshot {
@ -68,35 +62,23 @@ impl SnapshotComponents for PoaSnapshot {
 		let mut pending_size = 0;
 		let mut rlps = Vec::new();

-		// TODO: this will become irrelevant after recent block hashes are moved into
-		// the state. can we optimize it out in that case?
-		let make_last_hashes = |parent_hash| chain.ancestry_iter(parent_hash)
-			.into_iter()
-			.flat_map(|inner| inner)
-			.take(255)
-			.collect::<Vec<_>>();
-
-		for (epoch_number, transition) in chain.epoch_transitions()
+		for (_, transition) in chain.epoch_transitions()
 			.take_while(|&(_, ref t)| t.block_number <= number)
 		{
+			// this can happen when our starting block is non-canonical.
+			if transition.block_number == number && transition.block_hash != block_at {
+				break
+			}
+
 			let header = chain.block_header_data(&transition.block_hash)
 				.ok_or(Error::BlockNotFound(transition.block_hash))?;

-			let last_hashes: Vec<_> = make_last_hashes(header.parent_hash());
-
 			let entry = {
-				let mut entry_stream = RlpStream::new_list(5);
+				let mut entry_stream = RlpStream::new_list(2);
 				entry_stream
 					.append_raw(&header.into_inner(), 1)
-					.append(&epoch_number)
 					.append(&transition.proof);

-				entry_stream.begin_list(transition.state_proof.len());
-				for item in transition.state_proof {
-					entry_stream.append(&&*item);
-				}
-
-				entry_stream.append_list(&last_hashes);
 				entry_stream.out()
 			};

@ -121,16 +103,13 @@ impl SnapshotComponents for PoaSnapshot {
 			.map(|d| d.total_difficulty)
 			.ok_or(Error::BlockNotFound(block_at))?;

-		let last_hashes = make_last_hashes(*block.header.parent_hash());
-
 		rlps.push({
-			let mut stream = RlpStream::new_list(6);
+			let mut stream = RlpStream::new_list(5);
 			stream
 				.append(&block.header)
 				.append_list(&block.transactions)
 				.append_list(&block.uncles)
 				.append(&receipts)
-				.append_list(&last_hashes)
 				.append(&parent_td);
 			stream.out()
 		});
@ -153,7 +132,7 @@ impl SnapshotComponents for PoaSnapshot {
 			db: db,
 			had_genesis: false,
 			unverified_firsts: Vec::new(),
-			last_proofs: Vec::new(),
+			last_epochs: Vec::new(),
 		}))
 	}

@ -178,7 +157,7 @@ fn write_chunk(last: bool, chunk_data: &mut Vec<Bytes>, sink: &mut ChunkSink) ->
 // transition header is verifiable from the epoch data of the one prior.
 struct ChunkRebuilder {
 	manifest: ManifestData,
-	warp_target: Option<(Header, Vec<H256>)>,
+	warp_target: Option<Header>,
 	chain: BlockChain,
 	db: Arc<KeyValueDB>,
 	had_genesis: bool,
@ -186,52 +165,16 @@ struct ChunkRebuilder {
 	// sorted vectors of unverified first blocks in a chunk
 	// and epoch data from last blocks in chunks.
 	// verification for these will be done at the end.
-	unverified_firsts: Vec<(u64, Header)>,
-	last_proofs: Vec<(u64, Header, Bytes)>,
+	unverified_firsts: Vec<(Header, Bytes, H256)>,
+	last_epochs: Vec<(Header, Box<EpochVerifier>)>,
 }

 // verified data.
 struct Verified {
-	epoch_number: u64,
 	epoch_transition: EpochTransition,
 	header: Header,
 }

-// make a transaction and env info.
-// TODO: hardcoded 50M to match constants in client.
-// would be nice to extract magic numbers, or better yet
-// off-chain transaction execution, into its own module.
-fn make_tx_and_env(
-	engine: &Engine,
-	addr: Address,
-	data: Bytes,
-	header: &Header,
-	last_hashes: Arc<Vec<H256>>,
-) -> (::transaction::SignedTransaction, EnvInfo) {
-	use transaction::{Action, Transaction};
-
-	let transaction = Transaction {
-		nonce: engine.account_start_nonce(),
-		action: Action::Call(addr),
-		gas: 50_000_000.into(),
-		gas_price: 0.into(),
-		value: 0.into(),
-		data: data,
-	}.fake_sign(Default::default());
-
-	let env = EnvInfo {
-		number: header.number(),
-		author: *header.author(),
-		timestamp: header.timestamp(),
-		difficulty: *header.difficulty(),
-		gas_limit: 50_000_000.into(),
-		last_hashes: last_hashes,
-		gas_used: 0.into(),
-	};
-
-	(transaction, env)
-}
-
 impl ChunkRebuilder {
 	fn verify_transition(
 		&mut self,
@ -239,69 +182,49 @@ impl ChunkRebuilder {
 		transition_rlp: UntrustedRlp,
 		engine: &Engine,
 	) -> Result<Verified, ::error::Error> {
+		use engines::ConstructedVerifier;
+
 		// decode.
 		let header: Header = transition_rlp.val_at(0)?;
-		let epoch_number: u64 = transition_rlp.val_at(1)?;
-		let epoch_data: Bytes = transition_rlp.val_at(2)?;
-		let state_proof: Vec<DBValue> = transition_rlp.at(3)?
-			.iter()
-			.map(|x| Ok(DBValue::from_slice(x.data()?)))
-			.collect::<Result<_, ::rlp::DecoderError>>()?;
-		let last_hashes: Vec<H256> = transition_rlp.list_at(4)?;
-		let last_hashes = Arc::new(last_hashes);
+		let epoch_data: Bytes = transition_rlp.val_at(1)?;

-		trace!(target: "snapshot", "verifying transition to epoch {}", epoch_number);
+		trace!(target: "snapshot", "verifying transition to epoch at block {}", header.number());

 		// check current transition against validators of last epoch.
-		if let Some(verifier) = last_verifier.as_ref() {
-			verifier.verify_heavy(&header)?;
-		}
+		let new_verifier = match engine.epoch_verifier(&header, &epoch_data) {
+			ConstructedVerifier::Trusted(v) => v,
+			ConstructedVerifier::Unconfirmed(v, finality_proof, hash) => {
+				match *last_verifier {
+					Some(ref last) =>
+						if last.check_finality_proof(finality_proof).map_or(true, |hashes| !hashes.contains(&hash))
+					{
+						return Err(Error::BadEpochProof(header.number()).into());
+					},
+					None if header.number() != 0 => {
+						// genesis never requires additional validation.

-		{
-			// check the provided state proof actually leads to the
-			// given epoch data.
-			let caller = |addr, data| {
-				use state::{check_proof, ProvedExecution};
+						let idx = self.unverified_firsts
+							.binary_search_by_key(&header.number(), |&(ref h, _, _)| h.number())
+							.unwrap_or_else(|x| x);

-				let (transaction, env_info) = make_tx_and_env(
-					engine,
-					addr,
-					data,
-					&header,
-					last_hashes.clone(),
-				);
-
-				let result = check_proof(
-					&state_proof,
-					header.state_root().clone(),
-					&transaction,
-					engine,
-					&env_info,
-				);
-
-				match result {
-					ProvedExecution::Complete(executed) => Ok(executed.output),
-					_ => Err("Bad state proof".into()),
+						let entry = (header.clone(), finality_proof.to_owned(), hash);
+						self.unverified_firsts.insert(idx, entry);
+					}
+					None => {}
 				}
-			};

-			let extracted_proof = engine.epoch_proof(&header, &caller)
-				.map_err(|_| Error::BadEpochProof(epoch_number))?;
-
-			if extracted_proof != epoch_data {
-				return Err(Error::BadEpochProof(epoch_number).into());
+				v
 			}
-		}
+			ConstructedVerifier::Err(e) => return Err(e),
+		};

 		// create new epoch verifier.
-		*last_verifier = Some(engine.epoch_verifier(&header, &epoch_data)?);
+		*last_verifier = Some(new_verifier);

 		Ok(Verified {
-			epoch_number: epoch_number,
 			epoch_transition: EpochTransition {
 				block_hash: header.hash(),
 				block_number: header.number(),
-				state_proof: state_proof,
 				proof: epoch_data,
 			},
 			header: header,
@ -327,6 +250,10 @@ impl Rebuilder for ChunkRebuilder {
 			num_items - 1
 		};

+		if num_transitions == 0 && !is_last_chunk {
+			return Err(Error::WrongChunkFormat("Found non-last chunk without any data.".into()).into());
+		}
+
 		let mut last_verifier = None;
 		let mut last_number = None;
 		for transition_rlp in rlp.iter().skip(1).take(num_transitions).with_position() {
@ -356,41 +283,33 @@ impl Rebuilder for ChunkRebuilder {
 			if is_first {
 				// make sure the genesis transition was included,
 				// but it doesn't need verification later.
-				if verified.epoch_number == 0 && verified.header.number() == 0 {
+				if verified.header.number() == 0 {
 					if verified.header.hash() != self.chain.genesis_hash() {
 						return Err(Error::WrongBlockHash(0, verified.header.hash(), self.chain.genesis_hash()).into());
 					}

 					self.had_genesis = true;
-				} else {
-					let idx = self.unverified_firsts
-						.binary_search_by_key(&verified.epoch_number, |&(a, _)| a)
-						.unwrap_or_else(|x| x);
-
-					let entry = (verified.epoch_number, verified.header.clone());
-					self.unverified_firsts.insert(idx, entry);
 				}
 			}
 			if is_last {
-				let idx = self.last_proofs
-					.binary_search_by_key(&verified.epoch_number, |&(a, _, _)| a)
+				let idx = self.last_epochs
+					.binary_search_by_key(&verified.header.number(), |&(ref h, _)| h.number())
 					.unwrap_or_else(|x| x);

 				let entry = (
-					verified.epoch_number,
 					verified.header.clone(),
-					verified.epoch_transition.proof.clone()
+					last_verifier.take().expect("last_verifier always set after verify_transition; qed"),
 				);
-				self.last_proofs.insert(idx, entry);
+				self.last_epochs.insert(idx, entry);
 			}

 			// write epoch transition into database.
 			let mut batch = self.db.transaction();
-			self.chain.insert_epoch_transition(&mut batch, verified.epoch_number,
+			self.chain.insert_epoch_transition(&mut batch, verified.header.number(),
 				verified.epoch_transition);
 			self.db.write_buffered(batch);

-			trace!(target: "snapshot", "Verified epoch transition for epoch {}", verified.epoch_number);
+			trace!(target: "snapshot", "Verified epoch transition for epoch at block {}", verified.header.number());
 		}

 		if is_last_chunk {
@ -413,84 +332,57 @@ impl Rebuilder for ChunkRebuilder {
 				}
 			}

-			let last_hashes: Vec<H256> = last_rlp.list_at(4)?;
-			let parent_td: ::util::U256 = last_rlp.val_at(5)?;
+			let parent_td: ::util::U256 = last_rlp.val_at(4)?;

 			let mut batch = self.db.transaction();
 			self.chain.insert_unordered_block(&mut batch, &block_data, receipts, Some(parent_td), true, false);
 			self.db.write_buffered(batch);

-			self.warp_target = Some((block.header, last_hashes));
+			self.warp_target = Some(block.header);
 		}

 		Ok(())
 	}

-	fn finalize(&mut self, db: StateDB, engine: &Engine) -> Result<(), ::error::Error> {
-		use state::State;
-
+	fn finalize(&mut self, _engine: &Engine) -> Result<(), ::error::Error> {
 		if !self.had_genesis {
 			return Err(Error::WrongChunkFormat("No genesis transition included.".into()).into());
 		}

-		let (target_header, target_last_hashes) = match self.warp_target.take() {
+		let target_header = match self.warp_target.take() {
 			Some(x) => x,
 			None => return Err(Error::WrongChunkFormat("Warp target block not included.".into()).into()),
 		};

-		// we store the last data even for the last chunk for easier verification
-		// of warp target, but we don't store genesis transition data.
-		// other than that, there should be a one-to-one correspondence of
-		// chunk ends to chunk beginnings.
-		if self.last_proofs.len() != self.unverified_firsts.len() + 1 {
-			return Err(Error::WrongChunkFormat("More than one 'last' chunk".into()).into());
-		}
-
 		// verify the first entries of chunks we couldn't before.
-		let lasts_iter = self.last_proofs.iter().map(|&(_, ref hdr, ref proof)| (hdr, &proof[..]));
-		let firsts_iter = self.unverified_firsts.iter().map(|&(_, ref hdr)| hdr);
+		// we store all last verifiers, but not all firsts.
+		// match each unverified first epoch with a last epoch verifier.
+		let mut lasts_reversed = self.last_epochs.iter().rev();
+		for &(ref header, ref finality_proof, hash) in self.unverified_firsts.iter().rev() {
+			let mut found = false;
+			while let Some(&(ref last_header, ref last_verifier)) = lasts_reversed.next() {
+				if last_header.number() < header.number() {
+					if last_verifier.check_finality_proof(&finality_proof).map_or(true, |hashes| !hashes.contains(&hash)) {
+						return Err(Error::BadEpochProof(header.number()).into());
+					}
+					found = true;
+					break;
+				}
+			}

-		for ((last_hdr, last_proof), first_hdr) in lasts_iter.zip(firsts_iter) {
-			let verifier = engine.epoch_verifier(&last_hdr, &last_proof)?;
-			verifier.verify_heavy(&first_hdr)?;
+			if !found {
+				return Err(Error::WrongChunkFormat("Inconsistent chunk ordering.".into()).into());
+			}
 		}

-		// verify that the validator set of the warp target is the same as that of the
-		// most recent transition. if the warp target was a transition itself,
-		// `last_data` will still be correct
-		let &(_, _, ref last_data) = self.last_proofs.last()
-			.expect("last_proofs known to have at least one element by the check above; qed");
+		// verify that the warp target verifies correctly the
+		// most recent epoch. if the warp target was a transition itself,
+		// it's already verified and doesn't need any more verification.
+		let &(ref header, ref last_epoch) = self.last_epochs.last()
+			.expect("last_epochs known to have at least one element by the check above; qed");

-		let target_last_hashes = Arc::new(target_last_hashes);
-		let caller = |addr, data| {
-			use executive::{Executive, TransactOptions};
-
-			let factories = ::factory::Factories::default();
-			let mut state = State::from_existing(
-				db.boxed_clone(),
-				self.manifest.state_root.clone(),
-				engine.account_start_nonce(),
-				factories,
-			).map_err(|e| format!("State root mismatch: {}", e))?;
-
-			let (tx, env_info) = make_tx_and_env(
-				engine,
-				addr,
-				data,
-				&target_header,
-				target_last_hashes.clone(),
-			);
-
-			let options = TransactOptions { tracing: false, vm_tracing: false, check_nonce: false };
-			Executive::new(&mut state, &env_info, engine)
-				.transact_virtual(&tx, options)
-				.map(|e| e.output)
-				.map_err(|e| format!("Error executing: {}", e))
-		};
-
-		let data = engine.epoch_proof(&target_header, &caller)?;
-		if &data[..] != &last_data[..] {
-			return Err(Error::WrongChunkFormat("Warp target has different epoch data than epoch transition.".into()).into())
+		if header != &target_header {
+			last_epoch.verify_heavy(&target_header)?;
 		}

 		Ok(())
--- a/ethcore/src/snapshot/consensus/mod.rs
+++ b/ethcore/src/snapshot/consensus/mod.rs
@ -93,7 +93,5 @@ pub trait Rebuilder: Send {
 	///
 	/// This should apply the necessary "glue" between chunks,
 	/// and verify against the restored state.
-	///
-	/// The database passed contains the state for the warp target block.
-	fn finalize(&mut self, db: ::state_db::StateDB, engine: &Engine) -> Result<(), ::error::Error>;
+	fn finalize(&mut self, engine: &Engine) -> Result<(), ::error::Error>;
 }
--- a/ethcore/src/snapshot/consensus/work.rs
+++ b/ethcore/src/snapshot/consensus/work.rs
@ -283,7 +283,7 @@ impl Rebuilder for PowRebuilder {
 	}

 	/// Glue together any disconnected chunks and check that the chain is complete.
-	fn finalize(&mut self, _: ::state_db::StateDB, _: &Engine) -> Result<(), ::error::Error> {
+	fn finalize(&mut self, _: &Engine) -> Result<(), ::error::Error> {
 		let mut batch = self.db.transaction();

 		for (first_num, first_hash) in self.disconnected.drain(..) {
@ -299,12 +299,12 @@ impl Rebuilder for PowRebuilder {
 		}

 		let genesis_hash = self.chain.genesis_hash();
-		self.chain.insert_epoch_transition(&mut batch, 0, ::blockchain::EpochTransition {
+		self.chain.insert_epoch_transition(&mut batch, 0, ::engines::EpochTransition {
 			block_number: 0,
 			block_hash: genesis_hash,
 			proof: vec![],
-			state_proof: vec![],
 		});
+
 		self.db.write_buffered(batch);
 		Ok(())
 	}
--- a/ethcore/src/snapshot/service.rs
+++ b/ethcore/src/snapshot/service.rs
@ -164,11 +164,10 @@ impl Restoration {
 		}

 		// check for missing code.
-		let db = self.state.finalize(self.manifest.block_number, self.manifest.block_hash)?;
-		let db = ::state_db::StateDB::new(db, 0);
+		self.state.finalize(self.manifest.block_number, self.manifest.block_hash)?;

 		// connect out-of-order chunks and verify chain integrity.
-		self.secondary.finalize(db, engine)?;
+		self.secondary.finalize(engine)?;

 		if let Some(writer) = self.writer {
 			writer.finish(self.manifest)?;
--- a/ethcore/src/snapshot/tests/helpers.rs
+++ b/ethcore/src/snapshot/tests/helpers.rs
@ -26,7 +26,6 @@ use client::{BlockChainClient, Client};
 use engines::Engine;
 use snapshot::{StateRebuilder};
 use snapshot::io::{SnapshotReader, PackedWriter, PackedReader};
-use state_db::StateDB;

 use devtools::{RandomTempPath, GuardedTempResult};
 use rand::Rng;
@ -195,8 +194,7 @@ pub fn restore(
 		secondary.feed(&snappy_buffer[..len], engine, &flag)?;
 	}

-	let jdb = state.finalize(manifest.block_number, manifest.block_hash)?;
-	let state_db = StateDB::new(jdb, 0);
-
-	secondary.finalize(state_db, engine)
+	trace!(target: "snapshot", "finalizing");
+	state.finalize(manifest.block_number, manifest.block_hash)?;
+	secondary.finalize(engine)
 }
--- a/ethcore/src/snapshot/tests/proof_of_authority.rs
+++ b/ethcore/src/snapshot/tests/proof_of_authority.rs
@ -21,11 +21,9 @@ use std::sync::Arc;
 use std::str::FromStr;

 use account_provider::AccountProvider;
-use client::{Client, BlockChainClient, MiningBlockChainClient};
+use client::{Client, BlockChainClient};
 use ethkey::Secret;
-use engines::Seal;
 use futures::Future;
-use miner::MinerService;
 use native_contracts::test_contracts::ValidatorSet;
 use snapshot::tests::helpers as snapshot_helpers;
 use spec::Spec;
@ -37,7 +35,7 @@ use util::kvdb;

 const PASS: &'static str = "";
 const TRANSITION_BLOCK_1: usize = 2; // block at which the contract becomes activated.
-const TRANSITION_BLOCK_2: usize = 6; // block at which the second contract activates.
+const TRANSITION_BLOCK_2: usize = 10; // block at which the second contract activates.

 macro_rules! secret {
 	($e: expr) => { Secret::from_slice(&$e.sha3()) }
@ -54,10 +52,10 @@ lazy_static! {
 }


-/// Contract code used here: https://gist.github.com/rphmeier/2de14fd365a969e3a9e10d77eb9a1e37
+/// Contract code used here: https://gist.github.com/anonymous/2a43783647e0f0dfcc359bd6fd81d6d9
 /// Account with secrets "1".sha3() is initially the validator.
 /// Transitions to the contract at block 2, initially same validator set.
-/// Create a new Spec with BasicAuthority which uses a contract at address 5 to determine the current validators using `getValidators`.
+/// Create a new Spec with AuthorityRound which uses a contract at address 5 to determine the current validators using `getValidators`.
 /// `native_contracts::test_contracts::ValidatorSet` provides a native wrapper for the ABi.
 fn spec_fixed_to_contract() -> Spec {
 	let data = include_bytes!("test_validator_contract.json");
@ -101,45 +99,41 @@ fn make_chain(accounts: Arc<AccountProvider>, blocks_beyond: usize, transitions:
 	{
 		// push a block with given number, signed by one of the signers, with given transactions.
 		let push_block = |signers: &[Address], n, txs: Vec<SignedTransaction>| {
-			use block::IsBlock;
+			use miner::MinerService;
+
+			let idx = n as usize % signers.len();
+			trace!(target: "snapshot", "Pushing block #{}, {} txs, author={}",
+				n, txs.len(), signers[idx]);
+
+			client.miner().set_author(signers[idx]);
+			client.miner().import_external_transactions(&*client,
+				txs.into_iter().map(Into::into).collect());

 			let engine = client.engine();
-			let idx = n as usize % signers.len();
 			engine.set_signer(accounts.clone(), signers[idx], PASS.to_owned());
+			engine.step();

-			trace!(target: "snapshot", "Pushing block #{}, {} txs, author={}", n, txs.len(), signers[idx]);
-
-			let mut open_block = client.prepare_open_block(signers[idx], (5_000_000.into(), 5_000_000.into()), Vec::new());
-			for tx in txs {
-				open_block.push_transaction(tx, None).unwrap();
-			}
-			let block = open_block.close_and_lock();
-			let seal = match engine.generate_seal(block.block()) {
-				Seal::Regular(seal) => seal,
-				_ => panic!("Unable to generate seal for dummy chain block #{}", n),
-			};
-			let block = block.seal(&*engine, seal).unwrap();
-
-			client.import_sealed_block(block).unwrap();
+			assert_eq!(client.chain_info().best_block_number, n);
 		};

 		// execution callback for native contract: push transaction to be sealed.
-		let nonce = RefCell::new(client.engine().account_start_nonce());
-		let exec = |addr, data| {
+		let nonce = RefCell::new(client.engine().account_start_nonce(0));
+
+		// create useless transactions vector so we don't have to dig in
+		// and force sealing.
+		let make_useless_transactions = || {
 			let mut nonce = nonce.borrow_mut();
 			let transaction = Transaction {
 				nonce: *nonce,
-				gas_price: 0.into(),
-				gas: 1_000_000.into(),
-				action: Action::Call(addr),
-				value: 0.into(),
-				data: data,
+				gas_price: 1.into(),
+				gas: 21_000.into(),
+				action: Action::Call(Address::new()),
+				value: 1.into(),
+				data: Vec::new(),
 			}.sign(&*RICH_SECRET, client.signing_network_id());

-			client.miner().import_own_transaction(&*client, transaction.into()).unwrap();
-
 			*nonce = *nonce + 1.into();
-			Ok(Vec::new())
+			vec![transaction]
 		};

 		let contract_1 = ValidatorSet::new(*CONTRACT_ADDR_1);
@ -156,8 +150,12 @@ fn make_chain(accounts: Arc<AccountProvider>, blocks_beyond: usize, transitions:
 				panic!("Bad test: issued epoch change before transition to contract.");
 			}

+			if (num as u64) < client.chain_info().best_block_number {
+				panic!("Bad test: issued epoch change before previous transition finalized.");
+			}
+
 			for number in client.chain_info().best_block_number + 1 .. num as u64 {
-				push_block(&cur_signers, number, vec![]);
+				push_block(&cur_signers, number, make_useless_transactions());
 			}

 			let pending = if manual {
@ -167,22 +165,48 @@ fn make_chain(accounts: Arc<AccountProvider>, blocks_beyond: usize, transitions:
 					false => &contract_1,
 				};

-				contract.set_validators(&exec, new_set.clone()).wait().unwrap();
-				client.ready_transactions()
-					.into_iter()
-					.map(|x| x.transaction)
-					.collect()
+				let mut pending = Vec::new();
+				{
+					let mut exec = |addr, data| {
+						let mut nonce = nonce.borrow_mut();
+						let transaction = Transaction {
+							nonce: *nonce,
+							gas_price: 0.into(),
+							gas: 1_000_000.into(),
+							action: Action::Call(addr),
+							value: 0.into(),
+							data: data,
+						}.sign(&*RICH_SECRET, client.signing_network_id());
+
+						pending.push(transaction);
+
+						*nonce = *nonce + 1.into();
+						Ok(Vec::new())
+					};
+
+					contract.set_validators(&mut exec, new_set.clone()).wait().unwrap();
+				}
+
+				pending
 			} else {
-				Vec::new()
+				make_useless_transactions()
 			};

+			// push transition block.
 			push_block(&cur_signers, num as u64, pending);
+
+			// push blocks to finalize transition
+			for finalization_count in 1.. {
+				if finalization_count * 2 > cur_signers.len() { break }
+				push_block(&cur_signers, (num + finalization_count) as u64, make_useless_transactions());
+			}
+
 			cur_signers = new_set;
 		}

 		// make blocks beyond.
 		for number in (client.chain_info().best_block_number..).take(blocks_beyond) {
-			push_block(&cur_signers, number + 1, vec![]);
+			push_block(&cur_signers, number + 1, make_useless_transactions());
 		}
 	}

@ -190,7 +214,7 @@ fn make_chain(accounts: Arc<AccountProvider>, blocks_beyond: usize, transitions:
 }

 #[test]
-fn fixed_to_contract() {
+fn fixed_to_contract_only() {
 	let (provider, addrs) = make_accounts(&[
 		RICH_SECRET.clone(),
 		secret!("foo"),
@ -204,17 +228,21 @@ fn fixed_to_contract() {

 	assert!(provider.has_account(*RICH_ADDR).unwrap());

-	let client = make_chain(provider, 1, vec![
+	let client = make_chain(provider, 3, vec![
 		Transition::Manual(3, vec![addrs[2], addrs[3], addrs[5], addrs[7]]),
-		Transition::Manual(4, vec![addrs[0], addrs[1], addrs[4], addrs[6]]),
+		Transition::Manual(6, vec![addrs[0], addrs[1], addrs[4], addrs[6]]),
 	]);

-	assert_eq!(client.chain_info().best_block_number, 5);
+	// 6, 7, 8 prove finality for transition at 6.
+	// 3 beyond gets us to 11.
+	assert_eq!(client.chain_info().best_block_number, 11);
 	let reader = snapshot_helpers::snap(&*client);

 	let new_db = kvdb::in_memory(::db::NUM_COLUMNS.unwrap_or(0));
 	let spec = spec_fixed_to_contract();

+	// ensure fresh engine's step matches.
+	for _ in 0..11 { spec.engine.step() }
 	snapshot_helpers::restore(Arc::new(new_db), &*spec.engine, &**reader, &spec.genesis_block()).unwrap();
 }

@ -233,17 +261,18 @@ fn fixed_to_contract_to_contract() {

 	assert!(provider.has_account(*RICH_ADDR).unwrap());

-	let client = make_chain(provider, 2, vec![
+	let client = make_chain(provider, 3, vec![
 		Transition::Manual(3, vec![addrs[2], addrs[3], addrs[5], addrs[7]]),
-		Transition::Manual(4, vec![addrs[0], addrs[1], addrs[4], addrs[6]]),
-		Transition::Implicit(5, vec![addrs[0]]),
-		Transition::Manual(8, vec![addrs[2], addrs[4], addrs[6], addrs[7]]),
+		Transition::Manual(6, vec![addrs[0], addrs[1], addrs[4], addrs[6]]),
+		Transition::Implicit(10, vec![addrs[0]]),
+		Transition::Manual(13, vec![addrs[2], addrs[4], addrs[6], addrs[7]]),
 	]);

-	assert_eq!(client.chain_info().best_block_number, 10);
+	assert_eq!(client.chain_info().best_block_number, 16);
 	let reader = snapshot_helpers::snap(&*client);
 	let new_db = kvdb::in_memory(::db::NUM_COLUMNS.unwrap_or(0));
 	let spec = spec_fixed_to_contract();

+	for _ in 0..16 { spec.engine.step() }
 	snapshot_helpers::restore(Arc::new(new_db), &*spec.engine, &**reader, &spec.genesis_block()).unwrap();
 }
--- a/ethcore/src/snapshot/tests/proof_of_work.rs
+++ b/ethcore/src/snapshot/tests/proof_of_work.rs
@ -23,10 +23,8 @@ use blockchain::generator::{ChainGenerator, ChainIterator, BlockFinalizer};
 use blockchain::BlockChain;
 use snapshot::{chunk_secondary, Error as SnapshotError, Progress, SnapshotComponents};
 use snapshot::io::{PackedReader, PackedWriter, SnapshotReader, SnapshotWriter};
-use state_db::StateDB;

 use util::{Mutex, snappy};
-use util::journaldb::{self, Algorithm};
 use util::kvdb::{self, KeyValueDB, DBTransaction};

 use std::sync::Arc;
@ -83,7 +81,6 @@ fn chunk_and_restore(amount: u64) {
 	// restore it.
 	let new_db = Arc::new(kvdb::in_memory(::db::NUM_COLUMNS.unwrap_or(0)));
 	let new_chain = BlockChain::new(Default::default(), &genesis, new_db.clone());
-	let new_state = StateDB::new(journaldb::new(new_db.clone(), Algorithm::Archive, None), 0);
 	let mut rebuilder = SNAPSHOT_MODE.rebuilder(new_chain, new_db.clone(), &manifest).unwrap();

 	let reader = PackedReader::new(&snapshot_path).unwrap().unwrap();
@ -94,7 +91,7 @@ fn chunk_and_restore(amount: u64) {
 		rebuilder.feed(&chunk, engine.as_ref(), &flag).unwrap();
 	}

-	rebuilder.finalize(new_state, engine.as_ref()).unwrap();
+	rebuilder.finalize(engine.as_ref()).unwrap();
 	drop(rebuilder);

 	// and test it.
--- a/ethcore/src/snapshot/tests/test_validator_contract.json
+++ b/ethcore/src/snapshot/tests/test_validator_contract.json
@ -1,15 +1,16 @@
 {
 	"name": "TestValidatorContract",
 	"engine": {
-		"basicAuthority": {
+		"authorityRound": {
 			"params": {
 				"gasLimitBoundDivisor": "0x0400",
-				"durationLimit": "0x0d",
+				"stepDuration": 1,
+				"startStep": 0,
 				"validators": {
 					"multi": {
 						"0": { "list": ["0x7d577a597b2742b498cb5cf0c26cdcd726d39e6e"] },
 						"2": { "contract": "0x0000000000000000000000000000000000000005" },
-						"6": { "contract": "0x0000000000000000000000000000000000000006" }
+						"10": { "contract": "0x0000000000000000000000000000000000000006" }
 					}
 				}
 			}
@ -23,7 +24,10 @@
 	},
 	"genesis": {
 		"seal": {
-			"generic": "0xc180"
+			"authorityRound": {
+				"step": "0x0",
+				"signature": "0x0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000"
+			}
 		},
 		"difficulty": "0x20000",
 		"author": "0x0000000000000000000000000000000000000000",
@ -39,11 +43,11 @@
 		"0000000000000000000000000000000000000004": { "balance": "1", "builtin": { "name": "identity", "pricing": { "linear": { "base": 15, "word": 3 } } } },
 		"0000000000000000000000000000000000000005": {
 			"balance": "1",
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+			"constructor": "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"
 		},
 		"0000000000000000000000000000000000000006": {
 			"balance": "1",
-			"constructor": "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"
+			"constructor": "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"
 		},
 		"0x7d577a597b2742b498cb5cf0c26cdcd726d39e6e": { "balance": "1606938044258990275541962092341162602522202993782792835301376" },
 		"0x82a978b3f5962a5b0957d9ee9eef472ee55b42f1": { "balance": "1606938044258990275541962092341162602522202993782792835301376" }
--- a/ethcore/src/spec/spec.rs
+++ b/ethcore/src/spec/spec.rs
@ -76,6 +76,12 @@ pub struct CommonParams {
 	pub eip211_transition: BlockNumber,
 	/// Number of first block where EIP-214 rules begin.
 	pub eip214_transition: BlockNumber,
+	/// Number of first block where dust cleanup rules (EIP-168 and EIP169) begin.
+	pub dust_protection_transition: BlockNumber,
+	/// Nonce cap increase per block. Nonce cap is only checked if dust protection is enabled.
+	pub nonce_cap_increment : u64,
+	/// Enable dust cleanup for contracts.
+	pub remove_dust_contracts : bool,
 }

 impl From<ethjson::spec::Params> for CommonParams {
@ -100,6 +106,9 @@ impl From<ethjson::spec::Params> for CommonParams {
 			eip210_contract_gas: p.eip210_contract_gas.map_or(1000000.into(), Into::into),
 			eip211_transition: p.eip211_transition.map_or(BlockNumber::max_value(), Into::into),
 			eip214_transition: p.eip214_transition.map_or(BlockNumber::max_value(), Into::into),
+			dust_protection_transition: p.dust_protection_transition.map_or(BlockNumber::max_value(), Into::into),
+			nonce_cap_increment: p.nonce_cap_increment.map_or(64, Into::into),
+			remove_dust_contracts: p.remove_dust_contracts.unwrap_or(false),
 		}
 	}
 }
@ -224,7 +233,7 @@ impl Spec {
 			);
 		}

-		let start_nonce = self.engine.account_start_nonce();
+		let start_nonce = self.engine.account_start_nonce(0);

 		let (root, db) = {
 			let mut state = State::from_existing(
@ -460,7 +469,7 @@ mod tests {
 		::ethcore_logger::init_log();
 		let spec = Spec::new_test_constructor();
 		let db = spec.ensure_db_good(get_temp_state_db(), &Default::default()).unwrap();
-		let state = State::from_existing(db.boxed_clone(), spec.state_root(), spec.engine.account_start_nonce(), Default::default()).unwrap();
+		let state = State::from_existing(db.boxed_clone(), spec.state_root(), spec.engine.account_start_nonce(0), Default::default()).unwrap();
 		let expected = H256::from_str("0000000000000000000000000000000000000000000000000000000000000001").unwrap();
 		assert_eq!(state.storage_at(&Address::from_str("0000000000000000000000000000000000000005").unwrap(), &H256::zero()).unwrap(), expected);
 	}
--- a/ethcore/src/state/account.rs
+++ b/ethcore/src/state/account.rs
@ -315,6 +315,11 @@ impl Account {
 		self.code_hash == SHA3_EMPTY
 	}

+	/// Check if account is basic (Has no code).
+	pub fn is_basic(&self) -> bool {
+		self.code_hash == SHA3_EMPTY
+	}
+
 	/// Return the storage root associated with this account or None if it has been altered via the overlay.
 	pub fn storage_root(&self) -> Option<&H256> { if self.storage_is_clean() {Some(&self.storage_root)} else {None} }

--- a/ethcore/src/state/mod.rs
+++ b/ethcore/src/state/mod.rs
@ -96,7 +96,11 @@ enum AccountState {
 /// Account entry can contain existing (`Some`) or non-existing
 /// account (`None`)
 struct AccountEntry {
+	/// Account entry. `None` if account known to be non-existant.
 	account: Option<Account>,
+	/// Unmodified account balance.
+	old_balance: Option<U256>,
+	/// Entry state.
 	state: AccountState,
 }

@ -107,6 +111,10 @@ impl AccountEntry {
 		self.state == AccountState::Dirty
 	}

+	fn exists_and_is_null(&self) -> bool {
+		self.account.as_ref().map_or(false, |a| a.is_null())
+	}
+
 	/// Clone dirty data into new `AccountEntry`. This includes
 	/// basic account data and modified storage keys.
 	/// Returns None if clean.
@ -121,6 +129,7 @@ impl AccountEntry {
 	/// basic account data and modified storage keys.
 	fn clone_dirty(&self) -> AccountEntry {
 		AccountEntry {
+			old_balance: self.old_balance,
 			account: self.account.as_ref().map(Account::clone_dirty),
 			state: self.state,
 		}
@ -129,6 +138,7 @@ impl AccountEntry {
 	// Create a new account entry and mark it as dirty.
 	fn new_dirty(account: Option<Account>) -> AccountEntry {
 		AccountEntry {
+			old_balance: account.as_ref().map(|a| a.balance().clone()),
 			account: account,
 			state: AccountState::Dirty,
 		}
@ -137,6 +147,7 @@ impl AccountEntry {
 	// Create a new account entry and mark it as clean.
 	fn new_clean(account: Option<Account>) -> AccountEntry {
 		AccountEntry {
+			old_balance: account.as_ref().map(|a| a.balance().clone()),
 			account: account,
 			state: AccountState::CleanFresh,
 		}
@ -145,6 +156,7 @@ impl AccountEntry {
 	// Create a new account entry and mark it as clean and cached.
 	fn new_clean_cached(account: Option<Account>) -> AccountEntry {
 		AccountEntry {
+			old_balance: account.as_ref().map(|a| a.balance().clone()),
 			account: account,
 			state: AccountState::CleanCached,
 		}
@ -181,7 +193,7 @@ pub fn check_proof(
 	let res = State::from_existing(
 		backend,
 		root,
-		engine.account_start_nonce(),
+		engine.account_start_nonce(env_info.number),
 		factories
 	);

@ -266,8 +278,8 @@ pub enum CleanupMode<'a> {
 	ForceCreate,
 	/// Don't delete null accounts upon touching, but also don't create them.
 	NoEmpty,
-	/// Add encountered null accounts to the provided kill-set, to be deleted later.
-	KillEmpty(&'a mut HashSet<Address>),
+	/// Mark all touched accounts.
+	TrackTouched(&'a mut HashSet<Address>),
 }

 const SEC_TRIE_DB_UNWRAP_STR: &'static str = "A state can only be created with valid root. Creating a SecTrieDB with a valid root will not fail. \
@ -549,31 +561,30 @@ impl<B: Backend> State<B> {
 		let is_value_transfer = !incr.is_zero();
 		if is_value_transfer || (cleanup_mode == CleanupMode::ForceCreate && !self.exists(a)?) {
 			self.require(a, false)?.add_balance(incr);
-		} else {
-			match cleanup_mode {
-				CleanupMode::KillEmpty(set) => if !is_value_transfer && self.exists(a)? && !self.exists_and_not_null(a)? {
-					set.insert(a.clone());
-				},
-				_ => {}
+		} else if let CleanupMode::TrackTouched(set) = cleanup_mode {
+			if self.exists(a)? {
+				set.insert(*a);
+				self.touch(a)?;
 			}
 		}
-
 		Ok(())
 	}

 	/// Subtract `decr` from the balance of account `a`.
-	pub fn sub_balance(&mut self, a: &Address, decr: &U256) -> trie::Result<()> {
+	pub fn sub_balance(&mut self, a: &Address, decr: &U256, cleanup_mode: &mut CleanupMode) -> trie::Result<()> {
 		trace!(target: "state", "sub_balance({}, {}): {}", a, decr, self.balance(a)?);
 		if !decr.is_zero() || !self.exists(a)? {
 			self.require(a, false)?.sub_balance(decr);
 		}
-
+		if let CleanupMode::TrackTouched(ref mut set) = *cleanup_mode {
+			set.insert(*a);
+		}
 		Ok(())
 	}

 	/// Subtracts `by` from the balance of `from` and adds it to that of `to`.
-	pub fn transfer_balance(&mut self, from: &Address, to: &Address, by: &U256, cleanup_mode: CleanupMode) -> trie::Result<()> {
-		self.sub_balance(from, by)?;
+	pub fn transfer_balance(&mut self, from: &Address, to: &Address, by: &U256, mut cleanup_mode: CleanupMode) -> trie::Result<()> {
+		self.sub_balance(from, by, &mut cleanup_mode)?;
 		self.add_balance(to, by, cleanup_mode)?;
 		Ok(())
 	}
@ -640,33 +651,33 @@ impl<B: Backend> State<B> {
 		}
 	}

-	/// Commit accounts to SecTrieDBMut. This is similar to cpp-ethereum's dev::eth::commit.
-	/// `accounts` is mutable because we may need to commit the code or storage and record that.
+	fn touch(&mut self, a: &Address) -> trie::Result<()> {
+		self.require(a, false)?;
+		Ok(())
+	}
+
+	/// Commits our cached account changes into the trie.
 	#[cfg_attr(feature="dev", allow(match_ref_pats))]
 	#[cfg_attr(feature="dev", allow(needless_borrow))]
-	fn commit_into(
-		factories: &Factories,
-		db: &mut B,
-		root: &mut H256,
-		accounts: &mut HashMap<Address, AccountEntry>
-	) -> Result<(), Error> {
+	pub fn commit(&mut self) -> Result<(), Error> {
 		// first, commit the sub trees.
+		let mut accounts = self.cache.borrow_mut();
 		for (address, ref mut a) in accounts.iter_mut().filter(|&(_, ref a)| a.is_dirty()) {
 			if let Some(ref mut account) = a.account {
 				let addr_hash = account.address_hash(address);
 				{
-					let mut account_db = factories.accountdb.create(db.as_hashdb_mut(), addr_hash);
-					account.commit_storage(&factories.trie, account_db.as_hashdb_mut())?;
+					let mut account_db = self.factories.accountdb.create(self.db.as_hashdb_mut(), addr_hash);
+					account.commit_storage(&self.factories.trie, account_db.as_hashdb_mut())?;
 					account.commit_code(account_db.as_hashdb_mut());
 				}
 				if !account.is_empty() {
-					db.note_non_null_account(address);
+					self.db.note_non_null_account(address);
 				}
 			}
 		}

 		{
-			let mut trie = factories.trie.from_existing(db.as_hashdb_mut(), root)?;
+			let mut trie = self.factories.trie.from_existing(self.db.as_hashdb_mut(), &mut self.root)?;
 			for (address, ref mut a) in accounts.iter_mut().filter(|&(_, ref a)| a.is_dirty()) {
 				a.state = AccountState::Committed;
 				match a.account {
@ -676,7 +687,7 @@ impl<B: Backend> State<B> {
 					None => {
 						trie.remove(address)?;
 					},
-				}
+				};
 			}
 		}

@ -692,17 +703,30 @@ impl<B: Backend> State<B> {
 		}
 	}

-	/// Commits our cached account changes into the trie.
-	pub fn commit(&mut self) -> Result<(), Error> {
-		assert!(self.checkpoints.borrow().is_empty());
-		Self::commit_into(&self.factories, &mut self.db, &mut self.root, &mut *self.cache.borrow_mut())
-	}
-
 	/// Clear state cache
 	pub fn clear(&mut self) {
 		self.cache.borrow_mut().clear();
 	}

+	/// Remove any touched empty or dust accounts.
+	pub fn kill_garbage(&mut self, touched: &HashSet<Address>, remove_empty_touched: bool, min_balance: &Option<U256>, kill_contracts: bool) -> trie::Result<()> {
+		let to_kill: HashSet<_> = {
+			self.cache.borrow().iter().filter_map(|(address, ref entry)|
+			if touched.contains(address) && // Check all touched accounts
+				((remove_empty_touched && entry.exists_and_is_null()) // Remove all empty touched accounts.
+				|| min_balance.map_or(false, |ref balance| entry.account.as_ref().map_or(false, |account|
+					(account.is_basic() || kill_contracts) // Remove all basic and optionally contract accounts where balance has been decreased.
+					&& account.balance() < balance && entry.old_balance.as_ref().map_or(false, |b| account.balance() < b)))) {
+
+				Some(address.clone())
+			} else { None }).collect()
+		};
+		for address in to_kill {
+			self.kill_account(&address);
+		}
+		Ok(())
+	}
+
 	#[cfg(test)]
 	#[cfg(feature = "json-tests")]
 	/// Populate the state from `accounts`.
@ -1926,7 +1950,7 @@ mod tests {
 		assert_eq!(state.balance(&a).unwrap(), U256::from(69u64));
 		state.commit().unwrap();
 		assert_eq!(state.balance(&a).unwrap(), U256::from(69u64));
-		state.sub_balance(&a, &U256::from(42u64)).unwrap();
+		state.sub_balance(&a, &U256::from(42u64), &mut CleanupMode::NoEmpty).unwrap();
 		assert_eq!(state.balance(&a).unwrap(), U256::from(27u64));
 		state.commit().unwrap();
 		assert_eq!(state.balance(&a).unwrap(), U256::from(27u64));
@ -2026,4 +2050,44 @@ mod tests {
 		new_state.diff_from(state).unwrap();
 	}

+	#[test]
+	fn should_kill_garbage() {
+		let a = 10.into();
+		let b = 20.into();
+		let c = 30.into();
+		let d = 40.into();
+		let e = 50.into();
+		let x = 0.into();
+		let db = get_temp_state_db();
+		let (root, db) = {
+			let mut state = State::new(db, U256::from(0), Default::default());
+			state.add_balance(&a, &U256::default(), CleanupMode::ForceCreate).unwrap(); // create an empty account
+			state.add_balance(&b, &100.into(), CleanupMode::ForceCreate).unwrap(); // create a dust account
+			state.add_balance(&c, &101.into(), CleanupMode::ForceCreate).unwrap(); // create a normal account
+			state.add_balance(&d, &99.into(), CleanupMode::ForceCreate).unwrap(); // create another dust account
+			state.new_contract(&e, 100.into(), 1.into()); // create a contract account
+			state.init_code(&e, vec![0x00]).unwrap();
+			state.commit().unwrap();
+			state.drop()
+		};
+
+		let mut state = State::from_existing(db, root, U256::from(0u8), Default::default()).unwrap();
+		let mut touched = HashSet::new();
+		state.add_balance(&a, &U256::default(), CleanupMode::TrackTouched(&mut touched)).unwrap(); // touch an account
+		state.transfer_balance(&b, &x, &1.into(), CleanupMode::TrackTouched(&mut touched)).unwrap(); // touch an account decreasing its balance
+		state.transfer_balance(&c, &x, &1.into(), CleanupMode::TrackTouched(&mut touched)).unwrap(); // touch an account decreasing its balance
+		state.transfer_balance(&e, &x, &1.into(), CleanupMode::TrackTouched(&mut touched)).unwrap(); // touch an account decreasing its balance
+		state.kill_garbage(&touched, true, &None, false).unwrap();
+		assert!(!state.exists(&a).unwrap());
+		assert!(state.exists(&b).unwrap());
+		state.kill_garbage(&touched, true, &Some(100.into()), false).unwrap();
+		assert!(!state.exists(&b).unwrap());
+		assert!(state.exists(&c).unwrap());
+		assert!(state.exists(&d).unwrap());
+		assert!(state.exists(&e).unwrap());
+		state.kill_garbage(&touched, true, &Some(100.into()), true).unwrap();
+		assert!(state.exists(&c).unwrap());
+		assert!(state.exists(&d).unwrap());
+		assert!(!state.exists(&e).unwrap());
+	}
 }
--- a/ethcore/src/state/substate.rs
+++ b/ethcore/src/state/substate.rs
@ -18,7 +18,7 @@
 use std::collections::HashSet;
 use util::{Address, U256};
 use log_entry::LogEntry;
-use evm::Schedule;
+use evm::{Schedule, CleanDustMode};
 use super::CleanupMode;

 /// State changes which should be applied in finalize,
@ -28,8 +28,8 @@ pub struct Substate {
 	/// Any accounts that have suicided.
 	pub suicides: HashSet<Address>,

-	/// Any accounts that are tagged for garbage collection.
-	pub garbage: HashSet<Address>,
+	/// Any accounts that are touched.
+	pub touched: HashSet<Address>,

 	/// Any logs.
 	pub logs: Vec<LogEntry>,
@ -50,7 +50,7 @@ impl Substate {
 	/// Merge secondary substate `s` into self, accruing each element correspondingly.
 	pub fn accrue(&mut self, s: Substate) {
 		self.suicides.extend(s.suicides.into_iter());
-		self.garbage.extend(s.garbage.into_iter());
+		self.touched.extend(s.touched.into_iter());
 		self.logs.extend(s.logs.into_iter());
 		self.sstore_clears_count = self.sstore_clears_count + s.sstore_clears_count;
 		self.contracts_created.extend(s.contracts_created.into_iter());
@ -59,10 +59,10 @@ impl Substate {
 	/// Get the cleanup mode object from this.
 	#[cfg_attr(feature="dev", allow(wrong_self_convention))]
 	pub fn to_cleanup_mode(&mut self, schedule: &Schedule) -> CleanupMode {
-		match (schedule.no_empty, schedule.kill_empty) {
-			(false, _) => CleanupMode::ForceCreate,
-			(true, false) => CleanupMode::NoEmpty,
-			(true, true) => CleanupMode::KillEmpty(&mut self.garbage),
+		match (schedule.kill_dust != CleanDustMode::Off, schedule.no_empty, schedule.kill_empty) {
+			(false, false, _) => CleanupMode::ForceCreate,
+			(false, true, false) => CleanupMode::NoEmpty,
+			(false, true, true) | (true, _, _,) => CleanupMode::TrackTouched(&mut self.touched),
 		}
 	}
 }
--- a/ethcore/src/tests/helpers.rs
+++ b/ethcore/src/tests/helpers.rs
@ -193,7 +193,8 @@ pub fn generate_dummy_client_with_spec_accounts_and_data<F>(get_test_spec: F, ac
 			Arc::new(last_hashes.clone()),
 			author.clone(),
 			(3141562.into(), 31415620.into()),
-			vec![]
+			vec![],
+			false,
 		).unwrap();
 		b.set_difficulty(U256::from(0x20000));
 		rolling_timestamp += 10;
--- a/ethcore/src/types/executed.rs
+++ b/ethcore/src/types/executed.rs
@ -151,6 +151,8 @@ pub enum ExecutionError {
 	},
 	/// When execution tries to modify the state in static context
 	MutableCallInStaticContext,
+	/// Returned when transacting from a non-existing account with dust protection enabled.
+	SenderMustExist,
 	/// Returned when internal evm error occurs.
 	Internal(String),
 	/// Returned when generic transaction occurs
@ -179,6 +181,7 @@ impl fmt::Display for ExecutionError {
 				format!("Cost of transaction exceeds sender balance. {} is required \
 					but the sender only has {}", required, got),
 			MutableCallInStaticContext => "Mutable Call in static context".to_owned(),
+			SenderMustExist => "Transacting from an empty account".to_owned(),
 			Internal(ref msg) => msg.clone(),
 			TransactionMalformed(ref err) => format!("Malformed transaction: {}", err),
 		};
--- a/ethcore/src/verification/verification.rs
+++ b/ethcore/src/verification/verification.rs
@ -80,10 +80,18 @@ pub fn verify_block_unordered(header: Header, bytes: Bytes, engine: &Engine, che
 	}
 	// Verify transactions.
 	let mut transactions = Vec::new();
+	let nonce_cap = if header.number() >= engine.params().dust_protection_transition {
+		Some((engine.params().nonce_cap_increment * header.number()).into())
+	} else { None };
 	{
 		let v = BlockView::new(&bytes);
 		for t in v.transactions() {
 			let t = engine.verify_transaction(t, &header)?;
+			if let Some(max_nonce) = nonce_cap {
+				if t.nonce >= max_nonce {
+					return Err(BlockError::TooManyTransactions(t.sender()).into());
+				}
+			}
 			transactions.push(t);
 		}
 	}
@ -391,6 +399,12 @@ mod tests {
 		verify_block_family(&header, bytes, engine, bc)
 	}

+	fn unordered_test(bytes: &[u8], engine: &Engine) -> Result<(), Error> {
+		let header = BlockView::new(bytes).header();
+		verify_block_unordered(header, bytes.to_vec(), engine, false)?;
+		Ok(())
+	}
+
 	#[test]
 	#[cfg_attr(feature="dev", allow(similar_names))]
 	fn test_verify_block() {
@ -556,4 +570,34 @@ mod tests {

 		// TODO: some additional uncle checks
 	}
+
+	#[test]
+	fn dust_protection() {
+		use ethkey::{Generator, Random};
+		use types::transaction::{Transaction, Action};
+		use engines::NullEngine;
+
+		let mut params = CommonParams::default();
+		params.dust_protection_transition = 0;
+		params.nonce_cap_increment = 2;
+
+		let mut header = Header::default();
+		header.set_number(1);
+
+		let keypair = Random.generate().unwrap();
+		let bad_transactions: Vec<_> = (0..3).map(|i| Transaction {
+			action: Action::Create,
+			value: U256::zero(),
+			data: Vec::new(),
+			gas: 0.into(),
+			gas_price: U256::zero(),
+			nonce: i.into(),
+		}.sign(keypair.secret(), None)).collect();
+
+		let good_transactions = [bad_transactions[0].clone(), bad_transactions[1].clone()];
+
+		let engine = NullEngine::new(params, BTreeMap::new());
+		check_fail(unordered_test(&create_test_block_with_data(&header, &bad_transactions, &[]), &engine), TooManyTransactions(keypair.address()));
+		unordered_test(&create_test_block_with_data(&header, &good_transactions, &[]), &engine).unwrap();
+	}
 }
--- a/js/package.json
+++ b/js/package.json
@ -1,6 +1,6 @@
 {
  "name": "parity.js",
-  "version": "1.7.94",
+  "version": "1.7.96",
  "main": "release/index.js",
  "jsnext:main": "src/index.js",
  "author": "Parity Team <admin@parity.io>",
--- a/js/src/api/api.js
+++ b/js/src/api/api.js
@ -24,7 +24,8 @@ import { Db, Eth, Parity, Net, Personal, Shh, Signer, Trace, Web3 } from './rpc'
 import Subscriptions from './subscriptions';
 import util from './util';
 import { isFunction } from './util/types';
-import { LocalAccountsMiddleware } from './local';
+
+import LocalAccountsMiddleware from '~/api/local';

 export default class Api extends EventEmitter {
  constructor (provider, allowSubscriptions = true) {
@ -51,7 +52,7 @@ export default class Api extends EventEmitter {
    }

    // Doing a request here in test env would cause an error
-    if (process.env.NODE_ENV !== 'test') {
+    if (LocalAccountsMiddleware && process.env.NODE_ENV !== 'test') {
      const middleware = this.parity
        .nodeKind()
        .then((nodeKind) => {
--- a/js/src/api/local/index.js
+++ b/js/src/api/local/index.js
@ -14,8 +14,4 @@
 // You should have received a copy of the GNU General Public License
 // along with Parity.  If not, see <http://www.gnu.org/licenses/>.

-if (process.env.NODE_ENV !== 'test') {
-  process.browser = true;
-}
-
-export LocalAccountsMiddleware from './localAccountsMiddleware';
+export default null;
--- a/js/src/i18n/_default/application.js
+++ b/js/src/i18n/_default/application.js
@ -20,10 +20,10 @@ export default {
  },
  status: {
    consensus: {
-      capable: `Capable`,
-      capableUntil: `Capable until #{blockNumber}`,
-      incapableSince: `Incapable since #{blockNumber}`,
-      unknown: `Unknown capability`
+      capable: `Upgrade not required.`,
+      capableUntil: `Upgrade required before #{blockNumber}`,
+      incapableSince: `Upgrade required since #{blockNumber}`,
+      unknown: `Upgrade status is unknown.`
    },
    upgrade: `Upgrade`
  }
--- a/js/src/ui/DappIcon/dappIcon.js
+++ b/js/src/ui/DappIcon/dappIcon.js
@ -29,7 +29,7 @@ export default function DappIcon ({ app, className, small }, { api }) {
      src={
        app.type === 'local'
          ? `${dappsUrl}/${app.id}/${app.iconUrl}`
-          : `${dappsUrl}${app.image}`
+          : `${app.image}`
      }
    />
  );
--- a/js/src/ui/DappIcon/dappIcon.spec.js
+++ b/js/src/ui/DappIcon/dappIcon.spec.js
@ -64,7 +64,7 @@ describe('ui/DappIcon', () => {

  it('renders other apps with correct URL', () => {
    expect(render({ app: { id: 'test', image: '/test.img' } }).props().src).to.equal(
-      `${DAPPS_URL}/test.img`
+      `/test.img`
    );
  });
 });
--- a/js/src/ui/TxList/TxRow/txRow.js
+++ b/js/src/ui/TxList/TxRow/txRow.js
@ -47,7 +47,8 @@ class TxRow extends Component {
    className: PropTypes.string,
    cancelTransaction: PropTypes.func,
    editTransaction: PropTypes.func,
-    historic: PropTypes.bool
+    historic: PropTypes.bool,
+    killTransaction: PropTypes.func
  };

  static defaultProps = {
@ -368,8 +369,21 @@ class TxRow extends Component {
    return 'pending';
  }

+  killTx = () => {
+    const { killTransaction, tx } = this.props;
+
+    killTransaction(this, tx);
+  }
+
  cancelTx = () => {
    const { cancelTransaction, tx } = this.props;
+    const pendingStatus = this.getCondition();
+    const isPending = pendingStatus === 'pending';
+
+    if (isPending) {
+      this.killTx();
+      return;
+    }

    cancelTransaction(this, tx);
  }
--- a/js/src/ui/TxList/store.js
+++ b/js/src/ui/TxList/store.js
@ -15,6 +15,7 @@
 // along with Parity.  If not, see <http://www.gnu.org/licenses/>.

 import { action, observable } from 'mobx';
+import BigNumber from 'bignumber.js';

 export default class Store {
  @observable blocks = {};
@ -125,6 +126,30 @@ export default class Store {
      });
  }

+  killTransaction = (txComponent, tx) => {
+    const { hash, gasPrice, from } = tx;
+
+    this._api.parity
+      .removeTransaction(hash)
+      .then(() => {
+        return this._api.parity.postTransaction({
+          from: from,
+          to: from,                    // set to owner
+          gas: new BigNumber(21000),   // set default gas
+          gasPrice: gasPrice.times(1.25),   // must be a minimum of 10% growth to be recognized as a replacement by miners (incentive)
+          value: new BigNumber(0),     // zero out the value
+          condition: null,             // ensure to post this instantly
+          data: '0x'
+        });
+      })
+      .then(() => {
+        tx.Component.setState({ canceled: true });
+      })
+      .catch((err) => {
+        this._onNewError({ message: err });
+      });
+  }
+
  editTransaction = (txComponent, tx) => {
    const { hash, gas, gasPrice, to, from, value, input, condition } = tx;

--- a/js/src/ui/TxList/txList.js
+++ b/js/src/ui/TxList/txList.js
@ -60,7 +60,7 @@ class TxList extends Component {

  renderRows () {
    const { address, netVersion, blockNumber } = this.props;
-    const { editTransaction, cancelTransaction } = this.store;
+    const { editTransaction, cancelTransaction, killTransaction } = this.store;

    return this.store.sortedHashes.map((txhash) => {
      const tx = this.store.transactions[txhash];
@ -77,6 +77,7 @@ class TxList extends Component {
          netVersion={ netVersion }
          editTransaction={ editTransaction }
          cancelTransaction={ cancelTransaction }
+          killTransaction={ killTransaction }
        />
      );
    });
--- a/js/src/views/Application/Status/status.js
+++ b/js/src/views/Application/Status/status.js
@ -0,0 +1,152 @@
+// Copyright 2015-2017 Parity Technologies (UK) Ltd.
+// This file is part of Parity.
+
+// Parity is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+
+// Parity is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+
+// You should have received a copy of the GNU General Public License
+// along with Parity.  If not, see <http://www.gnu.org/licenses/>.
+
+import React, { Component, PropTypes } from 'react';
+import { FormattedMessage } from 'react-intl';
+import { connect } from 'react-redux';
+
+import { BlockStatus } from '~/ui';
+
+import styles from './status.css';
+
+class Status extends Component {
+  static propTypes = {
+    clientVersion: PropTypes.string,
+    isTest: PropTypes.bool,
+    netChain: PropTypes.string,
+    netPeers: PropTypes.object,
+    upgradeStore: PropTypes.object.isRequired
+  }
+
+  render () {
+    const { clientVersion, isTest, netChain, netPeers } = this.props;
+
+    return (
+      <div className={ styles.status }>
+        <div className={ styles.version }>
+          { clientVersion }
+        </div>
+        <div className={ styles.upgrade }>
+          { this.renderConsensus() }
+          { this.renderUpgradeButton() }
+        </div>
+        <div className={ styles.netinfo }>
+          <BlockStatus />
+          <div className={ `${styles.network} ${styles[isTest ? 'test' : 'live']}` }>
+            { netChain }
+          </div>
+          <div className={ styles.peers }>
+            { netPeers.connected.toFormat() }/{ netPeers.max.toFormat() } peers
+          </div>
+        </div>
+      </div>
+    );
+  }
+
+  renderConsensus () {
+    const { upgradeStore } = this.props;
+
+    if (!upgradeStore || !upgradeStore.consensusCapability) {
+      return null;
+    }
+
+    if (upgradeStore.consensusCapability === 'capable') {
+      return (
+        <div>
+          <FormattedMessage
+            id='application.status.consensus.capable'
+            defaultMessage='Upgrade not required.'
+          />
+        </div>
+      );
+    }
+
+    if (upgradeStore.consensusCapability.capableUntil) {
+      return (
+        <div>
+          <FormattedMessage
+            id='application.status.consensus.capableUntil'
+            defaultMessage='Upgrade required before #{blockNumber}'
+            values={ {
+              blockNumber: upgradeStore.consensusCapability.capableUntil
+            } }
+          />
+        </div>
+      );
+    }
+
+    if (upgradeStore.consensusCapability.incapableSince) {
+      return (
+        <div>
+          <FormattedMessage
+            id='application.status.consensus.incapableSince'
+            defaultMessage='Upgrade required since #{blockNumber}'
+            values={ {
+              blockNumber: upgradeStore.consensusCapability.incapableSince
+            } }
+          />
+        </div>
+      );
+    }
+
+    return (
+      <div>
+        <FormattedMessage
+          id='application.status.consensus.unknown'
+          defaultMessage='Upgrade status is unknown.'
+        />
+      </div>
+    );
+  }
+
+  renderUpgradeButton () {
+    const { upgradeStore } = this.props;
+
+    if (!upgradeStore.available) {
+      return null;
+    }
+
+    return (
+      <div>
+        <a
+          href='javascript:void(0)'
+          onClick={ upgradeStore.openModal }
+        >
+          <FormattedMessage
+            id='application.status.upgrade'
+            defaultMessage='Upgrade'
+          />
+        </a>
+      </div>
+    );
+  }
+}
+
+function mapStateToProps (state) {
+  const { clientVersion, netPeers, netChain, isTest } = state.nodeStatus;
+
+  return {
+    clientVersion,
+    netPeers,
+    netChain,
+    isTest
+  };
+}
+
+export default connect(
+  mapStateToProps,
+  null
+)(Status);
--- a/js/webpack/app.js
+++ b/js/webpack/app.js
@ -146,11 +146,10 @@ module.exports = {

  resolve: {
    alias: {
+      '~/api/local': path.resolve(__dirname, '../src/api/local/localAccountsMiddleware.js'),
      '~': path.resolve(__dirname, '../src'),
      '@parity/wordlist': path.resolve(__dirname, '../node_modules/@parity/wordlist'),
-      '@parity': path.resolve(__dirname, '../src'),
-      'keythereum': path.resolve(__dirname, '../node_modules/keythereum/dist/keythereum'),
-      'vertx': 'empty-module'
+      '@parity': path.resolve(__dirname, '../src')
    },
    modules: [
      path.join(__dirname, '../node_modules')
--- a/js/webpack/libraries.js
+++ b/js/webpack/libraries.js
@ -45,10 +45,7 @@ module.exports = {
    alias: {
      '~': path.resolve(__dirname, '../src'),
      '@parity/wordlist': path.resolve(__dirname, '../node_modules/@parity/wordlist'),
-      '@parity': path.resolve(__dirname, '../src'),
-      'keythereum': 'empty-module',
-      'secp256k1': 'empty-module',
-      'vertx': 'empty-module'
+      '@parity': path.resolve(__dirname, '../src')
    }
  },

--- a/js/webpack/npm.js
+++ b/js/webpack/npm.js
@ -77,10 +77,7 @@ module.exports = {
    alias: {
      '~': path.resolve(__dirname, '../src'),
      '@parity/wordlist': path.resolve(__dirname, '../node_modules/@parity/wordlist'),
-      '@parity': path.resolve(__dirname, '../src'),
-      'keythereum': 'empty-module',
-      'secp256k1': 'empty-module',
-      'vertx': 'empty-module'
+      '@parity': path.resolve(__dirname, '../src')
    },
    modules: [
      path.resolve('./src'),
--- a/json/src/spec/authority_round.rs
+++ b/json/src/spec/authority_round.rs
@ -49,6 +49,9 @@ pub struct AuthorityRoundParams {
 	/// Block from which monotonic steps start.
 	#[serde(rename="validateStepTransition")]
 	pub validate_step_transition: Option<Uint>,
+	/// Whether transitions should be immediate.
+	#[serde(rename="immediateTransitions")]
+	pub immediate_transitions: Option<bool>,
 }

 /// Authority engine deserialization.
@ -92,5 +95,6 @@ mod tests {
 		assert!(deserialized.params.registrar.is_none());
 		assert_eq!(deserialized.params.start_step, Some(Uint(U256::from(24))));
 		assert_eq!(deserialized.params.eip155_transition, Some(Uint(U256::from(0x42))));
+		assert_eq!(deserialized.params.immediate_transitions, None);
 	}
 }
--- a/json/src/spec/params.rs
+++ b/json/src/spec/params.rs
@ -81,6 +81,14 @@ pub struct Params {
 	/// See `CommonParams` docs.
 	#[serde(rename="eip214Transition")]
 	pub eip214_transition: Option<Uint>,
+	/// See `CommonParams` docs.
+	#[serde(rename="dustProtectionTransition")]
+	pub dust_protection_transition: Option<Uint>,
+	/// See `CommonParams` docs.
+	#[serde(rename="nonceCapIncrement")]
+	pub nonce_cap_increment: Option<Uint>,
+	/// See `CommonParams` docs.
+	pub remove_dust_contracts : Option<bool>,
 }

 #[cfg(test)]
--- a/parity/blockchain.rs
+++ b/parity/blockchain.rs
@ -315,7 +315,8 @@ fn start_client(
 	fat_db: Switch,
 	compaction: DatabaseCompactionProfile,
 	wal: bool,
-	cache_config: CacheConfig
+	cache_config: CacheConfig,
+	require_fat_db: bool,
 ) -> Result<ClientService, String> {

 	// load spec file
@ -343,6 +344,9 @@ fn start_client(

 	// check if fatdb is on
 	let fat_db = fatdb_switch_to_bool(fat_db, &user_defaults, algorithm)?;
+	if !fat_db && require_fat_db {
+		return Err("This command requires Parity to be synced with --fat-db on.".to_owned());
+	}

 	// prepare client and snapshot paths.
 	let client_path = db_dirs.client_path(algorithm);
@ -395,7 +399,8 @@ fn execute_export(cmd: ExportBlockchain) -> Result<(), String> {
 		cmd.fat_db,
 		cmd.compaction,
 		cmd.wal,
-		cmd.cache_config
+		cmd.cache_config,
+		false,
 	)?;
 	let format = cmd.format.unwrap_or_default();

@ -435,7 +440,8 @@ fn execute_export_state(cmd: ExportState) -> Result<(), String> {
 		cmd.fat_db,
 		cmd.compaction,
 		cmd.wal,
-		cmd.cache_config
+		cmd.cache_config,
+		true
 	)?;

 	let client = service.client();
--- a/parity/dapps.rs
+++ b/parity/dapps.rs
@ -107,7 +107,7 @@ impl ContractClient for LightRegistrar {
 			self.on_demand
 				.request(ctx, on_demand::request::TransactionProof {
 					tx: Transaction {
-						nonce: self.client.engine().account_start_nonce(),
+						nonce: self.client.engine().account_start_nonce(header.number()),
 						action: Action::Call(address),
 						gas: 50_000_000.into(),
 						gas_price: 0.into(),
--- a/parity/informant.rs
+++ b/parity/informant.rs
@ -158,7 +158,7 @@ impl Informant {
 				false => String::new(),
 			},
 			match (&sync_status, &network_config) {
-				(&Some(ref sync_info), &Some(ref net_config)) => format!("{}{}/{}/{} peers",
+				(&Some(ref sync_info), &Some(ref net_config)) => format!("{}{}/{} peers",
 					match importing {
 						true => format!("{}   ", paint(Green.bold(), format!("{:>8}", format!("#{}", sync_info.last_imported_block_number.unwrap_or(chain_info.best_block_number))))),
 						false => match sync_info.last_imported_old_block_number {
@ -166,7 +166,6 @@ impl Informant {
 							None => String::new(),
 						}
 					},
-					paint(Cyan.bold(), format!("{:2}", sync_info.num_active_peers)),
 					paint(Cyan.bold(), format!("{:2}", sync_info.num_peers)),
 					paint(Cyan.bold(), format!("{:2}", sync_info.current_max_peers(net_config.min_peers, net_config.max_peers))),
 				),
--- a/parity/light_helpers/queue_cull.rs
+++ b/parity/light_helpers/queue_cull.rs
@ -67,7 +67,7 @@ impl IoHandler<ClientIoMessage> for QueueCull {

 		let (sync, on_demand, txq) = (self.sync.clone(), self.on_demand.clone(), self.txq.clone());
 		let best_header = self.client.best_block_header();
-		let start_nonce = self.client.engine().account_start_nonce();
+		let start_nonce = self.client.engine().account_start_nonce(best_header.number());

 		info!(target: "cull", "Attempting to cull queued transactions from {} senders.", senders.len());
 		self.remote.spawn_with_timeout(move || {
--- a/parity/rpc_apis.rs
+++ b/parity/rpc_apis.rs
@ -443,7 +443,13 @@ impl LightDependencies {
 					}
 				},
 				Api::EthPubSub => {
-					let client = EthPubSubClient::new(self.client.clone(), self.remote.clone());
+					let client = EthPubSubClient::light(
+						self.client.clone(),
+						self.on_demand.clone(),
+						self.sync.clone(),
+						self.cache.clone(),
+						self.remote.clone(),
+					);
 					self.client.add_listener(
 						Arc::downgrade(&client.handler()) as Weak<::light::client::LightChainNotify>
 					);
--- a/parity/run.rs
+++ b/parity/run.rs
@ -227,7 +227,8 @@ fn execute_light(cmd: RunCmd, can_restart: bool, logger: Arc<RotatingLogger>) ->
 	}

 	// start on_demand service.
-	let on_demand = Arc::new(::light::on_demand::OnDemand::new(cache.clone()));
+	let account_start_nonce = service.client().engine().account_start_nonce(0);
+	let on_demand = Arc::new(::light::on_demand::OnDemand::new(cache.clone(), account_start_nonce));

 	// set network path.
 	net_conf.net_config_path = Some(db_dirs.network_path().to_string_lossy().into_owned());
--- a/rpc/src/lib.rs
+++ b/rpc/src/lib.rs
@ -59,7 +59,7 @@ extern crate stats;

 #[macro_use]
 extern crate log;
-#[macro_use]
+#[cfg_attr(test, macro_use)]
 extern crate ethcore_util as util;
 #[macro_use]
 extern crate jsonrpc_macros;
--- a/rpc/src/v1/extractors.rs
+++ b/rpc/src/v1/extractors.rs
@ -140,6 +140,9 @@ fn add_security_headers(res: &mut ws::ws::Response) {
 	headers.push(("X-Frame-Options".into(), b"SAMEORIGIN".to_vec()));
 	headers.push(("X-XSS-Protection".into(), b"1; mode=block".to_vec()));
 	headers.push(("X-Content-Type-Options".into(), b"nosniff".to_vec()));
+	headers.push(("Content-Security-Policy".into(),
+		b"default-src 'self';form-action 'none';block-all-mixed-content;sandbox allow-scripts;".to_vec()
+	));
 }

 fn auth_token_hash(codes_path: &Path, protocol: &str, save_file: bool) -> Option<H256> {
--- a/rpc/src/v1/helpers/dispatch.rs
+++ b/rpc/src/v1/helpers/dispatch.rs
@ -284,7 +284,7 @@ impl LightDispatcher {
 		}

 		let best_header = self.client.best_block_header();
-		let account_start_nonce = self.client.engine().account_start_nonce();
+		let account_start_nonce = self.client.engine().account_start_nonce(best_header.number());
 		let nonce_future = self.sync.with_context(|ctx| self.on_demand.request(ctx, request::Account {
 			header: best_header.into(),
 			address: addr,
--- a/rpc/src/v1/helpers/light_fetch.rs
+++ b/rpc/src/v1/helpers/light_fetch.rs
@ -22,6 +22,7 @@ use ethcore::basic_account::BasicAccount;
 use ethcore::encoded;
 use ethcore::executed::{Executed, ExecutionError};
 use ethcore::ids::BlockId;
+use ethcore::filter::Filter as EthcoreFilter;
 use ethcore::transaction::{Action, Transaction as EthTransaction};

 use futures::{future, Future, BoxFuture};
@ -38,7 +39,7 @@ use ethsync::LightSync;
 use util::{Address, Mutex, U256};

 use v1::helpers::{CallRequest as CallRequestHelper, errors, dispatch};
-use v1::types::{BlockNumber, CallRequest};
+use v1::types::{BlockNumber, CallRequest, Log};

 /// Helper for fetching blockchain data either from the light client or the network
 /// as necessary.
@ -259,4 +260,63 @@ impl LightFetch {
 			None => future::err(errors::network_disabled()).boxed()
 		}
 	}
+
+	/// get transaction logs
+	pub fn logs(&self, filter: EthcoreFilter) -> BoxFuture<Vec<Log>, Error> {
+		use std::collections::BTreeMap;
+
+		use futures::stream::{self, Stream};
+
+		const NO_INVALID_BACK_REFS: &'static str = "Fails only on invalid back-references; back-references here known to be valid; qed";
+
+		// early exit for "to" block before "from" block.
+		let best_number = self.client.chain_info().best_block_number;
+		let block_number = |id| match id {
+			BlockId::Earliest => Some(0),
+			BlockId::Latest | BlockId::Pending => Some(best_number),
+			BlockId::Hash(h) => self.client.block_header(BlockId::Hash(h)).map(|hdr| hdr.number()),
+			BlockId::Number(x) => Some(x),
+		};
+
+		match (block_number(filter.to_block), block_number(filter.from_block)) {
+			(Some(to), Some(from)) if to < from => return future::ok(Vec::new()).boxed(),
+			(Some(_), Some(_)) => {},
+			_ => return future::err(errors::unknown_block()).boxed(),
+		}
+
+		let maybe_future = self.sync.with_context(move |ctx| {
+			// find all headers which match the filter, and fetch the receipts for each one.
+			// match them with their numbers for easy sorting later.
+			let bit_combos = filter.bloom_possibilities();
+			let receipts_futures: Vec<_> = self.client.ancestry_iter(filter.to_block)
+				.take_while(|ref hdr| BlockId::Number(hdr.number()) != filter.from_block)
+				.take_while(|ref hdr| BlockId::Hash(hdr.hash()) != filter.from_block)
+				.filter(|ref hdr| {
+					let hdr_bloom = hdr.log_bloom();
+					bit_combos.iter().find(|&bloom| hdr_bloom & *bloom == *bloom).is_some()
+				})
+				.map(|hdr| (hdr.number(), request::BlockReceipts(hdr.into())))
+				.map(|(num, req)| self.on_demand.request(ctx, req).expect(NO_INVALID_BACK_REFS).map(move |x| (num, x)))
+				.collect();
+
+			// as the receipts come in, find logs within them which match the filter.
+			// insert them into a BTreeMap to maintain order by number and block index.
+			stream::futures_unordered(receipts_futures)
+				.fold(BTreeMap::new(), move |mut matches, (num, receipts)| {
+					for (block_index, log) in receipts.into_iter().flat_map(|r| r.logs).enumerate() {
+						if filter.matches(&log) {
+							matches.insert((num, block_index), log.into());
+						}
+					}
+					future::ok(matches)
+				}) // and then collect them into a vector.
+				.map(|matches| matches.into_iter().map(|(_, v)| v).collect())
+				.map_err(errors::on_demand_cancel)
+		});
+
+		match maybe_future {
+			Some(fut) => fut.boxed(),
+			None => future::err(errors::network_disabled()).boxed(),
+		}
+	}
 }
--- a/rpc/src/v1/helpers/subscribers.rs
+++ b/rpc/src/v1/helpers/subscribers.rs
@ -95,7 +95,7 @@ impl<T> Subscribers<T> {
 	}
 }

-impl <T> Subscribers<Sink<T>> {
+impl<T> Subscribers<Sink<T>> {
 	/// Assigns id and adds a subscriber to the list.
 	pub fn push(&mut self, sub: Subscriber<T>) {
 		let id = self.next_id();
@ -106,6 +106,17 @@ impl <T> Subscribers<Sink<T>> {
 	}
 }

+impl<T, V> Subscribers<(Sink<T>, V)> {
+	/// Assigns id and adds a subscriber to the list.
+	pub fn push(&mut self, sub: Subscriber<T>, val: V) {
+		let id = self.next_id();
+		if let Ok(sink) = sub.assign_id(SubscriptionId::String(id.as_string())) {
+			debug!(target: "pubsub", "Adding subscription id={:?}", id);
+			self.subscriptions.insert(id, (sink, val));
+		}
+	}
+}
+
 impl<T> ops::Deref for Subscribers<T> {
 	type Target = HashMap<Id, T>;

--- a/rpc/src/v1/impls/eth_pubsub.rs
+++ b/rpc/src/v1/impls/eth_pubsub.rs
@ -19,40 +19,51 @@
 use std::sync::Arc;
 use std::collections::BTreeMap;

-use futures::{self, BoxFuture, Future};
+use futures::{self, future, BoxFuture, Future};
 use jsonrpc_core::Error;
 use jsonrpc_macros::Trailing;
 use jsonrpc_macros::pubsub::{Sink, Subscriber};
 use jsonrpc_pubsub::SubscriptionId;

-use v1::helpers::{errors, Subscribers};
+use v1::helpers::{errors, limit_logs, Subscribers};
+use v1::helpers::light_fetch::LightFetch;
 use v1::metadata::Metadata;
 use v1::traits::EthPubSub;
-use v1::types::{pubsub, RichHeader};
+use v1::types::{pubsub, RichHeader, Log};

 use ethcore::encoded;
+use ethcore::filter::Filter as EthFilter;
 use ethcore::client::{BlockChainClient, ChainNotify, BlockId};
+use ethsync::LightSync;
+use light::cache::Cache;
+use light::on_demand::OnDemand;
 use light::client::{LightChainClient, LightChainNotify};
 use parity_reactor::Remote;
-use util::{Mutex, H256, Bytes};
+use util::{RwLock, Mutex, H256, Bytes};
+
+type Client = Sink<pubsub::Result>;

 /// Eth PubSub implementation.
 pub struct EthPubSubClient<C> {
 	handler: Arc<ChainNotificationHandler<C>>,
-	heads_subscribers: Arc<Mutex<Subscribers<Sink<pubsub::Result>>>>,
+	heads_subscribers: Arc<RwLock<Subscribers<Client>>>,
+	logs_subscribers: Arc<RwLock<Subscribers<(Client, EthFilter)>>>,
 }

 impl<C> EthPubSubClient<C> {
 	/// Creates new `EthPubSubClient`.
 	pub fn new(client: Arc<C>, remote: Remote) -> Self {
-		let heads_subscribers = Arc::new(Mutex::new(Subscribers::default()));
+		let heads_subscribers = Arc::new(RwLock::new(Subscribers::default()));
+		let logs_subscribers = Arc::new(RwLock::new(Subscribers::default()));
 		EthPubSubClient {
 			handler: Arc::new(ChainNotificationHandler {
 				client,
 				remote,
 				heads_subscribers: heads_subscribers.clone(),
+				logs_subscribers: logs_subscribers.clone(),
 			}),
 			heads_subscribers,
+			logs_subscribers,
 		}
 	}

@ -60,7 +71,8 @@ impl<C> EthPubSubClient<C> {
 	#[cfg(test)]
 	pub fn new_test(client: Arc<C>, remote: Remote) -> Self {
 		let client = Self::new(client, remote);
-		*client.heads_subscribers.lock() = Subscribers::new_test();
+		*client.heads_subscribers.write() = Subscribers::new_test();
+		*client.logs_subscribers.write() = Subscribers::new_test();
 		client
 	}

@ -70,42 +82,116 @@ impl<C> EthPubSubClient<C> {
 	}
 }

+impl EthPubSubClient<LightFetch> {
+	/// Creates a new `EthPubSubClient` for `LightClient`.
+	pub fn light(
+		client: Arc<LightChainClient>,
+		on_demand: Arc<OnDemand>,
+		sync: Arc<LightSync>,
+		cache: Arc<Mutex<Cache>>,
+		remote: Remote,
+	) -> Self {
+		let fetch = LightFetch {
+			client,
+			on_demand,
+			sync,
+			cache
+		};
+		EthPubSubClient::new(Arc::new(fetch), remote)
+	}
+}
+
 /// PubSub Notification handler.
 pub struct ChainNotificationHandler<C> {
 	client: Arc<C>,
 	remote: Remote,
-	heads_subscribers: Arc<Mutex<Subscribers<Sink<pubsub::Result>>>>,
+	heads_subscribers: Arc<RwLock<Subscribers<Client>>>,
+	logs_subscribers: Arc<RwLock<Subscribers<(Client, EthFilter)>>>,
 }

 impl<C> ChainNotificationHandler<C> {
-	fn notify(&self, blocks: Vec<(encoded::Header, BTreeMap<String, String>)>) {
-		for subscriber in self.heads_subscribers.lock().values() {
-			for &(ref block, ref extra_info) in &blocks {
-				self.remote.spawn(subscriber
-					.notify(Ok(pubsub::Result::Header(RichHeader {
-						inner: block.into(),
-						extra_info: extra_info.clone(),
-					})))
-					.map(|_| ())
-					.map_err(|e| warn!(target: "rpc", "Unable to send notification: {}", e))
-				);
+	fn notify(remote: &Remote, subscriber: &Client, result: pubsub::Result) {
+		remote.spawn(subscriber
+			.notify(Ok(result))
+			.map(|_| ())
+			.map_err(|e| warn!(target: "rpc", "Unable to send notification: {}", e))
+		);
+	}
+
+	fn notify_heads(&self, headers: &[(encoded::Header, BTreeMap<String, String>)]) {
+		for subscriber in self.heads_subscribers.read().values() {
+			for &(ref header, ref extra_info) in headers {
+				Self::notify(&self.remote, subscriber, pubsub::Result::Header(RichHeader {
+					inner: header.into(),
+					extra_info: extra_info.clone(),
+				}));
 			}
 		}
 	}
+
+	fn notify_logs<F>(&self, enacted: &[H256], logs: F) where
+		F: Fn(EthFilter) -> BoxFuture<Vec<Log>, Error>,
+	{
+		for &(ref subscriber, ref filter) in self.logs_subscribers.read().values() {
+			let logs = futures::future::join_all(enacted
+				.iter()
+				.map(|hash| {
+					let mut filter = filter.clone();
+					filter.from_block = BlockId::Hash(*hash);
+					filter.to_block = filter.from_block.clone();
+					logs(filter)
+				})
+				.collect::<Vec<_>>()
+			);
+			let limit = filter.limit;
+			let remote = self.remote.clone();
+			let subscriber = subscriber.clone();
+			self.remote.spawn(logs
+				.map(move |logs| {
+					let logs = logs.into_iter().flat_map(|log| log).collect();
+					let logs = limit_logs(logs, limit);
+					if !logs.is_empty() {
+						Self::notify(&remote, &subscriber, pubsub::Result::Logs(logs));
+					}
+				})
+				.map_err(|e| warn!("Unable to fetch latest logs: {:?}", e))
+			);
+		}
+	}
 }

-impl<C: LightChainClient> LightChainNotify for ChainNotificationHandler<C> {
+/// A light client wrapper struct.
+pub trait LightClient: Send + Sync {
+	/// Get a recent block header.
+	fn block_header(&self, id: BlockId) -> Option<encoded::Header>;
+
+	/// Fetch logs.
+	fn logs(&self, filter: EthFilter) -> BoxFuture<Vec<Log>, Error>;
+}
+
+impl LightClient for LightFetch {
+	fn block_header(&self, id: BlockId) -> Option<encoded::Header> {
+		self.client.block_header(id)
+	}
+
+	fn logs(&self, filter: EthFilter) -> BoxFuture<Vec<Log>, Error> {
+		LightFetch::logs(self, filter)
+	}
+}
+
+impl<C: LightClient> LightChainNotify for ChainNotificationHandler<C> {
 	fn new_headers(
 		&self,
-		headers: &[H256],
+		enacted: &[H256],
 	) {
-		let blocks = headers
+		let headers = enacted
 			.iter()
 			.filter_map(|hash| self.client.block_header(BlockId::Hash(*hash)))
 			.map(|header| (header, Default::default()))
-			.collect();
+			.collect::<Vec<_>>();

-		self.notify(blocks);
+		self.notify_heads(&headers);
+		self.notify_logs(&enacted, |filter| self.client.logs(filter))
 	}
 }

@ -115,22 +201,37 @@ impl<C: BlockChainClient> ChainNotify for ChainNotificationHandler<C> {
 		_imported: Vec<H256>,
 		_invalid: Vec<H256>,
 		enacted: Vec<H256>,
-		_retracted: Vec<H256>,
+		retracted: Vec<H256>,
 		_sealed: Vec<H256>,
 		// Block bytes.
 		_proposed: Vec<Bytes>,
 		_duration: u64,
 	) {
 		const EXTRA_INFO_PROOF: &'static str = "Object exists in in blockchain (fetched earlier), extra_info is always available if object exists; qed";
-		let blocks = enacted
-			.into_iter()
-			.filter_map(|hash| self.client.block_header(BlockId::Hash(hash)))
+		let headers = enacted
+			.iter()
+			.filter_map(|hash| self.client.block_header(BlockId::Hash(*hash)))
 			.map(|header| {
 				let hash = header.hash();
 				(header, self.client.block_extra_info(BlockId::Hash(hash)).expect(EXTRA_INFO_PROOF))
 			})
-			.collect();
-		self.notify(blocks);
+			.collect::<Vec<_>>();
+
+		// Headers
+		self.notify_heads(&headers);
+
+		// Enacted logs
+		self.notify_logs(&enacted, |filter| {
+			future::ok(self.client.logs(filter).into_iter().map(Into::into).collect()).boxed()
+		});
+
+		// Retracted logs
+		self.notify_logs(&retracted, |filter| {
+			future::ok(self.client.logs(filter).into_iter().map(Into::into).map(|mut log: Log| {
+				log.log_type = "removed".into();
+				log
+			}).collect()).boxed()
+		});
 	}
 }

@ -144,10 +245,12 @@ impl<C: Send + Sync + 'static> EthPubSub for EthPubSubClient<C> {
 		kind: pubsub::Kind,
 		params: Trailing<pubsub::Params>,
 	) {
-		let params: Option<pubsub::Params> = params.into();
-		match (kind, params) {
+		match (kind, params.into()) {
 			(pubsub::Kind::NewHeads, None) => {
-				self.heads_subscribers.lock().push(subscriber)
+				self.heads_subscribers.write().push(subscriber)
+			},
+			(pubsub::Kind::Logs, Some(pubsub::Params::Logs(filter))) => {
+				self.logs_subscribers.write().push(subscriber, filter.into());
 			},
 			_ => {
 				let _ = subscriber.reject(errors::unimplemented(None));
@ -156,7 +259,9 @@ impl<C: Send + Sync + 'static> EthPubSub for EthPubSubClient<C> {
 	}

 	fn unsubscribe(&self, id: SubscriptionId) -> BoxFuture<bool, Error> {
-		let res = self.heads_subscribers.lock().remove(&id).is_some();
-		futures::future::ok(res).boxed()
+		let res = self.heads_subscribers.write().remove(&id).is_some();
+		let res2 = self.logs_subscribers.write().remove(&id).is_some();
+
+		future::ok(res || res2).boxed()
 	}
 }
--- a/rpc/src/v1/impls/light/eth.rs
+++ b/rpc/src/v1/impls/light/eth.rs
@ -477,60 +477,7 @@ impl Filterable for EthClient {
 	}

 	fn logs(&self, filter: EthcoreFilter) -> BoxFuture<Vec<Log>, Error> {
-		use std::collections::BTreeMap;
-
-		use futures::stream::{self, Stream};
-		use util::H2048;
-
-		// early exit for "to" block before "from" block.
-		let best_number = self.client.chain_info().best_block_number;
-		let block_number = |id| match id {
-			BlockId::Earliest => Some(0),
-			BlockId::Latest | BlockId::Pending => Some(best_number),
-			BlockId::Hash(h) => self.client.block_header(BlockId::Hash(h)).map(|hdr| hdr.number()),
-			BlockId::Number(x) => Some(x),
-		};
-
-		match (block_number(filter.to_block), block_number(filter.from_block)) {
-			(Some(to), Some(from)) if to < from => return future::ok(Vec::new()).boxed(),
-			(Some(_), Some(_)) => {},
-			_ => return future::err(errors::unknown_block()).boxed(),
-		}
-
-		let maybe_future = self.sync.with_context(move |ctx| {
-			// find all headers which match the filter, and fetch the receipts for each one.
-			// match them with their numbers for easy sorting later.
-			let bit_combos = filter.bloom_possibilities();
-			let receipts_futures: Vec<_> = self.client.ancestry_iter(filter.to_block)
-				.take_while(|ref hdr| BlockId::Number(hdr.number()) != filter.from_block)
-				.take_while(|ref hdr| BlockId::Hash(hdr.hash()) != filter.from_block)
-				.filter(|ref hdr| {
-					let hdr_bloom = hdr.log_bloom();
-					bit_combos.iter().find(|&bloom| hdr_bloom & *bloom == *bloom).is_some()
-				})
-				.map(|hdr| (hdr.number(), request::BlockReceipts(hdr.into())))
-				.map(|(num, req)| self.on_demand.request(ctx, req).expect(NO_INVALID_BACK_REFS).map(move |x| (num, x)))
-				.collect();
-
-			// as the receipts come in, find logs within them which match the filter.
-			// insert them into a BTreeMap to maintain order by number and block index.
-			stream::futures_unordered(receipts_futures)
-				.fold(BTreeMap::new(), move |mut matches, (num, receipts)| {
-					for (block_index, log) in receipts.into_iter().flat_map(|r| r.logs).enumerate() {
-						if filter.matches(&log) {
-							matches.insert((num, block_index), log.into());
-						}
-					}
-					future::ok(matches)
-				}) // and then collect them into a vector.
-				.map(|matches| matches.into_iter().map(|(_, v)| v).collect())
-				.map_err(errors::on_demand_cancel)
-		});
-
-		match maybe_future {
-			Some(fut) => fut.boxed(),
-			None => future::err(errors::network_disabled()).boxed(),
-		}
+		self.fetcher().logs(filter)
 	}

 	fn pending_logs(&self, _block_number: u64, _filter: &EthcoreFilter) -> Vec<Log> {
--- a/rpc/src/v1/impls/parity_accounts.rs
+++ b/rpc/src/v1/impls/parity_accounts.rs
@ -16,7 +16,7 @@

 //! Account management (personal) rpc implementation
 use std::sync::Arc;
-use std::collections::BTreeMap;
+use std::collections::btree_map::{BTreeMap, Entry};
 use util::Address;

 use ethkey::{Brain, Generator, Secret};
@ -27,7 +27,7 @@ use jsonrpc_core::Error;
 use v1::helpers::errors;
 use v1::helpers::accounts::unwrap_provider;
 use v1::traits::ParityAccounts;
-use v1::types::{H160 as RpcH160, H256 as RpcH256, H520 as RpcH520, DappId, Derive, DeriveHierarchical, DeriveHash};
+use v1::types::{H160 as RpcH160, H256 as RpcH256, H520 as RpcH520, DappId, Derive, DeriveHierarchical, DeriveHash, ExtAccountInfo};

 /// Account management (personal) rpc implementation.
 pub struct ParityAccountsClient {
@ -50,26 +50,36 @@ impl ParityAccountsClient {
 }

 impl ParityAccounts for ParityAccountsClient {
-	fn all_accounts_info(&self) -> Result<BTreeMap<RpcH160, BTreeMap<String, String>>, Error> {
+	fn all_accounts_info(&self) -> Result<BTreeMap<RpcH160, ExtAccountInfo>, Error> {
 		let store = self.account_provider()?;
 		let info = store.accounts_info().map_err(|e| errors::account("Could not fetch account info.", e))?;
 		let other = store.addresses_info();

-		Ok(info
-		   .into_iter()
-		   .chain(other.into_iter())
-		   .map(|(address, v)| {
-			   let mut m = map![
-				   "name".to_owned() => v.name,
-				   "meta".to_owned() => v.meta
-			   ];
-			   if let &Some(ref uuid) = &v.uuid {
-				   m.insert("uuid".to_owned(), format!("{}", uuid));
-			   }
-			   (address.into(), m)
-		   })
-		   .collect()
-		)
+		let account_iter = info
+			.into_iter()
+			.chain(other.into_iter())
+			.map(|(address, v)| (address.into(), ExtAccountInfo {
+				name: v.name,
+				meta: v.meta,
+				uuid: v.uuid.map(|uuid| uuid.to_string())
+			}));
+
+		let mut accounts: BTreeMap<RpcH160, ExtAccountInfo> = BTreeMap::new();
+
+		for (address, account) in account_iter {
+			match accounts.entry(address) {
+				/// Insert only if occupied entry isn't already an account with UUID
+				Entry::Occupied(ref mut occupied) if occupied.get().uuid.is_none() => {
+					occupied.insert(account);
+				},
+				Entry::Vacant(vacant) => {
+					vacant.insert(account);
+				},
+				_ => {}
+			};
+		}
+
+		Ok(accounts)
 	}

 	fn new_account_from_phrase(&self, phrase: String, pass: String) -> Result<RpcH160, Error> {
--- a/rpc/src/v1/tests/mocked/eth_pubsub.rs
+++ b/rpc/src/v1/tests/mocked/eth_pubsub.rs
@ -78,6 +78,78 @@ fn should_subscribe_to_new_heads() {
 	assert_eq!(res, None);
 }

+#[test]
+fn should_subscribe_to_logs() {
+	use ethcore::log_entry::{LocalizedLogEntry, LogEntry};
+	use ethcore::ids::BlockId;
+	use ethcore::client::BlockChainClient;
+
+	// given
+	let el = EventLoop::spawn();
+	let mut client = TestBlockChainClient::new();
+	// Insert some blocks
+	client.add_blocks(1, EachBlockWith::Transaction);
+	let h1 = client.block_hash_delta_minus(1);
+	let block = client.block(BlockId::Hash(h1)).unwrap();
+	let tx_hash = block.transactions()[0].hash();
+	client.set_logs(vec![
+		LocalizedLogEntry {
+			entry: LogEntry {
+				address: 5.into(),
+				topics: vec![1.into(), 2.into(), 0.into(), 0.into()],
+				data: vec![],
+			},
+			block_hash: h1,
+			block_number: block.header().number(),
+			transaction_hash: tx_hash,
+			transaction_index: 0,
+			log_index: 0,
+			transaction_log_index: 0,
+		}
+	]);
+
+	let pubsub = EthPubSubClient::new_test(Arc::new(client), el.remote());
+	let handler = pubsub.handler();
+	let pubsub = pubsub.to_delegate();
+
+	let mut io = MetaIoHandler::default();
+	io.extend_with(pubsub);
+
+	let mut metadata = Metadata::default();
+	let (sender, receiver) = futures::sync::mpsc::channel(8);
+	metadata.session = Some(Arc::new(Session::new(sender)));
+
+	// Subscribe
+	let request = r#"{"jsonrpc": "2.0", "method": "eth_subscribe", "params": ["logs", {}], "id": 1}"#;
+	let response = r#"{"jsonrpc":"2.0","result":"0x416d77337e24399d","id":1}"#;
+	assert_eq!(io.handle_request_sync(request, metadata.clone()), Some(response.to_owned()));
+
+	// Check notifications (enacted)
+	handler.new_blocks(vec![], vec![], vec![h1], vec![], vec![], vec![], 0);
+	let (res, receiver) = receiver.into_future().wait().unwrap();
+	let response = r#"{"jsonrpc":"2.0","method":"eth_subscription","params":{"result":[{"address":"0x0000000000000000000000000000000000000005","blockHash":"0x3457d2fa2e3dd33c78ac681cf542e429becf718859053448748383af67e23218","blockNumber":"0x1","data":"0x","logIndex":"0x0","topics":["0x0000000000000000000000000000000000000000000000000000000000000001","0x0000000000000000000000000000000000000000000000000000000000000002","0x0000000000000000000000000000000000000000000000000000000000000000","0x0000000000000000000000000000000000000000000000000000000000000000"],"transactionHash":""#.to_owned()
+		+ &format!("0x{:?}", tx_hash)
+		+ r#"","transactionIndex":"0x0","transactionLogIndex":"0x0","type":"mined"}],"subscription":"0x416d77337e24399d"}}"#;
+	assert_eq!(res, Some(response.into()));
+
+	// Check notifications (retracted)
+	handler.new_blocks(vec![], vec![], vec![], vec![h1], vec![], vec![], 0);
+	let (res, receiver) = receiver.into_future().wait().unwrap();
+	let response = r#"{"jsonrpc":"2.0","method":"eth_subscription","params":{"result":[{"address":"0x0000000000000000000000000000000000000005","blockHash":"0x3457d2fa2e3dd33c78ac681cf542e429becf718859053448748383af67e23218","blockNumber":"0x1","data":"0x","logIndex":"0x0","topics":["0x0000000000000000000000000000000000000000000000000000000000000001","0x0000000000000000000000000000000000000000000000000000000000000002","0x0000000000000000000000000000000000000000000000000000000000000000","0x0000000000000000000000000000000000000000000000000000000000000000"],"transactionHash":""#.to_owned()
+		+ &format!("0x{:?}", tx_hash)
+		+ r#"","transactionIndex":"0x0","transactionLogIndex":"0x0","type":"removed"}],"subscription":"0x416d77337e24399d"}}"#;
+	assert_eq!(res, Some(response.into()));
+
+
+	// And unsubscribe
+	let request = r#"{"jsonrpc": "2.0", "method": "eth_unsubscribe", "params": ["0x416d77337e24399d"], "id": 1}"#;
+	let response = r#"{"jsonrpc":"2.0","result":true,"id":1}"#;
+	assert_eq!(io.handle_request_sync(request, metadata), Some(response.to_owned()));
+
+	let (res, _receiver) = receiver.into_future().wait().unwrap();
+	assert_eq!(res, None);
+}
+
 #[test]
 fn should_return_unimplemented() {
 	// given
@ -97,8 +169,6 @@ fn should_return_unimplemented() {
 	let response = r#"{"jsonrpc":"2.0","error":{"code":-32000,"message":"This request is not implemented yet. Please create an issue on Github repo."},"id":1}"#;
 	let request = r#"{"jsonrpc": "2.0", "method": "eth_subscribe", "params": ["newPendingTransactions"], "id": 1}"#;
 	assert_eq!(io.handle_request_sync(request, metadata.clone()), Some(response.to_owned()));
-	let request = r#"{"jsonrpc": "2.0", "method": "eth_subscribe", "params": ["logs"], "id": 1}"#;
-	assert_eq!(io.handle_request_sync(request, metadata.clone()), Some(response.to_owned()));
 	let request = r#"{"jsonrpc": "2.0", "method": "eth_subscribe", "params": ["syncing"], "id": 1}"#;
 	assert_eq!(io.handle_request_sync(request, metadata.clone()), Some(response.to_owned()));
 }
--- a/rpc/src/v1/tests/mocked/signer.rs
+++ b/rpc/src/v1/tests/mocked/signer.rs
@ -563,7 +563,7 @@ fn should_generate_new_web_proxy_token() {
 	let request = r#"{
 		"jsonrpc":"2.0",
 		"method":"signer_generateWebProxyAccessToken",
-		"params":[],
+		"params":["https://parity.io"],
 		"id":1
 	}"#;
 	let response = tester.io.handle_request_sync(&request).unwrap();
@ -571,7 +571,7 @@ fn should_generate_new_web_proxy_token() {

 	if let Response::Single(Output::Success(ref success)) = result {
 		if let Value::String(ref token) = success.result {
-			assert!(tester.signer.is_valid_web_proxy_access_token(&token), "It should return valid web proxy token.");
+			assert_eq!(tester.signer.web_proxy_access_token_domain(&token), Some("https://parity.io".into()));
 			return;
 		}
 	}
--- a/rpc/src/v1/traits/parity_accounts.rs
+++ b/rpc/src/v1/traits/parity_accounts.rs
@ -19,14 +19,14 @@ use std::collections::BTreeMap;

 use jsonrpc_core::Error;
 use ethstore::KeyFile;
-use v1::types::{H160, H256, H520, DappId, DeriveHash, DeriveHierarchical};
+use v1::types::{H160, H256, H520, DappId, DeriveHash, DeriveHierarchical, ExtAccountInfo};

 build_rpc_trait! {
 	/// Personal Parity rpc interface.
 	pub trait ParityAccounts {
 		/// Returns accounts information.
 		#[rpc(name = "parity_allAccountsInfo")]
-		fn all_accounts_info(&self) -> Result<BTreeMap<H160, BTreeMap<String, String>>, Error>;
+		fn all_accounts_info(&self) -> Result<BTreeMap<H160, ExtAccountInfo>, Error>;

 		/// Creates new account from the given phrase using standard brainwallet mechanism.
 		/// Second parameter is password for the new account.
--- a/rpc/src/v1/types/account_info.rs
+++ b/rpc/src/v1/types/account_info.rs
@ -21,6 +21,18 @@ pub struct AccountInfo {
 	pub name: String,
 }

+/// Extended account information (used by `parity_allAccountInfo`).
+#[derive(Debug, Default, Clone, PartialEq, Serialize)]
+pub struct ExtAccountInfo {
+	/// Account name
+	pub name: String,
+	/// Account meta JSON
+	pub meta: String,
+	/// Account UUID (`None` for address book entries)
+	#[serde(skip_serializing_if = "Option::is_none")]
+	pub uuid: Option<String>,
+}
+
 /// Hardware wallet information.
 #[derive(Debug, Default, Clone, PartialEq, Serialize)]
 pub struct HwAccountInfo {
@ -29,3 +41,4 @@ pub struct HwAccountInfo {
 	/// Device manufacturer.
 	pub manufacturer: String,
 }
+
--- a/rpc/src/v1/types/block.rs
+++ b/rpc/src/v1/types/block.rs
@ -100,7 +100,7 @@ pub struct Block {
 }

 /// Block header representation.
-#[derive(Debug, Serialize, PartialEq, Eq)]
+#[derive(Debug, Clone, Serialize, PartialEq, Eq)]
 pub struct Header {
 	/// Hash of the block
 	pub hash: Option<H256>,
@ -186,7 +186,7 @@ pub type RichBlock = Rich<Block>;
 pub type RichHeader = Rich<Header>;

 /// Value representation with additional info
-#[derive(Debug, PartialEq, Eq)]
+#[derive(Debug, Clone, PartialEq, Eq)]
 pub struct Rich<T> {
 	/// Standard value.
 	pub inner: T,
--- a/rpc/src/v1/types/mod.rs
+++ b/rpc/src/v1/types/mod.rs
@ -46,7 +46,7 @@ mod work;

 pub mod pubsub;

-pub use self::account_info::{AccountInfo, HwAccountInfo};
+pub use self::account_info::{AccountInfo, ExtAccountInfo, HwAccountInfo};
 pub use self::bytes::Bytes;
 pub use self::block::{RichBlock, Block, BlockTransactions, Header, RichHeader, Rich};
 pub use self::block_number::BlockNumber;
--- a/rpc/src/v1/types/pubsub.rs
+++ b/rpc/src/v1/types/pubsub.rs
@ -16,14 +16,18 @@

 //! Pub-Sub types.

-use serde::{Serialize, Serializer};
-use v1::types::{RichHeader, Filter};
+use serde::{Deserialize, Deserializer, Serialize, Serializer};
+use serde::de::Error;
+use serde_json::{Value, from_value};
+use v1::types::{RichHeader, Filter, Log};

 /// Subscription result.
-#[derive(Debug, PartialEq, Eq)]
+#[derive(Debug, Clone, PartialEq, Eq)]
 pub enum Result {
 	/// New block header.
 	Header(RichHeader),
+	/// Logs
+	Logs(Vec<Log>),
 }

 impl Serialize for Result {
@ -32,6 +36,7 @@ impl Serialize for Result {
 	{
 		match *self {
 			Result::Header(ref header) => header.serialize(serializer),
+			Result::Logs(ref logs) => logs.serialize(serializer),
 		}
 	}
 }
@ -55,8 +60,7 @@ pub enum Kind {
 }

 /// Subscription kind.
-#[derive(Debug, Deserialize, PartialEq, Eq, Hash, Clone)]
-#[serde(deny_unknown_fields)]
+#[derive(Debug, PartialEq, Eq, Hash, Clone)]
 pub enum Params {
 	/// No parameters passed.
 	None,
@ -70,11 +74,26 @@ impl Default for Params {
 	}
 }

+impl Deserialize for Params {
+	fn deserialize<D>(deserializer: D) -> ::std::result::Result<Params, D::Error>
+	where D: Deserializer {
+		let v: Value = Deserialize::deserialize(deserializer)?;
+
+		if v.is_null() {
+			return Ok(Params::None);
+		}
+
+		from_value(v.clone()).map(Params::Logs)
+			.map_err(|_| D::Error::custom("Invalid type."))
+	}
+}
+
 #[cfg(test)]
 mod tests {
 	use serde_json;
-	use super::{Result, Kind};
-	use v1::types::{RichHeader, Header};
+	use super::{Result, Kind, Params};
+	use v1::types::{RichHeader, Header, Filter};
+	use v1::types::filter::VariadicValue;

 	#[test]
 	fn should_deserialize_kind() {
@ -84,6 +103,41 @@ mod tests {
 		assert_eq!(serde_json::from_str::<Kind>(r#""syncing""#).unwrap(), Kind::Syncing);
 	}

+	#[test]
+	fn should_deserialize_logs() {
+		let none = serde_json::from_str::<Params>(r#"null"#).unwrap();
+		assert_eq!(none, Params::None);
+
+		let logs1 = serde_json::from_str::<Params>(r#"{}"#).unwrap();
+		let logs2 = serde_json::from_str::<Params>(r#"{"limit":10}"#).unwrap();
+		let logs3 = serde_json::from_str::<Params>(
+			r#"{"topics":["0x000000000000000000000000a94f5374fce5edbc8e2a8697c15331677e6ebf0b"]}"#
+		).unwrap();
+		assert_eq!(logs1, Params::Logs(Filter {
+			from_block: None,
+			to_block: None,
+			address: None,
+			topics: None,
+			limit: None,
+		}));
+		assert_eq!(logs2, Params::Logs(Filter {
+			from_block: None,
+			to_block: None,
+			address: None,
+			topics: None,
+			limit: Some(10),
+		}));
+		assert_eq!(logs3, Params::Logs(Filter {
+			from_block: None,
+			to_block: None,
+			address: None,
+			topics: Some(vec![
+				VariadicValue::Single("000000000000000000000000a94f5374fce5edbc8e2a8697c15331677e6ebf0b".parse().unwrap()
+			)]),
+			limit: None,
+		}));
+	}
+
 	#[test]
 	fn should_serialize_header() {
 		let header = Result::Header(RichHeader {
--- a/sync/src/snapshot.rs
+++ b/sync/src/snapshot.rs
@ -92,14 +92,10 @@ impl Snapshot {
 	/// Find a chunk to download
 	pub fn needed_chunk(&mut self) -> Option<H256> {
 		// check state chunks first
-		let mut chunk = self.pending_state_chunks.iter()
+		let chunk = self.pending_state_chunks.iter()
+			.chain(self.pending_block_chunks.iter())
 			.find(|&h| !self.downloading_chunks.contains(h) && !self.completed_chunks.contains(h))
 			.cloned();
-		if chunk.is_none() {
-			chunk = self.pending_block_chunks.iter()
-				.find(|&h| !self.downloading_chunks.contains(h) && !self.completed_chunks.contains(h))
-				.cloned();
-		}

 		if let Some(hash) = chunk {
 			self.downloading_chunks.insert(hash.clone());
--- a/util/network/src/host.rs
+++ b/util/network/src/host.rs
@ -50,22 +50,26 @@ const MAX_HANDSHAKES: usize = 1024;

 const DEFAULT_PORT: u16 = 30303;

-// Tokens
-const TCP_ACCEPT: usize = SYS_TIMER + 1;
-const IDLE: usize = SYS_TIMER + 2;
-const DISCOVERY: usize = SYS_TIMER + 3;
-const DISCOVERY_REFRESH: usize = SYS_TIMER + 4;
-const DISCOVERY_ROUND: usize = SYS_TIMER + 5;
-const NODE_TABLE: usize = SYS_TIMER + 6;
-const FIRST_SESSION: usize = 0;
-const LAST_SESSION: usize = FIRST_SESSION + MAX_SESSIONS - 1;
-const USER_TIMER: usize = LAST_SESSION + 256;
-const SYS_TIMER: usize = LAST_SESSION + 1;
+// StreamToken/TimerToken
+const TCP_ACCEPT: StreamToken = SYS_TIMER + 1;
+const IDLE: TimerToken = SYS_TIMER + 2;
+const DISCOVERY: StreamToken = SYS_TIMER + 3;
+const DISCOVERY_REFRESH: TimerToken = SYS_TIMER + 4;
+const DISCOVERY_ROUND: TimerToken = SYS_TIMER + 5;
+const NODE_TABLE: TimerToken = SYS_TIMER + 6;
+const FIRST_SESSION: StreamToken = 0;
+const LAST_SESSION: StreamToken = FIRST_SESSION + MAX_SESSIONS - 1;
+const USER_TIMER: TimerToken = LAST_SESSION + 256;
+const SYS_TIMER: TimerToken = LAST_SESSION + 1;

 // Timeouts
+// for IDLE TimerToken
 const MAINTENANCE_TIMEOUT: u64 = 1000;
+// for DISCOVERY_REFRESH TimerToken
 const DISCOVERY_REFRESH_TIMEOUT: u64 = 60_000;
+// for DISCOVERY_ROUND TimerToken
 const DISCOVERY_ROUND_TIMEOUT: u64 = 300;
+// for NODE_TABLE TimerToken
 const NODE_TABLE_TIMEOUT: u64 = 300_000;

 #[derive(Debug, PartialEq, Clone)]
--- a/util/src/journaldb/archivedb.rs
+++ b/util/src/journaldb/archivedb.rs
@ -177,7 +177,7 @@ impl JournalDB for ArchiveDB {
 	fn latest_era(&self) -> Option<u64> { self.latest_era }

 	fn state(&self, id: &H256) -> Option<Bytes> {
-		self.backing.get_by_prefix(self.column, &id[0..DB_PREFIX_LEN]).map(|b| b.to_vec())
+		self.backing.get_by_prefix(self.column, &id[0..DB_PREFIX_LEN]).map(|b| b.into_vec())
 	}

 	fn is_pruned(&self) -> bool { false }
--- a/Show More
+++ b/Show More