Use separate depth than finality depth for merge set calculations after HF (#2013)

* Use separate than finality depth for merge set calculations after HF

* Add comments and edit error messages

* Fix TestValidateTransactionInContextAndPopulateFee

* Don't disconnect from node if isViolatingBoundedMergeDepth

* Use new merge root for virtual pick parents; apply HF1 daa score split for validation only

* Use `blue work` heuristic to skip irrelevant relay blocks

* Minor

* Make sure virtual's merge depth root is a real block

* For ghostdag data we always use the non-trusted data

* Fix TestBoundedMergeDepth and in IBD use VirtualMergeDepthRoot instead of MergeDepthRoot

* Update HF1DAAScore

* Make sure merge root and finality are called + avoid calculating virtual root twice

* Update block version to 1 after HF

* Update to v0.12.0

Co-authored-by: msutton <mikisiton2@gmail.com>

app/protocol/flows/v5/blockrelay/handle_relay_invs.go

@@ -7,6 +7,7 @@ import (
 	peerpkg "github.com/kaspanet/kaspad/app/protocol/peer"
 	"github.com/kaspanet/kaspad/app/protocol/protocolerrors"
 	"github.com/kaspanet/kaspad/domain"
+	"github.com/kaspanet/kaspad/domain/consensus/model"
 	"github.com/kaspanet/kaspad/domain/consensus/model/externalapi"
 	"github.com/kaspanet/kaspad/domain/consensus/ruleerrors"
 	"github.com/kaspanet/kaspad/domain/consensus/utils/consensushashing"
@@ -139,6 +140,26 @@ func (flow *handleRelayInvsFlow) start() error {
 			continue
 		}
 
+		// Test bounded merge depth to avoid requesting irrelevant data which cannot be merged under virtual
+		virtualMergeDepthRoot, err := flow.Domain().Consensus().VirtualMergeDepthRoot()
+		if err != nil {
+			return err
+		}
+		if !virtualMergeDepthRoot.Equal(model.VirtualGenesisBlockHash) {
+			mergeDepthRootHeader, err := flow.Domain().Consensus().GetBlockHeader(virtualMergeDepthRoot)
+			if err != nil {
+				return err
+			}
+			// Since `BlueWork` respects topology, this condition means that the relay
+			// block is not in the future of virtual's merge depth root, and thus cannot be merged unless
+			// other valid blocks Kosherize it, in which case it will be obtained once the merger is relayed
+			if block.Header.BlueWork().Cmp(mergeDepthRootHeader.BlueWork()) <= 0 {
+				log.Debugf("Block %s has lower blue work than virtual's merge root %s (%d <= %d), hence we are skipping it",
+					inv.Hash, virtualMergeDepthRoot, block.Header.BlueWork(), mergeDepthRootHeader.BlueWork())
+				continue
+			}
+		}
+
 		log.Debugf("Processing block %s", inv.Hash)
 		oldVirtualInfo, err := flow.Domain().Consensus().GetVirtualInfo()
 		if err != nil {

cmd/kaspawallet/libkaspawallet/transaction_test.go

@@ -2,6 +2,10 @@ package libkaspawallet_test
 
 import (
 	"fmt"
+	"github.com/kaspanet/kaspad/domain/consensus/model"
+	"github.com/kaspanet/kaspad/domain/consensus/ruleerrors"
+	"github.com/kaspanet/kaspad/domain/consensus/utils/constants"
+	"github.com/pkg/errors"
 	"strings"
 	"testing"
 
@@ -310,3 +314,239 @@ func TestP2PK(t *testing.T) {
 		})
 	})
 }
+
+func TestMaxSompi(t *testing.T) {
+	testutils.ForAllNets(t, true, func(t *testing.T, consensusConfig *consensus.Config) {
+		params := &consensusConfig.Params
+		cfg := *consensusConfig
+		cfg.BlockCoinbaseMaturity = 0
+		cfg.PreDeflationaryPhaseBaseSubsidy = 20e6 * constants.SompiPerKaspa
+		cfg.HF1DAAScore = cfg.GenesisBlock.Header.DAAScore() + 10
+		tc, teardown, err := consensus.NewFactory().NewTestConsensus(&cfg, "TestMaxSompi")
+		if err != nil {
+			t.Fatalf("Error setting up tc: %+v", err)
+		}
+		defer teardown(false)
+
+		const numKeys = 1
+		mnemonics := make([]string, numKeys)
+		publicKeys := make([]string, numKeys)
+		for i := 0; i < numKeys; i++ {
+			var err error
+			mnemonics[i], err = libkaspawallet.CreateMnemonic()
+			if err != nil {
+				t.Fatalf("CreateMnemonic: %+v", err)
+			}
+
+			publicKeys[i], err = libkaspawallet.MasterPublicKeyFromMnemonic(&cfg.Params, mnemonics[i], false)
+			if err != nil {
+				t.Fatalf("MasterPublicKeyFromMnemonic: %+v", err)
+			}
+		}
+
+		const minimumSignatures = 1
+		path := "m/1/2/3"
+		address, err := libkaspawallet.Address(params, publicKeys, minimumSignatures, path, false)
+		if err != nil {
+			t.Fatalf("Address: %+v", err)
+		}
+
+		scriptPublicKey, err := txscript.PayToAddrScript(address)
+		if err != nil {
+			t.Fatalf("PayToAddrScript: %+v", err)
+		}
+
+		coinbaseData := &externalapi.DomainCoinbaseData{
+			ScriptPublicKey: scriptPublicKey,
+			ExtraData:       nil,
+		}
+
+		fundingBlock1Hash, _, err := tc.AddBlock([]*externalapi.DomainHash{cfg.GenesisHash}, coinbaseData, nil)
+		if err != nil {
+			t.Fatalf("AddBlock: %+v", err)
+		}
+
+		fundingBlock2Hash, _, err := tc.AddBlock([]*externalapi.DomainHash{fundingBlock1Hash}, coinbaseData, nil)
+		if err != nil {
+			t.Fatalf("AddBlock: %+v", err)
+		}
+
+		fundingBlock3Hash, _, err := tc.AddBlock([]*externalapi.DomainHash{fundingBlock2Hash}, coinbaseData, nil)
+		if err != nil {
+			t.Fatalf("AddBlock: %+v", err)
+		}
+
+		fundingBlock4Hash, _, err := tc.AddBlock([]*externalapi.DomainHash{fundingBlock3Hash}, coinbaseData, nil)
+		if err != nil {
+			t.Fatalf("AddBlock: %+v", err)
+		}
+
+		fundingBlock2, err := tc.GetBlock(fundingBlock2Hash)
+		if err != nil {
+			t.Fatalf("GetBlock: %+v", err)
+		}
+
+		fundingBlock3, err := tc.GetBlock(fundingBlock3Hash)
+		if err != nil {
+			t.Fatalf("GetBlock: %+v", err)
+		}
+
+		fundingBlock4, err := tc.GetBlock(fundingBlock4Hash)
+		if err != nil {
+			t.Fatalf("GetBlock: %+v", err)
+		}
+
+		block1Hash, _, err := tc.AddBlock([]*externalapi.DomainHash{fundingBlock4Hash}, nil, nil)
+		if err != nil {
+			t.Fatalf("AddBlock: %+v", err)
+		}
+
+		block1, err := tc.GetBlock(block1Hash)
+		if err != nil {
+			t.Fatalf("GetBlock: %+v", err)
+		}
+
+		txOut1 := fundingBlock2.Transactions[0].Outputs[0]
+		txOut2 := fundingBlock3.Transactions[0].Outputs[0]
+		txOut3 := fundingBlock4.Transactions[0].Outputs[0]
+		txOut4 := block1.Transactions[0].Outputs[0]
+		selectedUTXOsForTxWithLargeInputAmount := []*libkaspawallet.UTXO{
+			{
+				Outpoint: &externalapi.DomainOutpoint{
+					TransactionID: *consensushashing.TransactionID(fundingBlock2.Transactions[0]),
+					Index:         0,
+				},
+				UTXOEntry:      utxo.NewUTXOEntry(txOut1.Value, txOut1.ScriptPublicKey, true, 0),
+				DerivationPath: path,
+			},
+			{
+				Outpoint: &externalapi.DomainOutpoint{
+					TransactionID: *consensushashing.TransactionID(fundingBlock3.Transactions[0]),
+					Index:         0,
+				},
+				UTXOEntry:      utxo.NewUTXOEntry(txOut2.Value, txOut2.ScriptPublicKey, true, 0),
+				DerivationPath: path,
+			},
+		}
+
+		unsignedTxWithLargeInputAmount, err := libkaspawallet.CreateUnsignedTransaction(publicKeys, minimumSignatures,
+			[]*libkaspawallet.Payment{{
+				Address: address,
+				Amount:  10,
+			}}, selectedUTXOsForTxWithLargeInputAmount)
+		if err != nil {
+			t.Fatalf("CreateUnsignedTransactions: %+v", err)
+		}
+
+		signedTxWithLargeInputAmount, err := libkaspawallet.Sign(params, mnemonics, unsignedTxWithLargeInputAmount, false)
+		if err != nil {
+			t.Fatalf("Sign: %+v", err)
+		}
+
+		txWithLargeInputAmount, err := libkaspawallet.ExtractTransaction(signedTxWithLargeInputAmount, false)
+		if err != nil {
+			t.Fatalf("ExtractTransaction: %+v", err)
+		}
+
+		_, virtualChangeSet, err := tc.AddBlock([]*externalapi.DomainHash{block1Hash}, nil, []*externalapi.DomainTransaction{txWithLargeInputAmount})
+		if err != nil {
+			t.Fatalf("AddBlock: %+v", err)
+		}
+
+		addedUTXO1 := &externalapi.DomainOutpoint{
+			TransactionID: *consensushashing.TransactionID(txWithLargeInputAmount),
+			Index:         0,
+		}
+		if virtualChangeSet.VirtualUTXODiff.ToAdd().Contains(addedUTXO1) {
+			t.Fatalf("Transaction was accepted in the DAG")
+		}
+
+		selectedUTXOsForTxWithLargeInputAndOutputAmount := []*libkaspawallet.UTXO{
+			{
+				Outpoint: &externalapi.DomainOutpoint{
+					TransactionID: *consensushashing.TransactionID(fundingBlock4.Transactions[0]),
+					Index:         0,
+				},
+				UTXOEntry:      utxo.NewUTXOEntry(txOut3.Value, txOut3.ScriptPublicKey, true, 0),
+				DerivationPath: path,
+			},
+			{
+				Outpoint: &externalapi.DomainOutpoint{
+					TransactionID: *consensushashing.TransactionID(block1.Transactions[0]),
+					Index:         0,
+				},
+				UTXOEntry:      utxo.NewUTXOEntry(txOut4.Value, txOut4.ScriptPublicKey, true, 0),
+				DerivationPath: path,
+			},
+		}
+
+		unsignedTxWithLargeInputAndOutputAmount, err := libkaspawallet.CreateUnsignedTransaction(publicKeys, minimumSignatures,
+			[]*libkaspawallet.Payment{{
+				Address: address,
+				Amount:  22e6 * constants.SompiPerKaspa,
+			}}, selectedUTXOsForTxWithLargeInputAndOutputAmount)
+		if err != nil {
+			t.Fatalf("CreateUnsignedTransactions: %+v", err)
+		}
+
+		signedTxWithLargeInputAndOutputAmount, err := libkaspawallet.Sign(params, mnemonics, unsignedTxWithLargeInputAndOutputAmount, false)
+		if err != nil {
+			t.Fatalf("Sign: %+v", err)
+		}
+
+		txWithLargeInputAndOutputAmount, err := libkaspawallet.ExtractTransaction(signedTxWithLargeInputAndOutputAmount, false)
+		if err != nil {
+			t.Fatalf("ExtractTransaction: %+v", err)
+		}
+
+		_, _, err = tc.AddBlock([]*externalapi.DomainHash{block1Hash}, nil, []*externalapi.DomainTransaction{txWithLargeInputAndOutputAmount})
+		if !errors.Is(err, ruleerrors.ErrBadTxOutValue) {
+			t.Fatalf("AddBlock: %+v", err)
+		}
+
+		tip := block1Hash
+		for {
+			tip, _, err = tc.AddBlock([]*externalapi.DomainHash{tip}, nil, nil)
+			if err != nil {
+				t.Fatalf("AddBlock: %+v", err)
+			}
+
+			selectedTip, err := tc.GetVirtualSelectedParent()
+			if err != nil {
+				t.Fatalf("GetVirtualDAAScore: %+v", err)
+			}
+
+			daaScore, err := tc.DAABlocksStore().DAAScore(tc.DatabaseContext(), model.NewStagingArea(), selectedTip)
+			if err != nil {
+				t.Fatalf("DAAScore: %+v", err)
+			}
+
+			if daaScore >= cfg.HF1DAAScore {
+				break
+			}
+		}
+
+		tip, virtualChangeSet, err = tc.AddBlock([]*externalapi.DomainHash{tip}, nil, []*externalapi.DomainTransaction{txWithLargeInputAndOutputAmount})
+		if err != nil {
+			t.Fatalf("AddBlock: %+v", err)
+		}
+
+		addedUTXO2 := &externalapi.DomainOutpoint{
+			TransactionID: *consensushashing.TransactionID(txWithLargeInputAndOutputAmount),
+			Index:         0,
+		}
+
+		if !virtualChangeSet.VirtualUTXODiff.ToAdd().Contains(addedUTXO2) {
+			t.Fatalf("txWithLargeInputAndOutputAmount weren't accepted in the DAG")
+		}
+
+		_, virtualChangeSet, err = tc.AddBlock([]*externalapi.DomainHash{tip}, nil, []*externalapi.DomainTransaction{txWithLargeInputAmount})
+		if err != nil {
+			t.Fatalf("AddBlock: %+v", err)
+		}
+
+		if !virtualChangeSet.VirtualUTXODiff.ToAdd().Contains(addedUTXO1) {
+			t.Fatalf("txWithLargeInputAmount wasn't accepted in the DAG")
+		}
+	})
+}

domain/consensus/consensus.go

@@ -182,7 +182,12 @@ func (s *consensus) ValidateTransactionAndPopulateWithConsensusData(transaction
 
 	stagingArea := model.NewStagingArea()
 
-	err := s.transactionValidator.ValidateTransactionInIsolation(transaction)
+	daaScore, err := s.daaBlocksStore.DAAScore(s.databaseContext, stagingArea, model.VirtualBlockHash)
+	if err != nil {
+		return err
+	}
+
+	err = s.transactionValidator.ValidateTransactionInIsolation(transaction, daaScore)
 	if err != nil {
 		return err
 	}
@@ -881,3 +886,11 @@ func (s *consensus) IsChainBlock(blockHash *externalapi.DomainHash) (bool, error
 
 	return s.dagTopologyManagers[0].IsInSelectedParentChainOf(stagingArea, blockHash, virtualGHOSTDAGData.SelectedParent())
 }
+
+func (s *consensus) VirtualMergeDepthRoot() (*externalapi.DomainHash, error) {
+	s.lock.Lock()
+	defer s.lock.Unlock()
+
+	stagingArea := model.NewStagingArea()
+	return s.mergeDepthManager.VirtualMergeDepthRoot(stagingArea)
+}

domain/consensus/datastructures/mergedepthrootstore/merge_depth_root_staging_shard.go

@@ -0,0 +1,36 @@
+package mergedepthrootstore
+
+import (
+	"github.com/kaspanet/kaspad/domain/consensus/model"
+	"github.com/kaspanet/kaspad/domain/consensus/model/externalapi"
+)
+
+type mergeDepthRootStagingShard struct {
+	store *mergeDepthRootStore
+	toAdd map[externalapi.DomainHash]*externalapi.DomainHash
+}
+
+func (mdrs *mergeDepthRootStore) stagingShard(stagingArea *model.StagingArea) *mergeDepthRootStagingShard {
+	return stagingArea.GetOrCreateShard(mdrs.shardID, func() model.StagingShard {
+		return &mergeDepthRootStagingShard{
+			store: mdrs,
+			toAdd: make(map[externalapi.DomainHash]*externalapi.DomainHash),
+		}
+	}).(*mergeDepthRootStagingShard)
+}
+
+func (mdrss *mergeDepthRootStagingShard) Commit(dbTx model.DBTransaction) error {
+	for hash, mergeDepthRoot := range mdrss.toAdd {
+		err := dbTx.Put(mdrss.store.hashAsKey(&hash), mergeDepthRoot.ByteSlice())
+		if err != nil {
+			return err
+		}
+		mdrss.store.cache.Add(&hash, mergeDepthRoot)
+	}
+
+	return nil
+}
+
+func (mdrss *mergeDepthRootStagingShard) isStaged() bool {
+	return len(mdrss.toAdd) == 0
+}

domain/consensus/datastructures/mergedepthrootstore/merge_depth_root_store.go

@@ -0,0 +1,63 @@
+package mergedepthrootstore
+
+import (
+	"github.com/kaspanet/kaspad/domain/consensus/model"
+	"github.com/kaspanet/kaspad/domain/consensus/model/externalapi"
+	"github.com/kaspanet/kaspad/domain/consensus/utils/lrucache"
+	"github.com/kaspanet/kaspad/util/staging"
+)
+
+var bucketName = []byte("merge-depth-roots")
+
+type mergeDepthRootStore struct {
+	shardID model.StagingShardID
+	cache   *lrucache.LRUCache
+	bucket  model.DBBucket
+}
+
+// New instantiates a new MergeDepthRootStore
+func New(prefixBucket model.DBBucket, cacheSize int, preallocate bool) model.MergeDepthRootStore {
+	return &mergeDepthRootStore{
+		shardID: staging.GenerateShardingID(),
+		cache:   lrucache.New(cacheSize, preallocate),
+		bucket:  prefixBucket.Bucket(bucketName),
+	}
+}
+
+func (mdrs *mergeDepthRootStore) StageMergeDepthRoot(stagingArea *model.StagingArea, blockHash *externalapi.DomainHash, root *externalapi.DomainHash) {
+	stagingShard := mdrs.stagingShard(stagingArea)
+
+	stagingShard.toAdd[*blockHash] = root
+}
+
+func (mdrs *mergeDepthRootStore) MergeDepthRoot(dbContext model.DBReader, stagingArea *model.StagingArea, blockHash *externalapi.DomainHash) (*externalapi.DomainHash, error) {
+	stagingShard := mdrs.stagingShard(stagingArea)
+
+	if root, ok := stagingShard.toAdd[*blockHash]; ok {
+		return root, nil
+	}
+
+	if root, ok := mdrs.cache.Get(blockHash); ok {
+		return root.(*externalapi.DomainHash), nil
+	}
+
+	rootBytes, err := dbContext.Get(mdrs.hashAsKey(blockHash))
+	if err != nil {
+		return nil, err
+	}
+	root, err := externalapi.NewDomainHashFromByteSlice(rootBytes)
+	if err != nil {
+		return nil, err
+	}
+
+	mdrs.cache.Add(blockHash, root)
+	return root, nil
+}
+
+func (mdrs *mergeDepthRootStore) IsStaged(stagingArea *model.StagingArea) bool {
+	return mdrs.stagingShard(stagingArea).isStaged()
+}
+
+func (mdrs *mergeDepthRootStore) hashAsKey(hash *externalapi.DomainHash) model.DBKey {
+	return mdrs.bucket.Key(hash.ByteSlice())
+}

domain/consensus/factory.go

@@ -3,6 +3,7 @@ package consensus
 import (
 	"github.com/kaspanet/kaspad/domain/consensus/datastructures/blockwindowheapslicestore"
 	"github.com/kaspanet/kaspad/domain/consensus/datastructures/daawindowstore"
+	"github.com/kaspanet/kaspad/domain/consensus/datastructures/mergedepthrootstore"
 	"github.com/kaspanet/kaspad/domain/consensus/model"
 	"github.com/kaspanet/kaspad/domain/consensus/processes/blockparentbuilder"
 	parentssanager "github.com/kaspanet/kaspad/domain/consensus/processes/parentsmanager"
@@ -127,6 +128,7 @@ func (f *factory) NewConsensus(config *Config, db infrastructuredatabase.Databas
 	pruningWindowSizePlusFinalityDepthForCache := int(config.PruningDepth() + config.FinalityDepth())
 
 	// Data Structures
+	mergeDepthRootStore := mergedepthrootstore.New(prefixBucket, 200, preallocateCaches)
 	daaWindowStore := daawindowstore.New(prefixBucket, 10_000, preallocateCaches)
 	acceptanceDataStore := acceptancedatastore.New(prefixBucket, 200, preallocateCaches)
 	blockStore, err := blockstore.New(dbManager, prefixBucket, 200, preallocateCaches)
@@ -215,7 +217,8 @@ func (f *factory) NewConsensus(config *Config, db infrastructuredatabase.Databas
 		pastMedianTimeManager,
 		ghostdagDataStore,
 		daaBlocksStore,
-		txMassCalculator)
+		txMassCalculator,
+		config.HF1DAAScore)
 	difficultyManager := f.difficultyConstructor(
 		dbManager,
 		ghostdagManager,
@@ -261,7 +264,14 @@ func (f *factory) NewConsensus(config *Config, db infrastructuredatabase.Databas
 		dagTopologyManager,
 		dagTraversalManager,
 		finalityManager,
-		ghostdagDataStore)
+		genesisHash,
+		config.MergeDepth,
+		config.HF1DAAScore,
+		ghostdagDataStore,
+		mergeDepthRootStore,
+		daaBlocksStore,
+		pruningStore,
+		finalityStore)
 	consensusStateManager, err := consensusstatemanager.New(
 		dbManager,
 		config.MaxBlockParents,
@@ -334,7 +344,7 @@ func (f *factory) NewConsensus(config *Config, db infrastructuredatabase.Databas
 		config.MaxBlockParents,
 		config.TimestampDeviationTolerance,
 		config.TargetTimePerBlock,
-		config.IgnoreHeaderMass,
+		config.HF1DAAScore,
 		config.MaxBlockLevel,
 
 		dbManager,
@@ -383,6 +393,7 @@ func (f *factory) NewConsensus(config *Config, db infrastructuredatabase.Databas
 	blockBuilder := blockbuilder.New(
 		dbManager,
 		genesisHash,
+		config.HF1DAAScore,
 
 		difficultyManager,
 		pastMedianTimeManager,

domain/consensus/finality_test.go

@@ -3,8 +3,6 @@ package consensus_test
 import (
 	"fmt"
 	"github.com/kaspanet/kaspad/domain/consensus"
-	"testing"
-
 	"github.com/kaspanet/kaspad/domain/consensus/model"
 	"github.com/kaspanet/kaspad/domain/consensus/model/externalapi"
 	"github.com/kaspanet/kaspad/domain/consensus/model/testapi"
@@ -12,6 +10,9 @@ import (
 	"github.com/kaspanet/kaspad/domain/consensus/utils/consensushashing"
 	"github.com/kaspanet/kaspad/domain/consensus/utils/testutils"
 	"github.com/pkg/errors"
+	"math"
+	"math/rand"
+	"testing"
 )
 
 func TestFinality(t *testing.T) {
@@ -179,15 +180,21 @@ func TestFinality(t *testing.T) {
 
 func TestBoundedMergeDepth(t *testing.T) {
 	testutils.ForAllNets(t, true, func(t *testing.T, consensusConfig *consensus.Config) {
+		rd := rand.New(rand.NewSource(0))
 		// Set finalityInterval to 50 blocks, so that test runs quickly
 		consensusConfig.K = 5
-		consensusConfig.FinalityDuration = 7 * consensusConfig.TargetTimePerBlock
-		finalityInterval := int(consensusConfig.FinalityDepth())
+		consensusConfig.MergeDepth = 7
+		consensusConfig.FinalityDuration = 20 * consensusConfig.TargetTimePerBlock
+		consensusConfig.HF1DAAScore = consensusConfig.GenesisBlock.Header.DAAScore() + 200
 
-		if int(consensusConfig.K) >= finalityInterval {
+		if uint64(consensusConfig.K) >= consensusConfig.FinalityDepth() {
 			t.Fatal("K must be smaller than finality duration for this test to run")
 		}
 
+		if uint64(consensusConfig.K) >= consensusConfig.MergeDepth {
+			t.Fatal("K must be smaller than merge depth for this test to run")
+		}
+
 		checkViolatingMergeDepth := func(consensus testapi.TestConsensus, parents []*externalapi.DomainHash) (*externalapi.DomainBlock, bool) {
 			block, _, err := consensus.BuildBlockWithParents(parents, nil, nil)
 			if err != nil {
@@ -217,7 +224,7 @@ func TestBoundedMergeDepth(t *testing.T) {
 		buildAndInsertBlock := func(consensus testapi.TestConsensus, parentHashes []*externalapi.DomainHash) *externalapi.DomainBlock {
 			block, _, err := consensus.BuildBlockWithParents(parentHashes, nil, nil)
 			if err != nil {
-				t.Fatalf("TestBoundedMergeDepth: Failed building block: %v", err)
+				t.Fatalf("TestBoundedMergeDepth: Failed building block: %+v", err)
 			}
 			_, err = consensus.ValidateAndInsertBlock(block, true)
 			if err != nil {
@@ -236,194 +243,296 @@ func TestBoundedMergeDepth(t *testing.T) {
 			return blockInfo.BlockStatus
 		}
 
-		factory := consensus.NewFactory()
-		consensusBuild, teardownFunc1, err := factory.NewTestConsensus(consensusConfig, "TestBoundedMergeTestBuild")
-		if err != nil {
-			t.Fatalf("TestBoundedMergeDepth: Error setting up consensus: %+v", err)
+		syncConsensuses := func(tcSyncer, tcSyncee testapi.TestConsensus) {
+			syncerVirtualSelectedParent, err := tcSyncer.GetVirtualSelectedParent()
+			if err != nil {
+				t.Fatalf("GetVirtualSelectedParent: %+v", err)
+			}
+
+			missingHeaderHashes, _, err := tcSyncer.GetHashesBetween(consensusConfig.GenesisHash, syncerVirtualSelectedParent, math.MaxUint64)
+			if err != nil {
+				t.Fatalf("GetHashesBetween: %+v", err)
+			}
+
+			for i, blocksHash := range missingHeaderHashes {
+				blockInfo, err := tcSyncee.GetBlockInfo(blocksHash)
+				if err != nil {
+					t.Fatalf("GetBlockInfo: %+v", err)
+				}
+
+				if blockInfo.Exists {
+					continue
+				}
+
+				block, err := tcSyncer.GetBlock(blocksHash)
+				if err != nil {
+					t.Fatalf("GetBlockHeader: %+v", err)
+				}
+
+				_, err = tcSyncee.ValidateAndInsertBlock(block, true)
+				if err != nil {
+					t.Fatalf("ValidateAndInsertBlock %d: %+v", i, err)
+				}
+			}
+
+			synceeVirtualSelectedParent, err := tcSyncee.GetVirtualSelectedParent()
+			if err != nil {
+				t.Fatalf("Tips: %+v", err)
+			}
+
+			if !syncerVirtualSelectedParent.Equal(synceeVirtualSelectedParent) {
+				t.Fatalf("Syncee's selected tip is %s while syncer's is %s", synceeVirtualSelectedParent, syncerVirtualSelectedParent)
+			}
 		}
 
+		factory := consensus.NewFactory()
 		consensusReal, teardownFunc2, err := factory.NewTestConsensus(consensusConfig, "TestBoundedMergeTestReal")
 		if err != nil {
 			t.Fatalf("TestBoundedMergeDepth: Error setting up consensus: %+v", err)
 		}
 		defer teardownFunc2(false)
 
-		// Create a block on top on genesis
-		block1 := buildAndInsertBlock(consensusBuild, []*externalapi.DomainHash{consensusConfig.GenesisHash})
+		test := func(depth uint64, root *externalapi.DomainHash, checkVirtual, isRealDepth bool) {
+			consensusBuild, teardownFunc1, err := factory.NewTestConsensus(consensusConfig, "TestBoundedMergeTestBuild")
+			if err != nil {
+				t.Fatalf("TestBoundedMergeDepth: Error setting up consensus: %+v", err)
+			}
+			defer teardownFunc1(false)
+			consensusBuild.BlockBuilder().SetNonceCounter(rd.Uint64())
 
-		// Create a chain
-		selectedChain := make([]*externalapi.DomainBlock, 0, finalityInterval+1)
-		parent := consensushashing.BlockHash(block1)
-		// Make sure this is always bigger than `blocksChain2` so it will stay the selected chain
-		for i := 0; i < finalityInterval+2; i++ {
-			block := buildAndInsertBlock(consensusBuild, []*externalapi.DomainHash{parent})
-			selectedChain = append(selectedChain, block)
-			parent = consensushashing.BlockHash(block)
-		}
+			syncConsensuses(consensusReal, consensusBuild)
+			// Create a block on top on genesis
+			block1 := buildAndInsertBlock(consensusBuild, []*externalapi.DomainHash{root})
 
-		// Create another chain
-		blocksChain2 := make([]*externalapi.DomainBlock, 0, finalityInterval+1)
-		parent = consensushashing.BlockHash(block1)
-		for i := 0; i < finalityInterval+1; i++ {
-			block := buildAndInsertBlock(consensusBuild, []*externalapi.DomainHash{parent})
-			blocksChain2 = append(blocksChain2, block)
-			parent = consensushashing.BlockHash(block)
-		}
+			// Create a chain
+			selectedChain := make([]*externalapi.DomainBlock, 0, depth+1)
+			parent := consensushashing.BlockHash(block1)
+			// Make sure this is always bigger than `blocksChain2` so it will stay the selected chain
+			for i := uint64(0); i < depth+2; i++ {
+				block := buildAndInsertBlock(consensusBuild, []*externalapi.DomainHash{parent})
+				selectedChain = append(selectedChain, block)
+				parent = consensushashing.BlockHash(block)
+			}
 
-		// Teardown and assign nil to make sure we use the right DAG from here on.
-		teardownFunc1(false)
-		consensusBuild = nil
+			// Create another chain
+			blocksChain2 := make([]*externalapi.DomainBlock, 0, depth+1)
+			parent = consensushashing.BlockHash(block1)
+			for i := uint64(0); i < depth+1; i++ {
+				block := buildAndInsertBlock(consensusBuild, []*externalapi.DomainHash{parent})
+				blocksChain2 = append(blocksChain2, block)
+				parent = consensushashing.BlockHash(block)
+			}
 
-		// Now test against the real DAG
-		// submit block1
-		processBlock(consensusReal, block1, "block1")
+			// Now test against the real DAG
+			// submit block1
+			processBlock(consensusReal, block1, "block1")
 
-		// submit chain1
-		for i, block := range selectedChain {
-			processBlock(consensusReal, block, fmt.Sprintf("selectedChain block No %d", i))
-		}
+			// submit chain1
+			for i, block := range selectedChain {
+				processBlock(consensusReal, block, fmt.Sprintf("selectedChain block No %d", i))
+			}
 
-		// submit chain2
-		for i, block := range blocksChain2 {
-			processBlock(consensusReal, block, fmt.Sprintf("blocksChain2 block No %d", i))
-		}
+			// submit chain2
+			for i, block := range blocksChain2 {
+				processBlock(consensusReal, block, fmt.Sprintf("blocksChain2 block No %d", i))
+			}
 
-		// submit a block pointing at tip(chain1) and on first block in chain2 directly
-		mergeDepthViolatingBlockBottom, isViolatingMergeDepth := checkViolatingMergeDepth(consensusReal, []*externalapi.DomainHash{consensushashing.BlockHash(blocksChain2[0]), consensushashing.BlockHash(selectedChain[len(selectedChain)-1])})
-		if !isViolatingMergeDepth {
-			t.Fatalf("TestBoundedMergeDepth: Expected mergeDepthViolatingBlockBottom to violate merge depth")
-		}
+			// submit a block pointing at tip(chain1) and on first block in chain2 directly
+			mergeDepthViolatingBlockBottom, isViolatingMergeDepth := checkViolatingMergeDepth(consensusReal, []*externalapi.DomainHash{consensushashing.BlockHash(blocksChain2[0]), consensushashing.BlockHash(selectedChain[len(selectedChain)-1])})
+			if isViolatingMergeDepth != isRealDepth {
+				t.Fatalf("TestBoundedMergeDepth: Expects isViolatingMergeDepth to be %t", isRealDepth)
+			}
 
-		// submit a block pointing at tip(chain1) and tip(chain2) should also obviously violate merge depth (this points at first block in chain2 indirectly)
-		mergeDepthViolatingTop, isViolatingMergeDepth := checkViolatingMergeDepth(consensusReal, []*externalapi.DomainHash{consensushashing.BlockHash(blocksChain2[len(blocksChain2)-1]), consensushashing.BlockHash(selectedChain[len(selectedChain)-1])})
-		if !isViolatingMergeDepth {
-			t.Fatalf("TestBoundedMergeDepth: Expected mergeDepthViolatingTop to violate merge depth")
-		}
+			// submit a block pointing at tip(chain1) and tip(chain2) should also obviously violate merge depth (this points at first block in chain2 indirectly)
+			mergeDepthViolatingTop, isViolatingMergeDepth := checkViolatingMergeDepth(consensusReal, []*externalapi.DomainHash{consensushashing.BlockHash(blocksChain2[len(blocksChain2)-1]), consensushashing.BlockHash(selectedChain[len(selectedChain)-1])})
+			if isViolatingMergeDepth != isRealDepth {
+				t.Fatalf("TestBoundedMergeDepth: Expects isViolatingMergeDepth to be %t", isRealDepth)
+			}
 
-		// the location of the parents in the slices need to be both `-X` so the `selectedChain` one will have higher blueScore (it's a chain longer by 1)
-		kosherizingBlock, isViolatingMergeDepth := checkViolatingMergeDepth(consensusReal, []*externalapi.DomainHash{consensushashing.BlockHash(blocksChain2[len(blocksChain2)-3]), consensushashing.BlockHash(selectedChain[len(selectedChain)-3])})
-		kosherizingBlockHash := consensushashing.BlockHash(kosherizingBlock)
-		if isViolatingMergeDepth {
-			t.Fatalf("TestBoundedMergeDepth: Expected blueKosherizingBlock to not violate merge depth")
-		}
+			// the location of the parents in the slices need to be both `-X` so the `selectedChain` one will have higher blueScore (it's a chain longer by 1)
+			kosherizingBlock, isViolatingMergeDepth := checkViolatingMergeDepth(consensusReal, []*externalapi.DomainHash{consensushashing.BlockHash(blocksChain2[len(blocksChain2)-3]), consensushashing.BlockHash(selectedChain[len(selectedChain)-3])})
+			kosherizingBlockHash := consensushashing.BlockHash(kosherizingBlock)
+			if isViolatingMergeDepth {
+				t.Fatalf("TestBoundedMergeDepth: Expected blueKosherizingBlock to not violate merge depth")
+			}
 
-		stagingArea := model.NewStagingArea()
-		virtualGhotDagData, err := consensusReal.GHOSTDAGDataStore().Get(consensusReal.DatabaseContext(),
-			stagingArea, model.VirtualBlockHash, false)
-		if err != nil {
-			t.Fatalf("TestBoundedMergeDepth: Failed getting the ghostdag data of the virtual: %v", err)
-		}
-		// Make sure it's actually blue
-		found := false
-		for _, blue := range virtualGhotDagData.MergeSetBlues() {
-			if blue.Equal(kosherizingBlockHash) {
-				found = true
-				break
+			if checkVirtual {
+				stagingArea := model.NewStagingArea()
+				virtualGhotDagData, err := consensusReal.GHOSTDAGDataStore().Get(consensusReal.DatabaseContext(),
+					stagingArea, model.VirtualBlockHash, false)
+				if err != nil {
+					t.Fatalf("TestBoundedMergeDepth: Failed getting the ghostdag data of the virtual: %v", err)
+				}
+				// Make sure it's actually blue
+				found := false
+				for _, blue := range virtualGhotDagData.MergeSetBlues() {
+					if blue.Equal(kosherizingBlockHash) {
+						found = true
+						break
+					}
+				}
+				if !found {
+					t.Fatalf("TestBoundedMergeDepth: Expected kosherizingBlock to be blue by the virtual")
+				}
+			}
+
+			pointAtBlueKosherizing, isViolatingMergeDepth := checkViolatingMergeDepth(consensusReal, []*externalapi.DomainHash{kosherizingBlockHash, consensushashing.BlockHash(selectedChain[len(selectedChain)-1])})
+			if isViolatingMergeDepth {
+				t.Fatalf("TestBoundedMergeDepth: Expected selectedTip to not violate merge depth")
+			}
+
+			if checkVirtual {
+				virtualSelectedParent, err := consensusReal.GetVirtualSelectedParent()
+				if err != nil {
+					t.Fatalf("TestBoundedMergeDepth: Failed getting the virtual selected parent %v", err)
+				}
+
+				if !virtualSelectedParent.Equal(consensushashing.BlockHash(pointAtBlueKosherizing)) {
+					t.Fatalf("TestBoundedMergeDepth: Expected %s to be the selectedTip but found %s instead", consensushashing.BlockHash(pointAtBlueKosherizing), virtualSelectedParent)
+				}
+			}
+
+			// Now let's make the kosherizing block red and try to merge again
+			tip := consensushashing.BlockHash(selectedChain[len(selectedChain)-1])
+			// we use k-1 because `kosherizingBlock` points at tip-2, so 2+k-1 = k+1 anticone.
+			for i := 0; i < int(consensusConfig.K)-1; i++ {
+				block := buildAndInsertBlock(consensusReal, []*externalapi.DomainHash{tip})
+				tip = consensushashing.BlockHash(block)
+			}
+
+			if checkVirtual {
+				virtualSelectedParent, err := consensusReal.GetVirtualSelectedParent()
+				if err != nil {
+					t.Fatalf("TestBoundedMergeDepth: Failed getting the virtual selected parent %v", err)
+				}
+
+				if !virtualSelectedParent.Equal(tip) {
+					t.Fatalf("TestBoundedMergeDepth: Expected %s to be the selectedTip but found %s instead", tip, virtualSelectedParent)
+				}
+
+				virtualGhotDagData, err := consensusReal.GHOSTDAGDataStore().Get(
+					consensusReal.DatabaseContext(), model.NewStagingArea(), model.VirtualBlockHash, false)
+				if err != nil {
+					t.Fatalf("TestBoundedMergeDepth: Failed getting the ghostdag data of the virtual: %v", err)
+				}
+				// Make sure it's actually blue
+				found := false
+				for _, blue := range virtualGhotDagData.MergeSetBlues() {
+					if blue.Equal(kosherizingBlockHash) {
+						found = true
+						break
+					}
+				}
+				if found {
+					t.Fatalf("expected kosherizingBlock to be red by the virtual")
+				}
+			}
+
+			pointAtRedKosherizing, isViolatingMergeDepth := checkViolatingMergeDepth(consensusReal, []*externalapi.DomainHash{kosherizingBlockHash, tip})
+			if isViolatingMergeDepth != isRealDepth {
+				t.Fatalf("TestBoundedMergeDepth: Expects isViolatingMergeDepth to be %t", isRealDepth)
+			}
+
+			// Now `pointAtBlueKosherizing` itself is actually still blue, so we can still point at that even though we can't point at kosherizing directly anymore
+			transitiveBlueKosherizing, isViolatingMergeDepth :=
+				checkViolatingMergeDepth(consensusReal, []*externalapi.DomainHash{consensushashing.BlockHash(pointAtBlueKosherizing), tip})
+			if isViolatingMergeDepth {
+				t.Fatalf("TestBoundedMergeDepth: Expected transitiveBlueKosherizing to not violate merge depth")
+			}
+
+			if checkVirtual {
+				virtualSelectedParent, err := consensusReal.GetVirtualSelectedParent()
+				if err != nil {
+					t.Fatalf("TestBoundedMergeDepth: Failed getting the virtual selected parent %v", err)
+				}
+
+				if !virtualSelectedParent.Equal(consensushashing.BlockHash(transitiveBlueKosherizing)) {
+					t.Fatalf("TestBoundedMergeDepth: Expected %s to be the selectedTip but found %s instead", consensushashing.BlockHash(transitiveBlueKosherizing), virtualSelectedParent)
+				}
+
+				// Lets validate the status of all the interesting blocks
+				if getStatus(consensusReal, pointAtBlueKosherizing) != externalapi.StatusUTXOValid {
+					t.Fatalf("TestBoundedMergeDepth: pointAtBlueKosherizing expected status '%s' but got '%s'", externalapi.StatusUTXOValid, getStatus(consensusReal, pointAtBlueKosherizing))
+				}
+				if getStatus(consensusReal, pointAtRedKosherizing) != externalapi.StatusInvalid {
+					t.Fatalf("TestBoundedMergeDepth: pointAtRedKosherizing expected status '%s' but got '%s'", externalapi.StatusInvalid, getStatus(consensusReal, pointAtRedKosherizing))
+				}
+				if getStatus(consensusReal, transitiveBlueKosherizing) != externalapi.StatusUTXOValid {
+					t.Fatalf("TestBoundedMergeDepth: transitiveBlueKosherizing expected status '%s' but got '%s'", externalapi.StatusUTXOValid, getStatus(consensusReal, transitiveBlueKosherizing))
+				}
+				if getStatus(consensusReal, mergeDepthViolatingBlockBottom) != externalapi.StatusInvalid {
+					t.Fatalf("TestBoundedMergeDepth: mergeDepthViolatingBlockBottom expected status '%s' but got '%s'", externalapi.StatusInvalid, getStatus(consensusReal, mergeDepthViolatingBlockBottom))
+				}
+				if getStatus(consensusReal, mergeDepthViolatingTop) != externalapi.StatusInvalid {
+					t.Fatalf("TestBoundedMergeDepth: mergeDepthViolatingTop expected status '%s' but got '%s'", externalapi.StatusInvalid, getStatus(consensusReal, mergeDepthViolatingTop))
+				}
+				if getStatus(consensusReal, kosherizingBlock) != externalapi.StatusUTXOPendingVerification {
+					t.Fatalf("kosherizingBlock expected status '%s' but got '%s'", externalapi.StatusUTXOPendingVerification, getStatus(consensusReal, kosherizingBlock))
+				}
+
+				for i, b := range blocksChain2 {
+					if getStatus(consensusReal, b) != externalapi.StatusUTXOPendingVerification {
+						t.Fatalf("blocksChain2[%d] expected status '%s' but got '%s'", i, externalapi.StatusUTXOPendingVerification, getStatus(consensusReal, b))
+					}
+				}
+				for i, b := range selectedChain {
+					if getStatus(consensusReal, b) != externalapi.StatusUTXOValid {
+						t.Fatalf("selectedChain[%d] expected status '%s' but got '%s'", i, externalapi.StatusUTXOValid, getStatus(consensusReal, b))
+					}
+				}
 			}
 		}
-		if !found {
-			t.Fatalf("TestBoundedMergeDepth: Expected kosherizingBlock to be blue by the virtual")
-		}
 
-		pointAtBlueKosherizing, isViolatingMergeDepth := checkViolatingMergeDepth(consensusReal, []*externalapi.DomainHash{kosherizingBlockHash, consensushashing.BlockHash(selectedChain[len(selectedChain)-1])})
-		if isViolatingMergeDepth {
-
-			t.Fatalf("TestBoundedMergeDepth: Expected selectedTip to not violate merge depth")
-		}
-
-		virtualSelectedParent, err := consensusReal.GetVirtualSelectedParent()
+		test(consensusConfig.FinalityDepth(), consensusConfig.GenesisHash, true, true)
+		virtualDAAScore, err := consensusReal.GetVirtualDAAScore()
 		if err != nil {
-			t.Fatalf("TestBoundedMergeDepth: Failed getting the virtual selected parent %v", err)
+			t.Fatalf("GetVirtualDAAScore: %+v", err)
 		}
 
-		if !virtualSelectedParent.Equal(consensushashing.BlockHash(pointAtBlueKosherizing)) {
-			t.Fatalf("TestBoundedMergeDepth: Expected %s to be the selectedTip but found %s instead", consensushashing.BlockHash(pointAtBlueKosherizing), virtualSelectedParent)
+		if virtualDAAScore > consensusConfig.HF1DAAScore {
+			t.Fatalf("Hard fork is already activated")
 		}
 
-		// Now let's make the kosherizing block red and try to merge again
-		tip := consensushashing.BlockHash(selectedChain[len(selectedChain)-1])
-		// we use k-1 because `kosherizingBlock` points at tip-2, so 2+k-1 = k+1 anticone.
-		for i := 0; i < int(consensusConfig.K)-1; i++ {
-			block := buildAndInsertBlock(consensusReal, []*externalapi.DomainHash{tip})
-			tip = consensushashing.BlockHash(block)
-		}
-
-		virtualSelectedParent, err = consensusReal.GetVirtualSelectedParent()
+		tipBeforeHFActivated, err := consensusReal.GetVirtualSelectedParent()
 		if err != nil {
-			t.Fatalf("TestBoundedMergeDepth: Failed getting the virtual selected parent %v", err)
+			t.Fatalf("GetVirtualSelectedParent: %+v", err)
 		}
 
-		if !virtualSelectedParent.Equal(tip) {
-			t.Fatalf("TestBoundedMergeDepth: Expected %s to be the selectedTip but found %s instead", tip, virtualSelectedParent)
-		}
+		tip := tipBeforeHFActivated
+		for {
+			tip, _, err = consensusReal.AddBlock([]*externalapi.DomainHash{tip}, nil, nil)
+			if err != nil {
+				t.Fatalf("Failed adding block: %+v", err)
+			}
 
-		virtualGhotDagData, err = consensusReal.GHOSTDAGDataStore().Get(
-			consensusReal.DatabaseContext(), stagingArea, model.VirtualBlockHash, false)
-		if err != nil {
-			t.Fatalf("TestBoundedMergeDepth: Failed getting the ghostdag data of the virtual: %v", err)
-		}
-		// Make sure it's actually blue
-		found = false
-		for _, blue := range virtualGhotDagData.MergeSetBlues() {
-			if blue.Equal(kosherizingBlockHash) {
-				found = true
-				break
+			daaScore, err := consensusReal.DAABlocksStore().DAAScore(consensusReal.DatabaseContext(), model.NewStagingArea(), tip)
+			if err != nil {
+				t.Fatalf("Failed adding block: %+v", err)
+			}
+
+			// We check what happens when on the transition between rules: if we merge a chain that
+			// started before the HF was activated, but the HF was already activated for the merging
+			// block, the HF rules should apply.
+			// The checked block in `test` is going to have a DAA score of `tip.DAAScore + depth + 5`,
+			// so this is why we started to test from this depth.
+			if daaScore == consensusConfig.HF1DAAScore-consensusConfig.MergeDepth-5 {
+				test(consensusConfig.MergeDepth, tip, true, true)
+			}
+
+			if daaScore > consensusConfig.HF1DAAScore {
+				virtualSelectedParent, err := consensusReal.GetVirtualSelectedParent()
+				if err != nil {
+					t.Fatalf("GetVirtualSelectedParent: %+v", err)
+				}
+
+				if virtualSelectedParent.Equal(tip) {
+					break
+				}
 			}
 		}
-		if found {
-			t.Fatalf("expected kosherizingBlock to be red by the virtual")
-		}
 
-		pointAtRedKosherizing, isViolatingMergeDepth := checkViolatingMergeDepth(consensusReal, []*externalapi.DomainHash{kosherizingBlockHash, tip})
-		if !isViolatingMergeDepth {
-			t.Fatalf("TestBoundedMergeDepth: Expected selectedTipRedKosherize to violate merge depth")
-		}
-
-		// Now `pointAtBlueKosherizing` itself is actually still blue, so we can still point at that even though we can't point at kosherizing directly anymore
-		transitiveBlueKosherizing, isViolatingMergeDepth :=
-			checkViolatingMergeDepth(consensusReal, []*externalapi.DomainHash{consensushashing.BlockHash(pointAtBlueKosherizing), tip})
-		if isViolatingMergeDepth {
-			t.Fatalf("TestBoundedMergeDepth: Expected transitiveBlueKosherizing to not violate merge depth")
-		}
-
-		virtualSelectedParent, err = consensusReal.GetVirtualSelectedParent()
-		if err != nil {
-			t.Fatalf("TestBoundedMergeDepth: Failed getting the virtual selected parent %v", err)
-		}
-
-		if !virtualSelectedParent.Equal(consensushashing.BlockHash(transitiveBlueKosherizing)) {
-			t.Fatalf("TestBoundedMergeDepth: Expected %s to be the selectedTip but found %s instead", consensushashing.BlockHash(transitiveBlueKosherizing), virtualSelectedParent)
-		}
-
-		// Lets validate the status of all the interesting blocks
-		if getStatus(consensusReal, pointAtBlueKosherizing) != externalapi.StatusUTXOValid {
-			t.Fatalf("TestBoundedMergeDepth: pointAtBlueKosherizing expected status '%s' but got '%s'", externalapi.StatusUTXOValid, getStatus(consensusReal, pointAtBlueKosherizing))
-		}
-		if getStatus(consensusReal, pointAtRedKosherizing) != externalapi.StatusInvalid {
-			t.Fatalf("TestBoundedMergeDepth: pointAtRedKosherizing expected status '%s' but got '%s'", externalapi.StatusInvalid, getStatus(consensusReal, pointAtRedKosherizing))
-		}
-		if getStatus(consensusReal, transitiveBlueKosherizing) != externalapi.StatusUTXOValid {
-			t.Fatalf("TestBoundedMergeDepth: transitiveBlueKosherizing expected status '%s' but got '%s'", externalapi.StatusUTXOValid, getStatus(consensusReal, transitiveBlueKosherizing))
-		}
-		if getStatus(consensusReal, mergeDepthViolatingBlockBottom) != externalapi.StatusInvalid {
-			t.Fatalf("TestBoundedMergeDepth: mergeDepthViolatingBlockBottom expected status '%s' but got '%s'", externalapi.StatusInvalid, getStatus(consensusReal, mergeDepthViolatingBlockBottom))
-		}
-		if getStatus(consensusReal, mergeDepthViolatingTop) != externalapi.StatusInvalid {
-			t.Fatalf("TestBoundedMergeDepth: mergeDepthViolatingTop expected status '%s' but got '%s'", externalapi.StatusInvalid, getStatus(consensusReal, mergeDepthViolatingTop))
-		}
-		if getStatus(consensusReal, kosherizingBlock) != externalapi.StatusUTXOPendingVerification {
-			t.Fatalf("kosherizingBlock expected status '%s' but got '%s'", externalapi.StatusUTXOPendingVerification, getStatus(consensusReal, kosherizingBlock))
-		}
-
-		for i, b := range blocksChain2 {
-			if getStatus(consensusReal, b) != externalapi.StatusUTXOPendingVerification {
-				t.Fatalf("blocksChain2[%d] expected status '%s' but got '%s'", i, externalapi.StatusUTXOPendingVerification, getStatus(consensusReal, b))
-			}
-		}
-		for i, b := range selectedChain {
-			if getStatus(consensusReal, b) != externalapi.StatusUTXOValid {
-				t.Fatalf("selectedChain[%d] expected status '%s' but got '%s'", i, externalapi.StatusUTXOValid, getStatus(consensusReal, b))
-			}
-		}
+		test(consensusConfig.MergeDepth, tip, true, true)
+		test(consensusConfig.FinalityDepth(), tipBeforeHFActivated, false, true)
+		test(consensusConfig.MergeDepth, tipBeforeHFActivated, false, false)
 	})
 }

domain/consensus/model/externalapi/consensus.go

@@ -53,4 +53,5 @@ type Consensus interface {
 	TrustedBlockAssociatedGHOSTDAGDataBlockHashes(blockHash *DomainHash) ([]*DomainHash, error)
 	TrustedGHOSTDAGData(blockHash *DomainHash) (*BlockGHOSTDAGData, error)
 	IsChainBlock(blockHash *DomainHash) (bool, error)
+	VirtualMergeDepthRoot() (*DomainHash, error)
 }

domain/consensus/model/interface_datastructures_mergedepthrootstore.go

@@ -0,0 +1,13 @@
+package model
+
+import (
+	"github.com/kaspanet/kaspad/domain/consensus/model/externalapi"
+)
+
+// MergeDepthRootStore represents a store for merge depth roots
+type MergeDepthRootStore interface {
+	Store
+	IsStaged(stagingArea *StagingArea) bool
+	StageMergeDepthRoot(stagingArea *StagingArea, blockHash *externalapi.DomainHash, root *externalapi.DomainHash)
+	MergeDepthRoot(dbContext DBReader, stagingArea *StagingArea, blockHash *externalapi.DomainHash) (*externalapi.DomainHash, error)
+}

domain/consensus/model/interface_processes_mergedepthmanager.go

@@ -5,5 +5,7 @@ import "github.com/kaspanet/kaspad/domain/consensus/model/externalapi"
 // MergeDepthManager is used to validate mergeDepth for blocks
 type MergeDepthManager interface {
 	CheckBoundedMergeDepth(stagingArea *StagingArea, blockHash *externalapi.DomainHash, isBlockWithTrustedData bool) error
-	NonBoundedMergeDepthViolatingBlues(stagingArea *StagingArea, blockHash *externalapi.DomainHash, isBlockWithTrustedData bool) ([]*externalapi.DomainHash, error)
+	NonBoundedMergeDepthViolatingBlues(stagingArea *StagingArea, blockHash, mergeDepthRoot *externalapi.DomainHash) ([]*externalapi.DomainHash, error)
+	VirtualMergeDepthRoot(stagingArea *StagingArea) (*externalapi.DomainHash, error)
+	MergeDepthRoot(stagingArea *StagingArea, blockHash *externalapi.DomainHash, isBlockWithTrustedData bool) (*externalapi.DomainHash, error)
 }

domain/consensus/model/interface_processes_transactionvalidator.go

@@ -7,7 +7,7 @@ import (
 // TransactionValidator exposes a set of validation classes, after which
 // it's possible to determine whether a transaction is valid
 type TransactionValidator interface {
-	ValidateTransactionInIsolation(transaction *externalapi.DomainTransaction) error
+	ValidateTransactionInIsolation(transaction *externalapi.DomainTransaction, povDAAScore uint64) error
 	ValidateTransactionInContextIgnoringUTXO(stagingArea *StagingArea, tx *externalapi.DomainTransaction,
 		povBlockHash *externalapi.DomainHash, povBlockPastMedianTime int64) error
 	ValidateTransactionInContextAndPopulateFee(stagingArea *StagingArea,

domain/consensus/model/testapi/test_block_builder.go

@@ -18,4 +18,6 @@ type TestBlockBuilder interface {
 
 	BuildUTXOInvalidBlock(parentHashes []*externalapi.DomainHash) (*externalapi.DomainBlock,
 		error)
+
+	SetNonceCounter(nonceCounter uint64)
 }

domain/consensus/processes/blockbuilder/block_builder.go

@@ -20,6 +20,7 @@ import (
 type blockBuilder struct {
 	databaseContext model.DBManager
 	genesisHash     *externalapi.DomainHash
+	hf1DAAScore     uint64
 
 	difficultyManager     model.DifficultyManager
 	pastMedianTimeManager model.PastMedianTimeManager
@@ -42,6 +43,7 @@ type blockBuilder struct {
 func New(
 	databaseContext model.DBManager,
 	genesisHash *externalapi.DomainHash,
+	hf1DAAScore uint64,
 
 	difficultyManager model.DifficultyManager,
 	pastMedianTimeManager model.PastMedianTimeManager,
@@ -63,6 +65,7 @@ func New(
 	return &blockBuilder{
 		databaseContext: databaseContext,
 		genesisHash:     genesisHash,
+		hf1DAAScore:     hf1DAAScore,
 
 		difficultyManager:     difficultyManager,
 		pastMedianTimeManager: pastMedianTimeManager,
@@ -224,8 +227,13 @@ func (bb *blockBuilder) buildHeader(stagingArea *model.StagingArea, transactions
 		return nil, err
 	}
 
+	version := constants.BlockVersionBeforeHF1
+	if daaScore >= bb.hf1DAAScore {
+		version = constants.BlockVersionAfterHF1
+	}
+
 	return blockheader.NewImmutableBlockHeader(
-		constants.MaxBlockVersion,
+		version,
 		parents,
 		hashMerkleRoot,
 		acceptedIDMerkleRoot,

domain/consensus/processes/blockbuilder/test_block_builder.go

@@ -94,9 +94,14 @@ func (bb *testBlockBuilder) buildUTXOInvalidHeader(stagingArea *model.StagingAre
 		})
 	}
 
+	version := constants.BlockVersionBeforeHF1
+	if daaScore >= bb.hf1DAAScore {
+		version = constants.BlockVersionAfterHF1
+	}
+
 	bb.nonceCounter++
 	return blockheader.NewImmutableBlockHeader(
-		constants.MaxBlockVersion,
+		version,
 		parents,
 		hashMerkleRoot,
 		&externalapi.DomainHash{},
@@ -283,3 +288,7 @@ func (bb *testBlockBuilder) BuildUTXOInvalidBlock(parentHashes []*externalapi.Do
 		Transactions: transactions,
 	}, nil
 }
+
+func (bb *testBlockBuilder) SetNonceCounter(nonceCounter uint64) {
+	bb.nonceCounter = nonceCounter
+}

domain/consensus/processes/blockprocessor/blockprocessor.go

@@ -28,6 +28,7 @@ type blockProcessor struct {
 	coinbaseManager       model.CoinbaseManager
 	headerTipsManager     model.HeadersSelectedTipManager
 	syncManager           model.SyncManager
+	finalityManager       model.FinalityManager
 
 	acceptanceDataStore                 model.AcceptanceDataStore
 	blockStore                          model.BlockStore

domain/consensus/processes/blockvalidator/block_body_in_isolation.go

@@ -140,7 +140,7 @@ func (v *blockValidator) checkBlockTransactionOrder(block *externalapi.DomainBlo
 
 func (v *blockValidator) checkTransactionsInIsolation(block *externalapi.DomainBlock) error {
 	for _, tx := range block.Transactions {
-		err := v.transactionValidator.ValidateTransactionInIsolation(tx)
+		err := v.transactionValidator.ValidateTransactionInIsolation(tx, block.Header.DAAScore())
 		if err != nil {
 			return errors.Wrapf(err, "transaction %s failed isolation "+
 				"check", consensushashing.TransactionID(tx))
@@ -220,7 +220,7 @@ func (v *blockValidator) validateGasLimit(block *externalapi.DomainBlock) error
 
 func (v *blockValidator) checkBlockMass(block *externalapi.DomainBlock) error {
 	mass := uint64(0)
-	if !v.ignoreHeaderMass {
+	if block.Header.DAAScore() < v.hf1DAAScore {
 		mass += v.headerEstimatedSerializedSize(block.Header)
 	}
 

domain/consensus/processes/blockvalidator/block_body_in_isolation_test.go

@@ -1307,7 +1307,7 @@ func initBlockWithFirstTransactionDifferentThanCoinbase(consensusConfig *consens
 
 	return &externalapi.DomainBlock{
 		Header: blockheader.NewImmutableBlockHeader(
-			constants.MaxBlockVersion,
+			constants.BlockVersionBeforeHF1,
 			[]externalapi.BlockLevelParents{[]*externalapi.DomainHash{consensusConfig.GenesisHash}},
 			merkle.CalculateHashMerkleRoot([]*externalapi.DomainTransaction{tx}),
 			&externalapi.DomainHash{},

domain/consensus/processes/blockvalidator/block_header_in_context_test.go

@@ -2,6 +2,7 @@ package blockvalidator_test
 
 import (
 	"errors"
+	"github.com/kaspanet/kaspad/domain/consensus/utils/constants"
 	"math/big"
 	"testing"
 
@@ -107,9 +108,14 @@ func TestCheckParentsIncest(t *testing.T) {
 			t.Fatalf("AddBlock: %+v", err)
 		}
 
+		version := constants.BlockVersionBeforeHF1
+		if consensusConfig.HF1DAAScore == 0 {
+			version = constants.BlockVersionAfterHF1
+		}
+
 		directParentsRelationBlock := &externalapi.DomainBlock{
 			Header: blockheader.NewImmutableBlockHeader(
-				0,
+				version,
 				[]externalapi.BlockLevelParents{[]*externalapi.DomainHash{a, b}},
 				&externalapi.DomainHash{},
 				&externalapi.DomainHash{},
@@ -132,7 +138,7 @@ func TestCheckParentsIncest(t *testing.T) {
 
 		indirectParentsRelationBlock := &externalapi.DomainBlock{
 			Header: blockheader.NewImmutableBlockHeader(
-				0,
+				version,
 				[]externalapi.BlockLevelParents{[]*externalapi.DomainHash{consensusConfig.GenesisHash, b}},
 				&externalapi.DomainHash{},
 				&externalapi.DomainHash{},

domain/consensus/processes/blockvalidator/block_header_in_isolation.go

@@ -22,9 +22,11 @@ func (v *blockValidator) ValidateHeaderInIsolation(stagingArea *model.StagingAre
 		return err
 	}
 
-	err = v.checkBlockVersion(header)
-	if err != nil {
-		return err
+	if !blockHash.Equal(v.genesisHash) {
+		err = v.checkBlockVersion(header)
+		if err != nil {
+			return err
+		}
 	}
 
 	err = v.checkBlockTimestampInIsolation(header)
@@ -54,9 +56,16 @@ func (v *blockValidator) checkParentsLimit(header externalapi.BlockHeader) error
 }
 
 func (v *blockValidator) checkBlockVersion(header externalapi.BlockHeader) error {
-	if header.Version() > constants.MaxBlockVersion {
-		return errors.Wrapf(
-			ruleerrors.ErrBlockVersionIsUnknown, "The block version is unknown.")
+	if header.DAAScore() >= v.hf1DAAScore {
+		if header.Version() != constants.BlockVersionAfterHF1 {
+			return errors.Wrapf(
+				ruleerrors.ErrWrongBlockVersion, "After HF1 the block version should be %d", constants.BlockVersionAfterHF1)
+		}
+	} else {
+		if header.Version() != constants.BlockVersionBeforeHF1 {
+			return errors.Wrapf(
+				ruleerrors.ErrWrongBlockVersion, "Beofre HF1 the block version should be %d", constants.BlockVersionBeforeHF1)
+		}
 	}
 	return nil
 }

domain/consensus/processes/blockvalidator/block_header_in_isolation_test.go

@@ -62,8 +62,13 @@ func CheckBlockVersion(t *testing.T, tc testapi.TestConsensus, consensusConfig *
 		t.Fatalf("BuildBlockWithParents: %+v", err)
 	}
 
+	expectedVersion := constants.BlockVersionBeforeHF1
+	if consensusConfig.HF1DAAScore == 0 {
+		expectedVersion = constants.BlockVersionAfterHF1
+	}
+
 	block.Header = blockheader.NewImmutableBlockHeader(
-		constants.MaxBlockVersion+1,
+		expectedVersion+1,
 		block.Header.Parents(),
 		block.Header.HashMerkleRoot(),
 		block.Header.AcceptedIDMerkleRoot(),
@@ -78,7 +83,7 @@ func CheckBlockVersion(t *testing.T, tc testapi.TestConsensus, consensusConfig *
 	)
 
 	_, err = tc.ValidateAndInsertBlock(block, true)
-	if !errors.Is(err, ruleerrors.ErrBlockVersionIsUnknown) {
+	if !errors.Is(err, ruleerrors.ErrWrongBlockVersion) {
 		t.Fatalf("Unexpected error: %+v", err)
 	}
 }

domain/consensus/processes/blockvalidator/blockvalidator.go

@@ -24,7 +24,7 @@ type blockValidator struct {
 	maxBlockParents             externalapi.KType
 	timestampDeviationTolerance int
 	targetTimePerBlock          time.Duration
-	ignoreHeaderMass            bool
+	hf1DAAScore                 uint64
 	maxBlockLevel               int
 
 	databaseContext       model.DBReader
@@ -64,7 +64,7 @@ func New(powMax *big.Int,
 	maxBlockParents externalapi.KType,
 	timestampDeviationTolerance int,
 	targetTimePerBlock time.Duration,
-	ignoreHeaderMass bool,
+	hf1DAAScore uint64,
 	maxBlockLevel int,
 
 	databaseContext model.DBReader,
@@ -104,7 +104,7 @@ func New(powMax *big.Int,
 		maxBlockMass:               maxBlockMass,
 		mergeSetSizeLimit:          mergeSetSizeLimit,
 		maxBlockParents:            maxBlockParents,
-		ignoreHeaderMass:           ignoreHeaderMass,
+		hf1DAAScore:                hf1DAAScore,
 		maxBlockLevel:              maxBlockLevel,
 
 		timestampDeviationTolerance: timestampDeviationTolerance,

domain/consensus/processes/consensusstatemanager/pick_virtual_parents.go

@@ -282,19 +282,19 @@ func (csm *consensusStateManager) boundedMergeBreakingParents(stagingArea *model
 		return nil, err
 	}
 
+	virtualMergeDepthRoot, err := csm.mergeDepthManager.VirtualMergeDepthRoot(stagingArea)
+	if err != nil {
+		return nil, err
+	}
+	log.Debugf("The merge depth root of virtual is: %s", virtualMergeDepthRoot)
+
 	potentiallyKosherizingBlocks, err :=
-		csm.mergeDepthManager.NonBoundedMergeDepthViolatingBlues(stagingArea, model.VirtualBlockHash, false)
+		csm.mergeDepthManager.NonBoundedMergeDepthViolatingBlues(stagingArea, model.VirtualBlockHash, virtualMergeDepthRoot)
 	if err != nil {
 		return nil, err
 	}
 	log.Debugf("The potentially kosherizing blocks are: %s", potentiallyKosherizingBlocks)
 
-	virtualFinalityPoint, err := csm.finalityManager.VirtualFinalityPoint(stagingArea)
-	if err != nil {
-		return nil, err
-	}
-	log.Debugf("The finality point of the virtual is: %s", virtualFinalityPoint)
-
 	var badReds []*externalapi.DomainHash
 
 	virtualGHOSTDAGData, err := csm.ghostdagDataStore.Get(csm.databaseContext, stagingArea, model.VirtualBlockHash, false)
@@ -303,13 +303,13 @@ func (csm *consensusStateManager) boundedMergeBreakingParents(stagingArea *model
 	}
 	for _, redBlock := range virtualGHOSTDAGData.MergeSetReds() {
 		log.Debugf("Check whether red block %s is kosherized", redBlock)
-		isFinalityPointInPast, err := csm.dagTopologyManager.IsAncestorOf(stagingArea, virtualFinalityPoint, redBlock)
+		isMergeDepthRootInPast, err := csm.dagTopologyManager.IsAncestorOf(stagingArea, virtualMergeDepthRoot, redBlock)
 		if err != nil {
 			return nil, err
 		}
-		if isFinalityPointInPast {
+		if isMergeDepthRootInPast {
 			log.Debugf("Skipping red block %s because it has the virtual's"+
-				" finality point in its past", redBlock)
+				" merge depth root in its past", redBlock)
 			continue
 		}
 

domain/consensus/processes/dagtraversalmanager/window_test.go

@@ -185,12 +185,12 @@ func TestBlockWindow(t *testing.T) {
 			{
 				parents:        []string{"C", "D"},
 				id:             "E",
-				expectedWindow: []string{"D", "C", "B"},
+				expectedWindow: []string{"C", "D", "B"},
 			},
 			{
 				parents:        []string{"C", "D"},
 				id:             "F",
-				expectedWindow: []string{"D", "C", "B"},
+				expectedWindow: []string{"C", "D", "B"},
 			},
 			{
 				parents:        []string{"A"},
@@ -205,37 +205,37 @@ func TestBlockWindow(t *testing.T) {
 			{
 				parents:        []string{"H", "F"},
 				id:             "I",
-				expectedWindow: []string{"F", "D", "H", "C", "G", "B"},
+				expectedWindow: []string{"F", "C", "D", "H", "G", "B"},
 			},
 			{
 				parents:        []string{"I"},
 				id:             "J",
-				expectedWindow: []string{"I", "F", "D", "H", "C", "G", "B"},
+				expectedWindow: []string{"I", "F", "C", "D", "H", "G", "B"},
 			},
 			{
 				parents:        []string{"J"},
 				id:             "K",
-				expectedWindow: []string{"J", "I", "F", "D", "H", "C", "G", "B"},
+				expectedWindow: []string{"J", "I", "F", "C", "D", "H", "G", "B"},
 			},
 			{
 				parents:        []string{"K"},
 				id:             "L",
-				expectedWindow: []string{"K", "J", "I", "F", "D", "H", "C", "G", "B"},
+				expectedWindow: []string{"K", "J", "I", "F", "C", "D", "H", "G", "B"},
 			},
 			{
 				parents:        []string{"L"},
 				id:             "M",
-				expectedWindow: []string{"L", "K", "J", "I", "F", "D", "H", "C", "G", "B"},
+				expectedWindow: []string{"L", "K", "J", "I", "F", "C", "D", "H", "G", "B"},
 			},
 			{
 				parents:        []string{"M"},
 				id:             "N",
-				expectedWindow: []string{"M", "L", "K", "J", "I", "F", "D", "H", "C", "G"},
+				expectedWindow: []string{"M", "L", "K", "J", "I", "F", "C", "D", "H", "G"},
 			},
 			{
 				parents:        []string{"N"},
 				id:             "O",
-				expectedWindow: []string{"N", "M", "L", "K", "J", "I", "F", "D", "H", "C"},
+				expectedWindow: []string{"N", "M", "L", "K", "J", "I", "F", "C", "D", "H"},
 			},
 		},
 		dagconfig.SimnetParams.Name: {
@@ -255,14 +255,14 @@ func TestBlockWindow(t *testing.T) {
 				expectedWindow: []string{"B"},
 			},
 			{
-				parents:        []string{"D", "C"},
+				parents:        []string{"C", "D"},
 				id:             "E",
-				expectedWindow: []string{"D", "C", "B"},
+				expectedWindow: []string{"C", "D", "B"},
 			},
 			{
-				parents:        []string{"D", "C"},
+				parents:        []string{"C", "D"},
 				id:             "F",
-				expectedWindow: []string{"D", "C", "B"},
+				expectedWindow: []string{"C", "D", "B"},
 			},
 			{
 				parents:        []string{"A"},
@@ -277,37 +277,37 @@ func TestBlockWindow(t *testing.T) {
 			{
 				parents:        []string{"H", "F"},
 				id:             "I",
-				expectedWindow: []string{"F", "H", "D", "C", "B", "G"},
+				expectedWindow: []string{"F", "C", "H", "D", "B", "G"},
 			},
 			{
 				parents:        []string{"I"},
 				id:             "J",
-				expectedWindow: []string{"I", "F", "H", "D", "C", "B", "G"},
+				expectedWindow: []string{"I", "F", "C", "H", "D", "B", "G"},
 			},
 			{
 				parents:        []string{"J"},
 				id:             "K",
-				expectedWindow: []string{"J", "I", "F", "H", "D", "C", "B", "G"},
+				expectedWindow: []string{"J", "I", "F", "C", "H", "D", "B", "G"},
 			},
 			{
 				parents:        []string{"K"},
 				id:             "L",
-				expectedWindow: []string{"K", "J", "I", "F", "H", "D", "C", "B", "G"},
+				expectedWindow: []string{"K", "J", "I", "F", "C", "H", "D", "B", "G"},
 			},
 			{
 				parents:        []string{"L"},
 				id:             "M",
-				expectedWindow: []string{"L", "K", "J", "I", "F", "H", "D", "C", "B", "G"},
+				expectedWindow: []string{"L", "K", "J", "I", "F", "C", "H", "D", "B", "G"},
 			},
 			{
 				parents:        []string{"M"},
 				id:             "N",
-				expectedWindow: []string{"M", "L", "K", "J", "I", "F", "H", "D", "C", "B"},
+				expectedWindow: []string{"M", "L", "K", "J", "I", "F", "C", "H", "D", "B"},
 			},
 			{
 				parents:        []string{"N"},
 				id:             "O",
-				expectedWindow: []string{"N", "M", "L", "K", "J", "I", "F", "H", "D", "C"},
+				expectedWindow: []string{"N", "M", "L", "K", "J", "I", "F", "C", "H", "D"},
 			},
 		},
 	}

domain/consensus/processes/ghostdagmanager/ghostdag_test.go

@@ -111,7 +111,7 @@ func TestGHOSTDAG(t *testing.T) {
 					blockID := StringToDomainHash(testBlockData.ID)
 					dagTopology.parentsMap[*blockID] = StringToDomainHashSlice(testBlockData.Parents)
 					blockHeadersStore.dagMap[*blockID] = blockheader.NewImmutableBlockHeader(
-						constants.MaxBlockVersion,
+						constants.BlockVersionBeforeHF1,
 						[]externalapi.BlockLevelParents{StringToDomainHashSlice(testBlockData.Parents)},
 						nil,
 						nil,

domain/consensus/processes/mergedepthmanager/log.go

@@ -0,0 +1,7 @@
+package mergedepthmanager
+
+import (
+	"github.com/kaspanet/kaspad/infrastructure/logger"
+)
+
+var log = logger.RegisterSubSystem("MDMN")

domain/consensus/processes/mergedepthmanager/merge_depth_manager.go

@@ -4,6 +4,7 @@ import (
 	"github.com/kaspanet/kaspad/domain/consensus/model"
 	"github.com/kaspanet/kaspad/domain/consensus/model/externalapi"
 	"github.com/kaspanet/kaspad/domain/consensus/ruleerrors"
+	"github.com/kaspanet/kaspad/infrastructure/db/database"
 	"github.com/pkg/errors"
 )
 
@@ -13,7 +14,15 @@ type mergeDepthManager struct {
 	dagTraversalManager model.DAGTraversalManager
 	finalityManager     model.FinalityManager
 
-	ghostdagDataStore model.GHOSTDAGDataStore
+	genesisHash *externalapi.DomainHash
+	mergeDepth  uint64
+	hf1DAAScore uint64
+
+	ghostdagDataStore   model.GHOSTDAGDataStore
+	mergeDepthRootStore model.MergeDepthRootStore
+	daaBlocksStore      model.DAABlocksStore
+	pruningStore        model.PruningStore
+	finalityStore       model.FinalityStore
 }
 
 // New instantiates a new MergeDepthManager
@@ -22,24 +31,36 @@ func New(
 	dagTopologyManager model.DAGTopologyManager,
 	dagTraversalManager model.DAGTraversalManager,
 	finalityManager model.FinalityManager,
-	ghostdagDataStore model.GHOSTDAGDataStore) model.MergeDepthManager {
+
+	genesisHash *externalapi.DomainHash,
+	mergeDepth uint64,
+	hf1DAAScore uint64,
+
+	ghostdagDataStore model.GHOSTDAGDataStore,
+	mergeDepthRootStore model.MergeDepthRootStore,
+	daaBlocksStore model.DAABlocksStore,
+	pruningStore model.PruningStore,
+	finalityStore model.FinalityStore) model.MergeDepthManager {
 
 	return &mergeDepthManager{
 		databaseContext:     databaseContext,
 		dagTopologyManager:  dagTopologyManager,
 		dagTraversalManager: dagTraversalManager,
 		finalityManager:     finalityManager,
+		genesisHash:         genesisHash,
+		mergeDepth:          mergeDepth,
+		hf1DAAScore:         hf1DAAScore,
 		ghostdagDataStore:   ghostdagDataStore,
+		mergeDepthRootStore: mergeDepthRootStore,
+		daaBlocksStore:      daaBlocksStore,
+		pruningStore:        pruningStore,
+		finalityStore:       finalityStore,
 	}
 
 }
 
+// CheckBoundedMergeDepth is used for validation, so must follow the HF1 DAA score for determining the correct depth to verify
 func (mdm *mergeDepthManager) CheckBoundedMergeDepth(stagingArea *model.StagingArea, blockHash *externalapi.DomainHash, isBlockWithTrustedData bool) error {
-	nonBoundedMergeDepthViolatingBlues, err := mdm.NonBoundedMergeDepthViolatingBlues(stagingArea, blockHash, isBlockWithTrustedData)
-	if err != nil {
-		return err
-	}
-
 	ghostdagData, err := mdm.ghostdagDataStore.Get(mdm.databaseContext, stagingArea, blockHash, false)
 	if err != nil {
 		return err
@@ -50,28 +71,34 @@ func (mdm *mergeDepthManager) CheckBoundedMergeDepth(stagingArea *model.StagingA
 		return nil
 	}
 
-	finalityPoint, err := mdm.finalityManager.FinalityPoint(stagingArea, blockHash, isBlockWithTrustedData)
+	// For validation, we must follow the HF1 DAA score in order to determine the correct depth to verify
+	mergeDepthRootByHF1, err := mdm.mergeDepthRootByHF1DAAScoreForValidationOnly(stagingArea, blockHash, isBlockWithTrustedData)
+	if err != nil {
+		return err
+	}
+
+	nonBoundedMergeDepthViolatingBlues, err := mdm.NonBoundedMergeDepthViolatingBlues(stagingArea, blockHash, mergeDepthRootByHF1)
 	if err != nil {
 		return err
 	}
 
 	for _, red := range ghostdagData.MergeSetReds() {
-		doesRedHaveFinalityPointInPast, err := mdm.dagTopologyManager.IsAncestorOf(stagingArea, finalityPoint, red)
+		doesRedHaveMergeRootInPast, err := mdm.dagTopologyManager.IsAncestorOf(stagingArea, mergeDepthRootByHF1, red)
 		if err != nil {
 			return err
 		}
 
-		if doesRedHaveFinalityPointInPast {
+		if doesRedHaveMergeRootInPast {
 			continue
 		}
 
-		isRedInPastOfAnyNonFinalityViolatingBlue, err :=
+		isRedInPastOfAnyNonMergeDepthViolatingBlue, err :=
 			mdm.dagTopologyManager.IsAncestorOfAny(stagingArea, red, nonBoundedMergeDepthViolatingBlues)
 		if err != nil {
 			return err
 		}
 
-		if !isRedInPastOfAnyNonFinalityViolatingBlue {
+		if !isRedInPastOfAnyNonMergeDepthViolatingBlue {
 			return errors.Wrapf(ruleerrors.ErrViolatingBoundedMergeDepth, "block is violating bounded merge depth")
 		}
 	}
@@ -79,7 +106,9 @@ func (mdm *mergeDepthManager) CheckBoundedMergeDepth(stagingArea *model.StagingA
 	return nil
 }
 
-func (mdm *mergeDepthManager) NonBoundedMergeDepthViolatingBlues(stagingArea *model.StagingArea, blockHash *externalapi.DomainHash, isBlockWithTrustedData bool) ([]*externalapi.DomainHash, error) {
+func (mdm *mergeDepthManager) NonBoundedMergeDepthViolatingBlues(
+	stagingArea *model.StagingArea, blockHash, mergeDepthRoot *externalapi.DomainHash) ([]*externalapi.DomainHash, error) {
+
 	ghostdagData, err := mdm.ghostdagDataStore.Get(mdm.databaseContext, stagingArea, blockHash, false)
 	if err != nil {
 		return nil, err
@@ -87,20 +116,173 @@ func (mdm *mergeDepthManager) NonBoundedMergeDepthViolatingBlues(stagingArea *mo
 
 	nonBoundedMergeDepthViolatingBlues := make([]*externalapi.DomainHash, 0, len(ghostdagData.MergeSetBlues()))
 
-	finalityPoint, err := mdm.finalityManager.FinalityPoint(stagingArea, blockHash, isBlockWithTrustedData)
 	if err != nil {
 		return nil, err
 	}
 	for _, blue := range ghostdagData.MergeSetBlues() {
-		notViolatingFinality, err := mdm.dagTopologyManager.IsInSelectedParentChainOf(stagingArea, finalityPoint, blue)
+		isMergeDepthRootInSelectedChainOfBlue, err := mdm.dagTopologyManager.IsInSelectedParentChainOf(stagingArea, mergeDepthRoot, blue)
 		if err != nil {
 			return nil, err
 		}
 
-		if notViolatingFinality {
+		if isMergeDepthRootInSelectedChainOfBlue {
 			nonBoundedMergeDepthViolatingBlues = append(nonBoundedMergeDepthViolatingBlues, blue)
 		}
 	}
 
 	return nonBoundedMergeDepthViolatingBlues, nil
 }
+
+func (mdm *mergeDepthManager) mergeDepthRootByHF1DAAScoreForValidationOnly(
+	stagingArea *model.StagingArea, blockHash *externalapi.DomainHash, isBlockWithTrustedData bool) (*externalapi.DomainHash, error) {
+	daaScore, err := mdm.daaBlocksStore.DAAScore(mdm.databaseContext, stagingArea, blockHash)
+	if err != nil {
+		return nil, err
+	}
+
+	// We call both, merge depth root and finality, in order to trigger storage persistency for both,
+	// although only one of them is used below
+	mergeDepthRoot, err := mdm.MergeDepthRoot(stagingArea, blockHash, isBlockWithTrustedData)
+	if err != nil {
+		return nil, err
+	}
+	// As noted above, this line should not be removed following the HF, unless we validate that storage of
+	// finality point is not needed any more
+	finalityPoint, err := mdm.finalityManager.FinalityPoint(stagingArea, blockHash, isBlockWithTrustedData)
+	if err != nil {
+		return nil, err
+	}
+
+	if daaScore >= mdm.hf1DAAScore {
+		return mergeDepthRoot, nil
+	}
+
+	// We fall back to the merge depth root before the HF, which was the finality point
+	return finalityPoint, nil
+}
+
+func (mdm *mergeDepthManager) VirtualMergeDepthRoot(stagingArea *model.StagingArea) (*externalapi.DomainHash, error) {
+	log.Tracef("VirtualMergeDepthRoot start")
+	defer log.Tracef("VirtualMergeDepthRoot end")
+
+	virtualMergeDepthRoot, err := mdm.calculateMergeDepthRoot(stagingArea, model.VirtualBlockHash, false)
+	if err != nil {
+		return nil, err
+	}
+	log.Debugf("The current virtual merge depth root is: %s", virtualMergeDepthRoot)
+
+	return virtualMergeDepthRoot, nil
+}
+
+func (mdm *mergeDepthManager) MergeDepthRoot(stagingArea *model.StagingArea, blockHash *externalapi.DomainHash, isBlockWithTrustedData bool) (*externalapi.DomainHash, error) {
+	log.Tracef("MergeDepthRoot start")
+	defer log.Tracef("MergeDepthRoot end")
+	if blockHash.Equal(model.VirtualBlockHash) {
+		return mdm.VirtualMergeDepthRoot(stagingArea)
+	}
+	root, err := mdm.mergeDepthRootStore.MergeDepthRoot(mdm.databaseContext, stagingArea, blockHash)
+	if err != nil {
+		log.Debugf("%s merge depth root not found in store - calculating", blockHash)
+		if errors.Is(err, database.ErrNotFound) {
+			return mdm.calculateAndStageMergeDepthRoot(stagingArea, blockHash, isBlockWithTrustedData)
+		}
+		return nil, err
+	}
+	return root, nil
+}
+
+func (mdm *mergeDepthManager) calculateAndStageMergeDepthRoot(
+	stagingArea *model.StagingArea, blockHash *externalapi.DomainHash, isBlockWithTrustedData bool) (*externalapi.DomainHash, error) {
+
+	root, err := mdm.calculateMergeDepthRoot(stagingArea, blockHash, isBlockWithTrustedData)
+	if err != nil {
+		return nil, err
+	}
+	mdm.mergeDepthRootStore.StageMergeDepthRoot(stagingArea, blockHash, root)
+	return root, nil
+}
+
+func (mdm *mergeDepthManager) calculateMergeDepthRoot(stagingArea *model.StagingArea, blockHash *externalapi.DomainHash, isBlockWithTrustedData bool) (
+	*externalapi.DomainHash, error) {
+
+	log.Tracef("calculateMergeDepthRoot start")
+	defer log.Tracef("calculateMergeDepthRoot end")
+
+	if isBlockWithTrustedData {
+		return model.VirtualGenesisBlockHash, nil
+	}
+
+	ghostdagData, err := mdm.ghostdagDataStore.Get(mdm.databaseContext, stagingArea, blockHash, false)
+	if err != nil {
+		return nil, err
+	}
+
+	if ghostdagData.BlueScore() < mdm.mergeDepth {
+		log.Debugf("%s blue score lower then merge depth - returning genesis as merge depth root", blockHash)
+		return mdm.genesisHash, nil
+	}
+
+	pruningPoint, err := mdm.pruningStore.PruningPoint(mdm.databaseContext, stagingArea)
+	if err != nil {
+		return nil, err
+	}
+	pruningPointGhostdagData, err := mdm.ghostdagDataStore.Get(mdm.databaseContext, stagingArea, pruningPoint, false)
+	if err != nil {
+		return nil, err
+	}
+	if ghostdagData.BlueScore() < pruningPointGhostdagData.BlueScore()+mdm.mergeDepth {
+		log.Debugf("%s blue score less than merge depth over pruning point - returning virtual genesis as merge depth root", blockHash)
+		return model.VirtualGenesisBlockHash, nil
+	}
+	isPruningPointOnChain, err := mdm.dagTopologyManager.IsInSelectedParentChainOf(stagingArea, pruningPoint, blockHash)
+	if err != nil {
+		return nil, err
+	}
+	if !isPruningPointOnChain {
+		log.Debugf("pruning point not in selected chain of %s - returning virtual genesis as merge depth root", blockHash)
+		return model.VirtualGenesisBlockHash, nil
+	}
+
+	selectedParent := ghostdagData.SelectedParent()
+	if selectedParent.Equal(mdm.genesisHash) {
+		return mdm.genesisHash, nil
+	}
+
+	current, err := mdm.mergeDepthRootStore.MergeDepthRoot(mdm.databaseContext, stagingArea, ghostdagData.SelectedParent())
+	if database.IsNotFoundError(err) {
+		// This should only occur for a few blocks following the upgrade
+		log.Debugf("merge point root not in store for %s, falling back to finality point", ghostdagData.SelectedParent())
+		current, err = mdm.finalityStore.FinalityPoint(mdm.databaseContext, stagingArea, ghostdagData.SelectedParent())
+		if err != nil {
+			return nil, err
+		}
+	} else if err != nil {
+		return nil, err
+	}
+	// In this case we expect the pruning point or a block above it to be the merge depth root.
+	// Note that above we already verified the chain and distance conditions for this
+	if current.Equal(model.VirtualGenesisBlockHash) {
+		current = pruningPoint
+	}
+
+	requiredBlueScore := ghostdagData.BlueScore() - mdm.mergeDepth
+	log.Debugf("%s's merge depth root is the one having the highest blue score lower then %d", blockHash, requiredBlueScore)
+
+	var next *externalapi.DomainHash
+	for {
+		next, err = mdm.dagTopologyManager.ChildInSelectedParentChainOf(stagingArea, current, blockHash)
+		if err != nil {
+			return nil, err
+		}
+		nextGHOSTDAGData, err := mdm.ghostdagDataStore.Get(mdm.databaseContext, stagingArea, next, false)
+		if err != nil {
+			return nil, err
+		}
+		if nextGHOSTDAGData.BlueScore() >= requiredBlueScore {
+			log.Debugf("%s's merge depth root is %s", blockHash, current)
+			return current, nil
+		}
+
+		current = next
+	}
+}

domain/consensus/processes/pruningmanager/pruning_test.go

@@ -38,7 +38,7 @@ func TestPruning(t *testing.T) {
 		"dag-for-test-pruning.json": {
 			dagconfig.MainnetParams.Name: "503",
 			dagconfig.TestnetParams.Name: "502",
-			dagconfig.DevnetParams.Name:  "502",
+			dagconfig.DevnetParams.Name:  "503",
 			dagconfig.SimnetParams.Name:  "503",
 		},
 	}

domain/consensus/processes/transactionvalidator/transaction_in_context.go

@@ -58,6 +58,14 @@ func (v *transactionValidator) ValidateTransactionInContextIgnoringUTXO(stagingA
 		return errors.Wrapf(ruleerrors.ErrUnfinalizedTx, "unfinalized transaction %v", tx)
 	}
 
+	// TODO: Remove checkTransactionAmountRanges from here once HF was activated. It's only temporary
+	// because in the HF transition period checkTransactionAmountRanges is not context free.
+	isHF1Activated := povBlockDAAScore >= v.hf1DAAScore
+	err = v.checkTransactionAmountRanges(tx, isHF1Activated)
+	if err != nil {
+		return err
+	}
+
 	return nil
 }
 
@@ -73,7 +81,13 @@ func (v *transactionValidator) ValidateTransactionInContextAndPopulateFee(stagin
 		return err
 	}
 
-	totalSompiIn, err := v.checkTransactionInputAmounts(tx)
+	daaScore, err := v.daaBlocksStore.DAAScore(v.databaseContext, stagingArea, povBlockHash)
+	if err != nil {
+		return err
+	}
+
+	isHF1Activated := daaScore >= v.hf1DAAScore
+	totalSompiIn, err := v.checkTransactionInputAmounts(tx, isHF1Activated)
 	if err != nil {
 		return err
 	}
@@ -135,7 +149,7 @@ func (v *transactionValidator) checkTransactionCoinbaseMaturity(stagingArea *mod
 	return nil
 }
 
-func (v *transactionValidator) checkTransactionInputAmounts(tx *externalapi.DomainTransaction) (totalSompiIn uint64, err error) {
+func (v *transactionValidator) checkTransactionInputAmounts(tx *externalapi.DomainTransaction, isHF1Activated bool) (totalSompiIn uint64, err error) {
 	totalSompiIn = 0
 
 	var missingOutpoints []*externalapi.DomainOutpoint
@@ -152,7 +166,7 @@ func (v *transactionValidator) checkTransactionInputAmounts(tx *externalapi.Doma
 		// a transaction are in a unit value known as a sompi. One
 		// kaspa is a quantity of sompi as defined by the
 		// SompiPerKaspa constant.
-		totalSompiIn, err = v.checkEntryAmounts(utxoEntry, totalSompiIn)
+		totalSompiIn, err = v.checkEntryAmounts(utxoEntry, totalSompiIn, isHF1Activated)
 		if err != nil {
 			return 0, err
 		}
@@ -165,18 +179,24 @@ func (v *transactionValidator) checkTransactionInputAmounts(tx *externalapi.Doma
 	return totalSompiIn, nil
 }
 
-func (v *transactionValidator) checkEntryAmounts(entry externalapi.UTXOEntry, totalSompiInBefore uint64) (totalSompiInAfter uint64, err error) {
+func (v *transactionValidator) checkEntryAmounts(entry externalapi.UTXOEntry, totalSompiInBefore uint64, isHF1Activated bool) (totalSompiInAfter uint64, err error) {
 	// The total of all outputs must not be more than the max
 	// allowed per transaction. Also, we could potentially overflow
 	// the accumulator so check for overflow.
+
+	maxSompi := constants.MaxSompiBeforeHF1
+	if isHF1Activated {
+		maxSompi = constants.MaxSompiAfterHF1
+	}
+
 	originTxSompi := entry.Amount()
 	totalSompiInAfter = totalSompiInBefore + originTxSompi
 	if totalSompiInAfter < totalSompiInBefore ||
-		totalSompiInAfter > constants.MaxSompi {
+		totalSompiInAfter > maxSompi {
 		return 0, errors.Wrapf(ruleerrors.ErrBadTxOutValue, "total value of all transaction "+
 			"inputs is %d which is higher than max "+
 			"allowed value of %d", totalSompiInBefore,
-			constants.MaxSompi)
+			maxSompi)
 	}
 	return totalSompiInAfter, nil
 }

domain/consensus/processes/transactionvalidator/transaction_in_isolation.go

@@ -10,12 +10,13 @@ import (
 )
 
 // ValidateTransactionInIsolation validates the parts of the transaction that can be validated context-free
-func (v *transactionValidator) ValidateTransactionInIsolation(tx *externalapi.DomainTransaction) error {
+func (v *transactionValidator) ValidateTransactionInIsolation(tx *externalapi.DomainTransaction, povDAAScore uint64) error {
+	isHF1Activated := povDAAScore >= v.hf1DAAScore
 	err := v.checkTransactionInputCount(tx)
 	if err != nil {
 		return err
 	}
-	err = v.checkTransactionAmountRanges(tx)
+	err = v.checkTransactionAmountRanges(tx, isHF1Activated)
 	if err != nil {
 		return err
 	}
@@ -62,13 +63,18 @@ func (v *transactionValidator) checkTransactionInputCount(tx *externalapi.Domain
 	return nil
 }
 
-func (v *transactionValidator) checkTransactionAmountRanges(tx *externalapi.DomainTransaction) error {
+func (v *transactionValidator) checkTransactionAmountRanges(tx *externalapi.DomainTransaction, isHF1Activated bool) error {
 	// Ensure the transaction amounts are in range. Each transaction
 	// output must not be negative or more than the max allowed per
 	// transaction. Also, the total of all outputs must abide by the same
 	// restrictions. All amounts in a transaction are in a unit value known
 	// as a sompi. One kaspa is a quantity of sompi as defined by the
 	// sompiPerKaspa constant.
+	maxSompi := constants.MaxSompiBeforeHF1
+	if isHF1Activated {
+		maxSompi = constants.MaxSompiAfterHF1
+	}
+
 	var totalSompi uint64
 	for _, txOut := range tx.Outputs {
 		sompi := txOut.Value
@@ -76,9 +82,9 @@ func (v *transactionValidator) checkTransactionAmountRanges(tx *externalapi.Doma
 			return errors.Wrap(ruleerrors.ErrTxOutValueZero, "zero value outputs are forbidden")
 		}
 
-		if sompi > constants.MaxSompi {
+		if sompi > maxSompi {
 			return errors.Wrapf(ruleerrors.ErrBadTxOutValue, "transaction output value of %d is "+
-				"higher than max allowed value of %d", sompi, constants.MaxSompi)
+				"higher than max allowed value of %d", sompi, maxSompi)
 		}
 
 		// Binary arithmetic guarantees that any overflow is detected and reported.
@@ -88,14 +94,14 @@ func (v *transactionValidator) checkTransactionAmountRanges(tx *externalapi.Doma
 		if newTotalSompi < totalSompi {
 			return errors.Wrapf(ruleerrors.ErrBadTxOutValue, "total value of all transaction "+
 				"outputs exceeds max allowed value of %d",
-				constants.MaxSompi)
+				maxSompi)
 		}
 		totalSompi = newTotalSompi
-		if totalSompi > constants.MaxSompi {
+		if totalSompi > maxSompi {
 			return errors.Wrapf(ruleerrors.ErrBadTxOutValue, "total value of all transaction "+
 				"outputs is %d which is higher than max "+
 				"allowed value of %d", totalSompi,
-				constants.MaxSompi)
+				maxSompi)
 		}
 	}
 

domain/consensus/processes/transactionvalidator/transaction_in_isolation_test.go

@@ -21,8 +21,11 @@ type txSubnetworkData struct {
 
 func TestValidateTransactionInIsolationAndPopulateMass(t *testing.T) {
 	testutils.ForAllNets(t, true, func(t *testing.T, consensusConfig *consensus.Config) {
+		cfg := *consensusConfig
+		cfg.HF1DAAScore = 20
+
 		factory := consensus.NewFactory()
-		tc, teardown, err := factory.NewTestConsensus(consensusConfig, "TestValidateTransactionInIsolationAndPopulateMass")
+		tc, teardown, err := factory.NewTestConsensus(&cfg, "TestValidateTransactionInIsolationAndPopulateMass")
 		if err != nil {
 			t.Fatalf("Error setting up consensus: %+v", err)
 		}
@@ -37,25 +40,36 @@ func TestValidateTransactionInIsolationAndPopulateMass(t *testing.T) {
 			txSubnetworkData       *txSubnetworkData
 			extraModificationsFunc func(*externalapi.DomainTransaction)
 			expectedErr            error
+			daaScore               uint64
 		}{
-			{"good one", 1, 1, 1, subnetworks.SubnetworkIDNative, nil, nil, nil},
-			{"no inputs", 0, 1, 1, subnetworks.SubnetworkIDNative, nil, nil, ruleerrors.ErrNoTxInputs},
-			{"no outputs", 1, 0, 1, subnetworks.SubnetworkIDNative, nil, nil, nil},
-			{"too much sompi in one output", 1, 1, constants.MaxSompi + 1,
+			{"good one", 1, 1, 1, subnetworks.SubnetworkIDNative, nil, nil, nil, 0},
+			{"no inputs", 0, 1, 1, subnetworks.SubnetworkIDNative, nil, nil, ruleerrors.ErrNoTxInputs, 0},
+			{"no outputs", 1, 0, 1, subnetworks.SubnetworkIDNative, nil, nil, nil, 0},
+			{"too much sompi in one output", 1, 1, constants.MaxSompiBeforeHF1 + 1,
 				subnetworks.SubnetworkIDNative,
 				nil,
 				nil,
-				ruleerrors.ErrBadTxOutValue},
-			{"too much sompi in total outputs", 1, 2, constants.MaxSompi - 1,
+				ruleerrors.ErrBadTxOutValue, 0},
+			{"too much sompi before- valid now", 1, 1, constants.MaxSompiBeforeHF1 + 1,
 				subnetworks.SubnetworkIDNative,
 				nil,
 				nil,
-				ruleerrors.ErrBadTxOutValue},
+				nil, cfg.HF1DAAScore},
+			{"too much sompi in one output - after hf", 1, 1, constants.MaxSompiAfterHF1 + 1,
+				subnetworks.SubnetworkIDNative,
+				nil,
+				nil,
+				ruleerrors.ErrBadTxOutValue, cfg.HF1DAAScore},
+			{"too much sompi in one output", 1, 1, constants.MaxSompiAfterHF1 + 1,
+				subnetworks.SubnetworkIDNative,
+				nil,
+				nil,
+				ruleerrors.ErrBadTxOutValue, 0},
 			{"duplicate inputs", 2, 1, 1,
 				subnetworks.SubnetworkIDNative,
 				nil,
 				func(tx *externalapi.DomainTransaction) { tx.Inputs[1].PreviousOutpoint.Index = 0 },
-				ruleerrors.ErrDuplicateTxInputs},
+				ruleerrors.ErrDuplicateTxInputs, 0},
 			{"1 input coinbase",
 				1,
 				1,
@@ -63,7 +77,7 @@ func TestValidateTransactionInIsolationAndPopulateMass(t *testing.T) {
 				subnetworks.SubnetworkIDNative,
 				&txSubnetworkData{subnetworks.SubnetworkIDCoinbase, 0, nil},
 				nil,
-				nil},
+				nil, 0},
 			{"no inputs coinbase",
 				0,
 				1,
@@ -71,7 +85,7 @@ func TestValidateTransactionInIsolationAndPopulateMass(t *testing.T) {
 				subnetworks.SubnetworkIDNative,
 				&txSubnetworkData{subnetworks.SubnetworkIDCoinbase, 0, nil},
 				nil,
-				nil},
+				nil, 0},
 			{"too long payload coinbase",
 				1,
 				1,
@@ -79,26 +93,26 @@ func TestValidateTransactionInIsolationAndPopulateMass(t *testing.T) {
 				subnetworks.SubnetworkIDNative,
 				&txSubnetworkData{subnetworks.SubnetworkIDCoinbase, 0, make([]byte, consensusConfig.MaxCoinbasePayloadLength+1)},
 				nil,
-				ruleerrors.ErrBadCoinbasePayloadLen},
+				ruleerrors.ErrBadCoinbasePayloadLen, 0},
 			{"non-zero gas in Kaspa", 1, 1, 1,
 				subnetworks.SubnetworkIDNative,
 				nil,
 				func(tx *externalapi.DomainTransaction) {
 					tx.Gas = 1
 				},
-				ruleerrors.ErrInvalidGas},
+				ruleerrors.ErrInvalidGas, 0},
 			{"non-zero gas in subnetwork registry", 1, 1, 1,
 				subnetworks.SubnetworkIDRegistry,
 				&txSubnetworkData{subnetworks.SubnetworkIDRegistry, 1, []byte{}},
 				nil,
-				ruleerrors.ErrInvalidGas},
+				ruleerrors.ErrInvalidGas, 0},
 			{"non-zero payload in Kaspa", 1, 1, 1,
 				subnetworks.SubnetworkIDNative,
 				nil,
 				func(tx *externalapi.DomainTransaction) {
 					tx.Payload = []byte{1}
 				},
-				ruleerrors.ErrInvalidPayload},
+				ruleerrors.ErrInvalidPayload, 0},
 		}
 
 		for _, test := range tests {
@@ -108,7 +122,7 @@ func TestValidateTransactionInIsolationAndPopulateMass(t *testing.T) {
 				test.extraModificationsFunc(tx)
 			}
 
-			err := tc.TransactionValidator().ValidateTransactionInIsolation(tx)
+			err := tc.TransactionValidator().ValidateTransactionInIsolation(tx, test.daaScore)
 			if !errors.Is(err, test.expectedErr) {
 				t.Errorf("TestValidateTransactionInIsolationAndPopulateMass: '%s': unexpected error %+v", test.name, err)
 			}

domain/consensus/processes/transactionvalidator/transactionvalidator.go

@@ -21,6 +21,7 @@ type transactionValidator struct {
 	sigCache                   *txscript.SigCache
 	sigCacheECDSA              *txscript.SigCacheECDSA
 	txMassCalculator           *txmass.Calculator
+	hf1DAAScore                uint64
 }
 
 // New instantiates a new TransactionValidator
@@ -31,7 +32,8 @@ func New(blockCoinbaseMaturity uint64,
 	pastMedianTimeManager model.PastMedianTimeManager,
 	ghostdagDataStore model.GHOSTDAGDataStore,
 	daaBlocksStore model.DAABlocksStore,
-	txMassCalculator *txmass.Calculator) model.TransactionValidator {
+	txMassCalculator *txmass.Calculator,
+	hf1DAAScore uint64) model.TransactionValidator {
 
 	return &transactionValidator{
 		blockCoinbaseMaturity:      blockCoinbaseMaturity,
@@ -44,5 +46,6 @@ func New(blockCoinbaseMaturity uint64,
 		sigCache:                   txscript.NewSigCache(sigCacheSize),
 		sigCacheECDSA:              txscript.NewSigCacheECDSA(sigCacheSize),
 		txMassCalculator:           txMassCalculator,
+		hf1DAAScore:                hf1DAAScore,
 	}
 }

domain/consensus/processes/transactionvalidator/transactionvalidator_test.go

@@ -21,7 +21,7 @@ import (
 
 func TestValidateTransactionInContextAndPopulateFee(t *testing.T) {
 	testutils.ForAllNets(t, true, func(t *testing.T, consensusConfig *consensus.Config) {
-
+		consensusConfig.HF1DAAScore = consensusConfig.GenesisBlock.Header.DAAScore() + 1000
 		factory := consensus.NewFactory()
 		tc, tearDown, err := factory.NewTestConsensus(consensusConfig,
 			"TestValidateTransactionInContextAndPopulateFee")
@@ -85,17 +85,31 @@ func TestValidateTransactionInContextAndPopulateFee(t *testing.T) {
 				true,
 				uint64(6)),
 		}
+
 		txInputWithLargeAmount := externalapi.DomainTransactionInput{
 			PreviousOutpoint: prevOutPoint,
 			SignatureScript:  []byte{},
 			Sequence:         constants.MaxTxInSequenceNum,
 			SigOpCount:       1,
 			UTXOEntry: utxo.NewUTXOEntry(
-				constants.MaxSompi,
+				constants.MaxSompiBeforeHF1+1,
 				scriptPublicKey,
-				true,
-				uint64(5)),
+				false,
+				0),
 		}
+
+		txInputWithLargeAmountAfterHF := externalapi.DomainTransactionInput{
+			PreviousOutpoint: prevOutPoint,
+			SignatureScript:  []byte{},
+			Sequence:         constants.MaxTxInSequenceNum,
+			SigOpCount:       1,
+			UTXOEntry: utxo.NewUTXOEntry(
+				constants.MaxSompiAfterHF1+1,
+				scriptPublicKey,
+				false,
+				0),
+		}
+
 		txInputWithBadSigOpCount := externalapi.DomainTransactionInput{
 			PreviousOutpoint: prevOutPoint,
 			SignatureScript:  []byte{},
@@ -141,13 +155,31 @@ func TestValidateTransactionInContextAndPopulateFee(t *testing.T) {
 			SubnetworkID: subnetworks.SubnetworkIDRegistry,
 			Gas:          0,
 			LockTime:     0}
-		txWithLargeAmount := externalapi.DomainTransaction{
+		txWithLargeAmountBeforeHF := externalapi.DomainTransaction{
 			Version:      constants.MaxTransactionVersion,
-			Inputs:       []*externalapi.DomainTransactionInput{&txInput, &txInputWithLargeAmount},
+			Inputs:       []*externalapi.DomainTransactionInput{&txInputWithLargeAmount},
 			Outputs:      []*externalapi.DomainTransactionOutput{&txOutput},
 			SubnetworkID: subnetworks.SubnetworkIDRegistry,
 			Gas:          0,
 			LockTime:     0}
+
+		txWithLargeAmountAfterHF := externalapi.DomainTransaction{
+			Version:      constants.MaxTransactionVersion,
+			Inputs:       []*externalapi.DomainTransactionInput{&txInputWithLargeAmountAfterHF},
+			Outputs:      []*externalapi.DomainTransactionOutput{&txOutput},
+			SubnetworkID: subnetworks.SubnetworkIDRegistry,
+			Gas:          0,
+			LockTime:     0}
+
+		for i, input := range txWithLargeAmountBeforeHF.Inputs {
+			signatureScript, err := txscript.SignatureScript(&txWithLargeAmountBeforeHF, i, consensushashing.SigHashAll, privateKey,
+				&consensushashing.SighashReusedValues{})
+			if err != nil {
+				t.Fatalf("Failed to create a sigScript: %v", err)
+			}
+			input.SignatureScript = signatureScript
+		}
+
 		txWithBigValue := externalapi.DomainTransaction{
 			Version:      constants.MaxTransactionVersion,
 			Inputs:       []*externalapi.DomainTransactionInput{&txInput},
@@ -175,6 +207,9 @@ func TestValidateTransactionInContextAndPopulateFee(t *testing.T) {
 		povBlockHash := externalapi.NewDomainHashFromByteArray(&[32]byte{0x01})
 		tc.DAABlocksStore().StageDAAScore(stagingArea, povBlockHash, consensusConfig.BlockCoinbaseMaturity+txInput.UTXOEntry.BlockDAAScore())
 
+		povAfterHFBlockHash := externalapi.NewDomainHashFromByteArray(&[32]byte{0x02})
+		tc.DAABlocksStore().StageDAAScore(stagingArea, povAfterHFBlockHash, consensusConfig.HF1DAAScore)
+
 		// Just use some stub ghostdag data
 		tc.GHOSTDAGDataStore().Stage(stagingArea, povBlockHash, externalapi.NewBlockGHOSTDAGData(
 			0,
@@ -207,13 +242,27 @@ func TestValidateTransactionInContextAndPopulateFee(t *testing.T) {
 				isValid:       false,
 				expectedError: ruleerrors.ErrImmatureSpend,
 			},
-			{ // The total inputs amount is bigger than the allowed maximum (constants.MaxSompi)
-				name:          "checkTransactionInputAmounts",
-				tx:            &txWithLargeAmount,
+			{ // The total inputs amount is bigger than the allowed maximum (constants.MaxSompiBeforeHF1)
+				name:          "checkTransactionInputAmounts - invalid - before HF",
+				tx:            &txWithLargeAmountBeforeHF,
 				povBlockHash:  povBlockHash,
 				isValid:       false,
 				expectedError: ruleerrors.ErrBadTxOutValue,
 			},
+			{ // The total inputs amount is bigger than the allowed maximum (constants.MaxSompiBeforeHF1)
+				name:          "checkTransactionInputAmounts - valid - after HF",
+				tx:            &txWithLargeAmountBeforeHF,
+				povBlockHash:  povAfterHFBlockHash,
+				isValid:       true,
+				expectedError: nil,
+			},
+			{ // The total inputs amount is bigger than the allowed maximum (constants.MaxSompiBeforeHF1)
+				name:          "checkTransactionInputAmounts - invalid - after HF",
+				tx:            &txWithLargeAmountAfterHF,
+				povBlockHash:  povAfterHFBlockHash,
+				isValid:       false,
+				expectedError: ruleerrors.ErrBadTxOutValue,
+			},
 			{ // The total SompiIn (sum of inputs amount) is smaller than the total SompiOut (sum of outputs value) and hence invalid.
 				name:          "checkTransactionOutputAmounts",
 				tx:            &txWithBigValue,

domain/consensus/ruleerrors/rule_error.go

@@ -240,6 +240,7 @@ var (
 	ErrPruningProofMissesBlocksBelowPruningPoint      = newRuleError("ErrPruningProofMissesBlocksBelowPruningPoint")
 	ErrPruningProofEmpty                              = newRuleError("ErrPruningProofEmpty")
 	ErrWrongCoinbaseSubsidy                           = newRuleError("ErrWrongCoinbaseSubsidy")
+	ErrWrongBlockVersion                              = newRuleError("ErrWrongBlockVersion")
 )
 
 // RuleError identifies a rule violation. It is used to indicate that

domain/consensus/utils/constants/constants.go

@@ -3,9 +3,11 @@ package constants
 import "math"
 
 const (
-	// MaxBlockVersion represents the current version of blocks mined and the maximum block version
-	// this node is able to validate
-	MaxBlockVersion uint16 = 0
+	// BlockVersionBeforeHF1 represents the current version of blocks mined before HF1
+	BlockVersionBeforeHF1 uint16 = 0
+
+	// BlockVersionAfterHF1 represents the current version of blocks mined after HF1
+	BlockVersionAfterHF1 uint16 = 1
 
 	// MaxTransactionVersion is the current latest supported transaction version.
 	MaxTransactionVersion uint16 = 0
@@ -16,8 +18,11 @@ const (
 	// SompiPerKaspa is the number of sompi in one kaspa (1 KAS).
 	SompiPerKaspa = 100_000_000
 
-	// MaxSompi is the maximum transaction amount allowed in sompi.
-	MaxSompi = 21_000_000 * SompiPerKaspa
+	// MaxSompiBeforeHF1 is the maximum transaction amount allowed in sompi before the HF1 hard fork is activated.
+	MaxSompiBeforeHF1 = uint64(21_000_000 * SompiPerKaspa)
+
+	// MaxSompiAfterHF1 is the maximum transaction amount allowed in sompi after the HF1 hard fork is activated.
+	MaxSompiAfterHF1 = uint64(29_000_000_000 * SompiPerKaspa)
 
 	// MaxTxInSequenceNum is the maximum sequence number the sequence field
 	// of a transaction input can be.

domain/dagconfig/consensus_defaults.go

@@ -82,4 +82,6 @@ const (
 	// The network was down for three days shortly after launch
 	// Three days in seconds = 3 * 24 * 60 * 60 = 259200
 	defaultDeflationaryPhaseDaaScore = 15778800 - 259200
+
+	defaultMergeDepth = 3600
 )

domain/dagconfig/params.go

@@ -188,6 +188,9 @@ type Params struct {
 
 	// MaxBlockLevel is the maximum possible block level.
 	MaxBlockLevel int
+
+	MergeDepth  uint64
+	HF1DAAScore uint64
 }
 
 // NormalizeRPCServerAddress returns addr with the current network default
@@ -286,12 +289,14 @@ var MainnetParams = Params{
 	// This is technically 255, but we clamped it at 256 - block level of mainnet genesis
 	// This means that any block that has a level lower or equal to genesis will be level 0.
 	MaxBlockLevel: 225,
+	MergeDepth:    defaultMergeDepth,
+	HF1DAAScore:   14360917,
 }
 
 // TestnetParams defines the network parameters for the test Kaspa network.
 var TestnetParams = Params{
 	K:           defaultGHOSTDAGK,
-	Name:        "kaspa-testnet-9",
+	Name:        "kaspa-testnet-10",
 	Net:         appmessage.Testnet,
 	RPCPort:     "16210",
 	DefaultPort: "16211",
@@ -348,6 +353,8 @@ var TestnetParams = Params{
 	IgnoreHeaderMass:                        true,
 
 	MaxBlockLevel: 250,
+	MergeDepth:    defaultMergeDepth,
+	HF1DAAScore:   172800,
 }
 
 // SimnetParams defines the network parameters for the simulation test Kaspa
@@ -413,6 +420,7 @@ var SimnetParams = Params{
 	DeflationaryPhaseDaaScore:               defaultDeflationaryPhaseDaaScore,
 
 	MaxBlockLevel: 250,
+	MergeDepth:    defaultMergeDepth,
 }
 
 // DevnetParams defines the network parameters for the development Kaspa network.
@@ -475,6 +483,7 @@ var DevnetParams = Params{
 	IgnoreHeaderMass:                        true,
 
 	MaxBlockLevel: 250,
+	MergeDepth:    defaultMergeDepth,
 }
 
 // ErrDuplicateNet describes an error where the parameters for a Kaspa

domain/miningmanager/mempool/check_transaction_standard.go

@@ -198,8 +198,9 @@ func (mp *mempool) minimumRequiredTransactionRelayFee(mass uint64) uint64 {
 
 	// Set the minimum fee to the maximum possible value if the calculated
 	// fee is not in the valid range for monetary amounts.
-	if minimumFee > constants.MaxSompi {
-		minimumFee = constants.MaxSompi
+	// TODO: Replace it with constants.MaxSompiAfterHF1 once HF is activated
+	if minimumFee > constants.MaxSompiBeforeHF1 {
+		minimumFee = constants.MaxSompiBeforeHF1
 	}
 
 	return minimumFee

domain/miningmanager/mempool/check_transaction_standard_test.go

@@ -53,8 +53,8 @@ func TestCalcMinRequiredTxRelayFee(t *testing.T) {
 		{
 			"max standard tx size with max sompi relay fee",
 			MaximumStandardTransactionMass,
-			constants.MaxSompi,
-			constants.MaxSompi,
+			util.Amount(constants.MaxSompiBeforeHF1),
+			constants.MaxSompiBeforeHF1,
 		},
 		{
 			"1500 bytes with 5000 relay fee",
@@ -156,8 +156,8 @@ func TestIsTransactionOutputDust(t *testing.T) {
 		{
 			// Maximum allowed value is never dust.
 			"max sompi amount is never dust",
-			externalapi.DomainTransactionOutput{Value: constants.MaxSompi, ScriptPublicKey: scriptPublicKey},
-			constants.MaxSompi,
+			externalapi.DomainTransactionOutput{Value: constants.MaxSompiBeforeHF1, ScriptPublicKey: scriptPublicKey},
+			util.Amount(constants.MaxSompiBeforeHF1),
 			false,
 		},
 		{

testing/integration/address_exchange_test.go

@@ -31,50 +31,3 @@ func TestAddressExchange(t *testing.T) {
 
 	t.Errorf("Didn't find testAddress in list of addresses of appHarness3")
 }
-
-func TestAddressExchangeV3V4(t *testing.T) {
-	harnesses, teardown := setupHarnesses(t, []*harnessParams{
-		{
-			p2pAddress:              p2pAddress1,
-			rpcAddress:              rpcAddress1,
-			miningAddress:           miningAddress1,
-			miningAddressPrivateKey: miningAddress1PrivateKey,
-		},
-		{
-			p2pAddress:              p2pAddress2,
-			rpcAddress:              rpcAddress2,
-			miningAddress:           miningAddress2,
-			miningAddressPrivateKey: miningAddress2PrivateKey,
-		}, {
-			p2pAddress:              p2pAddress3,
-			rpcAddress:              rpcAddress3,
-			miningAddress:           miningAddress3,
-			miningAddressPrivateKey: miningAddress3PrivateKey,
-		},
-	})
-	defer teardown()
-
-	appHarness1, appHarness2, appHarness3 := harnesses[0], harnesses[1], harnesses[2]
-
-	testAddress := "1.2.3.4:6789"
-	err := addressmanager.AddAddressByIP(appHarness1.app.AddressManager(), testAddress, nil)
-	if err != nil {
-		t.Fatalf("Error adding address to addressManager: %+v", err)
-	}
-
-	connect(t, appHarness1, appHarness2)
-	connect(t, appHarness2, appHarness3)
-
-	peerAddresses, err := appHarness3.rpcClient.GetPeerAddresses()
-	if err != nil {
-		t.Fatalf("Error getting peer addresses: %+v", err)
-	}
-
-	for _, peerAddress := range peerAddresses.Addresses {
-		if peerAddress.Addr == testAddress {
-			return
-		}
-	}
-
-	t.Errorf("Didn't find testAddress in list of addresses of appHarness3")
-}

testing/integration/ibd_test.go

@@ -238,3 +238,84 @@ func mineNextBlockWithMockTimestamps(t *testing.T, harness *appHarness, rd *rand
 
 	return block
 }
+
+func TestBoundedMergeDepth(t *testing.T) {
+	overrideDAGParams := dagconfig.SimnetParams
+
+	overrideDAGParams.MergeDepth = 50
+
+	harnesses, teardown := setupHarnesses(t, []*harnessParams{
+		{
+			p2pAddress:              p2pAddress1,
+			rpcAddress:              rpcAddress1,
+			miningAddress:           miningAddress1,
+			miningAddressPrivateKey: miningAddress1PrivateKey,
+			overrideDAGParams:       &overrideDAGParams,
+		},
+		{
+			p2pAddress:              p2pAddress2,
+			rpcAddress:              rpcAddress2,
+			miningAddress:           miningAddress2,
+			miningAddressPrivateKey: miningAddress2PrivateKey,
+			overrideDAGParams:       &overrideDAGParams,
+			utxoIndex:               true,
+		},
+		{
+			p2pAddress:              p2pAddress3,
+			rpcAddress:              rpcAddress3,
+			miningAddress:           miningAddress3,
+			miningAddressPrivateKey: miningAddress3PrivateKey,
+			overrideDAGParams:       &overrideDAGParams,
+			utxoIndex:               true,
+		},
+		{
+			p2pAddress:              p2pAddress4,
+			rpcAddress:              rpcAddress4,
+			miningAddress:           miningAddress3,
+			miningAddressPrivateKey: miningAddress3PrivateKey,
+			overrideDAGParams:       &overrideDAGParams,
+			utxoIndex:               true,
+		},
+	})
+	defer teardown()
+
+	test := func(syncer, syncee *appHarness, depth uint64, shouldSync bool) {
+		const ibdTriggerRange = 32
+		if depth <= ibdTriggerRange {
+			t.Fatalf("Depth is too small")
+		}
+
+		for i := uint64(0); i < depth+ibdTriggerRange+1; i++ {
+			mineNextBlock(t, syncee)
+		}
+
+		for i := uint64(0); i < ibdTriggerRange+1; i++ {
+			mineNextBlock(t, syncer)
+		}
+
+		countBefore, err := syncee.rpcClient.GetBlockCount()
+		if err != nil {
+			t.Fatalf("GetBlockCount: %+v", err)
+		}
+
+		connect(t, syncee, syncer)
+
+		time.Sleep(5 * time.Second)
+		countAfter, err := syncee.rpcClient.GetBlockCount()
+		if err != nil {
+			t.Fatalf("GetBlockCount: %+v", err)
+		}
+
+		if (countBefore.HeaderCount != countAfter.HeaderCount) != shouldSync {
+			t.Fatalf("countBefore.HeaderCount: %d, countAfter.HeaderCount: %d", countBefore.HeaderCount, countAfter.HeaderCount)
+		}
+	}
+
+	t.Run("mergeDepth", func(t *testing.T) {
+		test(harnesses[0], harnesses[1], overrideDAGParams.MergeDepth, false)
+	})
+
+	t.Run("mergeDepth-1", func(t *testing.T) {
+		test(harnesses[2], harnesses[3], overrideDAGParams.MergeDepth-1, true)
+	})
+}

util/amount.go

@@ -73,6 +73,8 @@ func round(f float64) Amount {
 // NewAmount is for specifically for converting KAS to Sompi.
 // For creating a new Amount with an int64 value which denotes a quantity of Sompi,
 // do a simple type conversion from type int64 to Amount.
+// TODO: Refactor NewAmount. When amounts are more than 1e9 KAS, the precision
+// can be higher than one sompi (1e9 and 1e9+1e-8 will result as the same number)
 func NewAmount(f float64) (Amount, error) {
 	// The amount is only considered invalid if it cannot be represented
 	// as an integer type. This may happen if f is NaN or +-Infinity.

util/amount_test.go

@@ -30,13 +30,13 @@ func TestAmountCreation(t *testing.T) {
 			name:     "max producible",
 			amount:   21e6,
 			valid:    true,
-			expected: constants.MaxSompi,
+			expected: Amount(constants.MaxSompiBeforeHF1),
 		},
 		{
 			name:     "exceeds max producible",
 			amount:   21e6 + 1e-8,
 			valid:    true,
-			expected: constants.MaxSompi + 1,
+			expected: Amount(constants.MaxSompiBeforeHF1) + 1,
 		},
 		{
 			name:     "one hundred",
@@ -109,7 +109,7 @@ func TestAmountUnitConversions(t *testing.T) {
 	}{
 		{
 			name:      "MKAS",
-			amount:    constants.MaxSompi,
+			amount:    Amount(constants.MaxSompiBeforeHF1),
 			unit:      AmountMegaKAS,
 			converted: 21,
 			s:         "21 MKAS",

version/version.go

@@ -10,8 +10,8 @@ const validCharacters = "0123456789ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrs
 
 const (
 	appMajor uint = 0
-	appMinor uint = 11
-	appPatch uint = 17
+	appMinor uint = 12
+	appPatch uint = 0
 )
 
 // appBuild is defined as a variable so it can be overridden during the build