diff --git a/abci/abci.go b/abci/abci.go
index f868706..5a7e2c2 100644
--- a/abci/abci.go
+++ b/abci/abci.go
@@ -9,7 +9,6 @@ import (
 
 	"github.com/skip-mev/block-sdk/block"
 	"github.com/skip-mev/block-sdk/block/proposals"
-	"github.com/skip-mev/block-sdk/block/proposals/types"
 )
 
 const (
@@ -54,6 +53,10 @@ func NewProposalHandler(
 // valid transactions in the proposal (up to MaxBlockSize, MaxGasLimit).
 func (h *ProposalHandler) PrepareProposalHandler() sdk.PrepareProposalHandler {
 	return func(ctx sdk.Context, req *abci.RequestPrepareProposal) (resp *abci.ResponsePrepareProposal, err error) {
+		if req.Height <= 1 {
+			return &abci.ResponsePrepareProposal{Txs: req.Txs}, nil
+		}
+
 		// In the case where there is a panic, we recover here and return an empty proposal.
 		defer func() {
 			if rec := recover(); rec != nil {
@@ -65,14 +68,14 @@ func (h *ProposalHandler) PrepareProposalHandler() sdk.PrepareProposalHandler {
 			}
 		}()
 
-		h.logger.Info("mempool distribution before proposal creation", "distribution", h.mempool.GetTxDistribution())
-
-		// Build an empty placeholder proposal with the maximum block size and gas limit.
-		maxBlockSize, maxGasLimit := proposals.GetBlockLimits(ctx)
-		emptyProposal := proposals.NewProposal(h.txEncoder, maxBlockSize, maxGasLimit)
+		h.logger.Info(
+			"mempool distribution before proposal creation",
+			"distribution", h.mempool.GetTxDistribution(),
+			"height", req.Height,
+		)
 
 		// Fill the proposal with transactions from each lane.
-		finalProposal, err := h.prepareLanesHandler(ctx, emptyProposal)
+		finalProposal, err := h.prepareLanesHandler(ctx, proposals.NewProposalWithContext(ctx, h.txEncoder))
 		if err != nil {
 			h.logger.Error("failed to prepare proposal", "err", err)
 			return &abci.ResponsePrepareProposal{Txs: make([][]byte, 0)}, err
@@ -89,13 +92,17 @@ func (h *ProposalHandler) PrepareProposalHandler() sdk.PrepareProposalHandler {
 			"prepared proposal",
 			"num_txs", len(txs),
 			"total_tx_bytes", finalProposal.Info.BlockSize,
-			"max_tx_bytes", maxBlockSize,
+			"max_tx_bytes", finalProposal.Info.MaxBlockSize,
 			"total_gas_limit", finalProposal.Info.GasLimit,
-			"max_gas_limit", maxGasLimit,
+			"max_gas_limit", finalProposal.Info.MaxGasLimit,
 			"height", req.Height,
 		)
 
-		h.logger.Info("mempool distribution after proposal creation", "distribution", h.mempool.GetTxDistribution())
+		h.logger.Info(
+			"mempool distribution after proposal creation",
+			"distribution", h.mempool.GetTxDistribution(),
+			"height", req.Height,
+		)
 
 		return &abci.ResponsePrepareProposal{
 			Txs: txs,
@@ -111,6 +118,10 @@ func (h *ProposalHandler) PrepareProposalHandler() sdk.PrepareProposalHandler {
 // transactions, then the proposal is rejected.
 func (h *ProposalHandler) ProcessProposalHandler() sdk.ProcessProposalHandler {
 	return func(ctx sdk.Context, req *abci.RequestProcessProposal) (resp *abci.ResponseProcessProposal, err error) {
+		if req.Height <= 1 {
+			return &abci.ResponseProcessProposal{Status: abci.ResponseProcessProposal_ACCEPT}, nil
+		}
+
 		// In the case where any of the lanes panic, we recover here and return a reject status.
 		defer func() {
 			if rec := recover(); rec != nil {
@@ -130,13 +141,7 @@ func (h *ProposalHandler) ProcessProposalHandler() sdk.ProcessProposalHandler {
 
 		// Build handler that will verify the partial proposals according to each lane's verification logic.
 		processLanesHandler := ChainProcessLanes(partialProposals, h.mempool.Registry())
-
-		// Build an empty placeholder proposal.
-		maxBlockSize, maxGasLimit := proposals.GetBlockLimits(ctx)
-		emptyProposal := proposals.NewProposal(h.txEncoder, maxBlockSize, maxGasLimit)
-
-		// Verify the proposal according to the verification logic from each lane.
-		finalProposal, err := processLanesHandler(ctx, emptyProposal)
+		finalProposal, err := processLanesHandler(ctx, proposals.NewProposalWithContext(ctx, h.txEncoder))
 		if err != nil {
 			h.logger.Error("failed to validate the proposal", "err", err)
 			return &abci.ResponseProcessProposal{Status: abci.ResponseProcessProposal_REJECT}, err
@@ -152,101 +157,12 @@ func (h *ProposalHandler) ProcessProposalHandler() sdk.ProcessProposalHandler {
 			"processed proposal",
 			"num_txs", len(req.Txs),
 			"total_tx_bytes", finalProposal.Info.BlockSize,
-			"max_tx_bytes", maxBlockSize,
+			"max_tx_bytes", finalProposal.Info.MaxBlockSize,
 			"total_gas_limit", finalProposal.Info.GasLimit,
-			"max_gas_limit", maxGasLimit,
+			"max_gas_limit", finalProposal.Info.MaxGasLimit,
 			"height", req.Height,
 		)
 
 		return &abci.ResponseProcessProposal{Status: abci.ResponseProcessProposal_ACCEPT}, nil
 	}
 }
-
-// ExtractLanes validates the proposal against the basic invariants that are required
-// for the proposal to be valid. This includes:
-//  1. The proposal must contain the proposal information and must be valid.
-//  2. The proposal must contain the correct number of transactions for each lane.
-func (h *ProposalHandler) ExtractLanes(proposal [][]byte) (types.ProposalInfo, [][][]byte, error) {
-	// If the proposal is empty, then the metadata was not included.
-	if len(proposal) == 0 {
-		return types.ProposalInfo{}, nil, fmt.Errorf("proposal does not contain proposal metadata")
-	}
-
-	metaDataBz, txs := proposal[ProposalInfoIndex], proposal[ProposalInfoIndex+1:]
-
-	// Retrieve the metadata from the proposal.
-	var metaData types.ProposalInfo
-	if err := metaData.Unmarshal(metaDataBz); err != nil {
-		return types.ProposalInfo{}, nil, fmt.Errorf("failed to unmarshal proposal metadata: %w", err)
-	}
-
-	lanes := h.mempool.Registry()
-	partialProposals := make([][][]byte, len(lanes))
-
-	if metaData.TxsByLane == nil {
-		if len(txs) > 0 {
-			return types.ProposalInfo{}, nil, fmt.Errorf("proposal contains invalid number of transactions")
-		}
-
-		return types.ProposalInfo{}, partialProposals, nil
-	}
-
-	h.logger.Info(
-		"received proposal with metadata",
-		"max_block_size", metaData.MaxBlockSize,
-		"max_gas_limit", metaData.MaxGasLimit,
-		"gas_limit", metaData.GasLimit,
-		"block_size", metaData.BlockSize,
-		"lanes_with_txs", metaData.TxsByLane,
-	)
-
-	// Iterate through all of the lanes and match the corresponding transactions to the lane.
-	for index, lane := range lanes {
-		numTxs := metaData.TxsByLane[lane.Name()]
-		if numTxs > uint64(len(txs)) {
-			return types.ProposalInfo{}, nil, fmt.Errorf(
-				"proposal metadata contains invalid number of transactions for lane %s; got %d, expected %d",
-				lane.Name(),
-				len(txs),
-				numTxs,
-			)
-		}
-
-		partialProposals[index] = txs[:numTxs]
-		txs = txs[numTxs:]
-	}
-
-	// If there are any transactions remaining in the proposal, then the proposal is invalid.
-	if len(txs) > 0 {
-		return types.ProposalInfo{}, nil, fmt.Errorf("proposal contains invalid number of transactions")
-	}
-
-	return metaData, partialProposals, nil
-}
-
-// ValidateBlockLimits validates the block limits of the proposal against the block limits
-// of the chain.
-func (h *ProposalHandler) ValidateBlockLimits(finalProposal proposals.Proposal, proposalInfo types.ProposalInfo) error {
-	// Conduct final checks on block size and gas limit.
-	if finalProposal.Info.BlockSize != proposalInfo.BlockSize {
-		h.logger.Error(
-			"proposal block size does not match",
-			"expected", proposalInfo.BlockSize,
-			"got", finalProposal.Info.BlockSize,
-		)
-
-		return fmt.Errorf("proposal block size does not match")
-	}
-
-	if finalProposal.Info.GasLimit != proposalInfo.GasLimit {
-		h.logger.Error(
-			"proposal gas limit does not match",
-			"expected", proposalInfo.GasLimit,
-			"got", finalProposal.Info.GasLimit,
-		)
-
-		return fmt.Errorf("proposal gas limit does not match")
-	}
-
-	return nil
-}
diff --git a/abci/abci_test.go b/abci/abci_test.go
index 5a84a29..a257ee7 100644
--- a/abci/abci_test.go
+++ b/abci/abci_test.go
@@ -45,6 +45,7 @@ func (s *ProposalsTestSuite) SetupTest() {
 	s.key = storetypes.NewKVStoreKey("test")
 	testCtx := testutil.DefaultContextWithDB(s.T(), s.key, storetypes.NewTransientStoreKey("transient_test"))
 	s.ctx = testCtx.Ctx.WithIsCheckTx(true)
+	s.ctx = s.ctx.WithBlockHeight(1)
 }
 
 func (s *ProposalsTestSuite) SetupSubTest() {
@@ -58,7 +59,7 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{defaultLane}).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 		s.Require().Equal(1, len(resp.Txs))
@@ -93,7 +94,7 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 		s.Require().NoError(defaultLane.Insert(sdk.Context{}, tx))
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{defaultLane}).PrepareProposalHandler()
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NotNil(resp)
 		s.Require().NoError(err)
 
@@ -145,7 +146,7 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 		s.Require().NoError(defaultLane.Insert(sdk.Context{}, tx2))
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{defaultLane}).PrepareProposalHandler()
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NotNil(resp)
 		s.Require().NoError(err)
 
@@ -197,7 +198,7 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 		s.Require().NoError(defaultLane.Insert(sdk.Context{}, tx2))
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{defaultLane}).PrepareProposalHandler()
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NotNil(resp)
 		s.Require().NoError(err)
 
@@ -224,7 +225,7 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -266,7 +267,7 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -317,7 +318,7 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -369,7 +370,7 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -424,7 +425,7 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 		size := int64(len(proposal[0]) - 1)
 
 		s.setBlockParams(10000000, size)
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -472,7 +473,7 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 
 		proposal := s.getTxBytes(freeTx)
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -551,7 +552,7 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, freeLane, defaultLane}).PrepareProposalHandler()
 		proposal := s.getTxBytes(tx, bundleTxs[0], bundleTxs[1], bundleTxs[2], bundleTxs[3], freeTx, normalTx)
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -617,7 +618,7 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 		proposal := s.getTxBytes(tx, bundleTxs[0], normalTx)
 
 		// Should be theoretically sufficient to fit the bid tx and the bundled tx + normal tx
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -667,7 +668,7 @@ func (s *ProposalsTestSuite) TestPrepareProposalEdgeCases() {
 			mempool,
 		).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -716,7 +717,7 @@ func (s *ProposalsTestSuite) TestPrepareProposalEdgeCases() {
 			mempool,
 		).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -766,7 +767,7 @@ func (s *ProposalsTestSuite) TestPrepareProposalEdgeCases() {
 			mempool,
 		).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -816,7 +817,7 @@ func (s *ProposalsTestSuite) TestPrepareProposalEdgeCases() {
 			mempool,
 		).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -855,7 +856,7 @@ func (s *ProposalsTestSuite) TestProcessProposal() {
 		)
 		proposal := [][]byte{info}
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal, Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 		s.Require().Equal(&cometabci.ResponseProcessProposal{Status: cometabci.ResponseProcessProposal_ACCEPT}, resp)
@@ -883,7 +884,7 @@ func (s *ProposalsTestSuite) TestProcessProposal() {
 		proposal := s.createProposal(map[string]uint64{defaultLane.Name(): 1}, tx)
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).ProcessProposalHandler()
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal, Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 		s.Require().Equal(&cometabci.ResponseProcessProposal{Status: cometabci.ResponseProcessProposal_ACCEPT}, resp)
@@ -941,7 +942,7 @@ func (s *ProposalsTestSuite) TestProcessProposal() {
 		proposal := s.createProposal(map[string]uint64{defaultLane.Name(): 1, mevLane.Name(): 2, freeLane.Name(): 1}, bidTx, bundleTxs[0], freeTx, tx)
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, freeLane, defaultLane}).ProcessProposalHandler()
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal, Height: 2})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 		s.Require().Equal(&cometabci.ResponseProcessProposal{Status: cometabci.ResponseProcessProposal_ACCEPT}, resp)
@@ -974,7 +975,7 @@ func (s *ProposalsTestSuite) TestProcessProposal() {
 		proposal[0] = infoBz
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).ProcessProposalHandler()
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal, Height: 2})
 		s.Require().Error(err)
 		s.Require().Equal(&cometabci.ResponseProcessProposal{Status: cometabci.ResponseProcessProposal_REJECT}, resp)
 	})
@@ -1006,7 +1007,7 @@ func (s *ProposalsTestSuite) TestProcessProposal() {
 		proposal[0] = infoBz
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).ProcessProposalHandler()
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal, Height: 2})
 		s.Require().Error(err)
 		s.Require().Equal(&cometabci.ResponseProcessProposal{Status: cometabci.ResponseProcessProposal_REJECT}, resp)
 	})
@@ -1031,7 +1032,7 @@ func (s *ProposalsTestSuite) TestProcessProposal() {
 		)
 		proposal := [][]byte{info, {0x01, 0x02, 0x03}}
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal, Height: 2})
 		s.Require().Error(err)
 		s.Require().Equal(&cometabci.ResponseProcessProposal{Status: cometabci.ResponseProcessProposal_REJECT}, resp)
 	})
@@ -1063,7 +1064,7 @@ func (s *ProposalsTestSuite) TestProcessProposal() {
 		)
 		proposal := [][]byte{info, txbz}
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal, Height: 2})
 		s.Require().Error(err)
 		s.Require().Equal(&cometabci.ResponseProcessProposal{Status: cometabci.ResponseProcessProposal_REJECT}, resp)
 	})
@@ -1102,7 +1103,7 @@ func (s *ProposalsTestSuite) TestProcessProposal() {
 		proposal := s.createProposal(map[string]uint64{defaultLane.Name(): 1, mevLane.Name(): 1}, tx2, tx)
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).ProcessProposalHandler()
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal, Height: 2})
 		s.Require().NotNil(resp)
 		s.Require().Error(err)
 	})
@@ -1157,7 +1158,7 @@ func (s *ProposalsTestSuite) TestProcessProposal() {
 		proposal := s.createProposal(map[string]uint64{defaultLane.Name(): 2, mevLane.Name(): 3}, bidTx, bundle[0], bundle[1], normalTx, normalTx2)
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).ProcessProposalHandler()
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal, Height: 2})
 		s.Require().NotNil(resp)
 		s.Require().Error(err)
 	})
@@ -1207,7 +1208,7 @@ func (s *ProposalsTestSuite) TestProcessProposal() {
 		proposal := s.createProposal(map[string]uint64{defaultLane.Name(): 2, mevLane.Name(): 1}, bidTx, normalTx, normalTx2)
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).ProcessProposalHandler()
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal, Height: 2})
 		s.Require().NotNil(resp)
 		s.Require().Error(err)
 	})
@@ -1264,7 +1265,7 @@ func (s *ProposalsTestSuite) TestProcessProposal() {
 		proposal := s.createProposal(map[string]uint64{defaultLane.Name(): 2, mevLane.Name(): 1}, bidTx, normalTx, normalTx2)
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).ProcessProposalHandler()
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal})
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestProcessProposal{Txs: proposal, Height: 2})
 		s.Require().NotNil(resp)
 		s.Require().Error(err)
 	})
diff --git a/abci/utils.go b/abci/utils.go
index 2923ff0..e6950f4 100644
--- a/abci/utils.go
+++ b/abci/utils.go
@@ -1,15 +1,107 @@
 package abci
 
 import (
+	"fmt"
+
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/skip-mev/block-sdk/block"
 	"github.com/skip-mev/block-sdk/block/proposals"
+	"github.com/skip-mev/block-sdk/block/proposals/types"
 	"github.com/skip-mev/block-sdk/lanes/terminator"
 )
 
+// ExtractLanes validates the proposal against the basic invariants that are required
+// for the proposal to be valid. This includes:
+//  1. The proposal must contain the proposal information and must be valid.
+//  2. The proposal must contain the correct number of transactions for each lane.
+func (h *ProposalHandler) ExtractLanes(proposal [][]byte) (types.ProposalInfo, [][][]byte, error) {
+	// If the proposal is empty, then the metadata was not included.
+	if len(proposal) == 0 {
+		return types.ProposalInfo{}, nil, fmt.Errorf("proposal does not contain proposal metadata")
+	}
+
+	metaDataBz, txs := proposal[ProposalInfoIndex], proposal[ProposalInfoIndex+1:]
+
+	// Retrieve the metadata from the proposal.
+	var metaData types.ProposalInfo
+	if err := metaData.Unmarshal(metaDataBz); err != nil {
+		return types.ProposalInfo{}, nil, fmt.Errorf("failed to unmarshal proposal metadata: %w", err)
+	}
+
+	lanes := h.mempool.Registry()
+	partialProposals := make([][][]byte, len(lanes))
+
+	if metaData.TxsByLane == nil {
+		if len(txs) > 0 {
+			return types.ProposalInfo{}, nil, fmt.Errorf("proposal contains invalid number of transactions")
+		}
+
+		return types.ProposalInfo{}, partialProposals, nil
+	}
+
+	h.logger.Info(
+		"received proposal with metadata",
+		"max_block_size", metaData.MaxBlockSize,
+		"max_gas_limit", metaData.MaxGasLimit,
+		"gas_limit", metaData.GasLimit,
+		"block_size", metaData.BlockSize,
+		"lanes_with_txs", metaData.TxsByLane,
+	)
+
+	// Iterate through all of the lanes and match the corresponding transactions to the lane.
+	for index, lane := range lanes {
+		numTxs := metaData.TxsByLane[lane.Name()]
+		if numTxs > uint64(len(txs)) {
+			return types.ProposalInfo{}, nil, fmt.Errorf(
+				"proposal metadata contains invalid number of transactions for lane %s; got %d, expected %d",
+				lane.Name(),
+				len(txs),
+				numTxs,
+			)
+		}
+
+		partialProposals[index] = txs[:numTxs]
+		txs = txs[numTxs:]
+	}
+
+	// If there are any transactions remaining in the proposal, then the proposal is invalid.
+	if len(txs) > 0 {
+		return types.ProposalInfo{}, nil, fmt.Errorf("proposal contains invalid number of transactions")
+	}
+
+	return metaData, partialProposals, nil
+}
+
+// ValidateBlockLimits validates the block limits of the proposal against the block limits
+// of the chain.
+func (h *ProposalHandler) ValidateBlockLimits(finalProposal proposals.Proposal, proposalInfo types.ProposalInfo) error {
+	// Conduct final checks on block size and gas limit.
+	if finalProposal.Info.BlockSize != proposalInfo.BlockSize {
+		h.logger.Error(
+			"proposal block size does not match",
+			"expected", proposalInfo.BlockSize,
+			"got", finalProposal.Info.BlockSize,
+		)
+
+		return fmt.Errorf("proposal block size does not match")
+	}
+
+	if finalProposal.Info.GasLimit != proposalInfo.GasLimit {
+		h.logger.Error(
+			"proposal gas limit does not match",
+			"expected", proposalInfo.GasLimit,
+			"got", finalProposal.Info.GasLimit,
+		)
+
+		return fmt.Errorf("proposal gas limit does not match")
+	}
+
+	return nil
+}
+
 // ChainPrepareLanes chains together the proposal preparation logic from each lane into a
 // single function. The first lane in the chain is the first lane to be prepared and the
-// last lane in the chain is the last lane to be prepared.In the case where any of the lanes
+// last lane in the chain is the last lane to be prepared. In the case where any of the lanes
 // fail to prepare the partial proposal, the lane that failed will be skipped and the next
 // lane in the chain will be called to prepare the proposal.
 func ChainPrepareLanes(chain []block.Lane) block.PrepareLanesHandler {
diff --git a/block/base/abci.go b/block/base/abci.go
index 886360b..59b0b64 100644
--- a/block/base/abci.go
+++ b/block/base/abci.go
@@ -51,6 +51,8 @@ func (l *BaseLane) PrepareLane(
 			"err", err,
 			"num_txs_to_add", len(txsToInclude),
 			"num_txs_to_remove", len(txsToRemove),
+			"lane_max_block_size", limit.MaxTxBytes,
+			"lane_max_gas_limit", limit.MaxGasLimit,
 		)
 
 		return proposal, err
@@ -61,6 +63,8 @@ func (l *BaseLane) PrepareLane(
 		"lane", l.Name(),
 		"num_txs_added", len(txsToInclude),
 		"num_txs_removed", len(txsToRemove),
+		"lane_max_block_size", limit.MaxTxBytes,
+		"lane_max_gas_limit", limit.MaxGasLimit,
 	)
 
 	return next(ctx, proposal)
@@ -122,12 +126,20 @@ func (l *BaseLane) ProcessLane(
 	return next(ctx, proposal)
 }
 
-// AnteVerifyTx verifies that the transaction is valid respecting the ante verification logic of
+// VerifyTx verifies that the transaction is valid respecting the ante verification logic of
 // of the antehandler chain.
-func (l *BaseLane) AnteVerifyTx(ctx sdk.Context, tx sdk.Tx, simulate bool) (sdk.Context, error) {
+func (l *BaseLane) VerifyTx(ctx sdk.Context, tx sdk.Tx, simulate bool) error {
 	if l.cfg.AnteHandler != nil {
-		return l.cfg.AnteHandler(ctx, tx, simulate)
+		// Only write to the context if the tx does not fail.
+		catchCtx, write := ctx.CacheContext()
+		if _, err := l.cfg.AnteHandler(catchCtx, tx, simulate); err != nil {
+			return err
+		}
+
+		write()
+
+		return nil
 	}
 
-	return ctx, nil
+	return nil
 }
diff --git a/block/base/handlers.go b/block/base/handlers.go
index aa00829..e072057 100644
--- a/block/base/handlers.go
+++ b/block/base/handlers.go
@@ -89,7 +89,7 @@ func (l *BaseLane) DefaultPrepareLaneHandler() PrepareLaneHandler {
 			}
 
 			// Verify the transaction.
-			if ctx, err = l.AnteVerifyTx(ctx, tx, false); err != nil {
+			if err = l.VerifyTx(ctx, tx, false); err != nil {
 				l.Logger().Info(
 					"failed to verify tx",
 					"tx_hash", txInfo.Hash,
@@ -128,7 +128,7 @@ func (l *BaseLane) DefaultProcessLaneHandler() ProcessLaneHandler {
 				return fmt.Errorf("transaction at index %d has a higher priority than %d", index, index-1)
 			}
 
-			if _, err := l.AnteVerifyTx(ctx, tx, false); err != nil {
+			if err := l.VerifyTx(ctx, tx, false); err != nil {
 				return fmt.Errorf("failed to verify tx: %w", err)
 			}
 		}
diff --git a/block/mempool.go b/block/mempool.go
index 4029c09..6845956 100644
--- a/block/mempool.go
+++ b/block/mempool.go
@@ -51,7 +51,7 @@ type (
 // attempt to insert, remove transactions from all lanes it belongs to. It is recommended,
 // that mutex is set to true when creating the mempool. This will ensure that each
 // transaction cannot be inserted into the lanes before it.
-func NewLanedMempool(logger log.Logger, mutex bool, lanes ...Lane) *LanedMempool {
+func NewLanedMempool(logger log.Logger, mutex bool, lanes ...Lane) Mempool {
 	mempool := &LanedMempool{
 		logger:   logger,
 		registry: lanes,
diff --git a/block/proposals/proposals.go b/block/proposals/proposals.go
index 4b3f5bf..0701ffb 100644
--- a/block/proposals/proposals.go
+++ b/block/proposals/proposals.go
@@ -20,6 +20,12 @@ type (
 	}
 )
 
+// NewProposalWithContext returns a new empty proposal.
+func NewProposalWithContext(ctx sdk.Context, txEncoder sdk.TxEncoder) Proposal {
+	maxBlockSize, maxGasLimit := GetBlockLimits(ctx)
+	return NewProposal(txEncoder, maxBlockSize, maxGasLimit)
+}
+
 // NewProposal returns a new empty proposal. Any transactions added to the proposal
 // will be subject to the given max block size and max gas limit.
 func NewProposal(txEncoder sdk.TxEncoder, maxBlockSize int64, maxGasLimit uint64) Proposal {
diff --git a/lanes/base/abci_test.go b/lanes/base/abci_test.go
index cae064b..020b4ee 100644
--- a/lanes/base/abci_test.go
+++ b/lanes/base/abci_test.go
@@ -37,7 +37,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 			tx: true,
 		}
 		lane := s.initLane(math.LegacyMustNewDecFromStr("0.5"), expectedExecution)
-		s.Require().NoError(lane.Insert(sdk.Context{}, tx))
+		s.Require().NoError(lane.Insert(s.ctx, tx))
 
 		txBz, err := s.encodingConfig.TxConfig.TxEncoder()(tx)
 		s.Require().NoError(err)
@@ -48,7 +48,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 			1,
 		)
 
-		finalProposal, err := lane.PrepareLane(sdk.Context{}, emptyProposal, block.NoOpPrepareLanesHandler())
+		finalProposal, err := lane.PrepareLane(s.ctx, emptyProposal, block.NoOpPrepareLanesHandler())
 		s.Require().NoError(err)
 
 		// Ensure the proposal is empty
@@ -76,7 +76,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 		lane := s.initLane(math.LegacyMustNewDecFromStr("0.5"), expectedExecution)
 
 		// Insert the transaction into the lane
-		s.Require().NoError(lane.Insert(sdk.Context{}, tx))
+		s.Require().NoError(lane.Insert(s.ctx, tx))
 
 		txBz, err := s.encodingConfig.TxConfig.TxEncoder()(tx)
 		s.Require().NoError(err)
@@ -91,7 +91,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 			limit.MaxGasLimit,
 		)
 
-		finalProposal, err := lane.PrepareLane(sdk.Context{}, emptyProposal, block.NoOpPrepareLanesHandler())
+		finalProposal, err := lane.PrepareLane(s.ctx, emptyProposal, block.NoOpPrepareLanesHandler())
 		s.Require().NoError(err)
 
 		// Ensure the proposal is empty
@@ -119,7 +119,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 		lane := s.initLane(math.LegacyMustNewDecFromStr("0.5"), expectedExecution)
 
 		// Insert the transaction into the lane
-		s.Require().NoError(lane.Insert(sdk.Context{}, tx))
+		s.Require().NoError(lane.Insert(s.ctx, tx))
 
 		txBz, err := s.encodingConfig.TxConfig.TxEncoder()(tx)
 		s.Require().NoError(err)
@@ -135,7 +135,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 			limit.MaxGasLimit,
 		)
 
-		finalProposal, err := lane.PrepareLane(sdk.Context{}, emptyProposal, block.NoOpPrepareLanesHandler())
+		finalProposal, err := lane.PrepareLane(s.ctx, emptyProposal, block.NoOpPrepareLanesHandler())
 		s.Require().NoError(err)
 
 		// Ensure the proposal is empty
@@ -163,7 +163,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 		}
 		lane := s.initLane(math.LegacyOneDec(), expectedExecution)
 
-		s.Require().NoError(lane.Insert(sdk.Context{}, tx))
+		s.Require().NoError(lane.Insert(s.ctx, tx))
 
 		txBz, err := s.encodingConfig.TxConfig.TxEncoder()(tx)
 		s.Require().NoError(err)
@@ -178,7 +178,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 			limit.MaxGasLimit,
 		)
 
-		finalProposal, err := lane.PrepareLane(sdk.Context{}, emptyProposal, block.NoOpPrepareLanesHandler())
+		finalProposal, err := lane.PrepareLane(s.ctx, emptyProposal, block.NoOpPrepareLanesHandler())
 		s.Require().NoError(err)
 
 		// Ensure the proposal is not empty and contains the transaction
@@ -207,7 +207,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 		}
 		lane := s.initLane(math.LegacyOneDec(), expectedExecution)
 
-		s.Require().NoError(lane.Insert(sdk.Context{}, tx))
+		s.Require().NoError(lane.Insert(s.ctx, tx))
 
 		txBz, err := s.encodingConfig.TxConfig.TxEncoder()(tx)
 		s.Require().NoError(err)
@@ -218,7 +218,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 			10,
 		)
 
-		finalProposal, err := lane.PrepareLane(sdk.Context{}, emptyProposal, block.NoOpPrepareLanesHandler())
+		finalProposal, err := lane.PrepareLane(s.ctx, emptyProposal, block.NoOpPrepareLanesHandler())
 		s.Require().NoError(err)
 
 		// Ensure the proposal is empty
@@ -260,8 +260,8 @@ func (s *BaseTestSuite) TestPrepareLane() {
 		}
 		lane := s.initLane(math.LegacyOneDec(), expectedExecution)
 
-		s.Require().NoError(lane.Insert(sdk.Context{}, tx1))
-		s.Require().NoError(lane.Insert(sdk.Context{}, tx2))
+		s.Require().NoError(lane.Insert(s.ctx, tx1))
+		s.Require().NoError(lane.Insert(s.ctx, tx2))
 
 		txBz1, err := s.encodingConfig.TxConfig.TxEncoder()(tx1)
 		s.Require().NoError(err)
@@ -277,7 +277,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 			gasLimit,
 		)
 
-		finalProposal, err := lane.PrepareLane(sdk.Context{}, emptyProposal, block.NoOpPrepareLanesHandler())
+		finalProposal, err := lane.PrepareLane(s.ctx, emptyProposal, block.NoOpPrepareLanesHandler())
 		s.Require().NoError(err)
 
 		// Ensure the proposal is ordered correctly
@@ -316,8 +316,8 @@ func (s *BaseTestSuite) TestPrepareLane() {
 		}
 		lane := s.initLane(math.LegacyOneDec(), expectedExecution)
 
-		s.Require().NoError(lane.Insert(sdk.Context{}, tx1))
-		s.Require().NoError(lane.Insert(sdk.Context{}, tx2))
+		s.Require().NoError(lane.Insert(s.ctx, tx1))
+		s.Require().NoError(lane.Insert(s.ctx, tx2))
 
 		txBz1, err := s.encodingConfig.TxConfig.TxEncoder()(tx1)
 		s.Require().NoError(err)
@@ -333,7 +333,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 			gasLimit,
 		)
 
-		finalProposal, err := lane.PrepareLane(sdk.Context{}, emptyProposal, block.NoOpPrepareLanesHandler())
+		finalProposal, err := lane.PrepareLane(s.ctx, emptyProposal, block.NoOpPrepareLanesHandler())
 		s.Require().NoError(err)
 
 		// Ensure the proposal is ordered correctly
@@ -375,8 +375,8 @@ func (s *BaseTestSuite) TestPrepareLane() {
 		lane := s.initLane(math.LegacyOneDec(), expectedExecution)
 
 		// Insert the transaction into the lane
-		s.Require().NoError(lane.Insert(sdk.Context{}.WithPriority(10), tx1))
-		s.Require().NoError(lane.Insert(sdk.Context{}.WithPriority(5), tx2))
+		s.Require().NoError(lane.Insert(s.ctx.WithPriority(10), tx1))
+		s.Require().NoError(lane.Insert(s.ctx.WithPriority(5), tx2))
 
 		txBz1, err := s.encodingConfig.TxConfig.TxEncoder()(tx1)
 		s.Require().NoError(err)
@@ -392,7 +392,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 			gasLimit,
 		)
 
-		finalProposal, err := lane.PrepareLane(sdk.Context{}, emptyProposal, block.NoOpPrepareLanesHandler())
+		finalProposal, err := lane.PrepareLane(s.ctx, emptyProposal, block.NoOpPrepareLanesHandler())
 		s.Require().NoError(err)
 
 		// Ensure the proposal is ordered correctly
@@ -434,8 +434,8 @@ func (s *BaseTestSuite) TestPrepareLane() {
 		lane := s.initLane(math.LegacyOneDec(), expectedExecution)
 
 		// Insert the transaction into the lane
-		s.Require().NoError(lane.Insert(sdk.Context{}, tx1))
-		s.Require().NoError(lane.Insert(sdk.Context{}, tx2))
+		s.Require().NoError(lane.Insert(s.ctx, tx1))
+		s.Require().NoError(lane.Insert(s.ctx, tx2))
 
 		txBz1, err := s.encodingConfig.TxConfig.TxEncoder()(tx1)
 		s.Require().NoError(err)
@@ -451,7 +451,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 			gasLimit,
 		)
 
-		finalProposal, err := lane.PrepareLane(sdk.Context{}, emptyProposal, block.NoOpPrepareLanesHandler())
+		finalProposal, err := lane.PrepareLane(s.ctx, emptyProposal, block.NoOpPrepareLanesHandler())
 		s.Require().NoError(err)
 
 		// Ensure the proposal is ordered correctly
@@ -481,7 +481,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 		lane := s.initLane(math.LegacyOneDec(), expectedExecution)
 
 		// Insert the transaction into the lane
-		s.Require().NoError(lane.Insert(sdk.Context{}, tx))
+		s.Require().NoError(lane.Insert(s.ctx, tx))
 
 		txBz, err := s.encodingConfig.TxConfig.TxEncoder()(tx)
 		s.Require().NoError(err)
@@ -500,7 +500,7 @@ func (s *BaseTestSuite) TestPrepareLane() {
 		err = emptyProposal.UpdateProposal(mockLane, []sdk.Tx{tx})
 		s.Require().NoError(err)
 
-		finalProposal, err := lane.PrepareLane(sdk.Context{}, emptyProposal, block.NoOpPrepareLanesHandler())
+		finalProposal, err := lane.PrepareLane(s.ctx, emptyProposal, block.NoOpPrepareLanesHandler())
 		s.Require().NoError(err)
 
 		// Ensure the proposal is ordered correctly
@@ -543,7 +543,7 @@ func (s *BaseTestSuite) TestProcessLane() {
 			100000,
 		)
 
-		_, err = lane.ProcessLane(sdk.Context{}, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
+		_, err = lane.ProcessLane(s.ctx, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
 		s.Require().NoError(err)
 	})
 
@@ -578,7 +578,7 @@ func (s *BaseTestSuite) TestProcessLane() {
 			100000,
 		)
 
-		_, err = lane.ProcessLane(sdk.Context{}, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
+		_, err = lane.ProcessLane(s.ctx, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
 		s.Require().Error(err)
 	})
 
@@ -636,7 +636,7 @@ func (s *BaseTestSuite) TestProcessLane() {
 			100000,
 		)
 
-		_, err = lane.ProcessLane(sdk.Context{}, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
+		_, err = lane.ProcessLane(s.ctx, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
 		s.Require().Error(err)
 	})
 
@@ -684,7 +684,7 @@ func (s *BaseTestSuite) TestProcessLane() {
 			100000,
 		)
 
-		_, err = lane.ProcessLane(sdk.Context{}, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
+		_, err = lane.ProcessLane(s.ctx, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
 		s.Require().NoError(err)
 	})
 
@@ -732,7 +732,7 @@ func (s *BaseTestSuite) TestProcessLane() {
 			100000,
 		)
 
-		_, err = lane.ProcessLane(sdk.Context{}, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
+		_, err = lane.ProcessLane(s.ctx, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
 		s.Require().Error(err)
 	})
 
@@ -783,7 +783,7 @@ func (s *BaseTestSuite) TestProcessLane() {
 			100000,
 		)
 
-		_, err = lane.ProcessLane(sdk.Context{}, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
+		_, err = lane.ProcessLane(s.ctx, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
 		s.Require().Error(err)
 	})
 
@@ -818,7 +818,7 @@ func (s *BaseTestSuite) TestProcessLane() {
 			1000000,
 		)
 
-		_, err = lane.ProcessLane(sdk.Context{}, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
+		_, err = lane.ProcessLane(s.ctx, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
 		s.Require().Error(err)
 	})
 
@@ -854,7 +854,7 @@ func (s *BaseTestSuite) TestProcessLane() {
 			9,
 		)
 
-		_, err = lane.ProcessLane(sdk.Context{}, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
+		_, err = lane.ProcessLane(s.ctx, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
 		s.Require().Error(err)
 	})
 
@@ -901,7 +901,7 @@ func (s *BaseTestSuite) TestProcessLane() {
 			19,
 		)
 
-		_, err = lane.ProcessLane(sdk.Context{}, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
+		_, err = lane.ProcessLane(s.ctx, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
 		s.Require().Error(err)
 	})
 
@@ -949,7 +949,7 @@ func (s *BaseTestSuite) TestProcessLane() {
 			20,
 		)
 
-		_, err = lane.ProcessLane(sdk.Context{}, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
+		_, err = lane.ProcessLane(s.ctx, emptyProposal, partialProposal, block.NoOpProcessLanesHandler())
 		s.Require().Error(err)
 	})
 }
diff --git a/lanes/base/base_test.go b/lanes/base/base_test.go
index f4aad61..cf6c2ef 100644
--- a/lanes/base/base_test.go
+++ b/lanes/base/base_test.go
@@ -4,14 +4,19 @@ import (
 	"math/rand"
 	"testing"
 
+	storetypes "cosmossdk.io/store/types"
+	"github.com/cosmos/cosmos-sdk/testutil"
+	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/stretchr/testify/suite"
 
 	testutils "github.com/skip-mev/block-sdk/testutils"
+	"github.com/skip-mev/block-sdk/x/auction/types"
 )
 
 type BaseTestSuite struct {
 	suite.Suite
 
+	ctx            sdk.Context
 	encodingConfig testutils.EncodingConfig
 	random         *rand.Rand
 	accounts       []testutils.Account
@@ -30,4 +35,7 @@ func (s *BaseTestSuite) SetupTest() {
 	s.random = rand.New(rand.NewSource(1))
 	s.accounts = testutils.RandomAccounts(s.random, 5)
 	s.gasTokenDenom = "stake"
+
+	key := storetypes.NewKVStoreKey(types.StoreKey)
+	s.ctx = testutil.DefaultContext(key, storetypes.NewTransientStoreKey("transient_key"))
 }
diff --git a/lanes/mev/abci.go b/lanes/mev/abci.go
index ecea336..574f01e 100644
--- a/lanes/mev/abci.go
+++ b/lanes/mev/abci.go
@@ -231,7 +231,7 @@ func (l *MEVLane) VerifyBidTx(ctx sdk.Context, bidTx sdk.Tx, bundle []sdk.Tx) er
 	}
 
 	// verify the top-level bid transaction
-	if ctx, err = l.AnteVerifyTx(ctx, bidTx, false); err != nil {
+	if err = l.VerifyTx(ctx, bidTx, false); err != nil {
 		return fmt.Errorf("invalid bid tx; failed to execute ante handler: %w", err)
 	}
 
@@ -241,7 +241,7 @@ func (l *MEVLane) VerifyBidTx(ctx sdk.Context, bidTx sdk.Tx, bundle []sdk.Tx) er
 			return fmt.Errorf("invalid bid tx; bundled tx is another bid transaction")
 		}
 
-		if ctx, err = l.AnteVerifyTx(ctx, bundledTx, false); err != nil {
+		if err = l.VerifyTx(ctx, bundledTx, false); err != nil {
 			return fmt.Errorf("invalid bid tx; failed to execute bundled transaction: %w", err)
 		}
 	}
diff --git a/lanes/mev/abci_test.go b/lanes/mev/abci_test.go
index 29dd86a..d1c8bec 100644
--- a/lanes/mev/abci_test.go
+++ b/lanes/mev/abci_test.go
@@ -10,6 +10,8 @@ import (
 )
 
 func (s *MEVTestSuite) TestPrepareLane() {
+	s.ctx = s.ctx.WithExecMode(sdk.ExecModePrepareProposal)
+
 	s.Run("can prepare a lane with no txs in mempool", func() {
 		lane := s.initLane(math.LegacyOneDec(), nil)
 		proposal := proposals.NewProposal(s.encCfg.TxConfig.TxEncoder(), 200, 100)
@@ -220,6 +222,8 @@ func (s *MEVTestSuite) TestPrepareLane() {
 }
 
 func (s *MEVTestSuite) TestProcessLane() {
+	s.ctx = s.ctx.WithExecMode(sdk.ExecModeProcessProposal)
+
 	s.Run("can process an empty proposal", func() {
 		lane := s.initLane(math.LegacyOneDec(), nil)
 		proposal := proposals.NewProposal(s.encCfg.TxConfig.TxEncoder(), 200, 100)
diff --git a/lanes/mev/mev_test.go b/lanes/mev/mev_test.go
index 707fe78..effa9b5 100644
--- a/lanes/mev/mev_test.go
+++ b/lanes/mev/mev_test.go
@@ -41,7 +41,8 @@ func (s *MEVTestSuite) SetupTest() {
 	s.encCfg = testutils.CreateTestEncodingConfig()
 	s.config = mev.NewDefaultAuctionFactory(s.encCfg.TxConfig.TxDecoder(), signer_extraction.NewDefaultAdapter())
 	testCtx := testutil.DefaultContextWithDB(s.T(), storetypes.NewKVStoreKey("test"), storetypes.NewTransientStoreKey("transient_test"))
-	s.ctx = testCtx.Ctx.WithIsCheckTx(true)
+	s.ctx = testCtx.Ctx.WithExecMode(sdk.ExecModePrepareProposal)
+	s.ctx = s.ctx.WithBlockHeight(1)
 
 	// Init accounts
 	random := rand.New(rand.NewSource(time.Now().Unix()))