diff --git a/chain/gen/genesis/genesis.go b/chain/gen/genesis/genesis.go
index 93d75a303..0e46b0079 100644
--- a/chain/gen/genesis/genesis.go
+++ b/chain/gen/genesis/genesis.go
@@ -6,7 +6,6 @@ import (
 
 	"github.com/filecoin-project/go-amt-ipld/v2"
 	"github.com/filecoin-project/specs-actors/actors/abi"
-	"github.com/filecoin-project/specs-actors/actors/abi/big"
 	"github.com/filecoin-project/specs-actors/actors/builtin"
 	"github.com/filecoin-project/specs-actors/actors/builtin/account"
 	"github.com/filecoin-project/specs-actors/actors/crypto"
@@ -20,7 +19,6 @@ import (
 
 	"github.com/filecoin-project/go-address"
 
-	"github.com/filecoin-project/lotus/build"
 	"github.com/filecoin-project/lotus/chain/state"
 	"github.com/filecoin-project/lotus/chain/store"
 	"github.com/filecoin-project/lotus/chain/types"
@@ -131,11 +129,12 @@ func MakeInitialStateTree(ctx context.Context, bs bstore.Blockstore, template ge
 	}
 
 	// Setup reward
-	err = state.SetActor(builtin.RewardActorAddr, &types.Actor{
-		Code:    builtin.RewardActorCodeID,
-		Balance: big.Int{Int: build.InitialReward},
-		Head:    emptyobject, // TODO ?
-	})
+	rewact, err := SetupRewardActor(bs)
+	if err != nil {
+		return nil, xerrors.Errorf("setup init actor: %w", err)
+	}
+
+	err = state.SetActor(builtin.RewardActorAddr, rewact)
 	if err != nil {
 		return nil, xerrors.Errorf("set network account actor: %w", err)
 	}
diff --git a/chain/gen/genesis/t02_reward.go b/chain/gen/genesis/t02_reward.go
index d215223ac..5d1acade3 100644
--- a/chain/gen/genesis/t02_reward.go
+++ b/chain/gen/genesis/t02_reward.go
@@ -1 +1,36 @@
 package genesis
+
+import (
+	"context"
+
+	"github.com/filecoin-project/lotus/build"
+	"github.com/filecoin-project/lotus/chain/store"
+	"github.com/filecoin-project/lotus/chain/types"
+	"github.com/filecoin-project/specs-actors/actors/builtin"
+	"github.com/filecoin-project/specs-actors/actors/builtin/reward"
+	"github.com/filecoin-project/specs-actors/actors/util/adt"
+	bstore "github.com/ipfs/go-ipfs-blockstore"
+	cbor "github.com/ipfs/go-ipld-cbor"
+)
+
+func SetupRewardActor(bs bstore.Blockstore) (*types.Actor, error) {
+	cst := cbor.NewCborStore(bs)
+
+	as := store.ActorStore(context.TODO(), bs)
+	emv, err := adt.MakeEmptyMultimap(as)
+	if err != nil {
+		return nil, err
+	}
+
+	st := reward.ConstructState(emv.Root())
+	hcid, err := cst.Put(context.TODO(), st)
+	if err != nil {
+		return nil, err
+	}
+
+	return &types.Actor{
+		Code:    builtin.RewardActorCodeID,
+		Balance: types.BigInt{Int: build.InitialReward},
+		Head:    hcid,
+	}, nil
+}
diff --git a/chain/stmgr/stmgr.go b/chain/stmgr/stmgr.go
index 70a20ab8d..2dced4630 100644
--- a/chain/stmgr/stmgr.go
+++ b/chain/stmgr/stmgr.go
@@ -8,6 +8,7 @@ import (
 	"github.com/filecoin-project/go-address"
 	amt "github.com/filecoin-project/go-amt-ipld/v2"
 	"github.com/filecoin-project/lotus/api"
+	"github.com/filecoin-project/lotus/chain/actors"
 	"github.com/filecoin-project/lotus/chain/state"
 	"github.com/filecoin-project/lotus/chain/store"
 	"github.com/filecoin-project/lotus/chain/types"
@@ -16,6 +17,7 @@ import (
 	"github.com/filecoin-project/specs-actors/actors/abi/big"
 	"github.com/filecoin-project/specs-actors/actors/builtin"
 	"github.com/filecoin-project/specs-actors/actors/builtin/market"
+	"github.com/filecoin-project/specs-actors/actors/builtin/reward"
 	"github.com/filecoin-project/specs-actors/actors/runtime"
 	"github.com/filecoin-project/specs-actors/actors/util/adt"
 	cbg "github.com/whyrusleeping/cbor-gen"
@@ -130,31 +132,6 @@ func (sm *StateManager) ApplyBlocks(ctx context.Context, pstate cid.Cid, bms []B
 	}
 
 	/*
-		rewardActor, err := vmi.StateTree().GetActor(builtin.RewardActorAddr)
-		if err != nil {
-			return cid.Undef, cid.Undef, xerrors.Errorf("failed to get network actor: %w", err)
-		}
-		reward := vm.MiningReward(rewardActor.Balance)
-		for _, b := range bms {
-			rewardActor, err = vmi.StateTree().GetActor(builtin.RewardActorAddr)
-			if err != nil {
-				return cid.Undef, cid.Undef, xerrors.Errorf("failed to get network actor: %w", err)
-			}
-			vmi.SetBlockMiner(b.Miner)
-
-			owner, err := GetMinerOwner(ctx, sm, pstate, b.Miner)
-			if err != nil {
-				return cid.Undef, cid.Undef, xerrors.Errorf("failed to get owner for miner %s: %w", b.Miner, err)
-			}
-
-			act, err := vmi.StateTree().GetActor(owner)
-			if err != nil {
-				return cid.Undef, cid.Undef, xerrors.Errorf("failed to get miner owner actor")
-			}
-
-			if err := vm.Transfer(rewardActor, act, reward); err != nil {
-				return cid.Undef, cid.Undef, xerrors.Errorf("failed to deduct funds from network actor: %w", err)
-			}
 		}
 	*/
 
@@ -178,9 +155,10 @@ func (sm *StateManager) ApplyBlocks(ctx context.Context, pstate cid.Cid, bms []B
 	for _, b := range bms {
 		vmi.SetBlockMiner(b.Miner)
 
-		cmsgs := append(b.BlsMessages, b.SecpkMessages...)
+		penalty := types.NewInt(0)
+		gasReward := types.NewInt(0)
 
-		for _, cm := range cmsgs {
+		for _, cm := range append(b.BlsMessages, b.SecpkMessages...) {
 			m := cm.VMMessage()
 			if err := preloadAddr(m.From); err != nil {
 				return cid.Undef, cid.Undef, err
@@ -209,6 +187,43 @@ func (sm *StateManager) ApplyBlocks(ctx context.Context, pstate cid.Cid, bms []B
 				}
 			}
 		}
+
+		owner, err := GetMinerOwner(ctx, sm, pstate, b.Miner)
+		if err != nil {
+			return cid.Undef, cid.Undef, xerrors.Errorf("failed to get owner for miner %s: %w", b.Miner, err)
+		}
+
+		params, err := actors.SerializeParams(&reward.AwardBlockRewardParams{
+			MinerOwner: owner,
+			Penalty:    penalty,
+			GasReward:  gasReward,
+		})
+		if err != nil {
+			return cid.Undef, cid.Undef, xerrors.Errorf("failed to serialize award params: %w", err)
+		}
+
+		sysAct, err := vmi.StateTree().GetActor(builtin.SystemActorAddr)
+		if err != nil {
+			return cid.Undef, cid.Undef, xerrors.Errorf("failed to get system actor: %w", err)
+		}
+
+		ret, err := vmi.ApplyMessage(ctx, &types.Message{
+			From:     builtin.SystemActorAddr,
+			To:       builtin.RewardActorAddr,
+			Nonce:    sysAct.Nonce,
+			Value:    types.NewInt(0),
+			GasPrice: types.NewInt(0),
+			GasLimit: types.NewInt(1 << 30),
+			Method:   builtin.MethodsReward.AwardBlockReward,
+			Params:   params,
+		})
+		if err != nil {
+			return cid.Undef, cid.Undef, xerrors.Errorf("failed to apply reward message for miner %s: %w", b.Miner, err)
+		}
+		if ret.ExitCode != 0 {
+			return cid.Undef, cid.Undef, xerrors.Errorf("reward application message failed (exit %d): %s", ret.ExitCode, ret.ActorErr)
+		}
+
 	}
 
 	// TODO: this nonce-getting is a tiny bit ugly
diff --git a/chain/vm/invoker.go b/chain/vm/invoker.go
index df5ec704e..33034b2ab 100644
--- a/chain/vm/invoker.go
+++ b/chain/vm/invoker.go
@@ -19,6 +19,7 @@ import (
 	"github.com/filecoin-project/specs-actors/actors/builtin/multisig"
 	"github.com/filecoin-project/specs-actors/actors/builtin/paych"
 	"github.com/filecoin-project/specs-actors/actors/builtin/power"
+	"github.com/filecoin-project/specs-actors/actors/builtin/reward"
 	"github.com/filecoin-project/specs-actors/actors/builtin/system"
 	vmr "github.com/filecoin-project/specs-actors/actors/runtime"
 	"github.com/filecoin-project/specs-actors/actors/util/adt"
@@ -44,6 +45,7 @@ func NewInvoker() *invoker {
 	// add builtInCode using: register(cid, singleton)
 	inv.Register(builtin.SystemActorCodeID, system.Actor{}, adt.EmptyValue{})
 	inv.Register(builtin.InitActorCodeID, init_.Actor{}, init_.State{})
+	inv.Register(builtin.RewardActorCodeID, reward.Actor{}, reward.State{})
 	inv.Register(builtin.CronActorCodeID, cron.Actor{}, cron.State{})
 	inv.Register(builtin.StoragePowerActorCodeID, power.Actor{}, power.State{})
 	inv.Register(builtin.StorageMarketActorCodeID, market.Actor{}, market.State{})
diff --git a/chain/vm/spec_shim.go b/chain/vm/spec_shim.go
index c5f6f1b06..1b4364494 100644
--- a/chain/vm/spec_shim.go
+++ b/chain/vm/spec_shim.go
@@ -58,10 +58,9 @@ func (rs *runtimeShim) shimCall(f func() interface{}) (rval []byte, aerr aerrors
 				aerr = ar
 				return
 			}
-			log.Warn("caught one of those actor errors: ", r)
 			debug.PrintStack()
 			log.Errorf("ERROR")
-			aerr = aerrors.Newf(1, "generic spec actors failure")
+			aerr = aerrors.Newf(1, "spec actors failure: %s", r)
 		}
 	}()
 
diff --git a/chain/vm/validation_test.go b/chain/vm/validation_test.go
index 8532773d3..de1fd6381 100644
--- a/chain/vm/validation_test.go
+++ b/chain/vm/validation_test.go
@@ -8,6 +8,7 @@ import (
 
 	suites "github.com/filecoin-project/chain-validation/suites"
 	"github.com/filecoin-project/chain-validation/suites/message"
+	"github.com/filecoin-project/chain-validation/suites/tipset"
 
 	factory "github.com/filecoin-project/lotus/chain/validation"
 )
@@ -34,6 +35,7 @@ var TestSuiteSkipper TestSkipper
 func init() {
 	// initialize the test skipper with tests being skipped
 	TestSuiteSkipper = TestSkipper{testSkips: []suites.TestCase{
+		tipset.TestInternalMessageApplicationFailure,
 
 		// Fails due to gas mismatches
 		message.TestPaych,
diff --git a/chain/vm/vm.go b/chain/vm/vm.go
index 5f51b85c4..d9571b351 100644
--- a/chain/vm/vm.go
+++ b/chain/vm/vm.go
@@ -526,15 +526,13 @@ func (vm *VM) ApplyMessage(ctx context.Context, msg *types.Message) (*ApplyRet,
 		}
 	}
 
-	bfact, err := st.GetActor(builtin.BurntFundsActorAddr)
+	rwAct, err := st.GetActor(builtin.RewardActorAddr)
 	if err != nil {
 		return nil, xerrors.Errorf("getting burnt funds actor failed: %w", err)
 	}
 
-	// TODO: support multiple blocks in a tipset
-	// TODO: actually wire this up (miner is undef for now)
 	gasReward := types.BigMul(msg.GasPrice, gasUsed)
-	if err := Transfer(gasHolder, bfact, gasReward); err != nil {
+	if err := Transfer(gasHolder, rwAct, gasReward); err != nil {
 		return nil, xerrors.Errorf("failed to give miner gas reward: %w", err)
 	}
 
diff --git a/cmd/lotus/daemon.go b/cmd/lotus/daemon.go
index 82ffdf45e..19eba8377 100644
--- a/cmd/lotus/daemon.go
+++ b/cmd/lotus/daemon.go
@@ -6,12 +6,14 @@ import (
 	"context"
 	"encoding/hex"
 	"encoding/json"
-	"github.com/filecoin-project/lotus/chain/types"
+	"fmt"
 	"io/ioutil"
 	"os"
 	"runtime/pprof"
 	"strings"
 
+	"github.com/filecoin-project/lotus/chain/types"
+
 	paramfetch "github.com/filecoin-project/go-paramfetch"
 	"github.com/filecoin-project/go-sectorbuilder"
 	blockstore "github.com/ipfs/go-ipfs-blockstore"
@@ -134,6 +136,7 @@ var DaemonCmd = &cli.Command{
 				return err
 			}
 			if cctx.Bool("halt-after-import") {
+				fmt.Println("Chain import complete, halting as requested...")
 				return nil
 			}
 		}
diff --git a/go.mod b/go.mod
index 1ec80ce17..0cfdf04d4 100644
--- a/go.mod
+++ b/go.mod
@@ -10,7 +10,7 @@ require (
 	github.com/StackExchange/wmi v0.0.0-20190523213315-cbe66965904d // indirect
 	github.com/coreos/go-systemd/v22 v22.0.0
 	github.com/docker/go-units v0.4.0
-	github.com/filecoin-project/chain-validation v0.0.6-0.20200303230205-30309cc5d8eb
+	github.com/filecoin-project/chain-validation v0.0.6-0.20200304211828-4b541348b199
 	github.com/filecoin-project/filecoin-ffi v0.0.0-20200226205820-4da0bccccefb
 	github.com/filecoin-project/go-address v0.0.2-0.20200218010043-eb9bb40ed5be
 	github.com/filecoin-project/go-amt-ipld/v2 v2.0.1-0.20200131012142-05d80eeccc5e
@@ -23,7 +23,7 @@ require (
 	github.com/filecoin-project/go-paramfetch v0.0.2-0.20200218225740-47c639bab663
 	github.com/filecoin-project/go-sectorbuilder v0.0.2-0.20200228181617-f00e2c4cc050
 	github.com/filecoin-project/go-statestore v0.1.0
-	github.com/filecoin-project/specs-actors v0.0.0-20200302223606-0eaf97b10aaf
+	github.com/filecoin-project/specs-actors v0.0.0-20200304210626-21ee86aadcb9
 	github.com/gbrlsnchs/jwt/v3 v3.0.0-beta.1
 	github.com/go-ole/go-ole v1.2.4 // indirect
 	github.com/google/uuid v1.1.1
@@ -116,3 +116,5 @@ replace github.com/golangci/golangci-lint => github.com/golangci/golangci-lint v
 replace github.com/filecoin-project/filecoin-ffi => ./extern/filecoin-ffi
 
 replace github.com/coreos/go-systemd => github.com/coreos/go-systemd/v22 v22.0.0
+
+replace github.com/filecoin-project/specs-actors => ../specs-actors
diff --git a/go.sum b/go.sum
index 09af9c433..a3768a206 100644
--- a/go.sum
+++ b/go.sum
@@ -99,6 +99,8 @@ github.com/fatih/color v1.8.0/go.mod h1:3l45GVGkyrnYNl9HoIjnp2NnNWvh6hLAqD8yTfGj
 github.com/fd/go-nat v1.0.0/go.mod h1:BTBu/CKvMmOMUPkKVef1pngt2WFH/lg7E6yQnulfp6E=
 github.com/filecoin-project/chain-validation v0.0.6-0.20200303230205-30309cc5d8eb h1:vGm95uLk+4ytckKQX8mfOwMzgBge9rqHbTfDsImUWIs=
 github.com/filecoin-project/chain-validation v0.0.6-0.20200303230205-30309cc5d8eb/go.mod h1:6FYR4Xi26mfXkNlrHOo7fZjITZ9GrqqF8OKG4IQ4zWk=
+github.com/filecoin-project/chain-validation v0.0.6-0.20200304211828-4b541348b199 h1:HIdN3/s/fda3kQYMawG8ysYC207LJ5GnH0XziyTgQJk=
+github.com/filecoin-project/chain-validation v0.0.6-0.20200304211828-4b541348b199/go.mod h1:JU9alo66MwdCHkpk1kDXB8vT8A/oMkTkdZ4mQjA4I5E=
 github.com/filecoin-project/go-address v0.0.0-20200107215422-da8eea2842b5/go.mod h1:SAOwJoakQ8EPjwNIsiakIQKsoKdkcbx8U3IapgCg9R0=
 github.com/filecoin-project/go-address v0.0.2-0.20200218010043-eb9bb40ed5be h1:TooKBwR/g8jG0hZ3lqe9S5sy2vTUcLOZLlz3M5wGn2E=
 github.com/filecoin-project/go-address v0.0.2-0.20200218010043-eb9bb40ed5be/go.mod h1:SAOwJoakQ8EPjwNIsiakIQKsoKdkcbx8U3IapgCg9R0=