diff --git a/Makefile b/Makefile
index a5f89a4ef..83bc4920e 100644
--- a/Makefile
+++ b/Makefile
@@ -159,7 +159,8 @@ clean:
 	rm -rf \
 	$(BUILDDIR)/ \
 	artifacts/ \
-	tmp-swagger-gen/
+	tmp-swagger-gen/ \
+	.testnets
 
 .PHONY: distclean clean
 
diff --git a/baseapp/abci.go b/baseapp/abci.go
index fcf5fda48..1e8cf7506 100644
--- a/baseapp/abci.go
+++ b/baseapp/abci.go
@@ -171,15 +171,7 @@ func (app *BaseApp) BeginBlock(req abci.RequestBeginBlock) (res abci.ResponseBeg
 			WithBlockHeight(req.Header.Height)
 	}
 
-	// add block gas meter
-	var gasMeter sdk.GasMeter
-	if maxGas := app.GetMaximumBlockGas(app.deliverState.ctx); maxGas > 0 {
-		gasMeter = sdk.NewGasMeter(maxGas)
-	} else {
-		gasMeter = sdk.NewInfiniteGasMeter()
-	}
-
-	// NOTE: header hash is not set in NewContext, so we manually set it here
+	gasMeter := app.getBlockGasMeter(app.deliverState.ctx)
 
 	app.deliverState.ctx = app.deliverState.ctx.
 		WithBlockGasMeter(gasMeter).
@@ -258,13 +250,15 @@ func (app *BaseApp) PrepareProposal(req abci.RequestPrepareProposal) (resp abci.
 		panic("PrepareProposal called with invalid height")
 	}
 
+	gasMeter := app.getBlockGasMeter(app.prepareProposalState.ctx)
 	ctx := app.getContextForProposal(app.prepareProposalState.ctx, req.Height)
 
 	ctx = ctx.WithVoteInfos(app.voteInfos).
 		WithBlockHeight(req.Height).
 		WithBlockTime(req.Time).
 		WithProposer(req.ProposerAddress).
-		WithConsensusParams(app.GetConsensusParams(ctx))
+		WithConsensusParams(app.GetConsensusParams(ctx)).
+		WithBlockGasMeter(gasMeter)
 
 	defer func() {
 		if err := recover(); err != nil {
@@ -274,6 +268,7 @@ func (app *BaseApp) PrepareProposal(req abci.RequestPrepareProposal) (resp abci.
 				"time", req.Time,
 				"panic", err,
 			)
+
 			resp = abci.ResponsePrepareProposal{Txs: req.Txs}
 		}
 	}()
@@ -302,6 +297,7 @@ func (app *BaseApp) ProcessProposal(req abci.RequestProcessProposal) (resp abci.
 		panic("app.ProcessProposal is not set")
 	}
 
+	gasMeter := app.getBlockGasMeter(app.processProposalState.ctx)
 	ctx := app.getContextForProposal(app.processProposalState.ctx, req.Height)
 
 	ctx = ctx.
@@ -310,7 +306,8 @@ func (app *BaseApp) ProcessProposal(req abci.RequestProcessProposal) (resp abci.
 		WithBlockTime(req.Time).
 		WithHeaderHash(req.Hash).
 		WithProposer(req.ProposerAddress).
-		WithConsensusParams(app.GetConsensusParams(ctx))
+		WithConsensusParams(app.GetConsensusParams(ctx)).
+		WithBlockGasMeter(gasMeter)
 
 	defer func() {
 		if err := recover(); err != nil {
diff --git a/baseapp/baseapp.go b/baseapp/baseapp.go
index 5820f1813..77fa2e7df 100644
--- a/baseapp/baseapp.go
+++ b/baseapp/baseapp.go
@@ -542,15 +542,26 @@ func (app *BaseApp) getState(mode runTxMode) *state {
 	switch mode {
 	case runTxModeDeliver:
 		return app.deliverState
+
 	case runTxPrepareProposal:
 		return app.prepareProposalState
+
 	case runTxProcessProposal:
 		return app.processProposalState
+
 	default:
 		return app.checkState
 	}
 }
 
+func (app *BaseApp) getBlockGasMeter(ctx sdk.Context) storetypes.GasMeter {
+	if maxGas := app.GetMaximumBlockGas(ctx); maxGas > 0 {
+		return storetypes.NewGasMeter(maxGas)
+	}
+
+	return storetypes.NewInfiniteGasMeter()
+}
+
 // retrieve the context for the tx w/ txBytes and other memoized values.
 func (app *BaseApp) getContextForTx(mode runTxMode, txBytes []byte) sdk.Context {
 	modeState := app.getState(mode)
@@ -624,8 +635,10 @@ func (app *BaseApp) runTx(mode runTxMode, txBytes []byte) (gInfo sdk.GasInfo, re
 	}()
 
 	blockGasConsumed := false
-	// consumeBlockGas makes sure block gas is consumed at most once. It must happen after
-	// tx processing, and must be executed even if tx processing fails. Hence, we use trick with `defer`
+
+	// consumeBlockGas makes sure block gas is consumed at most once. It must
+	// happen after tx processing, and must be executed even if tx processing
+	// fails. Hence, it's execution is deferred.
 	consumeBlockGas := func() {
 		if !blockGasConsumed {
 			blockGasConsumed = true
@@ -638,8 +651,9 @@ func (app *BaseApp) runTx(mode runTxMode, txBytes []byte) (gInfo sdk.GasInfo, re
 	// If BlockGasMeter() panics it will be caught by the above recover and will
 	// return an error - in any case BlockGasMeter will consume gas past the limit.
 	//
-	// NOTE: This must exist in a separate defer function for the above recovery
-	// to recover from this one.
+	// NOTE: consumeBlockGas must exist in a separate defer function from the
+	// general deferred recovery function to recover from consumeBlockGas as it'll
+	// be executed first (deferred statements are executed as stack).
 	if mode == runTxModeDeliver {
 		defer consumeBlockGas()
 	}
@@ -717,9 +731,7 @@ func (app *BaseApp) runTx(mode runTxMode, txBytes []byte) (gInfo sdk.GasInfo, re
 	// and we're in DeliverTx. Note, runMsgs will never return a reference to a
 	// Result if any single message fails or does not have a registered Handler.
 	result, err = app.runMsgs(runMsgCtx, msgs, mode)
-
 	if err == nil {
-
 		// Run optional postHandlers.
 		//
 		// Note: If the postHandler fails, we also revert the runMsgs state.
@@ -765,7 +777,6 @@ func (app *BaseApp) runMsgs(ctx sdk.Context, msgs []sdk.Msg, mode runTxMode) (*s
 
 	// NOTE: GasWanted is determined by the AnteHandler and GasUsed by the GasMeter.
 	for i, msg := range msgs {
-
 		if mode != runTxModeDeliver && mode != runTxModeSimulate {
 			break
 		}
@@ -938,6 +949,7 @@ func (app *BaseApp) DefaultProcessProposal() sdk.ProcessProposalHandler {
 				return abci.ResponseProcessProposal{Status: abci.ResponseProcessProposal_REJECT}
 			}
 		}
+
 		return abci.ResponseProcessProposal{Status: abci.ResponseProcessProposal_ACCEPT}
 	}
 }
diff --git a/store/types/gas.go b/store/types/gas.go
index 84ca54255..e0c950476 100644
--- a/store/types/gas.go
+++ b/store/types/gas.go
@@ -83,7 +83,8 @@ func (g *basicGasMeter) Limit() Gas {
 
 // GasConsumedToLimit returns the gas limit if gas consumed is past the limit,
 // otherwise it returns the consumed gas.
-// NOTE: This behaviour is only called when recovering from panic when
+//
+// NOTE: This behavior is only called when recovering from panic when
 // BlockGasMeter consumes gas past the limit.
 func (g *basicGasMeter) GasConsumedToLimit() Gas {
 	if g.IsPastLimit() {