@aztec/p2p 0.0.1-commit.ec5f612 → 0.0.1-commit.ec7ac5448

package/src/mem_pools/attestation_pool/attestation_pool.ts

@@ -26,10 +26,10 @@ export type TryAddResult = {
   count: number;
 };
 
-export const MAX_CHECKPOINT_PROPOSALS_PER_SLOT = 5;
-export const MAX_BLOCK_PROPOSALS_PER_POSITION = 3;
+export const MAX_CHECKPOINT_PROPOSALS_PER_SLOT = 2;
+export const MAX_BLOCK_PROPOSALS_PER_POSITION = 2;
 /** Maximum attestations a single signer can make per slot before being rejected. */
-export const MAX_ATTESTATIONS_PER_SLOT_AND_SIGNER = 3;
+export const MAX_ATTESTATIONS_PER_SLOT_AND_SIGNER = 2;
 
 /** Public API interface for attestation pools. Used for typing mocks and test implementations. */
 export type AttestationPoolApi = Pick<
@@ -154,14 +154,16 @@ export class AttestationPool {
   /** Maximum indexWithinCheckpoint value (2^10 - 1 = 1023). */
   private static readonly MAX_INDEX = (1 << AttestationPool.INDEX_BITS) - 1;
 
-  /** Creates a position key for block proposals: (slot << 10) | indexWithinCheckpoint. */
+  /** Creates a position key for block proposals: slot * 1024 + indexWithinCheckpoint.
+   * Uses multiplication instead of bit-shift to avoid 32-bit signed integer overflow
+   * (bit-shift overflows after slot ~2^21, roughly 278 days of uptime). */
   private getBlockPositionKey(slot: number, indexWithinCheckpoint: number): number {
     if (indexWithinCheckpoint > AttestationPool.MAX_INDEX) {
       throw new Error(
         `Value for indexWithinCheckpoint ${indexWithinCheckpoint} exceeds maximum ${AttestationPool.MAX_INDEX}`,
       );
     }
-    return (slot << AttestationPool.INDEX_BITS) | indexWithinCheckpoint;
+    return slot * (1 << AttestationPool.INDEX_BITS) + indexWithinCheckpoint;
   }
 
   /**
@@ -278,7 +280,7 @@ export class AttestationPool {
    * @returns Result indicating whether the proposal was added and duplicate detection info
    */
   public async tryAddCheckpointProposal(proposal: CheckpointProposalCore): Promise<TryAddResult> {
-    return await this.store.transactionAsync(async () => {
+    const result = await this.store.transactionAsync(async () => {
       const proposalId = proposal.archive.toString();
 
       // Check if already exists
@@ -304,6 +306,8 @@ export class AttestationPool {
 
       return { added: true, alreadyExists: false, count: count + 1 };
     });
+
+    return result;
   }
 
   /** Internal method - must be called within a transaction. */
@@ -345,7 +349,7 @@ export class AttestationPool {
     await this.store.transactionAsync(async () => {
       for (const attestation of attestations) {
         const slotNumber = attestation.payload.header.slotNumber;
-        const proposalId = attestation.archive;
+        const proposalId = attestation.archive.toString();
         const sender = attestation.getSender();
 
         // Skip attestations with invalid signatures
@@ -359,11 +363,10 @@ export class AttestationPool {
         }
 
         const address = sender.toString();
+        const ownKey = this.getAttestationKey(slotNumber, proposalId, address);
 
-        await this.checkpointAttestations.set(
-          this.getAttestationKey(slotNumber, proposalId, address),
-          attestation.toBuffer(),
-        );
+        await this.checkpointAttestations.set(ownKey, attestation.toBuffer());
+        this.metrics.trackMempoolItemAdded(ownKey);
 
         this.log.debug(`Added own checkpoint attestation for slot ${slotNumber} from ${address}`, {
           signature: attestation.signature.toString(),
@@ -429,6 +432,7 @@ export class AttestationPool {
       const attestationEndKey = new Fr(oldestSlot).toString();
       for await (const key of this.checkpointAttestations.keysAsync({ end: attestationEndKey })) {
         await this.checkpointAttestations.delete(key);
+        this.metrics.trackMempoolItemRemoved(key);
         numberOfAttestations++;
       }
 
@@ -452,7 +456,7 @@ export class AttestationPool {
 
       // Delete block proposals for slots < oldestSlot, using blockProposalsForSlotAndIndex as index
       // Key format: (slot << INDEX_BITS) | indexWithinCheckpoint
-      const blockPositionEndKey = oldestSlot << AttestationPool.INDEX_BITS;
+      const blockPositionEndKey = oldestSlot * (1 << AttestationPool.INDEX_BITS);
       for await (const positionKey of this.blockProposalsForSlotAndIndex.keysAsync({ end: blockPositionEndKey })) {
         const proposalIds = await toArray(this.blockProposalsForSlotAndIndex.getValuesAsync(positionKey));
         for (const proposalId of proposalIds) {
@@ -526,6 +530,7 @@ export class AttestationPool {
 
       // Add the attestation
       await this.checkpointAttestations.set(key, attestation.toBuffer());
+      this.metrics.trackMempoolItemAdded(key);
 
       // Track this attestation in the per-signer-per-slot index for duplicate detection
       const slotSignerKey = this.getSlotSignerKey(slotNumber, signerAddress);

package/src/mem_pools/attestation_pool/attestation_pool_test_suite.ts

@@ -446,12 +446,12 @@ export function describeAttestationPool(getAttestationPool: () => AttestationPoo
         const result2 = await ap.tryAddBlockProposal(proposal2);
         expect(result2.count).toBe(2);
 
-        // Add a third proposal for same position
+        // Third proposal for same position should be rejected (cap is 2)
         const proposal3 = await mockBlockProposalWithIndex(signers[2], slotNumber, indexWithinCheckpoint);
         const result3 = await ap.tryAddBlockProposal(proposal3);
 
-        expect(result3.added).toBe(true);
-        expect(result3.count).toBe(3);
+        expect(result3.added).toBe(false);
+        expect(result3.count).toBe(2);
       });
 
       it('should return added=false when exceeding capacity', async () => {
@@ -666,12 +666,12 @@ export function describeAttestationPool(getAttestationPool: () => AttestationPoo
         const result2 = await ap.tryAddCheckpointProposal(proposal2);
         expect(result2.count).toBe(2);
 
-        // Add a third proposal for same slot
+        // Third proposal for same slot should be rejected (cap is 2)
         const proposal3 = await mockCheckpointProposalCoreForPool(signers[2], slotNumber);
         const result3 = await ap.tryAddCheckpointProposal(proposal3);
 
-        expect(result3.added).toBe(true);
-        expect(result3.count).toBe(3);
+        expect(result3.added).toBe(false);
+        expect(result3.count).toBe(2);
       });
 
       it('should not count attestations as proposals for duplicate detection', async () => {

package/src/mem_pools/index.ts

@@ -1,6 +1,3 @@
 export { AttestationPool, type AttestationPoolApi } from './attestation_pool/attestation_pool.js';
 export { type MemPools } from './interface.js';
-// Old TxPool exports - kept temporarily for external consumers
-export { type TxPool } from './tx_pool/tx_pool.js';
-// New TxPoolV2 exports
 export { type TxPoolV2, type TxPoolV2Config, type TxPoolV2Events, type AddTxsResult } from './tx_pool_v2/index.js';

package/src/mem_pools/instrumentation.ts

@@ -73,7 +73,7 @@ export class PoolInstrumentation<PoolObject extends Gossipable> {
   private defaultAttributes;
   private meter: Meter;
 
-  private txAddedTimestamp: Map<bigint, number> = new Map<bigint, number>();
+  private mempoolItemAddedTimestamp: Map<bigint | string, number> = new Map<bigint | string, number>();
 
   constructor(
     telemetry: TelemetryClient,
@@ -114,22 +114,26 @@ export class PoolInstrumentation<PoolObject extends Gossipable> {
   }
 
   public transactionsAdded(transactions: Tx[]) {
-    const timestamp = Date.now();
-    for (const transaction of transactions) {
-      this.txAddedTimestamp.set(transaction.txHash.toBigInt(), timestamp);
-    }
+    transactions.forEach(tx => this.trackMempoolItemAdded(tx.txHash.toBigInt()));
   }
 
   public transactionsRemoved(hashes: Iterable<bigint> | Iterable<string>) {
-    const timestamp = Date.now();
     for (const hash of hashes) {
-      const key = BigInt(hash);
-      const addedAt = this.txAddedTimestamp.get(key);
-      if (addedAt !== undefined) {
-        this.txAddedTimestamp.delete(key);
-        if (addedAt < timestamp) {
-          this.minedDelay.record(timestamp - addedAt);
-        }
+      this.trackMempoolItemRemoved(BigInt(hash));
+    }
+  }
+
+  public trackMempoolItemAdded(key: bigint | string): void {
+    this.mempoolItemAddedTimestamp.set(key, Date.now());
+  }
+
+  public trackMempoolItemRemoved(key: bigint | string): void {
+    const timestamp = Date.now();
+    const addedAt = this.mempoolItemAddedTimestamp.get(key);
+    if (addedAt !== undefined) {
+      this.mempoolItemAddedTimestamp.delete(key);
+      if (addedAt < timestamp) {
+        this.minedDelay.record(timestamp - addedAt);
       }
     }
   }

package/src/mem_pools/tx_pool_v2/README.md

@@ -158,7 +158,7 @@ Checked before adding a transaction to the pending pool:
 
 | Rule | Purpose |
 |------|---------|
-| `NullifierConflictRule` | Handles transactions with conflicting nullifiers. Higher priority tx wins. |
+| `NullifierConflictRule` | Handles transactions with conflicting nullifiers. Higher priority tx wins. For RPC submissions, a configurable price bump percentage is required. |
 | `FeePayerBalancePreAddRule` | Ensures fee payer has sufficient balance for all their pending txs. |
 | `LowPriorityPreAddRule` | Rejects txs when pool is full and new tx has lowest priority. |
 
@@ -233,6 +233,14 @@ await pool.updateConfig({
 });
 ```
 
+### Price Bump (RPC Transaction Replacement)
+
+When a transaction is submitted via RPC and clashes on nullifiers with an existing pool transaction, the incoming tx must pay at least `priceBumpPercentage`% more in priority fee (i.e. `>= existingFee + existingFee * bump / 100`) to replace it. This prevents spam via small fee increments. The same bump applies when the pool is full and the incoming tx needs to evict the lowest-priority tx.
+
+- **Env var**: `P2P_RPC_PRICE_BUMP_PERCENTAGE` (default: 10)
+- **Scope**: RPC submissions only. P2P gossip uses `comparePriority` (fee + hash tiebreaker) with no bump.
+- Even with a 0% bump, a replacement tx must pay at least 1 unit more than the existing fee.
+
 ## Return Values
 
 ### AddTxsResult

package/src/mem_pools/tx_pool_v2/eviction/fee_payer_balance_eviction_rule.ts

@@ -29,7 +29,8 @@ export class FeePayerBalanceEvictionRule implements EvictionRule {
 
       if (context.event === EvictionEvent.BLOCK_MINED) {
         const blockNumber = context.block.getBlockNumber();
-        await this.worldState.syncImmediate(blockNumber);
+        const blockHash = await context.block.hash();
+        await this.worldState.syncImmediate(blockNumber, blockHash);
         return await this.evictForFeePayers(context.feePayers, this.worldState.getSnapshot(blockNumber), pool);
       }
 

package/src/mem_pools/tx_pool_v2/eviction/interfaces.ts

@@ -100,7 +100,15 @@ export type TxPoolRejectionError =
       availableBalance: bigint;
       feeLimit: bigint;
     }
-  | { code: typeof TxPoolRejectionCode.NULLIFIER_CONFLICT; message: string; conflictingTxHash: string }
+  | {
+      code: typeof TxPoolRejectionCode.NULLIFIER_CONFLICT;
+      message: string;
+      conflictingTxHash: string;
+      /** Minimum fee needed to replace the conflicting tx (only set when price bump applies). */
+      minimumPriceBumpFee?: bigint;
+      /** Incoming tx's priority fee. */
+      txPriorityFee?: bigint;
+    }
   | { code: typeof TxPoolRejectionCode.INTERNAL_ERROR; message: string };
 
 /**
@@ -121,6 +129,8 @@ export interface PreAddResult {
 export interface PreAddContext {
   /** If true, compare priority fee only (no tx hash tiebreaker). Used for RPC submissions. */
   feeComparisonOnly?: boolean;
+  /** Percentage-based price bump required for tx replacement. Only set for RPC submissions. */
+  priceBumpPercentage?: bigint;
 }
 
 /**

package/src/mem_pools/tx_pool_v2/eviction/low_priority_pre_add_rule.ts

@@ -1,6 +1,6 @@
 import { createLogger } from '@aztec/foundation/log';
 
-import { type TxMetaData, comparePriority } from '../tx_metadata.js';
+import { type TxMetaData, comparePriority, getMinimumPriceBumpFee } from '../tx_metadata.js';
 import {
   type EvictionConfig,
   type PreAddContext,
@@ -48,10 +48,14 @@ export class LowPriorityPreAddRule implements PreAddRule {
     }
 
     // Compare incoming tx against lowest priority tx.
-    // feeOnly mode (RPC): use strict fee comparison only — avoids churn from hash ordering
-    // Default (gossip): use full comparePriority (fee + tx hash tiebreaker) for determinism
+    // feeOnly mode (RPC): use strict fee comparison only — avoids churn from hash ordering.
+    // When price bump is also set, require the bumped fee threshold.
+    // Default (gossip): use full comparePriority (fee + tx hash tiebreaker) for determinism.
     const isHigherPriority = context?.feeComparisonOnly
-      ? incomingMeta.priorityFee > lowestPriorityMeta.priorityFee
+      ? context.priceBumpPercentage !== undefined
+        ? incomingMeta.priorityFee >=
+          getMinimumPriceBumpFee(lowestPriorityMeta.priorityFee, context.priceBumpPercentage)
+        : incomingMeta.priorityFee > lowestPriorityMeta.priorityFee
       : comparePriority(incomingMeta, lowestPriorityMeta) > 0;
 
     if (isHigherPriority) {
@@ -66,6 +70,11 @@ export class LowPriorityPreAddRule implements PreAddRule {
     }
 
     // Incoming tx has equal or lower priority - ignore it (it would be evicted anyway)
+    const minimumFee =
+      context?.feeComparisonOnly && context.priceBumpPercentage !== undefined
+        ? getMinimumPriceBumpFee(lowestPriorityMeta.priorityFee, context.priceBumpPercentage)
+        : lowestPriorityMeta.priorityFee + 1n;
+
     this.log.debug(
       `Pool at capacity (${currentCount}/${this.maxPoolSize}), ignoring ${incomingMeta.txHash} ` +
         `(priority ${incomingMeta.priorityFee}) - lower than existing minimum (priority ${lowestPriorityMeta.priorityFee})`,
@@ -75,8 +84,8 @@ export class LowPriorityPreAddRule implements PreAddRule {
       txHashesToEvict: [],
       reason: {
         code: TxPoolRejectionCode.LOW_PRIORITY_FEE,
-        message: `Tx does not meet minimum priority fee. Required: ${lowestPriorityMeta.priorityFee + 1n}, got: ${incomingMeta.priorityFee}`,
-        minimumPriorityFee: lowestPriorityMeta.priorityFee + 1n,
+        message: `Tx does not meet minimum priority fee. Required: ${minimumFee}, got: ${incomingMeta.priorityFee}`,
+        minimumPriorityFee: minimumFee,
         txPriorityFee: incomingMeta.priorityFee,
       },
     });

package/src/mem_pools/tx_pool_v2/eviction/nullifier_conflict_rule.ts

@@ -15,11 +15,12 @@ export class NullifierConflictRule implements PreAddRule {
 
   private log = createLogger('p2p:tx_pool_v2:nullifier_conflict_rule');
 
-  check(incomingMeta: TxMetaData, poolAccess: PreAddPoolAccess, _context?: PreAddContext): Promise<PreAddResult> {
+  check(incomingMeta: TxMetaData, poolAccess: PreAddPoolAccess, context?: PreAddContext): Promise<PreAddResult> {
     const result = checkNullifierConflict(
       incomingMeta,
       nullifier => poolAccess.getTxHashByNullifier(nullifier),
       txHash => poolAccess.getMetadata(txHash),
+      context?.priceBumpPercentage,
     );
 
     if (result.shouldIgnore) {

package/src/mem_pools/tx_pool_v2/interfaces.ts

@@ -46,6 +46,8 @@ export type TxPoolV2Config = {
   evictedTxCacheSize: number;
   /** The probability (0-1) that a transaction is discarded. 0 disables dropping. For testing purposes only. */
   dropTransactionsProbability: number;
+  /** Minimum percentage fee increase required to replace an existing tx via RPC (0 = no bump). */
+  priceBumpPercentage: bigint;
 };
 
 /**
@@ -57,6 +59,7 @@ export const DEFAULT_TX_POOL_V2_CONFIG: TxPoolV2Config = {
   minTxPoolAgeMs: 2_000,
   evictedTxCacheSize: 10_000,
   dropTransactionsProbability: 0,
+  priceBumpPercentage: 10n,
 };
 
 /**
@@ -69,6 +72,8 @@ export type TxPoolV2Dependencies = {
   worldStateSynchronizer: WorldStateSynchronizer;
   /** Factory that creates a validator for re-validating pool transactions using metadata */
   createTxValidator: () => Promise<TxValidator<TxMetaData>>;
+  /** Checks whether a tx's setup-phase calls are on the allow list. Precomputed at receipt time. */
+  checkAllowedSetupCalls: (tx: Tx) => Promise<boolean>;
 };
 
 /**
@@ -155,10 +160,10 @@ export interface TxPoolV2 extends TypedEventEmitter<TxPoolV2Events> {
   handleMinedBlock(block: L2Block): Promise<void>;
 
   /**
-   * Prepares the pool for a new slot.
-   * Unprotects transactions from earlier slots and validates them before
-   * returning to pending state.
-   * @param slotNumber - The slot number to prepare for
+   * Prepares the pool for a new slot by unprotecting transactions from earlier
+   * slots and re-validating them before returning to pending state.
+   * @param slotNumber - The pipeline slot we are building for (i.e. the slot
+   *   the resulting blocks will target on L1).
    */
   prepareForSlot(slotNumber: SlotNumber): Promise<void>;
 

package/src/mem_pools/tx_pool_v2/tx_metadata.ts

@@ -1,3 +1,4 @@
+import { minBigint } from '@aztec/foundation/bigint';
 import { BlockNumber } from '@aztec/foundation/branded-types';
 import { Fr } from '@aztec/foundation/curves/bn254';
 import { ProtocolContractAddress } from '@aztec/protocol-contracts';
@@ -6,7 +7,6 @@ import { Gas } from '@aztec/stdlib/gas';
 import { type Tx, TxHash } from '@aztec/stdlib/tx';
 
 import { getFeePayerBalanceDelta } from '../../msg_validators/tx_validator/fee_payer_balance.js';
-import { getTxPriorityFee } from '../tx_pool/priority.js';
 import { type PreAddResult, TxPoolRejectionCode } from './eviction/interfaces.js';
 
 /** Validator-compatible data interface, mirroring the subset of PrivateKernelTailCircuitPublicInputs used by validators. */
@@ -67,6 +67,9 @@ export type TxMetaData = {
   /** Timestamp by which the transaction must be included (for expiration checks) */
   readonly expirationTimestamp: bigint;
 
+  /** Whether the tx's setup-phase calls pass the allow list check. Computed at receipt time. */
+  readonly allowedSetupCalls: boolean;
+
   /** Validator-compatible data, providing the same access patterns as Tx.data */
   readonly data: TxMetaValidationData;
 
@@ -84,8 +87,12 @@ export type TxState = 'pending' | 'protected' | 'mined' | 'deleted';
  * Builds TxMetaData from a full Tx object.
  * Extracts all relevant fields for efficient in-memory storage and querying.
  * Fr values are captured in closures for zero-cost re-validation.
+ *
+ * @param allowedSetupCalls - Whether the tx's setup-phase calls pass the allow list.
+ *   For gossip/RPC txs this is always `true` (already validated by PhasesTxValidator).
+ *   For req/resp txs this should be computed by the caller using the phases validator.
  */
-export async function buildTxMetaData(tx: Tx): Promise<TxMetaData> {
+export async function buildTxMetaData(tx: Tx, allowedSetupCalls: boolean = true): Promise<TxMetaData> {
   const txHashObj = tx.getTxHash();
   const txHash = txHashObj.toString();
   const txHashBigInt = txHashObj.toBigInt();
@@ -112,6 +119,7 @@ export async function buildTxMetaData(tx: Tx): Promise<TxMetaData> {
     feeLimit,
     nullifiers,
     expirationTimestamp,
+    allowedSetupCalls,
     receivedAt: 0,
     estimatedSizeBytes,
     data: {
@@ -158,13 +166,13 @@ export function txHashFromBigInt(value: bigint): string {
 }
 
 /** Minimal fields required for priority comparison. */
-type PriorityComparable = Pick<TxMetaData, 'txHashBigInt' | 'priorityFee'>;
+export type PriorityComparable = Pick<TxMetaData, 'txHash' | 'txHashBigInt' | 'priorityFee'>;
 
 /**
  * Compares two priority fees in ascending order.
  * Returns negative if a < b, positive if a > b, 0 if equal.
  */
-export function compareFee(a: bigint, b: bigint): number {
+export function compareFee(a: bigint, b: bigint): -1 | 0 | 1 {
   return a < b ? -1 : a > b ? 1 : 0;
 }
 
@@ -173,7 +181,7 @@ export function compareFee(a: bigint, b: bigint): number {
  * Uses field element comparison for deterministic ordering.
  * Returns negative if a < b, positive if a > b, 0 if equal.
  */
-export function compareTxHash(a: bigint, b: bigint): number {
+export function compareTxHash(a: bigint, b: bigint): -1 | 0 | 1 {
   return Fr.cmpAsBigInt(a, b);
 }
 
@@ -182,7 +190,7 @@ export function compareTxHash(a: bigint, b: bigint): number {
  * Returns negative if a < b, positive if a > b, 0 if equal.
  * Use with sort() for ascending order, or negate/reverse for descending.
  */
-export function comparePriority(a: PriorityComparable, b: PriorityComparable): number {
+export function comparePriority(a: PriorityComparable, b: PriorityComparable): -1 | 0 | 1 {
   const feeComparison = compareFee(a.priorityFee, b.priorityFee);
   if (feeComparison !== 0) {
     return feeComparison;
@@ -190,21 +198,38 @@ export function comparePriority(a: PriorityComparable, b: PriorityComparable): n
   return compareTxHash(a.txHashBigInt, b.txHashBigInt);
 }
 
+/**
+ * Returns the minimum fee required to replace an existing tx with the given price bump percentage.
+ * Uses integer arithmetic: `existingFee + existingFee * priceBumpPercentage / 100`.
+ */
+export function getMinimumPriceBumpFee(existingFee: bigint, priceBumpPercentage: bigint): bigint {
+  const bump = (existingFee * priceBumpPercentage) / 100n;
+  // Ensure the minimum bump is at least 1, so that replacement always requires
+  // paying strictly more — even with 0% bump or zero existing fee.
+  const effectiveBump = bump > 0n ? bump : 1n;
+  return existingFee + effectiveBump;
+}
+
 /**
  * Checks for nullifier conflicts between an incoming transaction and existing pool state.
  *
  * When the incoming tx shares nullifiers with existing pending txs:
- * - If the incoming tx has strictly higher priority, mark conflicting txs for eviction
- * - If any conflicting tx has equal or higher priority, ignore the incoming tx
+ * - If the incoming tx meets or exceeds the required priority, mark conflicting txs for eviction
+ * - Otherwise, ignore the incoming tx
+ *
+ * When `priceBumpPercentage` is provided (RPC path), uses fee-only comparison with the
+ * percentage bump instead of `comparePriority`.
  *
  * @param incomingMeta - Metadata for the incoming transaction
  * @param getTxHashByNullifier - Accessor to find which tx uses a nullifier
  * @param getMetadata - Accessor to get metadata for a tx hash
+ * @param priceBumpPercentage - Optional percentage bump required for fee-based replacement
  */
 export function checkNullifierConflict(
   incomingMeta: TxMetaData,
   getTxHashByNullifier: (nullifier: string) => string | undefined,
   getMetadata: (txHash: string) => TxMetaData | undefined,
+  priceBumpPercentage?: bigint,
 ): PreAddResult {
   const txHashesToEvict: string[] = [];
 
@@ -225,19 +250,32 @@ export function checkNullifierConflict(
       continue;
     }
 
-    // If incoming tx has strictly higher priority, mark for eviction
-    // Otherwise, ignore incoming tx (ties go to existing tx)
-    // Use comparePriority for deterministic ordering (includes txHash as tiebreaker)
-    if (comparePriority(incomingMeta, conflictingMeta) > 0) {
+    // When price bump is set (RPC path), require the incoming fee to meet the bumped threshold.
+    // Otherwise (P2P path), use full comparePriority with tx hash tiebreaker.
+    const isHigherPriority =
+      priceBumpPercentage !== undefined
+        ? incomingMeta.priorityFee >= getMinimumPriceBumpFee(conflictingMeta.priorityFee, priceBumpPercentage)
+        : comparePriority(incomingMeta, conflictingMeta) > 0;
+
+    if (isHigherPriority) {
       txHashesToEvict.push(conflictingHashStr);
     } else {
+      const minimumFee =
+        priceBumpPercentage !== undefined
+          ? getMinimumPriceBumpFee(conflictingMeta.priorityFee, priceBumpPercentage)
+          : undefined;
       return {
         shouldIgnore: true,
         txHashesToEvict: [],
         reason: {
           code: TxPoolRejectionCode.NULLIFIER_CONFLICT,
-          message: `Nullifier conflict with existing tx ${conflictingHashStr}`,
+          message:
+            minimumFee !== undefined
+              ? `Nullifier conflict with existing tx ${conflictingHashStr}. Minimum required fee: ${minimumFee}, got: ${incomingMeta.priorityFee}`
+              : `Nullifier conflict with existing tx ${conflictingHashStr}`,
           conflictingTxHash: conflictingHashStr,
+          minimumPriceBumpFee: minimumFee,
+          txPriorityFee: minimumFee !== undefined ? incomingMeta.priorityFee : undefined,
         },
       };
     }
@@ -274,6 +312,7 @@ export function stubTxMetaData(
     nullifiers?: string[];
     expirationTimestamp?: bigint;
     anchorBlockHeaderHash?: string;
+    allowedSetupCalls?: boolean;
   } = {},
 ): TxMetaData {
   const txHashBigInt = Fr.fromHexString(txHash).toBigInt();
@@ -290,8 +329,15 @@ export function stubTxMetaData(
     feeLimit: overrides.feeLimit ?? 100n,
     nullifiers: overrides.nullifiers ?? [`0x${normalizedTxHash.slice(2)}null1`],
     expirationTimestamp,
+    allowedSetupCalls: overrides.allowedSetupCalls ?? true,
     receivedAt: 0,
     estimatedSizeBytes: 0,
     data: stubTxMetaValidationData({ expirationTimestamp }),
   };
 }
+
+/** Returns the priority fee for a tx, based on the L2 priority fee capped by the max fee per gas. */
+function getTxPriorityFee(tx: Tx): bigint {
+  const { maxPriorityFeesPerGas: priorityFees, maxFeesPerGas } = tx.getGasSettings();
+  return minBigint(maxFeesPerGas.feePerL2Gas, priorityFees.feePerL2Gas);
+}

package/src/mem_pools/tx_pool_v2/tx_pool_indices.ts

@@ -1,7 +1,8 @@
+import { insertIntoSortedArray, removeFromSortedArray } from '@aztec/foundation/array';
 import { SlotNumber } from '@aztec/foundation/branded-types';
 import type { L2BlockId } from '@aztec/stdlib/block';
 
-import { type TxMetaData, type TxState, compareFee, compareTxHash, txHashFromBigInt } from './tx_metadata.js';
+import { type PriorityComparable, type TxMetaData, type TxState, comparePriority } from './tx_metadata.js';
 
 /**
  * Manages in-memory indices for the transaction pool.
@@ -22,8 +23,8 @@ export class TxPoolIndices {
   #nullifierToTxHash: Map<string, string> = new Map();
   /** Fee payer to txHashes index (pending txs only) */
   #feePayerToTxHashes: Map<string, Set<string>> = new Map();
-  /** Pending txHash bigints grouped by priority fee */
-  #pendingByPriority: Map<bigint, Set<bigint>> = new Map();
+  /** Pending transactions sorted ascending by priority fee, ties broken by txHash */
+  #pendingByPriority: PriorityComparable[] = [];
   /** Protected transactions: txHash -> slotNumber */
   #protectedTransactions: Map<string, SlotNumber> = new Map();
 
@@ -73,20 +74,14 @@ export class TxPoolIndices {
    * @param order - 'desc' for highest priority first, 'asc' for lowest priority first
    */
   *iteratePendingByPriority(order: 'asc' | 'desc', filter?: (hash: string) => boolean): Generator<string> {
-    const feeCompareFn = order === 'desc' ? (a: bigint, b: bigint) => compareFee(b, a) : compareFee;
-    const hashCompareFn =
-      order === 'desc' ? (a: bigint, b: bigint) => compareTxHash(b, a) : (a: bigint, b: bigint) => compareTxHash(a, b);
-
-    const sortedFees = [...this.#pendingByPriority.keys()].sort(feeCompareFn);
-
-    for (const fee of sortedFees) {
-      const hashesAtFee = this.#pendingByPriority.get(fee)!;
-      const sortedHashes = [...hashesAtFee].sort(hashCompareFn);
-      for (const hashBigInt of sortedHashes) {
-        const hash = txHashFromBigInt(hashBigInt);
-        if (filter === undefined || filter(hash)) {
-          yield hash;
-        }
+    const arr = this.#pendingByPriority;
+    const start = order === 'asc' ? 0 : arr.length - 1;
+    const step = order === 'asc' ? 1 : -1;
+    const inBounds = order === 'asc' ? (i: number) => i < arr.length : (i: number) => i >= 0;
+
+    for (let i = start; inBounds(i); i += step) {
+      if (filter === undefined || filter(arr[i].txHash)) {
+        yield arr[i].txHash;
       }
     }
   }
@@ -227,11 +222,7 @@ export class TxPoolIndices {
 
   /** Gets the count of pending transactions */
   getPendingTxCount(): number {
-    let count = 0;
-    for (const hashes of this.#pendingByPriority.values()) {
-      count += hashes.size;
-    }
-    return count;
+    return this.#pendingByPriority.length;
   }
 
   /** Gets the lowest priority pending transaction hashes (up to limit) */
@@ -264,12 +255,10 @@ export class TxPoolIndices {
   /** Gets all pending transactions */
   getPendingTxs(): TxMetaData[] {
     const result: TxMetaData[] = [];
-    for (const hashSet of this.#pendingByPriority.values()) {
-      for (const txHashBigInt of hashSet) {
-        const meta = this.#metadata.get(txHashFromBigInt(txHashBigInt));
-        if (meta) {
-          result.push(meta);
-        }
+    for (const entry of this.#pendingByPriority) {
+      const meta = this.#metadata.get(entry.txHash);
+      if (meta) {
+        result.push(meta);
       }
     }
     return result;
@@ -408,13 +397,12 @@ export class TxPoolIndices {
     }
     feePayerSet.add(meta.txHash);
 
-    // Add to priority bucket
-    let prioritySet = this.#pendingByPriority.get(meta.priorityFee);
-    if (!prioritySet) {
-      prioritySet = new Set();
-      this.#pendingByPriority.set(meta.priorityFee, prioritySet);
-    }
-    prioritySet.add(meta.txHashBigInt);
+    insertIntoSortedArray(
+      this.#pendingByPriority,
+      { txHash: meta.txHash, priorityFee: meta.priorityFee, txHashBigInt: meta.txHashBigInt },
+      comparePriority,
+      false,
+    );
   }
 
   #removeFromPendingIndices(meta: TxMetaData): void {
@@ -432,13 +420,11 @@ export class TxPoolIndices {
       }
     }
 
-    // Remove from priority map
-    const hashSet = this.#pendingByPriority.get(meta.priorityFee);
-    if (hashSet) {
-      hashSet.delete(meta.txHashBigInt);
-      if (hashSet.size === 0) {
-        this.#pendingByPriority.delete(meta.priorityFee);
-      }
-    }
+    // Remove from priority array
+    removeFromSortedArray(
+      this.#pendingByPriority,
+      { txHash: meta.txHash, priorityFee: meta.priorityFee, txHashBigInt: meta.txHashBigInt },
+      comparePriority,
+    );
   }
 }