@aztec/p2p 4.0.4 → 4.1.0-rc.2

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

@@ -44,6 +44,8 @@ export type TxPoolV2Config = {
   minTxPoolAgeMs: number;
   /** Maximum number of evicted tx hashes to remember for metrics tracking */
   evictedTxCacheSize: number;
+  /** Minimum percentage fee increase required to replace an existing tx via RPC (0 = no bump). */
+  priceBumpPercentage: bigint;
 };
 
 /**
@@ -54,6 +56,7 @@ export const DEFAULT_TX_POOL_V2_CONFIG: TxPoolV2Config = {
   archivedTxLimit: 0, // 0 = disabled
   minTxPoolAgeMs: 2_000,
   evictedTxCacheSize: 10_000,
+  priceBumpPercentage: 10n,
 };
 
 /**

package/src/mem_pools/tx_pool_v2/tx_metadata.ts

@@ -190,21 +190,38 @@ 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 +242,32 @@ 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,
         },
       };
     }

package/src/mem_pools/tx_pool_v2/tx_pool_v2_impl.ts

@@ -213,7 +213,9 @@ export class TxPoolV2Impl {
     // in-memory reads, and buffered DB writes. Nothing here can throw an unhandled exception.
     const poolAccess = this.#createPreAddPoolAccess();
     const preAddContext: PreAddContext | undefined =
-      opts.feeComparisonOnly !== undefined ? { feeComparisonOnly: opts.feeComparisonOnly } : undefined;
+      opts.feeComparisonOnly !== undefined
+        ? { feeComparisonOnly: opts.feeComparisonOnly, priceBumpPercentage: this.#config.priceBumpPercentage }
+        : undefined;
 
     await this.#store.transactionAsync(async () => {
       for (const tx of txs) {

package/src/msg_validators/proposal_validator/block_proposal_validator.ts

@@ -1,10 +1,20 @@
 import type { EpochCacheInterface } from '@aztec/epoch-cache';
-import type { BlockProposal, P2PValidator } from '@aztec/stdlib/p2p';
+import type { BlockProposal, P2PValidator, ValidationResult } from '@aztec/stdlib/p2p';
 
 import { ProposalValidator } from '../proposal_validator/proposal_validator.js';
 
-export class BlockProposalValidator extends ProposalValidator<BlockProposal> implements P2PValidator<BlockProposal> {
+export class BlockProposalValidator implements P2PValidator<BlockProposal> {
+  private proposalValidator: ProposalValidator;
+
   constructor(epochCache: EpochCacheInterface, opts: { txsPermitted: boolean; maxTxsPerBlock?: number }) {
-    super(epochCache, opts, 'p2p:block_proposal_validator');
+    this.proposalValidator = new ProposalValidator(epochCache, opts, 'p2p:block_proposal_validator');
+  }
+
+  async validate(proposal: BlockProposal): Promise<ValidationResult> {
+    const headerResult = await this.proposalValidator.validate(proposal);
+    if (headerResult.result !== 'accept') {
+      return headerResult;
+    }
+    return this.proposalValidator.validateTxs(proposal);
   }
 }

package/src/msg_validators/proposal_validator/checkpoint_proposal_validator.ts

@@ -1,13 +1,26 @@
 import type { EpochCacheInterface } from '@aztec/epoch-cache';
-import type { CheckpointProposal, P2PValidator } from '@aztec/stdlib/p2p';
+import type { CheckpointProposal, P2PValidator, ValidationResult } from '@aztec/stdlib/p2p';
 
 import { ProposalValidator } from '../proposal_validator/proposal_validator.js';
 
-export class CheckpointProposalValidator
-  extends ProposalValidator<CheckpointProposal>
-  implements P2PValidator<CheckpointProposal>
-{
+export class CheckpointProposalValidator implements P2PValidator<CheckpointProposal> {
+  private proposalValidator: ProposalValidator;
+
   constructor(epochCache: EpochCacheInterface, opts: { txsPermitted: boolean; maxTxsPerBlock?: number }) {
-    super(epochCache, opts, 'p2p:checkpoint_proposal_validator');
+    this.proposalValidator = new ProposalValidator(epochCache, opts, 'p2p:checkpoint_proposal_validator');
+  }
+
+  async validate(proposal: CheckpointProposal): Promise<ValidationResult> {
+    const headerResult = await this.proposalValidator.validate(proposal);
+    if (headerResult.result !== 'accept') {
+      return headerResult;
+    }
+
+    const blockProposal = proposal.getBlockProposal();
+    if (blockProposal) {
+      return this.proposalValidator.validateTxs(blockProposal);
+    }
+
+    return { result: 'accept' };
   }
 }

package/src/msg_validators/proposal_validator/proposal_validator.ts

@@ -1,15 +1,21 @@
 import type { EpochCacheInterface } from '@aztec/epoch-cache';
 import { NoCommitteeError } from '@aztec/ethereum/contracts';
 import { type Logger, createLogger } from '@aztec/foundation/log';
-import { BlockProposal, CheckpointProposal, PeerErrorSeverity, type ValidationResult } from '@aztec/stdlib/p2p';
+import {
+  type BlockProposal,
+  type CheckpointProposalCore,
+  PeerErrorSeverity,
+  type ValidationResult,
+} from '@aztec/stdlib/p2p';
 
 import { isWithinClockTolerance } from '../clock_tolerance.js';
 
-export abstract class ProposalValidator<TProposal extends BlockProposal | CheckpointProposal> {
-  protected epochCache: EpochCacheInterface;
-  protected logger: Logger;
-  protected txsPermitted: boolean;
-  protected maxTxsPerBlock?: number;
+/** Validates header-level and tx-level fields of block and checkpoint proposals. */
+export class ProposalValidator {
+  private epochCache: EpochCacheInterface;
+  private logger: Logger;
+  private txsPermitted: boolean;
+  private maxTxsPerBlock?: number;
 
   constructor(
     epochCache: EpochCacheInterface,
@@ -22,7 +28,8 @@ export abstract class ProposalValidator<TProposal extends BlockProposal | Checkp
     this.logger = createLogger(loggerName);
   }
 
-  public async validate(proposal: TProposal): Promise<ValidationResult> {
+  /** Validates header-level fields: slot, signature, and proposer. */
+  public async validate(proposal: BlockProposal | CheckpointProposalCore): Promise<ValidationResult> {
     try {
       // Slot check
       const { currentSlot, nextSlot } = this.epochCache.getCurrentAndNextSlot();
@@ -44,38 +51,6 @@ export abstract class ProposalValidator<TProposal extends BlockProposal | Checkp
         return { result: 'reject', severity: PeerErrorSeverity.MidToleranceError };
       }
 
-      // Transactions permitted check
-      const embeddedTxCount = proposal.txs?.length ?? 0;
-      if (!this.txsPermitted && (proposal.txHashes.length > 0 || embeddedTxCount > 0)) {
-        this.logger.warn(
-          `Penalizing peer for proposal with ${proposal.txHashes.length} transaction(s) when transactions are not permitted`,
-        );
-        return { result: 'reject', severity: PeerErrorSeverity.MidToleranceError };
-      }
-
-      // Max txs per block check
-      if (this.maxTxsPerBlock !== undefined && proposal.txHashes.length > this.maxTxsPerBlock) {
-        this.logger.warn(
-          `Penalizing peer for proposal with ${proposal.txHashes.length} transaction(s) when max is ${this.maxTxsPerBlock}`,
-        );
-        return { result: 'reject', severity: PeerErrorSeverity.MidToleranceError };
-      }
-
-      // Embedded txs must be listed in txHashes
-      const hashSet = new Set(proposal.txHashes.map(h => h.toString()));
-      const missingTxHashes =
-        embeddedTxCount > 0
-          ? proposal.txs!.filter(tx => !hashSet.has(tx.getTxHash().toString())).map(tx => tx.getTxHash().toString())
-          : [];
-      if (embeddedTxCount > 0 && missingTxHashes.length > 0) {
-        this.logger.warn('Penalizing peer for embedded transaction(s) not included in txHashes', {
-          embeddedTxCount,
-          txHashesLength: proposal.txHashes.length,
-          missingTxHashes,
-        });
-        return { result: 'reject', severity: PeerErrorSeverity.MidToleranceError };
-      }
-
       // Proposer check
       const expectedProposer = await this.epochCache.getProposerAttesterAddressInSlot(slotNumber);
       if (expectedProposer !== undefined && !proposer.equals(expectedProposer)) {
@@ -86,15 +61,6 @@ export abstract class ProposalValidator<TProposal extends BlockProposal | Checkp
         return { result: 'reject', severity: PeerErrorSeverity.MidToleranceError };
       }
 
-      // Validate tx hashes for all txs embedded in the proposal
-      if (!(await Promise.all(proposal.txs?.map(tx => tx.validateTxHash()) ?? [])).every(v => v)) {
-        this.logger.warn(`Penalizing peer for invalid tx hashes in proposal`, {
-          proposer,
-          slotNumber,
-        });
-        return { result: 'reject', severity: PeerErrorSeverity.LowToleranceError };
-      }
-
       return { result: 'accept' };
     } catch (e) {
       if (e instanceof NoCommitteeError) {
@@ -103,4 +69,47 @@ export abstract class ProposalValidator<TProposal extends BlockProposal | Checkp
       throw e;
     }
   }
+
+  /** Validates transaction-related fields of a block proposal. */
+  public async validateTxs(proposal: BlockProposal): Promise<ValidationResult> {
+    // Transactions permitted check
+    const embeddedTxCount = proposal.txs?.length ?? 0;
+    if (!this.txsPermitted && (proposal.txHashes.length > 0 || embeddedTxCount > 0)) {
+      this.logger.warn(
+        `Penalizing peer for proposal with ${proposal.txHashes.length} transaction(s) when transactions are not permitted`,
+      );
+      return { result: 'reject', severity: PeerErrorSeverity.MidToleranceError };
+    }
+
+    // Max txs per block check
+    if (this.maxTxsPerBlock !== undefined && proposal.txHashes.length > this.maxTxsPerBlock) {
+      this.logger.warn(
+        `Penalizing peer for proposal with ${proposal.txHashes.length} transaction(s) when max is ${this.maxTxsPerBlock}`,
+      );
+      return { result: 'reject', severity: PeerErrorSeverity.MidToleranceError };
+    }
+
+    // Embedded txs must be listed in txHashes
+    const hashSet = new Set(proposal.txHashes.map(h => h.toString()));
+    const missingTxHashes =
+      embeddedTxCount > 0
+        ? proposal.txs!.filter(tx => !hashSet.has(tx.getTxHash().toString())).map(tx => tx.getTxHash().toString())
+        : [];
+    if (embeddedTxCount > 0 && missingTxHashes.length > 0) {
+      this.logger.warn('Penalizing peer for embedded transaction(s) not included in txHashes', {
+        embeddedTxCount,
+        txHashesLength: proposal.txHashes.length,
+        missingTxHashes,
+      });
+      return { result: 'reject', severity: PeerErrorSeverity.MidToleranceError };
+    }
+
+    // Validate tx hashes for all txs embedded in the proposal
+    if (!(await Promise.all(proposal.txs?.map(tx => tx.validateTxHash()) ?? [])).every(v => v)) {
+      this.logger.warn(`Penalizing peer for invalid tx hashes in proposal`);
+      return { result: 'reject', severity: PeerErrorSeverity.LowToleranceError };
+    }
+
+    return { result: 'accept' };
+  }
 }

package/src/msg_validators/tx_validator/allowed_public_setup.ts

@@ -1,33 +1,53 @@
-import { FPCContract } from '@aztec/noir-contracts.js/FPC';
-import { TokenContractArtifact } from '@aztec/noir-contracts.js/Token';
 import { ProtocolContractAddress } from '@aztec/protocol-contracts';
-import { getContractClassFromArtifact } from '@aztec/stdlib/contract';
+import { AuthRegistryArtifact } from '@aztec/protocol-contracts/auth-registry';
+import { FeeJuiceArtifact } from '@aztec/protocol-contracts/fee-juice';
+import { FunctionSelector, countArgumentsSize } from '@aztec/stdlib/abi';
+import type { ContractArtifact, FunctionAbi } from '@aztec/stdlib/abi';
 import type { AllowedElement } from '@aztec/stdlib/interfaces/server';
 
-let defaultAllowedSetupFunctions: AllowedElement[] | undefined = undefined;
+/** Returns the expected calldata length for a function: 1 (selector) + arguments size. */
+function getCalldataLength(artifact: ContractArtifact, functionName: string): number {
+  const allFunctions: FunctionAbi[] = (artifact.functions as FunctionAbi[]).concat(
+    artifact.nonDispatchPublicFunctions || [],
+  );
+  const fn = allFunctions.find(f => f.name === functionName);
+  if (!fn) {
+    throw new Error(`Unknown function ${functionName} in artifact ${artifact.name}`);
+  }
+  return 1 + countArgumentsSize(fn);
+}
+
+let defaultAllowedSetupFunctions: AllowedElement[] | undefined;
+
+/** Returns the default list of functions allowed to run in the setup phase of a transaction. */
 export async function getDefaultAllowedSetupFunctions(): Promise<AllowedElement[]> {
   if (defaultAllowedSetupFunctions === undefined) {
+    const setAuthorizedInternalSelector = await FunctionSelector.fromSignature('_set_authorized((Field),Field,bool)');
+    const setAuthorizedSelector = await FunctionSelector.fromSignature('set_authorized(Field,bool)');
+    const increaseBalanceSelector = await FunctionSelector.fromSignature('_increase_public_balance((Field),u128)');
+
     defaultAllowedSetupFunctions = [
-      // needed for authwit support
+      // AuthRegistry: needed for authwit support via private path (set_authorized_private enqueues _set_authorized)
       {
         address: ProtocolContractAddress.AuthRegistry,
+        selector: setAuthorizedInternalSelector,
+        calldataLength: getCalldataLength(AuthRegistryArtifact, '_set_authorized'),
+        onlySelf: true,
+        rejectNullMsgSender: true,
       },
-      // needed for claiming on the same tx as a spend
+      // AuthRegistry: needed for authwit support via public path (PublicFeePaymentMethod calls set_authorized directly)
       {
-        address: ProtocolContractAddress.FeeJuice,
-        // We can't restrict the selector because public functions get routed via dispatch.
-        // selector: FunctionSelector.fromSignature('_increase_public_balance((Field),u128)'),
-      },
-      // needed for private transfers via FPC
-      {
-        classId: (await getContractClassFromArtifact(TokenContractArtifact)).id,
-        // We can't restrict the selector because public functions get routed via dispatch.
-        // selector: FunctionSelector.fromSignature('_increase_public_balance((Field),u128)'),
+        address: ProtocolContractAddress.AuthRegistry,
+        selector: setAuthorizedSelector,
+        calldataLength: getCalldataLength(AuthRegistryArtifact, 'set_authorized'),
+        rejectNullMsgSender: true,
       },
+      // FeeJuice: needed for claiming on the same tx as a spend (claim_and_end_setup enqueues this)
       {
-        classId: (await getContractClassFromArtifact(FPCContract.artifact)).id,
-        // We can't restrict the selector because public functions get routed via dispatch.
-        // selector: FunctionSelector.fromSignature('prepare_fee((Field),Field,(Field),Field)'),
+        address: ProtocolContractAddress.FeeJuice,
+        selector: increaseBalanceSelector,
+        calldataLength: getCalldataLength(FeeJuiceArtifact, '_increase_public_balance'),
+        onlySelf: true,
       },
     ];
   }

package/src/msg_validators/tx_validator/phases_validator.ts

@@ -1,11 +1,17 @@
+import { NULL_MSG_SENDER_CONTRACT_ADDRESS } from '@aztec/constants';
 import { type Logger, type LoggerBindings, createLogger } from '@aztec/foundation/log';
 import { PublicContractsDB, getCallRequestsWithCalldataByPhase } from '@aztec/simulator/server';
+import { AztecAddress } from '@aztec/stdlib/aztec-address';
 import type { ContractDataSource } from '@aztec/stdlib/contract';
 import type { AllowedElement } from '@aztec/stdlib/interfaces/server';
 import {
   type PublicCallRequestWithCalldata,
   TX_ERROR_DURING_VALIDATION,
   TX_ERROR_SETUP_FUNCTION_NOT_ALLOWED,
+  TX_ERROR_SETUP_FUNCTION_UNKNOWN_CONTRACT,
+  TX_ERROR_SETUP_NULL_MSG_SENDER,
+  TX_ERROR_SETUP_ONLY_SELF_WRONG_SENDER,
+  TX_ERROR_SETUP_WRONG_CALLDATA_LENGTH,
   Tx,
   TxExecutionPhase,
   type TxValidationResult,
@@ -45,7 +51,8 @@ export class PhasesTxValidator implements TxValidator<Tx> {
 
       const setupFns = getCallRequestsWithCalldataByPhase(tx, TxExecutionPhase.SETUP);
       for (const setupFn of setupFns) {
-        if (!(await this.isOnAllowList(setupFn, this.setupAllowList))) {
+        const rejectionReason = await this.checkAllowList(setupFn, this.setupAllowList);
+        if (rejectionReason) {
           this.#log.verbose(
             `Rejecting tx ${tx.getTxHash().toString()} because it calls setup function not on allow list: ${
               setupFn.request.contractAddress
@@ -53,7 +60,7 @@ export class PhasesTxValidator implements TxValidator<Tx> {
             { allowList: this.setupAllowList },
           );
 
-          return { result: 'invalid', reason: [TX_ERROR_SETUP_FUNCTION_NOT_ALLOWED] };
+          return { result: 'invalid', reason: [rejectionReason] };
         }
       }
 
@@ -66,53 +73,71 @@ export class PhasesTxValidator implements TxValidator<Tx> {
     }
   }
 
-  private async isOnAllowList(
+  /** Returns a rejection reason if the call is not on the allow list, or undefined if it is allowed. */
+  private async checkAllowList(
     publicCall: PublicCallRequestWithCalldata,
     allowList: AllowedElement[],
-  ): Promise<boolean> {
+  ): Promise<string | undefined> {
     if (publicCall.isEmpty()) {
-      return true;
+      return undefined;
     }
 
     const contractAddress = publicCall.request.contractAddress;
     const functionSelector = publicCall.functionSelector;
 
-    // do these checks first since they don't require the contract class
+    // Check address-based entries first since they don't require the contract class.
     for (const entry of allowList) {
-      if ('address' in entry && !('selector' in entry)) {
-        if (contractAddress.equals(entry.address)) {
-          return true;
-        }
-      }
-
-      if ('address' in entry && 'selector' in entry) {
+      if ('address' in entry) {
         if (contractAddress.equals(entry.address) && entry.selector.equals(functionSelector)) {
-          return true;
+          if (entry.calldataLength !== undefined && publicCall.calldata.length !== entry.calldataLength) {
+            return TX_ERROR_SETUP_WRONG_CALLDATA_LENGTH;
+          }
+          if (entry.onlySelf && !publicCall.request.msgSender.equals(contractAddress)) {
+            return TX_ERROR_SETUP_ONLY_SELF_WRONG_SENDER;
+          }
+          if (
+            entry.rejectNullMsgSender &&
+            publicCall.request.msgSender.equals(AztecAddress.fromBigInt(NULL_MSG_SENDER_CONTRACT_ADDRESS))
+          ) {
+            return TX_ERROR_SETUP_NULL_MSG_SENDER;
+          }
+          return undefined;
         }
       }
+    }
 
-      const contractClass = await this.contractsDB.getContractInstance(contractAddress, this.timestamp);
-
-      if (!contractClass) {
-        throw new Error(`Contract not found: ${contractAddress}`);
+    // Check class-based entries. Fetch the contract instance lazily (only once).
+    let contractClassId: undefined | { value: string | undefined };
+    for (const entry of allowList) {
+      if (!('classId' in entry)) {
+        continue;
       }
 
-      if ('classId' in entry && !('selector' in entry)) {
-        if (contractClass.currentContractClassId.equals(entry.classId)) {
-          return true;
+      if (contractClassId === undefined) {
+        const instance = await this.contractsDB.getContractInstance(contractAddress, this.timestamp);
+        contractClassId = { value: instance?.currentContractClassId.toString() };
+        if (!contractClassId.value) {
+          return TX_ERROR_SETUP_FUNCTION_UNKNOWN_CONTRACT;
         }
       }
 
-      if ('classId' in entry && 'selector' in entry) {
+      if (contractClassId.value === entry.classId.toString() && entry.selector.equals(functionSelector)) {
+        if (entry.calldataLength !== undefined && publicCall.calldata.length !== entry.calldataLength) {
+          return TX_ERROR_SETUP_WRONG_CALLDATA_LENGTH;
+        }
+        if (entry.onlySelf && !publicCall.request.msgSender.equals(contractAddress)) {
+          return TX_ERROR_SETUP_ONLY_SELF_WRONG_SENDER;
+        }
         if (
-          contractClass.currentContractClassId.equals(entry.classId) &&
-          (entry.selector === undefined || entry.selector.equals(functionSelector))
+          entry.rejectNullMsgSender &&
+          publicCall.request.msgSender.equals(AztecAddress.fromBigInt(NULL_MSG_SENDER_CONTRACT_ADDRESS))
         ) {
-          return true;
+          return TX_ERROR_SETUP_NULL_MSG_SENDER;
         }
+        return undefined;
       }
     }
 
-    return false;
+    return TX_ERROR_SETUP_FUNCTION_NOT_ALLOWED;
   }
 }

package/src/services/libp2p/libp2p_service.ts

@@ -222,14 +222,12 @@ export class LibP2PService extends WithTracer implements P2PService {
       this.protocolVersion,
     );
 
-    this.blockProposalValidator = new BlockProposalValidator(epochCache, {
+    const proposalValidatorOpts = {
       txsPermitted: !config.disableTransactions,
-      maxTxsPerBlock: config.maxTxsPerBlock,
-    });
-    this.checkpointProposalValidator = new CheckpointProposalValidator(epochCache, {
-      txsPermitted: !config.disableTransactions,
-      maxTxsPerBlock: config.maxTxsPerBlock,
-    });
+      maxTxsPerBlock: config.validateMaxTxsPerBlock,
+    };
+    this.blockProposalValidator = new BlockProposalValidator(epochCache, proposalValidatorOpts);
+    this.checkpointProposalValidator = new CheckpointProposalValidator(epochCache, proposalValidatorOpts);
     this.checkpointAttestationValidator = config.fishermanMode
       ? new FishermanAttestationValidator(epochCache, mempools.attestationPool, telemetry)
       : new CheckpointAttestationValidator(epochCache);
@@ -1621,7 +1619,10 @@ export class LibP2PService extends WithTracer implements P2PService {
     nextSlotTimestamp: UInt64,
   ): Promise<Record<string, TransactionValidator>> {
     const gasFees = await this.getGasFees(currentBlockNumber);
-    const allowedInSetup = this.config.txPublicSetupAllowList ?? (await getDefaultAllowedSetupFunctions());
+    const allowedInSetup = [
+      ...(await getDefaultAllowedSetupFunctions()),
+      ...(this.config.txPublicSetupAllowListExtend ?? []),
+    ];
     const blockNumber = BlockNumber(currentBlockNumber + 1);
 
     return createFirstStageTxValidationsForGossipedTransactions(

package/src/testbench/p2p_client_testbench_worker.ts

@@ -340,6 +340,7 @@ process.on('message', async msg => {
       const config: P2PConfig = {
         ...rawConfig,
         peerIdPrivateKey: rawConfig.peerIdPrivateKey ? new SecretValue(rawConfig.peerIdPrivateKey) : undefined,
+        priceBumpPercentage: 10n,
       } as P2PConfig;
 
       workerConfig = config;