diff --git a/convex-core/src/main/java/convex/core/cpos/CPoSConstants.java b/convex-core/src/main/java/convex/core/cpos/CPoSConstants.java
index f207e88cb..d635ab3fb 100644
--- a/convex-core/src/main/java/convex/core/cpos/CPoSConstants.java
+++ b/convex-core/src/main/java/convex/core/cpos/CPoSConstants.java
@@ -57,10 +57,11 @@ public class CPoSConstants {
 	 * Minimum milliseconds to retain a proposal before switching
 	 */
 	public static final long KEEP_PROPOSAL_TIME = 100;
+	
 	/**
 	 * Memory allowance for genesis user / peer accounts
 	 */
-	public static final long INITIAL_ACCOUNT_ALLOWANCE = 1000000;
+	public static final long INITIAL_ACCOUNT_ALLOWANCE = 10000;
 	
 	/**
 	 * Maximum allowed encoded peer message length in bytes (50mb)
diff --git a/convex-core/src/main/java/convex/core/init/Init.java b/convex-core/src/main/java/convex/core/init/Init.java
index b5bcc89f3..6867b8296 100644
--- a/convex-core/src/main/java/convex/core/init/Init.java
+++ b/convex-core/src/main/java/convex/core/init/Init.java
@@ -76,6 +76,9 @@ public class Init {
 
 	public static final AccountKey DEFAULT_GOV_KEY = AccountKey.fromHex("12EF73ee900eD1FE78A188f59bF8CedE467bAA66f5b60368aFAaA3B9521aB94d");
 
+	private static final long RESERVED_USER_LIMIT = 64;
+	private static final long RESERVED_ACTOR_LIMIT = 128;
+
 
 	/**
 	 * Creates the base genesis state (before deployment of standard libraries and actors). This is the minimum state required for Convex operation.
@@ -216,6 +219,11 @@ public static State createBaseState(AccountKey governanceKey, AccountKey genesis
 		
 		// Initial user account, follows genesis peer controller(s)
 		accts=addAccount(accts,Address.create(accts.count()),FIRST_USER_KEY,0);
+		
+		// Reserve user accounts in base state
+		while(accts.count()<RESERVED_USER_LIMIT) {
+			accts=addAccount(accts,Address.create(accts.count()),genesisKey,0);
+		}
 
 		// Finally add initial peers
 
@@ -237,6 +245,8 @@ public static State createBaseState(AccountKey governanceKey, AccountKey genesis
 			assert(peerFunds == 0L);
 		}
 		
+
+		
 		// Add the new accounts to the State
 		s = s.withAccounts(accts);
 		// Add peers to the State
@@ -261,10 +271,19 @@ public static AVector<AccountStatus> addAccount(AVector<AccountStatus> accts, Ad
 			long balance) {
 		if (accts.count() != a.longValue()) throw new Error("Incorrect account address: " + a);
 		AccountStatus as = AccountStatus.create(0L, balance, key);
+		as=as.withController(ADMIN_ADDRESS);
 		as = as.withMemory(CPoSConstants.INITIAL_ACCOUNT_ALLOWANCE);
 		accts = accts.conj(as);
 		return accts;
 	}
+	
+	public static AVector<AccountStatus> addReservedActorAccount(AVector<AccountStatus> accts, Address a) {
+		if (accts.count() != a.longValue()) throw new Error("Incorrect account address: " + a);
+		AccountStatus as = AccountStatus.create(0L, 0L, null);
+		as=as.withController(ADMIN_ADDRESS);
+		accts = accts.conj(as);
+		return accts;
+	}
 
 
 	/**
@@ -308,6 +327,9 @@ public static State createState(AccountKey governanceKey, AccountKey genesisKey,
 		State s=createBaseState(governanceKey, genesisKey, peerKeys);
 		
 		s = addStandardLibraries(s);
+		
+		s=addReservedAccounts(s);
+		
 		s = addTestingCurrencies(s);
 		s = addCNSExtraTree(s);
 
@@ -319,6 +341,16 @@ public static State createState(AccountKey governanceKey, AccountKey genesisKey,
 		return s;
 	}
 
+	private static State addReservedAccounts(State s) {
+		AVector<AccountStatus> accts = s.getAccounts();
+		while(accts.count()<RESERVED_ACTOR_LIMIT) {
+			accts=addReservedActorAccount(accts,Address.create(accts.count()));
+		}
+
+		s = s.withAccounts(accts);
+		return s;
+	}
+
 	private static State addTestingCurrencies(State s)  {
 		try {
 			@SuppressWarnings("unchecked")