diff --git a/libraries/chain/database.cpp b/libraries/chain/database.cpp
index cb0d8e86..eb1feb44 100644
--- a/libraries/chain/database.cpp
+++ b/libraries/chain/database.cpp
@@ -834,7 +834,9 @@ bool database::_push_block(const signed_block& new_block)
 
    try
    {
-      ilog("Pushing new block #${n} from ${w} with timestamp ${t} at time ${c}", ("n", new_block.block_num())("w", new_block.witness)("t", new_block.timestamp)("c", fc::time_point::now()));
+      if (new_block.block_num() % 10000 == 0) {
+        ilog("Pushing new block #${n} from ${w} with timestamp ${t} at time ${c}", ("n", new_block.block_num())("w", new_block.witness)("t", new_block.timestamp)("c", fc::time_point::now()));
+      }
       auto session = start_undo_session();
       apply_block(new_block, skip);
       session.push();
@@ -1403,7 +1405,7 @@ void database::init_genesis( uint64_t init_supply )
          auth.money.weight_threshold = 0;
       });
 
-      ilog( "!!!!!! Preparing to create genesis account..." );
+      ilog( "Preparing to create genesis account..." );
       create< dynamic_global_property_object >( [&]( dynamic_global_property_object& p )
       {
          p.mining_target = fc::sha256(XGT_MINING_TARGET_START);
@@ -1702,10 +1704,11 @@ void database::_apply_block( const signed_block& next_block )
    // process_required_actions( req_actions );
    // process_optional_actions( opt_actions );
 
-   // Ensure no duplicate mining rewards
-   /// @since 1.1.2 reject blocks with duplicate rewards
+   /// Ensure no duplicate mining rewards
+   /// @since 1.2.0 reject blocks with duplicate rewards
+   /// @since 1.3.0 deprecated
    uint32_t head_num = head_block_num();
-   if (head_num >= 907200)
+   if (head_num >= 907200 && head_num < 2116800)
    {
       std::set< wallet_name_type > rewarded_wallets;
       for( const auto& trx : next_block.transactions )
@@ -1721,7 +1724,7 @@ void database::_apply_block( const signed_block& next_block )
             auto it = rewarded_wallets.find(wallet_name);
             if (it != rewarded_wallets.end())
             {
-               wlog("!!!!!! Wallet ${w} already rewarded, discarding duplicate operation!", ("w", wallet_name));
+               // Wallet already rewarded, discarding duplicate operation
                continue;
             }
             rewarded_wallets.insert(wallet_name);
@@ -1729,6 +1732,63 @@ void database::_apply_block( const signed_block& next_block )
       }
    }
 
+   /// @since 1.3.0 reward the first miner, on the current ("next") block
+   if (head_num >= 2116800)
+   {
+      optional< wallet_name_type > rewarded_miner;
+      for( const auto& trx : next_block.transactions )
+      {
+         if ( rewarded_miner )
+            break;
+         const auto& operations = trx.operations;
+         for (auto& op : operations)
+         {
+            if ( rewarded_miner )
+               break;
+            if ( !is_pow_operation(op) )
+               continue;
+            const pow_operation& o = op.template get< pow_operation >();
+            const wallet_name_type& wallet_name = o.get_worker_name();
+
+            const auto& dgp = get_dynamic_global_properties();
+            uint32_t target_pow = get_pow_summary_target();
+
+            const auto& work = o.work.get< sha2_pow >();
+            FC_ASSERT( work.pow_summary < target_pow, "Insufficient work difficulty. Work: ${w}, Target: ${t}", ("w",work.pow_summary)("t", target_pow) );
+            FC_ASSERT( work.prev_block == next_block.previous, "Op prev block id ${m} doesn't match prev block id ${n} do not match.", ("m",work.prev_block)("n",next_block.previous) );
+            FC_ASSERT( next_block.witness == wallet_name, "Block miner name ${m} and op miner name (${n}) do not match.", ("m",next_block.witness)("n",wallet_name) );
+            wallet_name_type worker_account = work.input.worker_account;
+
+            // TODO: Check for 0
+            int halvings = (XGT_STARTING_OFFSET + dgp.head_block_number) / XGT_MINING_REWARD_HALVING_INTERVAL;
+            // TODO: Assert no overflow
+            long divisor = 1L << halvings;
+            asset base_reward = XGT_MINING_REWARD;
+            double value = base_reward.amount.value * (1.0 / static_cast<double>(divisor));
+            long price = static_cast<long>(floor(value));
+            asset reward = asset(price, base_reward.symbol);
+            ilog("Mining reward for ${w} amount ${r}", ("w",worker_account)("r",reward));
+
+            const wallet_object* w = find_account( worker_account );
+            const witness_object* cur_witness = find_witness( worker_account );
+            if (w == nullptr)
+            {
+               wlog( "Wallet does not exist for worker account ${w}", ("w",worker_account) );
+               throw operation_validate_exception();
+            }
+            if (cur_witness == nullptr)
+            {
+               wlog( "Witness does not exist for worker account ${w}", ("w",worker_account) );
+               throw operation_validate_exception();
+            }
+
+            adjust_balance(worker_account, reward);
+
+            rewarded_miner = optional< wallet_name_type >(wallet_name);
+         }
+      }
+   }
+
    // Adjust mining difficulty
    const uint32_t frequency = XGT_MINING_RECALC_EVERY_N_BLOCKS;
    if( next_block_num == 1)
diff --git a/libraries/chain/xgt_evaluator.cpp b/libraries/chain/xgt_evaluator.cpp
index d3943056..03dae1ce 100644
--- a/libraries/chain/xgt_evaluator.cpp
+++ b/libraries/chain/xgt_evaluator.cpp
@@ -918,6 +918,10 @@ void pow_evaluator::do_apply( const pow_operation& o )
 {
    database& db = this->db();
 
+   uint32_t head_num = db.head_block_num();
+   if (head_num >= 2116800)
+      return;
+
    const auto& dgp = db.get_dynamic_global_properties();
    uint32_t target_pow = db.get_pow_summary_target();
 
diff --git a/libraries/plugins/chain/chain_plugin.cpp b/libraries/plugins/chain/chain_plugin.cpp
index edb0d796..ba8bf142 100644
--- a/libraries/plugins/chain/chain_plugin.cpp
+++ b/libraries/plugins/chain/chain_plugin.cpp
@@ -37,15 +37,23 @@ namespace asio = boost::asio;
 
 struct generate_block_request
 {
-   generate_block_request( const fc::time_point_sec w, const wallet_name_type& wo, const fc::ecc::private_key& priv_key, uint32_t s ) :
+   generate_block_request(
+      const fc::time_point_sec w,
+      const wallet_name_type& wo,
+      const fc::ecc::private_key& priv_key,
+      fc::optional< xgt::chain::signed_transaction > br,
+      uint32_t s
+   ) :
       when( w ),
       witness_recovery( wo ),
       block_signing_private_key( priv_key ),
+      block_reward( br ), 
       skip( s ) {}
 
    const fc::time_point_sec when;
    const wallet_name_type& witness_recovery;
    const fc::ecc::private_key& block_signing_private_key;
+   fc::optional< xgt::chain::signed_transaction > block_reward;
    uint32_t skip;
    signed_block block;
 };
@@ -98,7 +106,7 @@ class chain_plugin_impl
       std::string                      to_state = "";
       statefile::state_format_info     state_format;
 
-      uint32_t allow_future_time = 5;
+      uint32_t                         allow_future_time = 48;
 
       bool                             running = true;
       std::shared_ptr< std::thread >   write_processor_thread;
@@ -183,6 +191,7 @@ struct write_request_visitor
             req->when,
             req->witness_recovery,
             req->block_signing_private_key,
+            fc::optional< xgt::chain::signed_transaction >(req->block_reward),
             req->skip
             );
 
@@ -733,9 +742,10 @@ xgt::chain::signed_block chain_plugin::generate_block(
    const fc::time_point_sec when,
    const wallet_name_type& witness_recovery,
    const fc::ecc::private_key& block_signing_private_key,
+   fc::optional< xgt::chain::signed_transaction > block_reward,
    uint32_t skip )
 {
-   generate_block_request req( when, witness_recovery, block_signing_private_key, skip );
+   generate_block_request req( when, witness_recovery, block_signing_private_key, block_reward, skip );
    boost::promise< void > prom;
    write_context cxt;
    cxt.req_ptr = &req;
diff --git a/libraries/plugins/chain/include/xgt/plugins/chain/abstract_block_producer.hpp b/libraries/plugins/chain/include/xgt/plugins/chain/abstract_block_producer.hpp
index e3d2943d..64bbec7f 100644
--- a/libraries/plugins/chain/include/xgt/plugins/chain/abstract_block_producer.hpp
+++ b/libraries/plugins/chain/include/xgt/plugins/chain/abstract_block_producer.hpp
@@ -14,6 +14,7 @@ class abstract_block_producer {
       fc::time_point_sec when,
       const xgt::chain::wallet_name_type& witness_recovery,
       const fc::ecc::private_key& block_signing_private_key,
+      fc::optional< xgt::chain::signed_transaction > block_reward,
       uint32_t skip = xgt::chain::database::skip_nothing) = 0;
 };
 
diff --git a/libraries/plugins/chain/include/xgt/plugins/chain/chain_plugin.hpp b/libraries/plugins/chain/include/xgt/plugins/chain/chain_plugin.hpp
index c8331cec..da1dbed2 100644
--- a/libraries/plugins/chain/include/xgt/plugins/chain/chain_plugin.hpp
+++ b/libraries/plugins/chain/include/xgt/plugins/chain/chain_plugin.hpp
@@ -51,6 +51,7 @@ class chain_plugin : public plugin< chain_plugin >
       const fc::time_point_sec when,
       const wallet_name_type& witness_recovery,
       const fc::ecc::private_key& block_signing_private_key,
+      fc::optional< xgt::chain::signed_transaction > block_reward,
       uint32_t skip = database::skip_nothing
       );
 
diff --git a/libraries/plugins/debug_node/debug_node_plugin.cpp b/libraries/plugins/debug_node/debug_node_plugin.cpp
index 86a20ee1..fe09322a 100644
--- a/libraries/plugins/debug_node/debug_node_plugin.cpp
+++ b/libraries/plugins/debug_node/debug_node_plugin.cpp
@@ -253,7 +253,11 @@ void debug_node_plugin::debug_generate_blocks(
             break;
       }
 
-      bp.generate_block( scheduled_time, scheduled_witness_name, *debug_private_key, args.skip );
+      // For expediency, this is just a hacked together block; a less-fake version would be a 
+      // PoW operation.
+      protocol::signed_transaction fake_block_reward;
+
+      bp.generate_block( scheduled_time, scheduled_witness_name, *debug_private_key, fake_block_reward, args.skip );
       ++produced;
       slot = new_slot;
    }
diff --git a/libraries/plugins/webserver/webserver_plugin.cpp b/libraries/plugins/webserver/webserver_plugin.cpp
index 6a5805ad..9d03724f 100644
--- a/libraries/plugins/webserver/webserver_plugin.cpp
+++ b/libraries/plugins/webserver/webserver_plugin.cpp
@@ -118,10 +118,7 @@ class webserver_plugin_impl
       webserver_plugin_impl(thread_pool_size_t thread_pool_size) :
          thread_pool_work( this->thread_pool_ios )
       {
-         if (http_endpoint || unix_endpoint) {
-            for( uint32_t i = 0; i < thread_pool_size; ++i )
-               thread_pool.create_thread( boost::bind( &asio::io_service::run, &thread_pool_ios ) );
-         }
+         this->thread_pool_size = thread_pool_size;
       }
 
       void start_webserver();
@@ -140,6 +137,7 @@ class webserver_plugin_impl
       optional< boost::asio::local::stream_protocol::endpoint >  unix_endpoint;
       websocket_local_server_type            unix_server;
 
+      thread_pool_size_t         thread_pool_size;
       boost::thread_group        thread_pool;
       asio::io_service           thread_pool_ios;
       asio::io_service::work     thread_pool_work;
@@ -150,6 +148,10 @@ class webserver_plugin_impl
 
 void webserver_plugin_impl::start_webserver()
 {
+   if (http_endpoint || unix_endpoint)
+      for( uint32_t i = 0; i < thread_pool_size; ++i )
+         thread_pool.create_thread( boost::bind( &asio::io_service::run, &thread_pool_ios ) );
+
    if( http_endpoint )
    {
       http_thread = std::make_shared<std::thread>( [&]()
@@ -361,6 +363,9 @@ void webserver_plugin::plugin_initialize( const variables_map& options )
       my->unix_endpoint = ep;
       ilog( "configured http to listen on ${ep}", ("ep", unix_endpoint ));
    }
+
+   if (my->http_endpoint || my->unix_endpoint) {
+   }
 }
 
 void webserver_plugin::plugin_startup()
diff --git a/libraries/plugins/witness/block_producer.cpp b/libraries/plugins/witness/block_producer.cpp
index b12e263f..de02d50d 100644
--- a/libraries/plugins/witness/block_producer.cpp
+++ b/libraries/plugins/witness/block_producer.cpp
@@ -16,7 +16,13 @@
 
 namespace xgt { namespace plugins { namespace witness {
 
-chain::signed_block block_producer::generate_block(fc::time_point_sec when, const chain::wallet_name_type& witness_recovery, const fc::ecc::private_key& block_signing_private_key, uint32_t skip)
+chain::signed_block block_producer::generate_block(
+   fc::time_point_sec when,
+   const chain::wallet_name_type& witness_recovery,
+   const fc::ecc::private_key& block_signing_private_key,
+   fc::optional< xgt::chain::signed_transaction > trx,
+   uint32_t skip
+)
 {
    chain::signed_block result;
    try
@@ -29,7 +35,7 @@ chain::signed_block block_producer::generate_block(fc::time_point_sec when, cons
          {
             try
             {
-               result = _generate_block( when, witness_recovery, block_signing_private_key );
+               result = _generate_block( when, witness_recovery, block_signing_private_key, trx );
             }
             FC_CAPTURE_AND_RETHROW( (witness_recovery) )
          });
@@ -44,7 +50,12 @@ chain::signed_block block_producer::generate_block(fc::time_point_sec when, cons
    return result;
 }
 
-chain::signed_block block_producer::_generate_block(fc::time_point_sec when, const chain::wallet_name_type& witness, const fc::ecc::private_key& block_signing_private_key)
+chain::signed_block block_producer::_generate_block(
+   fc::time_point_sec when,
+   const chain::wallet_name_type& witness,
+   const fc::ecc::private_key& block_signing_private_key,
+   fc::optional< xgt::chain::signed_transaction > block_reward
+)
 { try {
    uint32_t skip = _db.get_node_properties().skip_flags;
    // const auto& witness_obj = _db.get_witness( witness );
@@ -70,7 +81,7 @@ chain::signed_block block_producer::_generate_block(fc::time_point_sec when, con
 
    adjust_hardfork_version_vote( _db.get_witness( witness ), pending_block );
 
-   apply_pending_transactions( witness, when, pending_block );
+   apply_pending_transactions( witness, when, pending_block, block_reward );
 
    // We have temporarily broken the invariant that
    // _pending_tx_session is the result of applying _pending_tx, as
@@ -118,9 +129,11 @@ void block_producer::adjust_hardfork_version_vote(const chain::witness_object& w
 }
 
 void block_producer::apply_pending_transactions(
-        const chain::wallet_name_type& witness_recovery,
-        fc::time_point_sec when,
-        chain::signed_block& pending_block)
+   const chain::wallet_name_type& witness_recovery,
+   fc::time_point_sec when,
+   chain::signed_block& pending_block,
+   fc::optional< xgt::chain::signed_transaction > block_reward
+)
 {
    size_t total_block_size = fc::raw::pack_size( pending_block );
    total_block_size += sizeof( uint32_t ); // Transaction vector length
@@ -153,7 +166,39 @@ void block_producer::apply_pending_transactions(
              dgp.current_witness = witness_recovery;
           });
 
+
    uint64_t postponed_tx_count = 0;
+
+
+   // postpone transaction if it would make block too big
+
+   if (block_reward)
+   {
+      uint64_t new_total_size = total_block_size + fc::raw::pack_size( *block_reward );
+      if (new_total_size >= maximum_transaction_partition_size)
+      {
+          postponed_tx_count++;
+      }
+      else
+      {
+          try
+          {
+              auto temp_session = _db.start_undo_session();
+              _db.apply_transaction(*block_reward, _db.get_node_properties().skip_flags);
+              temp_session.squash();
+
+              total_block_size = new_total_size;
+              pending_block.transactions.push_back(*block_reward);
+          }
+          catch (const fc::exception& e)
+          {
+              // Do nothing, transaction will not be re-applied
+              //wlog( "Transaction was not processed while generating block due to ${e}", ("e", e) );
+              //wlog( "The transaction was ${t}", ("t", tx) );
+          }
+      }
+   }
+
    // pop pending state (reset to head block state)
    for( const chain::signed_transaction& tx : _db._pending_tx )
    {
diff --git a/libraries/plugins/witness/include/xgt/plugins/witness/block_producer.hpp b/libraries/plugins/witness/include/xgt/plugins/witness/block_producer.hpp
index a5389d6b..8fe79413 100644
--- a/libraries/plugins/witness/include/xgt/plugins/witness/block_producer.hpp
+++ b/libraries/plugins/witness/include/xgt/plugins/witness/block_producer.hpp
@@ -22,7 +22,9 @@ class block_producer : public chain::abstract_block_producer {
       fc::time_point_sec when,
       const chain::wallet_name_type& witness_recovery,
       const fc::ecc::private_key& block_signing_private_key,
-      uint32_t skip = chain::database::skip_nothing);
+      fc::optional< xgt::chain::signed_transaction > trx,
+      uint32_t skip = chain::database::skip_nothing
+   );
 
 private:
    chain::database& _db;
@@ -30,14 +32,18 @@ class block_producer : public chain::abstract_block_producer {
    chain::signed_block _generate_block(
       fc::time_point_sec when,
       const chain::wallet_name_type& witness_recovery,
-      const fc::ecc::private_key& block_signing_private_key);
+      const fc::ecc::private_key& block_signing_private_key,
+      fc::optional< xgt::chain::signed_transaction > block_reward
+   );
 
    void adjust_hardfork_version_vote( const chain::witness_object& witness, chain::signed_block& pending_block );
 
    void apply_pending_transactions(
       const chain::wallet_name_type& witness_recovery,
       fc::time_point_sec when,
-      chain::signed_block& pending_block);
+      chain::signed_block& pending_block,
+      fc::optional< xgt::chain::signed_transaction > trx
+   );
 };
 
 } } } // xgt::plugins::witness
diff --git a/libraries/plugins/witness/witness_plugin.cpp b/libraries/plugins/witness/witness_plugin.cpp
index 31cbb81b..863a12b7 100644
--- a/libraries/plugins/witness/witness_plugin.cpp
+++ b/libraries/plugins/witness/witness_plugin.cpp
@@ -314,13 +314,37 @@ namespace detail {
                {
                   wlog("Mined block proceeding #${n} with timestamp ${t} at time ${c}", ("n", block_num)("t", head_block_time)("c", fc::time_point::now()));
                   fc::time_point now = fc::time_point::now();
-                  auto block = _chain_plugin.generate_block( now, miner, pk, _production_skip_flags);
-                  _db.push_block(block, (uint32_t)0);
-                  appbase::app().get_plugin< xgt::plugins::p2p::p2p_plugin >().broadcast_block( block );
-
-                  wlog( "Broadcasting Proof of Work for ${miner}", ("miner", miner) );
-                  _db.push_transaction( trx );
-                  appbase::app().get_plugin< xgt::plugins::p2p::p2p_plugin >().broadcast_transaction( trx );
+                  uint32_t head_num = _db.head_block_num();
+                  if (head_num < 2116800)
+                  {
+                     auto block_reward = fc::optional< protocol::signed_transaction >();
+                     auto block = _chain_plugin.generate_block(
+                        now,
+                        miner,
+                        pk,
+                        block_reward,
+                        _production_skip_flags
+                     );
+                     _db.push_block(block, (uint32_t)0);
+                     appbase::app().get_plugin< xgt::plugins::p2p::p2p_plugin >().broadcast_block( block );
+                     wlog( "Broadcasting Proof of Work for ${miner}", ("miner", miner) );
+                     _db.push_transaction( trx );
+                     appbase::app().get_plugin< xgt::plugins::p2p::p2p_plugin >().broadcast_transaction( trx );
+                  }
+                  else
+                  {
+                     auto block_reward = fc::optional< protocol::signed_transaction >(trx);
+                     auto block = _chain_plugin.generate_block(
+                        now,
+                        miner,
+                        pk,
+                        block_reward,
+                        _production_skip_flags
+                     );
+                     _db.push_block(block, (uint32_t)0);
+                     appbase::app().get_plugin< xgt::plugins::p2p::p2p_plugin >().broadcast_block( block );
+                     wlog( "Broadcasting Proof of Work for ${miner}", ("miner", miner) );
+                  }
 
                   ++this->_head_block_num;
                   wlog( "Broadcast succeeded!" );
@@ -394,9 +418,15 @@ namespace detail {
          if (*name_ptr == XGT_INIT_MINER_NAME)
          {
             wlog("Generating genesis block...");
-
             auto pair = _private_keys.begin();
-            auto block = _chain_plugin.generate_block( now, XGT_INIT_MINER_NAME, pair->second, _production_skip_flags );
+            auto block_reward = fc::optional< xgt::chain::signed_transaction >();
+            auto block = _chain_plugin.generate_block(
+               now,
+               XGT_INIT_MINER_NAME,
+               pair->second,
+               block_reward,
+               _production_skip_flags
+            );
             _db.push_block(block, (uint32_t)0);
             this->_head_block_num++;
             schedule_production_loop();