diff --git a/chain/src/store.rs b/chain/src/store.rs
index 69f49db8b..fed82349c 100644
--- a/chain/src/store.rs
+++ b/chain/src/store.rs
@@ -39,8 +39,6 @@ const HEADER_HEAD_PREFIX: u8 = 'I' as u8;
 const SYNC_HEAD_PREFIX: u8 = 's' as u8;
 const HEADER_HEIGHT_PREFIX: u8 = '8' as u8;
 const COMMIT_POS_PREFIX: u8 = 'c' as u8;
-const BLOCK_MARKER_PREFIX: u8 = 'm' as u8;
-const BLOCK_SUMS_PREFIX: u8 = 'M' as u8;
 const BLOCK_INPUT_BITMAP_PREFIX: u8 = 'B' as u8;
 
 /// All chain-related database operations
diff --git a/chain/src/txhashset.rs b/chain/src/txhashset.rs
index 8c04b901c..4b469df9c 100644
--- a/chain/src/txhashset.rs
+++ b/chain/src/txhashset.rs
@@ -564,36 +564,39 @@ impl<'a> Extension<'a> {
 		inputs: &Vec<Input>,
 		height: u64,
 	) -> Result<(), Error> {
-		for input in inputs {
-			if input.features.contains(OutputFeatures::COINBASE_OUTPUT) {
-				self.verify_maturity_via_merkle_proof(input, height)?;
+		// Find the greatest output pos of any coinbase
+		// outputs we are attempting to spend.
+		let pos = inputs
+			.iter()
+			.filter(|x| x.features.contains(OutputFeatures::COINBASE_OUTPUT))
+			.filter_map(|x| self.commit_index.get_output_pos(&x.commitment()).ok())
+			.max()
+			.unwrap_or(0);
+
+		if pos > 0 {
+			// If we have not yet reached 1,000 blocks then
+			// we can fail immediately as coinbase cannot be mature.
+			if height < global::coinbase_maturity() {
+				return Err(Error::ImmatureCoinbase);
+			}
+
+			// Find the "cutoff" pos in the output MMR based on the
+			// header from 1,000 blocks ago.
+			let cutoff_height = height.checked_sub(global::coinbase_maturity()).unwrap_or(0);
+			let cutoff_header = self.commit_index.get_header_by_height(cutoff_height)?;
+			let cutoff_pos = cutoff_header.output_mmr_size;
+
+
+			// If any output pos exceeed the cutoff_pos
+			// we know they have not yet sufficiently matured.
+			if pos > cutoff_pos {
+				return Err(Error::ImmatureCoinbase);
 			}
 		}
+
 		Ok(())
 	}
 
-	fn verify_maturity_via_merkle_proof(&self, input: &Input, height: u64) -> Result<(), Error> {
-		let header = self.commit_index.get_block_header(&input.block_hash())?;
-
-		// Check that the height indicates it has matured sufficiently
-		// we will check the Merkle proof below to ensure we are being
-		// honest about the height
-		if header.height + global::coinbase_maturity() >= height {
-			return Err(Error::ImmatureCoinbase);
-		}
-
-		// We need the MMR pos to verify the Merkle proof
-		let pos = self.get_output_pos(&input.commitment())?;
-
-		let out_id = OutputIdentifier::from_input(input);
-		let res = input
-			.merkle_proof()
-			.verify(header.output_root, &out_id, pos)
-			.map_err(|_| Error::MerkleProof)?;
-
-		Ok(res)
-	}
-
 	/// Apply a new set of blocks on top the existing sum trees. Blocks are
 	/// applied in order of the provided Vec. If pruning is enabled, inputs also
 	/// prune MMR data.
diff --git a/chain/src/types.rs b/chain/src/types.rs
index 3b0f4c4cf..0c3a61a93 100644
--- a/chain/src/types.rs
+++ b/chain/src/types.rs
@@ -18,13 +18,12 @@ use std::{error, fmt, io};
 
 use util::secp;
 use util::secp::pedersen::Commitment;
-use util::secp_static;
 
 use core::core::committed;
 use core::core::hash::{Hash, Hashed};
 use core::core::target::Difficulty;
 use core::core::{block, transaction, Block, BlockHeader};
-use core::ser::{self, Readable, Reader, Writeable, Writer};
+use core::ser;
 use grin_store as store;
 use keychain;
 
diff --git a/chain/tests/mine_simple_chain.rs b/chain/tests/mine_simple_chain.rs
index 13c49a84d..ffe0e10ef 100644
--- a/chain/tests/mine_simple_chain.rs
+++ b/chain/tests/mine_simple_chain.rs
@@ -263,8 +263,6 @@ fn spend_in_fork_and_compact() {
 		vec![
 			build::coinbase_input(
 				consensus::REWARD,
-				block_hash,
-				merkle_proof,
 				kc.derive_key_id(2).unwrap(),
 			),
 			build::output(consensus::REWARD - 20000, kc.derive_key_id(30).unwrap()),
diff --git a/chain/tests/test_coinbase_maturity.rs b/chain/tests/test_coinbase_maturity.rs
index 162b8eef4..fb035ff22 100644
--- a/chain/tests/test_coinbase_maturity.rs
+++ b/chain/tests/test_coinbase_maturity.rs
@@ -106,7 +106,7 @@ fn test_coinbase_maturity() {
 	// this is not a valid tx as the coinbase output cannot be spent yet
 	let coinbase_txn = build::transaction(
 		vec![
-			build::coinbase_input(amount, block_hash, merkle_proof.clone(), key_id1.clone()),
+			build::coinbase_input(amount, key_id1.clone()),
 			build::output(amount - 2, key_id2.clone()),
 			build::with_fee(2),
 		],
diff --git a/chain/tests/test_txhashset_raw_txs.rs b/chain/tests/test_txhashset_raw_txs.rs
index 7dbd6caa6..f96306dfa 100644
--- a/chain/tests/test_txhashset_raw_txs.rs
+++ b/chain/tests/test_txhashset_raw_txs.rs
@@ -81,8 +81,6 @@ fn test_some_raw_txs() {
 		vec![
 			build::coinbase_input(
 				coinbase_reward,
-				block.hash(),
-				MerkleProof::default(),
 				key_id1.clone(),
 			),
 			build::output(100, key_id2.clone()),
@@ -97,8 +95,6 @@ fn test_some_raw_txs() {
 		vec![
 			build::coinbase_input(
 				coinbase_reward,
-				block.hash(),
-				MerkleProof::default(),
 				key_id1.clone(),
 			),
 			build::output(100, key_id4.clone()),
diff --git a/core/src/core/transaction.rs b/core/src/core/transaction.rs
index bb06a8093..bddbe8550 100644
--- a/core/src/core/transaction.rs
+++ b/core/src/core/transaction.rs
@@ -17,19 +17,17 @@
 use std::cmp::Ordering;
 use std::cmp::max;
 use std::collections::HashSet;
-use std::io::Cursor;
 use std::{error, fmt};
 
-use util::secp::pedersen::{Commitment, ProofMessage, RangeProof};
+use util::secp::pedersen::{Commitment, RangeProof};
 use util::secp::{self, Message, Signature};
 use util::{kernel_sig_msg, static_secp_instance};
 
 use consensus::{self, VerifySortOrder};
-use core::hash::{Hash, Hashed, ZERO_HASH};
-use core::merkle_proof::MerkleProof;
+use core::hash::Hashed;
 use core::{committed, Committed};
 use keychain::{self, BlindingFactor};
-use ser::{self, read_and_verify_sorted, ser_vec, PMMRable, Readable, Reader, Writeable,
+use ser::{self, read_and_verify_sorted, PMMRable, Readable, Reader, Writeable,
           WriteableSorted, Writer};
 use util;
 
@@ -441,22 +439,13 @@ impl Transaction {
 		Transaction::weight(
 			self.inputs.len(),
 			self.outputs.len(),
-			self.input_proofs_count(),
 		)
 	}
 
-	/// Collect input's Merkle proofs
-	pub fn input_proofs_count(&self) -> usize {
-		self.inputs
-			.iter()
-			.filter(|i| i.merkle_proof.is_some())
-			.count()
-	}
-
 	/// Calculate transaction weight from transaction details
-	pub fn weight(input_len: usize, output_len: usize, proof_len: usize) -> u32 {
+	pub fn weight(input_len: usize, output_len: usize) -> u32 {
 		let mut tx_weight =
-			-1 * (input_len as i32) + (4 * output_len as i32) + (proof_len as i32) + 1;
+			-1 * (input_len as i32) + (4 * output_len as i32) + 1;
 		if tx_weight < 1 {
 			tx_weight = 1;
 		}
@@ -636,13 +625,6 @@ pub struct Input {
 	pub features: OutputFeatures,
 	/// The commit referencing the output being spent.
 	pub commit: Commitment,
-	/// The hash of the block the output originated from.
-	/// Currently we only care about this for coinbase outputs.
-	pub block_hash: Option<Hash>,
-	/// The Merkle Proof that shows the output being spent by this input
-	/// existed and was unspent at the time of this block (proof of inclusion
-	/// in output_root)
-	pub merkle_proof: Option<MerkleProof>,
 }
 
 hashable_ord!(Input);
@@ -663,17 +645,6 @@ impl Writeable for Input {
 	fn write<W: Writer>(&self, writer: &mut W) -> Result<(), ser::Error> {
 		writer.write_u8(self.features.bits())?;
 		self.commit.write(writer)?;
-
-		if writer.serialization_mode() != ser::SerializationMode::Hash {
-			if self.features.contains(OutputFeatures::COINBASE_OUTPUT) {
-				let block_hash = &self.block_hash.unwrap_or(ZERO_HASH);
-				let merkle_proof = self.merkle_proof();
-
-				writer.write_fixed_bytes(block_hash)?;
-				merkle_proof.write(writer)?;
-			}
-		}
-
 		Ok(())
 	}
 }
@@ -687,13 +658,7 @@ impl Readable for Input {
 
 		let commit = Commitment::read(reader)?;
 
-		if features.contains(OutputFeatures::COINBASE_OUTPUT) {
-			let block_hash = Some(Hash::read(reader)?);
-			let merkle_proof = Some(MerkleProof::read(reader)?);
-			Ok(Input::new(features, commit, block_hash, merkle_proof))
-		} else {
-			Ok(Input::new(features, commit, None, None))
-		}
+		Ok(Input::new(features, commit))
 	}
 }
 
@@ -707,14 +672,10 @@ impl Input {
 	pub fn new(
 		features: OutputFeatures,
 		commit: Commitment,
-		block_hash: Option<Hash>,
-		merkle_proof: Option<MerkleProof>,
 	) -> Input {
 		Input {
 			features,
 			commit,
-			block_hash,
-			merkle_proof,
 		}
 	}
 
@@ -725,21 +686,6 @@ impl Input {
 	pub fn commitment(&self) -> Commitment {
 		self.commit
 	}
-
-	/// Convenience function to return the (optional) block_hash for this input.
-	/// Will return the default hash if we do not have one.
-	pub fn block_hash(&self) -> Hash {
-		self.block_hash.unwrap_or_else(Hash::default)
-	}
-
-	/// Convenience function to return the (optional) merkle_proof for this
-	/// input. Will return the "empty" Merkle proof if we do not have one.
-	/// We currently only care about the Merkle proof for inputs spending
-	/// coinbase outputs.
-	pub fn merkle_proof(&self) -> MerkleProof {
-		let merkle_proof = self.merkle_proof.clone();
-		merkle_proof.unwrap_or_else(MerkleProof::empty)
-	}
 }
 
 bitflags! {
@@ -920,6 +866,7 @@ impl Readable for OutputIdentifier {
 #[cfg(test)]
 mod test {
 	use super::*;
+	use core::hash::Hash;
 	use core::id::{ShortId, ShortIdentifiable};
 	use keychain::{ExtKeychain, Keychain};
 	use util::secp;
@@ -991,8 +938,6 @@ mod test {
 		let input = Input {
 			features: OutputFeatures::DEFAULT_OUTPUT,
 			commit: commit,
-			block_hash: None,
-			merkle_proof: None,
 		};
 
 		let block_hash = Hash::from_hex(
@@ -1009,8 +954,6 @@ mod test {
 		let input = Input {
 			features: OutputFeatures::COINBASE_OUTPUT,
 			commit: commit,
-			block_hash: None,
-			merkle_proof: None,
 		};
 
 		let short_id = input.short_id(&block_hash, nonce);
diff --git a/pool/tests/common/mod.rs b/pool/tests/common/mod.rs
index 4d06ebf60..c65fe5d12 100644
--- a/pool/tests/common/mod.rs
+++ b/pool/tests/common/mod.rs
@@ -126,8 +126,6 @@ where
 		let key_id = keychain.derive_key_id(header.height as u32).unwrap();
 		tx_elements.push(libtx::build::coinbase_input(
 			coinbase_reward,
-			header.hash(),
-			MerkleProof::default(),
 			key_id,
 		));
 	}
diff --git a/wallet/src/client.rs b/wallet/src/client.rs
index 782882c43..152b27fa1 100644
--- a/wallet/src/client.rs
+++ b/wallet/src/client.rs
@@ -207,76 +207,3 @@ pub fn get_outputs_by_pmmr_index(
 		}
 	}
 }
-
-/// Get any missing block hashes from node
-pub fn get_missing_block_hashes_from_node(
-	addr: &str,
-	height: u64,
-	wallet_outputs: Vec<pedersen::Commitment>,
-) -> Result<
-	(
-		HashMap<pedersen::Commitment, (u64, BlockIdentifier)>,
-		HashMap<pedersen::Commitment, MerkleProofWrapper>,
-	),
-	Error,
-> {
-	let id_params: Vec<String> = wallet_outputs
-		.iter()
-		.map(|commit| format!("id={}", util::to_hex(commit.as_ref().to_vec())))
-		.collect();
-
-	let height_params = [format!("start_height={}&end_height={}", 0, height)];
-	let mut api_blocks: HashMap<pedersen::Commitment, (u64, BlockIdentifier)> = HashMap::new();
-	let mut api_merkle_proofs: HashMap<pedersen::Commitment, MerkleProofWrapper> = HashMap::new();
-
-	// Split up into separate requests, to avoid hitting http limits
-	for mut query_chunk in id_params.chunks(1000) {
-		let url = format!(
-			"{}/v1/chain/outputs/byheight?{}",
-			addr,
-			[&height_params, query_chunk].concat().join("&"),
-		);
-
-		match api::client::get::<Vec<api::BlockOutputs>>(url.as_str()) {
-			Ok(blocks) => for block in blocks {
-				for out in block.outputs {
-					api_blocks.insert(
-						out.commit,
-						(
-							block.header.height,
-							BlockIdentifier::from_hex(&block.header.hash).unwrap(),
-						),
-					);
-					if let Some(merkle_proof) = out.merkle_proof {
-						let wrapper = MerkleProofWrapper(merkle_proof);
-						api_merkle_proofs.insert(out.commit, wrapper);
-					}
-				}
-			},
-			Err(e) => {
-				// if we got anything other than 200 back from server, bye
-				return Err(e)?;
-			}
-		}
-	}
-	Ok((api_blocks, api_merkle_proofs))
-}
-
-/// Create a merkle proof at the given height for the given commit
-pub fn create_merkle_proof(addr: &str, commit: &str) -> Result<MerkleProofWrapper, Error> {
-	let url = format!("{}/v1/txhashset/merkleproof?id={}", addr, commit);
-
-	match api::client::get::<api::OutputPrintable>(url.as_str()) {
-		Ok(output) => Ok(MerkleProofWrapper(output.merkle_proof.unwrap())),
-		Err(e) => {
-			// if we got anything other than 200 back from server, bye
-			error!(
-				LOGGER,
-				"get_merkle_proof_for_pos: Restore failed... unable to create merkle proof for commit {}. Error: {}",
-				commit,
-				e
-			);
-			Err(e)?
-		}
-	}
-}
diff --git a/wallet/src/file_wallet.rs b/wallet/src/file_wallet.rs
index b439f8838..671585a52 100644
--- a/wallet/src/file_wallet.rs
+++ b/wallet/src/file_wallet.rs
@@ -34,7 +34,7 @@ use client;
 use libtx::slate::Slate;
 use libwallet;
 use libwallet::types::{
-	BlockFees, BlockIdentifier, CbData, MerkleProofWrapper, OutputData, TxWrapper, WalletBackend,
+	BlockFees, BlockIdentifier, CbData, OutputData, TxWrapper, WalletBackend,
 	WalletClient, WalletDetails, WalletOutputBatch,
 };
 use types::{WalletConfig, WalletSeed};
@@ -400,31 +400,6 @@ impl<K> WalletClient for FileWallet<K> {
 			.context(libwallet::ErrorKind::Node)?;
 		Ok(res)
 	}
-
-	/// Get any missing block hashes from node
-	fn get_missing_block_hashes_from_node(
-		&self,
-		height: u64,
-		wallet_outputs: Vec<pedersen::Commitment>,
-	) -> Result<
-		(
-			HashMap<pedersen::Commitment, (u64, BlockIdentifier)>,
-			HashMap<pedersen::Commitment, MerkleProofWrapper>,
-		),
-		libwallet::Error,
-	> {
-		let res =
-			client::get_missing_block_hashes_from_node(self.node_url(), height, wallet_outputs)
-				.context(libwallet::ErrorKind::Node)?;
-		Ok(res)
-	}
-
-	/// retrieve merkle proof for a commit from a node
-	fn create_merkle_proof(&self, commit: &str) -> Result<MerkleProofWrapper, libwallet::Error> {
-		let res = client::create_merkle_proof(self.node_url(), commit)
-			.context(libwallet::ErrorKind::Node)?;
-		Ok(res)
-	}
 }
 
 impl<K> FileWallet<K>
diff --git a/wallet/src/libtx/build.rs b/wallet/src/libtx/build.rs
index b1ed5ece6..1cdd74a9c 100644
--- a/wallet/src/libtx/build.rs
+++ b/wallet/src/libtx/build.rs
@@ -28,7 +28,6 @@
 use util::{kernel_sig_msg, secp};
 
 use core::core::hash::Hash;
-use core::core::merkle_proof::MerkleProof;
 use core::core::{Input, Output, OutputFeatures, Transaction, TxKernel};
 use keychain::{self, BlindSum, BlindingFactor, Identifier, Keychain};
 use libtx::{aggsig, proof};
@@ -52,8 +51,6 @@ pub type Append<K: Keychain> = for<'a> Fn(&'a mut Context<K>, (Transaction, TxKe
 fn build_input<K>(
 	value: u64,
 	features: OutputFeatures,
-	block_hash: Option<Hash>,
-	merkle_proof: Option<MerkleProof>,
 	key_id: Identifier,
 ) -> Box<Append<K>>
 where
@@ -62,7 +59,7 @@ where
 	Box::new(
 		move |build, (tx, kern, sum)| -> (Transaction, TxKernel, BlindSum) {
 			let commit = build.keychain.commit(value, &key_id).unwrap();
-			let input = Input::new(features, commit, block_hash.clone(), merkle_proof.clone());
+			let input = Input::new(features, commit);
 			(tx.with_input(input), kern, sum.sub_key_id(key_id.clone()))
 		},
 	)
@@ -78,15 +75,12 @@ where
 		LOGGER,
 		"Building input (spending regular output): {}, {}", value, key_id
 	);
-	build_input(value, OutputFeatures::DEFAULT_OUTPUT, None, None, key_id)
+	build_input(value, OutputFeatures::DEFAULT_OUTPUT, key_id)
 }
 
 /// Adds a coinbase input spending a coinbase output.
-/// We will use the block hash to verify coinbase maturity.
 pub fn coinbase_input<K>(
 	value: u64,
-	block_hash: Hash,
-	merkle_proof: MerkleProof,
 	key_id: Identifier,
 ) -> Box<Append<K>>
 where
@@ -96,13 +90,7 @@ where
 		LOGGER,
 		"Building input (spending coinbase): {}, {}", value, key_id
 	);
-	build_input(
-		value,
-		OutputFeatures::COINBASE_OUTPUT,
-		Some(block_hash),
-		Some(merkle_proof),
-		key_id,
-	)
+	build_input(value, OutputFeatures::COINBASE_OUTPUT, key_id)
 }
 
 /// Adds an output with the provided value and key identifier from the
diff --git a/wallet/src/libtx/mod.rs b/wallet/src/libtx/mod.rs
index b1378058d..f29363b5a 100644
--- a/wallet/src/libtx/mod.rs
+++ b/wallet/src/libtx/mod.rs
@@ -36,11 +36,11 @@ pub use libtx::error::{Error, ErrorKind};
 const DEFAULT_BASE_FEE: u64 = consensus::MILLI_GRIN;
 
 /// Transaction fee calculation
-pub fn tx_fee(input_len: usize, output_len: usize, proof_len: usize, base_fee: Option<u64>) -> u64 {
+pub fn tx_fee(input_len: usize, output_len: usize, base_fee: Option<u64>) -> u64 {
 	let use_base_fee = match base_fee {
 		Some(bf) => bf,
 		None => DEFAULT_BASE_FEE,
 	};
 
-	(Transaction::weight(input_len, output_len, proof_len) as u64) * use_base_fee
+	(Transaction::weight(input_len, output_len) as u64) * use_base_fee
 }
diff --git a/wallet/src/libtx/slate.rs b/wallet/src/libtx/slate.rs
index d9c65f6a4..5ffd62d93 100644
--- a/wallet/src/libtx/slate.rs
+++ b/wallet/src/libtx/slate.rs
@@ -264,7 +264,6 @@ impl Slate {
 		let fee = tx_fee(
 			self.tx.inputs.len(),
 			self.tx.outputs.len(),
-			self.tx.input_proofs_count(),
 			None,
 		);
 		if fee > self.tx.fee() {
diff --git a/wallet/src/libwallet/api.rs b/wallet/src/libwallet/api.rs
index c7809f6c6..052c01989 100644
--- a/wallet/src/libwallet/api.rs
+++ b/wallet/src/libwallet/api.rs
@@ -108,7 +108,8 @@ where
 			Err(e) => {
 				error!(
 					LOGGER,
-					"Communication with receiver failed on SenderInitiation send. Aborting transaction"
+					"Communication with receiver failed on SenderInitiation send. Aborting transaction {:?}",
+					e,
 				);
 				return Err(e)?;
 			}
diff --git a/wallet/src/libwallet/internal/restore.rs b/wallet/src/libwallet/internal/restore.rs
index 611cd463b..98e079212 100644
--- a/wallet/src/libwallet/internal/restore.rs
+++ b/wallet/src/libwallet/internal/restore.rs
@@ -38,8 +38,6 @@ struct OutputResult {
 	///
 	pub is_coinbase: bool,
 	///
-	pub merkle_proof: Option<MerkleProofWrapper>,
-	///
 	pub blinding: SecretKey,
 }
 
@@ -75,13 +73,8 @@ where
 			"Output found: {:?}, amount: {:?}", commit, info.value
 		);
 
-		let mut merkle_proof = None;
 		let commit_str = util::to_hex(commit.as_ref().to_vec());
 
-		if *is_coinbase {
-			merkle_proof = Some(wallet.create_merkle_proof(&commit_str)?);
-		}
-
 		let height = current_chain_height;
 		let lock_height = if *is_coinbase {
 			height + global::coinbase_maturity()
@@ -97,7 +90,6 @@ where
 			height: height,
 			lock_height: lock_height,
 			is_coinbase: *is_coinbase,
-			merkle_proof: merkle_proof,
 			blinding: info.blinding,
 		});
 	}
@@ -219,8 +211,6 @@ where
 				height: output.height,
 				lock_height: output.lock_height,
 				is_coinbase: output.is_coinbase,
-				block: None,
-				merkle_proof: output.merkle_proof,
 			});
 		} else {
 			warn!(
diff --git a/wallet/src/libwallet/internal/selection.rs b/wallet/src/libwallet/internal/selection.rs
index 30de86a51..89d4a4612 100644
--- a/wallet/src/libwallet/internal/selection.rs
+++ b/wallet/src/libwallet/internal/selection.rs
@@ -109,8 +109,6 @@ where
 				height: current_height,
 				lock_height: 0,
 				is_coinbase: false,
-				block: None,
-				merkle_proof: None,
 			});
 		}
 		batch.commit()?;
@@ -174,8 +172,6 @@ where
 			height: height,
 			lock_height: 0,
 			is_coinbase: false,
-			block: None,
-			merkle_proof: None,
 		});
 		batch.commit()?;
 		Ok(())
@@ -238,7 +234,7 @@ where
 	// sender
 	let mut fee;
 	// First attempt to spend without change
-	fee = tx_fee(coins.len(), 1, coins_proof_count(&coins), None);
+	fee = tx_fee(coins.len(), 1, None);
 	let mut total: u64 = coins.iter().map(|c| c.value).sum();
 	let mut amount_with_fee = amount + fee;
 
@@ -251,7 +247,7 @@ where
 
 	// Check if we need to use a change address
 	if total > amount_with_fee {
-		fee = tx_fee(coins.len(), 2, coins_proof_count(&coins), None);
+		fee = tx_fee(coins.len(), 2, None);
 		amount_with_fee = amount + fee;
 
 		// Here check if we have enough outputs for the amount including fee otherwise
@@ -274,7 +270,7 @@ where
 				max_outputs,
 				selection_strategy_is_use_all,
 			);
-			fee = tx_fee(coins.len(), 2, coins_proof_count(&coins), None);
+			fee = tx_fee(coins.len(), 2, None);
 			total = coins.iter().map(|c| c.value).sum();
 			amount_with_fee = amount + fee;
 		}
@@ -290,11 +286,6 @@ where
 	Ok((parts, coins, change, change_derivation, amount, fee))
 }
 
-/// coins proof count
-pub fn coins_proof_count(coins: &Vec<OutputData>) -> usize {
-	coins.iter().filter(|c| c.merkle_proof.is_some()).count()
-}
-
 /// Selects inputs and change for a transaction
 pub fn inputs_and_change<T, K>(
 	coins: &Vec<OutputData>,
@@ -322,14 +313,8 @@ where
 	for coin in coins {
 		let key_id = wallet.keychain().derive_key_id(coin.n_child)?;
 		if coin.is_coinbase {
-			let block = coin.block.clone();
-			let merkle_proof = coin.merkle_proof.clone();
-			let merkle_proof = merkle_proof.unwrap().merkle_proof();
-
 			parts.push(build::coinbase_input(
 				coin.value,
-				block.unwrap().hash(),
-				merkle_proof,
 				key_id,
 			));
 		} else {
diff --git a/wallet/src/libwallet/internal/tx.rs b/wallet/src/libwallet/internal/tx.rs
index 6893341d8..cfca90fbc 100644
--- a/wallet/src/libwallet/internal/tx.rs
+++ b/wallet/src/libwallet/internal/tx.rs
@@ -162,7 +162,7 @@ where
 
 	debug!(LOGGER, "selected some coins - {}", coins.len());
 
-	let fee = tx_fee(coins.len(), 2, selection::coins_proof_count(&coins), None);
+	let fee = tx_fee(coins.len(), 2, None);
 	let (mut parts, _, _) = selection::inputs_and_change(&coins, wallet, amount, fee)?;
 
 	//TODO: If we end up using this, create change output here
diff --git a/wallet/src/libwallet/internal/updater.rs b/wallet/src/libwallet/internal/updater.rs
index 5b355721b..19efc6b22 100644
--- a/wallet/src/libwallet/internal/updater.rs
+++ b/wallet/src/libwallet/internal/updater.rs
@@ -65,55 +65,6 @@ where
 {
 	let height = wallet.get_chain_height()?;
 	refresh_output_state(wallet, height)?;
-	refresh_missing_block_hashes(wallet, height)?;
-	Ok(())
-}
-
-// TODO - this might be slow if we have really old outputs that have never been
-// refreshed
-fn refresh_missing_block_hashes<T, K>(wallet: &mut T, height: u64) -> Result<(), Error>
-where
-	T: WalletBackend<K> + WalletClient,
-	K: Keychain,
-{
-	// build a local map of wallet outputs keyed by commit
-	// and a list of outputs we want to query the node for
-	let wallet_outputs = map_wallet_outputs_missing_block(wallet)?;
-
-	let wallet_output_keys = wallet_outputs.keys().map(|commit| commit.clone()).collect();
-
-	// nothing to do so return (otherwise we hit the api with a monster query...)
-	if wallet_outputs.is_empty() {
-		return Ok(());
-	}
-
-	debug!(
-		LOGGER,
-		"Refreshing missing block hashes (and heights) for {} outputs",
-		wallet_outputs.len(),
-	);
-
-	let (api_blocks, api_merkle_proofs) =
-		wallet.get_missing_block_hashes_from_node(height, wallet_output_keys)?;
-
-	// now for each commit, find the output in the wallet and
-	// the corresponding api output (if it exists)
-	// and refresh it in-place in the wallet.
-	// Note: minimizing the time we spend holding the wallet lock.
-	let mut batch = wallet.batch()?;
-	for (commit, id) in wallet_outputs.iter() {
-		if let Some((height, bid)) = api_blocks.get(&commit) {
-			if let Ok(mut output) = batch.get(id) {
-				output.height = *height;
-				output.block = Some(bid.clone());
-				if let Some(merkle_proof) = api_merkle_proofs.get(&commit) {
-					output.merkle_proof = Some(merkle_proof.clone());
-				}
-				batch.save(output);
-			}
-		}
-	}
-	batch.commit()?;
 	Ok(())
 }
 
@@ -139,29 +90,6 @@ where
 	Ok(wallet_outputs)
 }
 
-/// As above, but only return unspent outputs with missing block hashes
-/// and a list of outputs we want to query the node for
-pub fn map_wallet_outputs_missing_block<T, K>(
-	wallet: &mut T,
-) -> Result<HashMap<pedersen::Commitment, Identifier>, Error>
-where
-	T: WalletBackend<K>,
-	K: Keychain,
-{
-	let mut wallet_outputs: HashMap<pedersen::Commitment, Identifier> = HashMap::new();
-	let keychain = wallet.keychain().clone();
-	let unspents = wallet.iter().filter(|x| {
-		x.root_key_id == keychain.root_key_id()
-			&& x.block.is_none()
-			&& x.status == OutputStatus::Unspent
-	});
-	for out in unspents {
-		let commit = keychain.commit_with_key_index(out.value, out.n_child)?;
-		wallet_outputs.insert(commit, out.key_id.clone());
-	}
-	Ok(wallet_outputs)
-}
-
 /// Apply refreshed API output data to the wallet
 pub fn apply_api_outputs<T, K>(
 	wallet: &mut T,
@@ -329,20 +257,16 @@ where
 	{
 		// Now acquire the wallet lock and write the new output.
 		let mut batch = wallet.batch()?;
-		{
-			batch.save(OutputData {
-				root_key_id: root_key_id.clone(),
-				key_id: key_id.clone(),
-				n_child: derivation,
-				value: reward(block_fees.fees),
-				status: OutputStatus::Unconfirmed,
-				height: height,
-				lock_height: lock_height,
-				is_coinbase: true,
-				block: None,
-				merkle_proof: None,
-			})?;
-		}
+		batch.save(OutputData {
+			root_key_id: root_key_id.clone(),
+			key_id: key_id.clone(),
+			n_child: derivation,
+			value: reward(block_fees.fees),
+			status: OutputStatus::Unconfirmed,
+			height: height,
+			lock_height: lock_height,
+			is_coinbase: true,
+		});
 		batch.commit()?;
 	}
 
diff --git a/wallet/src/libwallet/types.rs b/wallet/src/libwallet/types.rs
index 1bdaac243..2197bfe19 100644
--- a/wallet/src/libwallet/types.rs
+++ b/wallet/src/libwallet/types.rs
@@ -24,7 +24,6 @@ use serde_json;
 use failure::ResultExt;
 
 use core::core::hash::Hash;
-use core::core::merkle_proof::MerkleProof;
 use core::ser;
 
 use keychain::{Identifier, Keychain};
@@ -150,22 +149,6 @@ pub trait WalletClient {
 		),
 		Error,
 	>;
-
-	/// Get any missing block hashes from node
-	fn get_missing_block_hashes_from_node(
-		&self,
-		height: u64,
-		wallet_outputs: Vec<pedersen::Commitment>,
-	) -> Result<
-		(
-			HashMap<pedersen::Commitment, (u64, BlockIdentifier)>,
-			HashMap<pedersen::Commitment, MerkleProofWrapper>,
-		),
-		Error,
-	>;
-
-	/// create merkle proof for a commit from a node at the current height
-	fn create_merkle_proof(&self, commit: &str) -> Result<MerkleProofWrapper, Error>;
 }
 
 /// Information about an output that's being tracked by the wallet. Must be
@@ -190,10 +173,6 @@ pub struct OutputData {
 	pub lock_height: u64,
 	/// Is this a coinbase output? Is it subject to coinbase locktime?
 	pub is_coinbase: bool,
-	/// Hash of the block this output originated from.
-	pub block: Option<BlockIdentifier>,
-	/// Merkle proof
-	pub merkle_proof: Option<MerkleProofWrapper>,
 }
 
 impl ser::Writeable for OutputData {
@@ -239,14 +218,6 @@ impl OutputData {
 			return false;
 		} else if self.status == OutputStatus::Unconfirmed && self.is_coinbase {
 			return false;
-		} else if self.is_coinbase && self.block.is_none() {
-			// if we do not have a block hash for coinbase output we cannot spent it
-			// block index got compacted before we refreshed our wallet?
-			return false;
-		} else if self.is_coinbase && self.merkle_proof.is_none() {
-			// if we do not have a Merkle proof for coinbase output we cannot spent it
-			// block index got compacted before we refreshed our wallet?
-			return false;
 		} else if self.lock_height > current_height {
 			return false;
 		} else if self.status == OutputStatus::Unspent
@@ -304,53 +275,6 @@ impl fmt::Display for OutputStatus {
 	}
 }
 
-/// Wrapper for a merkle proof
-#[derive(Debug, Clone, PartialEq, PartialOrd, Eq, Ord)]
-pub struct MerkleProofWrapper(pub MerkleProof);
-
-impl MerkleProofWrapper {
-	/// Create
-	pub fn merkle_proof(&self) -> MerkleProof {
-		self.0.clone()
-	}
-}
-
-impl serde::ser::Serialize for MerkleProofWrapper {
-	fn serialize<S>(&self, serializer: S) -> Result<S::Ok, S::Error>
-	where
-		S: serde::ser::Serializer,
-	{
-		serializer.serialize_str(&self.0.to_hex())
-	}
-}
-
-impl<'de> serde::de::Deserialize<'de> for MerkleProofWrapper {
-	fn deserialize<D>(deserializer: D) -> Result<MerkleProofWrapper, D::Error>
-	where
-		D: serde::de::Deserializer<'de>,
-	{
-		deserializer.deserialize_str(MerkleProofWrapperVisitor)
-	}
-}
-
-struct MerkleProofWrapperVisitor;
-
-impl<'de> serde::de::Visitor<'de> for MerkleProofWrapperVisitor {
-	type Value = MerkleProofWrapper;
-
-	fn expecting(&self, formatter: &mut fmt::Formatter) -> fmt::Result {
-		formatter.write_str("a merkle proof")
-	}
-
-	fn visit_str<E>(self, s: &str) -> Result<Self::Value, E>
-	where
-		E: serde::de::Error,
-	{
-		let merkle_proof = MerkleProof::from_hex(s).unwrap();
-		Ok(MerkleProofWrapper(merkle_proof))
-	}
-}
-
 /// Block Identifier
 #[derive(Debug, Clone, PartialEq, PartialOrd, Eq, Ord)]
 pub struct BlockIdentifier(pub Hash);
diff --git a/wallet/src/lmdb_wallet.rs b/wallet/src/lmdb_wallet.rs
index b24d12f12..0547bccf4 100644
--- a/wallet/src/lmdb_wallet.rs
+++ b/wallet/src/lmdb_wallet.rs
@@ -251,28 +251,4 @@ impl<K> WalletClient for LMDBBackend<K> {
 			.context(ErrorKind::Node)?;
 		Ok(res)
 	}
-
-	/// Get any missing block hashes from node
-	fn get_missing_block_hashes_from_node(
-		&self,
-		height: u64,
-		wallet_outputs: Vec<pedersen::Commitment>,
-	) -> Result<
-		(
-			HashMap<pedersen::Commitment, (u64, BlockIdentifier)>,
-			HashMap<pedersen::Commitment, MerkleProofWrapper>,
-		),
-		Error,
-	> {
-		let res =
-			client::get_missing_block_hashes_from_node(self.node_url(), height, wallet_outputs)
-				.context(ErrorKind::Node)?;
-		Ok(res)
-	}
-
-	/// retrieve merkle proof for a commit from a node
-	fn create_merkle_proof(&self, commit: &str) -> Result<MerkleProofWrapper, Error> {
-		let res = client::create_merkle_proof(self.node_url(), commit).context(ErrorKind::Node)?;
-		Ok(res)
-	}
 }
diff --git a/wallet/tests/common/mod.rs b/wallet/tests/common/mod.rs
index 325c4347b..d9c8bb144 100644
--- a/wallet/tests/common/mod.rs
+++ b/wallet/tests/common/mod.rs
@@ -31,7 +31,7 @@ use keychain::ExtKeychain;
 use wallet::WalletConfig;
 use wallet::file_wallet::FileWallet;
 use wallet::libwallet::internal::updater;
-use wallet::libwallet::types::{BlockFees, BlockIdentifier, MerkleProofWrapper, OutputStatus,
+use wallet::libwallet::types::{BlockFees, BlockIdentifier, OutputStatus,
                                WalletBackend};
 use wallet::libwallet::{Error, ErrorKind};
 
@@ -176,13 +176,7 @@ where
 		}
 	};
 	add_block_with_reward(chain, txs, coinbase_tx.clone());
-	// build merkle proof and block identifier and save in wallet
-	let output_id = OutputIdentifier::from_output(&coinbase_tx.0.clone());
-	let m_proof = chain.get_merkle_proof(&output_id, &chain.head_header().unwrap());
-	let block_id = Some(BlockIdentifier(chain.head_header().unwrap().hash()));
-	let mut output = wallet.get(&fees.key_id.unwrap()).unwrap();
-	output.block = block_id;
-	output.merkle_proof = Some(MerkleProofWrapper(m_proof.unwrap()));
+	let output = wallet.get(&fees.key_id.unwrap()).unwrap();
 	let mut batch = wallet.batch().unwrap();
 	batch.save(output).unwrap();
 	batch.commit().unwrap();