diff --git a/lib/net/peer.js b/lib/net/peer.js
index 9df241f1..021f41b1 100644
--- a/lib/net/peer.js
+++ b/lib/net/peer.js
@@ -81,75 +81,67 @@ function Peer(pool) {
   this.pool = pool;
   this.options = pool.options;
   this.logger = pool.logger;
-  this.socket = null;
-  this.outbound = false;
-  this.host = null;
-  this.port = 0;
-  this.hostname = null;
-  this.createSocket = this.options.createSocket;
   this.chain = this.pool.chain;
   this.mempool = this.pool.mempool;
   this.network = this.chain.network;
   this.locker = new Locker();
-  this.version = null;
+  this.createSocket = this.options.createSocket;
+  this.next = null;
+  this.prev = null;
+
+  this.id = Peer.uid++;
+  this.socket = null;
+  this.outbound = false;
+  this.host = '0.0.0.0';
+  this.port = 0;
+  this.hostname = '0.0.0.0:0';
   this.destroyed = false;
   this.ack = false;
-  this.pending = true;
   this.connected = false;
   this.ts = 0;
+  this.lastSend = 0;
+  this.lastRecv = 0;
+  this.drainStart = 0;
+  this.drainSize = 0;
+  this.drainQueue = [];
+  this.banScore = 0;
+
+  this.version = null;
   this.preferHeaders = false;
   this.haveWitness = false;
   this.hashContinue = null;
   this.spvFilter = null;
   this.relay = true;
   this.feeRate = -1;
-  this.addrFilter = new Bloom.Rolling(5000, 0.001);
-  this.invFilter = new Bloom.Rolling(50000, 0.000001);
-  this.lastBlock = null;
-  this.waiting = 0;
-  this.syncSent = false;
-  this.connectTimeout = null;
+  this.bip151 = null;
+  this.bip150 = null;
   this.compactMode = null;
   this.compactWitness = false;
   this.compactBlocks = {};
+  this.lastMerkle = null;
+  this.waitingTX = 0;
+  this.syncSent = false;
   this.sentAddr = false;
-  this.bip151 = null;
-  this.bip150 = null;
-  this.lastSend = 0;
-  this.lastRecv = 0;
-  this.drainStart = 0;
-  this.drainSize = 0;
-  this.drainQueue = [];
-
-  this.next = null;
-  this.prev = null;
-
   this.challenge = null;
   this.lastPong = -1;
   this.lastPing = -1;
   this.minPing = -1;
 
-  this.banScore = 0;
-
+  this.connectTimeout = null;
   this.pingTimer = null;
   this.pingInterval = 30000;
   this.stallTimer = null;
   this.stallInterval = 5000;
 
+  this.addrFilter = new Bloom.Rolling(5000, 0.001);
+  this.invFilter = new Bloom.Rolling(50000, 0.000001);
+
   this.requestTimeout = 10000;
   this.requestMap = {};
 
   this.queueBlock = new List();
   this.queueTX = new List();
 
-  this.id = Peer.uid++;
-
-  this.setMaxListeners(10000);
-
-  this.host = '0.0.0.0';
-  this.port = 0;
-  this.hostname = '0.0.0.0:0';
-
   if (this.options.bip151) {
     this.bip151 = new BIP151();
     if (this.options.bip150) {
@@ -290,7 +282,6 @@ Peer.prototype.accept = function accept(socket) {
   this.ts = util.now();
   this.outbound = false;
   this.connected = true;
-  this.pending = false;
 };
 
 /**
@@ -316,6 +307,7 @@ Peer.prototype.connect = function connect(port, host) {
   this.bind(socket);
   this.setHost(host, port);
   this.outbound = true;
+  this.connected = false;
 
   this.logger.debug('Connecting to %s.', this.hostname);
 
@@ -1133,9 +1125,9 @@ Peer.prototype.onPacket = co(function* onPacket(packet) {
     this.bip150.complete(new Error('Message before auth.'));
   }
 
-  if (this.lastBlock) {
+  if (this.lastMerkle) {
     if (packet.type !== packetTypes.TX)
-      this._flushMerkle();
+      this.flushMerkle();
   }
 
   this.lastRecv = util.ms();
@@ -1225,11 +1217,11 @@ Peer.prototype.onPacket = co(function* onPacket(packet) {
  * @private
  */
 
-Peer.prototype._flushMerkle = function _flushMerkle() {
-  if (this.lastBlock)
-    this.fire('merkleblock', this.lastBlock);
-  this.lastBlock = null;
-  this.waiting = 0;
+Peer.prototype.flushMerkle = function flushMerkle() {
+  assert(this.lastMerkle);
+  this.fire('merkleblock', this.lastMerkle);
+  this.lastMerkle = null;
+  this.waitingTX = 0;
 };
 
 /**
@@ -1303,11 +1295,11 @@ Peer.prototype.handleMerkleBlock = co(function* handleMerkleBlock(packet) {
 
   block.verifyPartial();
 
-  this.lastBlock = block;
-  this.waiting = block.matches.length;
+  this.lastMerkle = block;
+  this.waitingTX = block.matches.length;
 
-  if (this.waiting === 0)
-    this._flushMerkle();
+  if (this.waitingTX === 0)
+    this.flushMerkle();
 });
 
 /**
@@ -2125,11 +2117,11 @@ Peer.prototype.handleBlock = co(function* handleBlock(packet) {
 Peer.prototype.handleTX = co(function* handleTX(packet) {
   var tx = packet.tx;
 
-  if (this.lastBlock) {
-    if (this.lastBlock.hasTX(tx)) {
-      this.lastBlock.addTX(tx);
-      if (--this.waiting === 0)
-        this._flushMerkle();
+  if (this.lastMerkle) {
+    if (this.lastMerkle.hasTX(tx)) {
+      this.lastMerkle.addTX(tx);
+      if (--this.waitingTX === 0)
+        this.flushMerkle();
       return;
     }
   }
diff --git a/lib/net/pool.js b/lib/net/pool.js
index 0d6e3df6..8d714a53 100644
--- a/lib/net/pool.js
+++ b/lib/net/pool.js
@@ -706,7 +706,7 @@ Pool.prototype.sync = function sync() {
   var peer;
 
   for (peer = this.peers.head(); peer; peer = peer.next) {
-    if (!peer.outbound || peer.pending)
+    if (!peer.outbound || !peer.ack)
       continue;
     peer.sync();
   }
@@ -721,7 +721,7 @@ Pool.prototype.forceSync = function forceSync() {
   var peer;
 
   for (peer = this.peers.head(); peer; peer = peer.next) {
-    if (!peer.outbound || peer.pending)
+    if (!peer.outbound || !peer.ack)
       continue;
     peer.syncSent = false;
     peer.sync();
@@ -747,7 +747,7 @@ Pool.prototype.stopSync = co(function* stopSync() {
   this.stopTimeout();
 
   for (peer = this.peers.head(); peer; peer = peer.next) {
-    if (!peer.outbound || peer.pending)
+    if (!peer.outbound || !peer.ack)
       continue;
     peer.syncSent = false;
   }
@@ -761,7 +761,7 @@ Pool.prototype.sendMempool = function sendMempool() {
   var peer;
 
   for (peer = this.peers.head(); peer; peer = peer.next) {
-    if (!peer.outbound || peer.pending)
+    if (!peer.ack)
       continue;
     peer.sendMempool();
   }
@@ -776,7 +776,7 @@ Pool.prototype.sendAlert = function sendAlert(alert) {
   var peer;
 
   for (peer = this.peers.head(); peer; peer = peer.next) {
-    if (peer.pending)
+    if (!peer.ack)
       continue;
     peer.sendAlert(alert);
   }
@@ -1658,7 +1658,7 @@ Pool.prototype.updateWatch = function updateWatch() {
   this.pendingWatch = setTimeout(function() {
     self.pendingWatch = null;
     for (peer = self.peers.head(); peer; peer = peer.next) {
-      if (!peer.outbound || peer.pending)
+      if (!peer.ack)
         continue;
       peer.updateWatch();
     }
@@ -1900,7 +1900,7 @@ Pool.prototype.announceBlock = function announceBlock(msg) {
   var peer;
 
   for (peer = this.peers.head(); peer; peer = peer.next) {
-    if (!peer.outbound || peer.pending)
+    if (!peer.ack)
       continue;
     peer.announceBlock(msg);
   }
@@ -1915,7 +1915,7 @@ Pool.prototype.announceTX = function announceTX(msg) {
   var peer;
 
   for (peer = this.peers.head(); peer; peer = peer.next) {
-    if (!peer.outbound || peer.pending)
+    if (!peer.ack)
       continue;
     peer.announceTX(msg);
   }
@@ -1932,7 +1932,7 @@ Pool.prototype.setFeeRate = function setFeeRate(rate) {
   this.feeRate = rate;
 
   for (peer = this.peers.head(); peer; peer = peer.next) {
-    if (!peer.outbound || peer.pending)
+    if (!peer.ack)
       continue;
     peer.sendFeeRate(rate);
   }
@@ -2096,8 +2096,7 @@ PeerList.prototype.size = function size() {
 
 PeerList.prototype.promote = function promote(peer) {
   assert(peer.outbound);
-  assert(peer.pending);
-  peer.pending = false;
+  assert(peer.ack);
   this.pending--;
 };
 
@@ -2107,7 +2106,7 @@ PeerList.prototype.add = function add(peer) {
   this.map[peer.hostname] = peer;
   if (peer.outbound) {
     this.outbound++;
-    if (peer.pending)
+    if (!peer.ack)
       this.pending++;
   } else {
     this.inbound++;
@@ -2126,7 +2125,7 @@ PeerList.prototype.remove = function remove(peer) {
 
   if (peer.outbound) {
     this.outbound--;
-    if (peer.pending)
+    if (!peer.ack)
       this.pending--;
   } else {
     this.inbound--;
diff --git a/test/block-test.js b/test/block-test.js
index d584679d..1969f1ff 100644
--- a/test/block-test.js
+++ b/test/block-test.js
@@ -194,7 +194,7 @@ describe('Block', function() {
     var ret = {};
     block2.hash();
     block2.merkleRoot = constants.NULL_HASH;
-    block2.refresh();
+    block2._validHeaders = null;
     assert(!block2.verify(ret));
     assert.equal(ret.reason, 'bad-txnmrklroot');
     block2.merkleRoot = block.merkleRoot;