diff --git a/lib/chain/chain.js b/lib/chain/chain.js
index 8cb21356..8cd23c73 100644
--- a/lib/chain/chain.js
+++ b/lib/chain/chain.js
@@ -1086,7 +1086,7 @@ Chain.prototype._replay = co(function* replay(block) {
 Chain.prototype.scan = co(function* scan(start, filter, iter) {
   var unlock = yield this.locker.lock();
   try {
-    return yield this.db.scan(block, filter, iter);
+    return yield this.db.scan(start, filter, iter);
   } finally {
     unlock();
   }
diff --git a/lib/wallet/records.js b/lib/wallet/records.js
index df5cf7f6..f3379472 100644
--- a/lib/wallet/records.js
+++ b/lib/wallet/records.js
@@ -24,6 +24,7 @@ function ChainState() {
   this.startHeight = -1;
   this.startHash = constants.NULL_HASH;
   this.height = -1;
+  this.marked = false;
 }
 
 /**
@@ -36,6 +37,7 @@ ChainState.prototype.clone = function clone() {
   state.startHeight = this.startHeight;
   state.startHash = this.startHash;
   state.height = this.height;
+  state.marked = this.marked;
   return state;
 };
 
@@ -47,9 +49,15 @@ ChainState.prototype.clone = function clone() {
 
 ChainState.prototype.fromRaw = function fromRaw(data) {
   var p = new BufferReader(data);
+
   this.startHeight = p.readU32();
   this.startHash = p.readHash('hex');
   this.height = p.readU32();
+  this.marked = true;
+
+  if (p.left() > 0)
+    this.marked = p.readU8() === 1;
+
   return this;
 };
 
@@ -75,6 +83,7 @@ ChainState.prototype.toRaw = function toRaw(writer) {
   p.writeU32(this.startHeight);
   p.writeHash(this.startHash);
   p.writeU32(this.height);
+  p.writeU8(this.marked ? 1 : 0);
 
   if (!writer)
     p = p.render();
diff --git a/lib/wallet/txdb.js b/lib/wallet/txdb.js
index 7f46401d..f1a3bbe4 100644
--- a/lib/wallet/txdb.js
+++ b/lib/wallet/txdb.js
@@ -504,6 +504,7 @@ TXDB.prototype.resolve = co(function* resolve(tx, block) {
  */
 
 TXDB.prototype.verifyInputs = co(function* verifyInputs(tx, block) {
+  var flags = constants.flags.MANDATORY_VERIFY_FLAGS;
   var hash = tx.hash('hex');
   var hasOrphans = false;
   var orphans = [];
@@ -527,7 +528,7 @@ TXDB.prototype.verifyInputs = co(function* verifyInputs(tx, block) {
     if (coin) {
       if (this.options.verify && tx.height === -1) {
         input.coin = coin;
-        if (!(yield tx.verifyInputAsync(i)))
+        if (!(yield tx.verifyInputAsync(i, flags)))
           return false;
       }
 
@@ -547,7 +548,7 @@ TXDB.prototype.verifyInputs = co(function* verifyInputs(tx, block) {
       if (coin) {
         if (this.options.verify && tx.height === -1) {
           input.coin = coin;
-          if (!(yield tx.verifyInputAsync(i)))
+          if (!(yield tx.verifyInputAsync(i, flags)))
             return false;
         }
         continue;
@@ -618,6 +619,7 @@ TXDB.prototype.verifyInputs = co(function* verifyInputs(tx, block) {
  */
 
 TXDB.prototype.resolveOutputs = co(function* resolveOutputs(tx, block, resolved) {
+  var flags = constants.flags.MANDATORY_VERIFY_FLAGS;
   var hash = tx.hash('hex');
   var i, j, input, output, key;
   var orphans, orphan, coin, valid;
@@ -661,7 +663,7 @@ TXDB.prototype.resolveOutputs = co(function* resolveOutputs(tx, block, resolved)
       // We can finally verify this input.
       if (this.options.verify && orphan.tx.height === -1) {
         input.coin = coin;
-        valid = yield orphan.tx.verifyInputAsync(orphan.index);
+        valid = yield orphan.tx.verifyInputAsync(orphan.index, flags);
       }
 
       // If it's valid and fully resolved,
diff --git a/lib/wallet/walletdb.js b/lib/wallet/walletdb.js
index 7f6902a1..06c24781 100644
--- a/lib/wallet/walletdb.js
+++ b/lib/wallet/walletdb.js
@@ -1541,7 +1541,7 @@ WalletDB.prototype.init = co(function* init() {
     'Initializing WalletDB chain state at %s (%d).',
     utils.revHex(tip.hash), tip.height);
 
-  yield this.resetState(tip);
+  yield this.resetState(tip, false);
 });
 
 /**
@@ -1564,7 +1564,7 @@ WalletDB.prototype.getState = co(function* getState() {
  * @returns {Promise}
  */
 
-WalletDB.prototype.resetState = co(function* resetState(tip) {
+WalletDB.prototype.resetState = co(function* resetState(tip, marked) {
   var batch = this.db.batch();
   var state = this.state.clone();
   var iter, item;
@@ -1592,6 +1592,7 @@ WalletDB.prototype.resetState = co(function* resetState(tip) {
   state.startHeight = tip.height;
   state.startHash = tip.hash;
   state.height = tip.height;
+  state.marked = marked;
 
   batch.put(layout.h(tip.height), tip.toHash());
   batch.put(layout.R, state.toRaw());
@@ -1646,6 +1647,22 @@ WalletDB.prototype.syncState = co(function* syncState(tip) {
   this.state = state;
 });
 
+/**
+ * Mark the start block once a confirmed tx is seen.
+ * @param {BlockMeta} tip
+ * @returns {Promise}
+ */
+
+WalletDB.prototype.maybeMark = co(function* maybeMark(tip) {
+  if (this.state.marked)
+    return;
+
+  this.logger.info('Marking WalletDB start block at %s (%d).',
+    utils.revHex(tip.hash), tip.height);
+
+  yield this.resetState(tip, true);
+});
+
 /**
  * Get a block->wallet map.
  * @param {Number} height
@@ -1770,14 +1787,14 @@ WalletDB.prototype.getTip = co(function* getTip() {
  */
 
 WalletDB.prototype.rollback = co(function* rollback(height) {
-  var tip;
+  var tip, marked;
 
   if (height > this.state.height)
     throw new Error('WDB: Cannot rollback to the future.');
 
   if (height === this.state.height) {
     this.logger.debug('Rolled back to same height (%d).', height);
-    return;
+    return true;
   }
 
   this.logger.info(
@@ -1789,7 +1806,7 @@ WalletDB.prototype.rollback = co(function* rollback(height) {
   if (tip) {
     yield this.revert(tip.height);
     yield this.syncState(tip);
-    return;
+    return true;
   }
 
   tip = new BlockMeta();
@@ -1797,6 +1814,7 @@ WalletDB.prototype.rollback = co(function* rollback(height) {
   if (height >= this.state.startHeight) {
     tip.height = this.state.startHeight;
     tip.hash = this.state.startHash;
+    marked = this.state.marked;
 
     this.logger.warning(
       'Rolling back WalletDB to start block (%d).',
@@ -1804,12 +1822,15 @@ WalletDB.prototype.rollback = co(function* rollback(height) {
   } else {
     tip.height = 0;
     tip.hash = this.network.genesis.hash;
+    marked = false;
 
     this.logger.warning('Rolling back WalletDB to genesis block.');
   }
 
   yield this.revert(tip.height);
-  yield this.resetState(tip);
+  yield this.resetState(tip, marked);
+
+  return false;
 });
 
 /**
@@ -1899,6 +1920,7 @@ WalletDB.prototype._addBlock = co(function* addBlock(entry, txs) {
     throw new Error('WDB: Bad connection (height mismatch).');
   }
 
+  // Sync the state to the new tip.
   yield this.syncState(tip);
 
   if (this.options.useCheckpoints) {
@@ -1962,6 +1984,7 @@ WalletDB.prototype._removeBlock = co(function* removeBlock(entry) {
   if (!prev)
     throw new Error('WDB: Bad disconnection (no previous block).');
 
+  // Get the map of txids->wids.
   block = yield this.getBlockMap(tip.height);
 
   if (!block) {
@@ -1974,6 +1997,7 @@ WalletDB.prototype._removeBlock = co(function* removeBlock(entry) {
     yield this._unconfirm(tx);
   }
 
+  // Sync the state to the previous tip.
   yield this.syncState(prev);
 
   this.logger.warning('Disconnected wallet block %s (tx=%d).',
@@ -2036,6 +2060,13 @@ WalletDB.prototype._insert = co(function* insert(tx, block) {
     'Incoming transaction for %d wallets in WalletDB (%s).',
     wids.length, tx.rhash);
 
+  // If this is our first transaction
+  // in a block, set the start block here.
+  if (block)
+    yield this.maybeMark(block);
+
+  // Insert the transaction
+  // into every matching wallet.
   for (i = 0; i < wids.length; i++) {
     wid = wids[i];
     wallet = yield this.get(wid);
@@ -2101,7 +2132,13 @@ WalletDB.prototype._resetChain = co(function* resetChain(entry) {
   if (entry.height > this.state.height)
     throw new Error('WDB: Bad reset height.');
 
-  yield this.scan(entry.height);
+  // Try to rollback.
+  if (yield this.rollback(entry.height))
+    return;
+
+  // If we rolled back to the
+  // start block, we need a rescan.
+  yield this.scan();
 });
 
 /*
diff --git a/test/chain-test.js b/test/chain-test.js
index c38e8476..b30a0ee3 100644
--- a/test/chain-test.js
+++ b/test/chain-test.js
@@ -85,6 +85,7 @@ describe('Chain', function() {
   it('should mine a block', cob(function* () {
     var block = yield miner.mineBlock();
     assert(block);
+    yield chain.add(block);
   }));
 
   it('should mine competing chains', cob(function* () {
@@ -121,15 +122,15 @@ describe('Chain', function() {
     yield co.timeout(100);
 
     balance = yield wallet.getBalance();
-    assert.equal(balance.unconfirmed, 500 * 1e8);
-    assert.equal(balance.confirmed, 500 * 1e8);
+    assert.equal(balance.unconfirmed, 550 * 1e8);
+    assert.equal(balance.confirmed, 550 * 1e8);
   }));
 
   it('should handle a reorg', cob(function* () {
     var entry, block, forked;
 
     assert.equal(walletdb.state.height, chain.height);
-    assert.equal(chain.height, 10);
+    assert.equal(chain.height, 11);
 
     entry = yield chain.db.get(tip2.hash);
     assert(entry);
@@ -158,8 +159,8 @@ describe('Chain', function() {
     yield co.timeout(100);
 
     balance = yield wallet.getBalance();
-    assert.equal(balance.unconfirmed, 1050 * 1e8);
-    assert.equal(balance.confirmed, 550 * 1e8);
+    assert.equal(balance.unconfirmed, 1100 * 1e8);
+    assert.equal(balance.confirmed, 600 * 1e8);
   }));
 
   it('should check main chain', cob(function* () {
@@ -221,8 +222,8 @@ describe('Chain', function() {
     yield co.timeout(100);
 
     balance = yield wallet.getBalance();
-    assert.equal(balance.unconfirmed, 1200 * 1e8);
-    assert.equal(balance.confirmed, 700 * 1e8);
+    assert.equal(balance.unconfirmed, 1250 * 1e8);
+    assert.equal(balance.confirmed, 750 * 1e8);
 
     assert(wallet.account.receiveDepth >= 8);
     assert(wallet.account.changeDepth >= 7);
@@ -230,7 +231,7 @@ describe('Chain', function() {
     assert.equal(walletdb.state.height, chain.height);
 
     txs = yield wallet.getHistory();
-    assert.equal(txs.length, 44);
+    assert.equal(txs.length, 45);
   }));
 
   it('should get tips and remove chains', cob(function* () {
@@ -255,7 +256,7 @@ describe('Chain', function() {
       return Promise.resolve();
     });
 
-    assert.equal(total, 25);
+    assert.equal(total, 26);
   }));
 
   it('should activate csv', cob(function* () {
@@ -265,7 +266,7 @@ describe('Chain', function() {
     state = yield chain.getState(prev, 'csv');
     assert(state === 0);
 
-    for (i = 0; i < 418; i++) {
+    for (i = 0; i < 417; i++) {
       block = yield miner.mineBlock();
       yield chain.add(block);
       switch (chain.height) {