diff --git a/lib/bcoin/bip151.js b/lib/bcoin/bip151.js
index 91a81675..2482dc99 100644
--- a/lib/bcoin/bip151.js
+++ b/lib/bcoin/bip151.js
@@ -75,35 +75,45 @@ BIP151Stream.prototype.init = function init(publicKey) {
   this.aead.init(this.k2, this.iv());
   this.aead.aad(this.sid);
 
-  this.lastRekey = utils.ms();
+  this.lastRekey = utils.now();
 };
 
 BIP151Stream.prototype.maybeRekey = function maybeRekey(data) {
+  var now = utils.now();
+
   this.processed += data.length;
-  if (this.processed >= this.highWaterMark) {
+
+  if (now > this.lastRekey + 10
+      || this.processed >= this.highWaterMark) {
+    this.lastRekey = utils.now();
     this.processed -= this.highWaterMark;
-    this.rekey();
     this.emit('rekey');
+    this.rekey();
   }
 };
 
 BIP151Stream.prototype.rekey = function rekey() {
   assert(this.prk, 'Cannot rekey before initialization.');
 
+  // All state is reinitialized
+  // aside from the sequence number.
   this.k1 = utils.hash256(this.k1);
   this.k2 = utils.hash256(this.k2);
 
-  this.seq = 0;
-
   this.chacha.init(this.k1, this.iv());
   this.aead.init(this.k2, this.iv());
   this.aead.aad(this.sid);
-
-  this.lastRekey = utils.ms();
 };
 
 BIP151Stream.prototype.sequence = function sequence() {
   this.seq++;
+
+  // Wrap sequence number a la openssh.
+  if (this.seq === 0xffffffff)
+    this.seq = 0;
+
+  // State of the ciphers is
+  // unaltered aside from the iv.
   this.chacha.init(null, this.iv());
   this.aead.init(null, this.iv());
   this.aead.aad(this.sid);
@@ -152,8 +162,6 @@ BIP151Stream.prototype.verify = function verify(tag) {
 BIP151Stream.prototype.feed = function feed(data) {
   var chunk, payload, tag, p, cmd, body;
 
-  this.maybeRekey(data);
-
   while (data) {
     if (!this.hasHeader) {
       this.pendingHeaderTotal += data.length;
@@ -246,13 +254,13 @@ BIP151Stream.prototype.packet = function packet(cmd, body) {
 
   packet = new Buffer(4 + payload.length + 16);
 
+  this.maybeRekey(packet);
+
   this.encryptSize(payload.length).copy(packet, 0);
   this.encrypt(payload).copy(packet, 4);
   this.finish().copy(packet, 4 + payload.length);
   this.sequence();
 
-  this.maybeRekey(packet);
-
   return packet;
 };
 
@@ -263,7 +271,7 @@ function BIP151(cipher) {
   EventEmitter.call(this);
 
   this.input = new BIP151Stream(cipher);
-  this.output = null;
+  this.output = new BIP151Stream(cipher);
 
   this.initReceived = false;
   this.ackReceived = false;
@@ -282,7 +290,7 @@ utils.inherits(BIP151, EventEmitter);
 BIP151.prototype._init = function _init() {
   var self = this;
 
-  this.input.on('rekey', function() {
+  this.output.on('rekey', function() {
     self.emit('rekey');
   });
 
@@ -320,7 +328,7 @@ BIP151.prototype.encack = function encack(data) {
 
   if (utils.equal(publicKey, constants.ZERO_KEY)) {
     assert(this.handshake, 'No initialization before rekey.');
-    this.output.rekey();
+    this.input.rekey();
     return;
   }
 
@@ -338,10 +346,11 @@ BIP151.prototype.encack = function encack(data) {
 BIP151.prototype.encinit = function encinit(data) {
   var p = bcoin.reader(data);
   var publicKey = p.readBytes(33);
+  var cipher = p.readU8();
 
   assert(!this.initReceived, 'Already initialized.');
+  assert(cipher === this.output.cipher, 'Cipher mismatch.');
 
-  this.output = new BIP151Stream(p.readU8());
   this.output.init(publicKey);
 
   this.initReceived = true;
diff --git a/lib/bcoin/peer.js b/lib/bcoin/peer.js
index 6fe75b2f..a2e36b05 100644
--- a/lib/bcoin/peer.js
+++ b/lib/bcoin/peer.js
@@ -241,6 +241,7 @@ Peer.prototype._init = function init() {
       self._error(err, true);
     });
     this.bip151.on('rekey', function() {
+      self.logger.debug('Rekeying with peer (%s).', self.hostname);
       self.write(self.framer.encack(self.bip151.toRekey()));
     });
   }
diff --git a/test/bip151-test.js b/test/bip151-test.js
index 4eae0392..93d4b260 100644
--- a/test/bip151-test.js
+++ b/test/bip151-test.js
@@ -85,7 +85,7 @@ describe('BIP151', function() {
 
   it('client should rekey', function() {
     var rekeyed = false;
-    var bytes = client.input.processed;
+    var bytes = client.output.processed;
 
     client.once('rekey', function() {
       rekeyed = true;
@@ -101,15 +101,13 @@ describe('BIP151', function() {
     });
 
     // Force a rekey after 1gb processed.
-    client.input.maybeRekey({ length: 1024 * (1 << 20) });
+    client.output.maybeRekey({ length: 1024 * (1 << 20) });
 
-    utils.nextTick(function() {
-      assert(rekeyed);
+    assert(rekeyed);
 
-      // Reset so as not to mess up
-      // the symmetry of client and server.
-      client.input.processed = bytes + 33 + 31;
-    });
+    // Reset so as not to mess up
+    // the symmetry of client and server.
+    client.output.processed = bytes + 33 + 31;
   });
 
   it('should encrypt payload from client to server after rekey', function() {