diff --git a/abci/abci.go b/abci/abci.go
index d2896ceb..ce2a2117 100644
--- a/abci/abci.go
+++ b/abci/abci.go
@@ -70,8 +70,12 @@ func (h *ProposalHandler) PrepareProposalHandler() sdk.PrepareProposalHandler {
 			"height", req.Height,
 		)
 
+		// Get the max gas limit and max block size for the proposal.
+		_, maxGasLimit := proposals.GetBlockLimits(ctx)
+		proposal := proposals.NewProposal(h.logger, req.MaxTxBytes, maxGasLimit)
+
 		// Fill the proposal with transactions from each lane.
-		finalProposal, err := h.prepareLanesHandler(ctx, proposals.NewProposalWithContext(ctx, h.logger))
+		finalProposal, err := h.prepareLanesHandler(ctx, proposal)
 		if err != nil {
 			h.logger.Error("failed to prepare proposal", "err", err)
 			return &abci.ResponsePrepareProposal{Txs: make([][]byte, 0)}, err
diff --git a/abci/abci_test.go b/abci/abci_test.go
index 580c5865..8e9c6971 100644
--- a/abci/abci_test.go
+++ b/abci/abci_test.go
@@ -60,7 +60,8 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{defaultLane}).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 		s.Require().Equal(0, len(resp.Txs))
@@ -84,7 +85,9 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 		s.Require().NoError(defaultLane.Insert(sdk.Context{}, tx))
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{defaultLane}).PrepareProposalHandler()
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NotNil(resp)
 		s.Require().NoError(err)
 
@@ -124,7 +127,9 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 		s.Require().NoError(defaultLane.Insert(sdk.Context{}, tx2))
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{defaultLane}).PrepareProposalHandler()
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NotNil(resp)
 		s.Require().NoError(err)
 
@@ -164,7 +169,9 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 		s.Require().NoError(defaultLane.Insert(sdk.Context{}, tx2))
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{defaultLane}).PrepareProposalHandler()
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NotNil(resp)
 		s.Require().NoError(err)
 
@@ -179,7 +186,8 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 		s.Require().Equal(0, len(resp.Txs))
@@ -209,7 +217,8 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -248,7 +257,8 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -288,7 +298,8 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, defaultLane}).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -325,7 +336,8 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 
 		proposal := s.getTxBytes(freeTx)
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -392,7 +404,8 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 		proposalHandler := s.setUpProposalHandlers([]block.Lane{mevLane, freeLane, defaultLane}).PrepareProposalHandler()
 		proposal := s.getTxBytes(tx, bundleTxs[0], bundleTxs[1], bundleTxs[2], bundleTxs[3], freeTx, normalTx)
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -444,7 +457,8 @@ func (s *ProposalsTestSuite) TestPrepareProposal() {
 		proposal := s.getTxBytes(tx, bundleTxs[0], normalTx)
 
 		// Should be theoretically sufficient to fit the bid tx and the bundled tx + normal tx
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -485,13 +499,14 @@ func (s *ProposalsTestSuite) TestPrepareProposalEdgeCases() {
 		s.Require().NoError(err)
 
 		proposalHandler := abci.NewProposalHandler(
-			log.NewTestLogger(s.T()),
+			log.NewNopLogger(),
 			s.encodingConfig.TxConfig.TxDecoder(),
 			s.encodingConfig.TxConfig.TxEncoder(),
 			mempool,
 		).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -531,13 +546,14 @@ func (s *ProposalsTestSuite) TestPrepareProposalEdgeCases() {
 		s.Require().NoError(err)
 
 		proposalHandler := abci.NewProposalHandler(
-			log.NewTestLogger(s.T()),
+			log.NewNopLogger(),
 			s.encodingConfig.TxConfig.TxDecoder(),
 			s.encodingConfig.TxConfig.TxEncoder(),
 			mempool,
 		).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -579,13 +595,14 @@ func (s *ProposalsTestSuite) TestPrepareProposalEdgeCases() {
 		s.Require().NoError(err)
 
 		proposalHandler := abci.NewProposalHandler(
-			log.NewTestLogger(s.T()),
+			log.NewNopLogger(),
 			s.encodingConfig.TxConfig.TxDecoder(),
 			s.encodingConfig.TxConfig.TxEncoder(),
 			mempool,
 		).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -627,13 +644,14 @@ func (s *ProposalsTestSuite) TestPrepareProposalEdgeCases() {
 		s.Require().NoError(err)
 
 		proposalHandler := abci.NewProposalHandler(
-			log.NewTestLogger(s.T()),
+			log.NewNopLogger(),
 			s.encodingConfig.TxConfig.TxDecoder(),
 			s.encodingConfig.TxConfig.TxEncoder(),
 			mempool,
 		).PrepareProposalHandler()
 
-		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+		maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+		resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 		s.Require().NoError(err)
 		s.Require().NotNil(resp)
 
@@ -1295,7 +1313,9 @@ func (s *ProposalsTestSuite) TestPrepareProcessParity() {
 	// Create a proposal with the retrieved transactions
 	// Set up the default lane with no transactions
 	proposalHandler := s.setUpProposalHandlers([]block.Lane{freelane, defaultLane}).PrepareProposalHandler()
-	resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2})
+
+	maxTxBytes := s.ctx.ConsensusParams().Block.MaxBytes
+	resp, err := proposalHandler(s.ctx, &cometabci.RequestPrepareProposal{Height: 2, MaxTxBytes: maxTxBytes})
 	s.Require().NoError(err)
 	s.Require().NotNil(resp)
 
diff --git a/abci/utils_test.go b/abci/utils_test.go
index 3dccd2f6..bf298b0f 100644
--- a/abci/utils_test.go
+++ b/abci/utils_test.go
@@ -78,7 +78,7 @@ func (s *ProposalsTestSuite) setUpCustomMatchHandlerLane(maxBlockSpace math.Lega
 
 func (s *ProposalsTestSuite) setUpStandardLane(maxBlockSpace math.LegacyDec, expectedExecution map[sdk.Tx]bool) *defaultlane.DefaultLane {
 	cfg := base.LaneConfig{
-		Logger:          log.NewTestLogger(s.T()),
+		Logger:          log.NewNopLogger(),
 		TxEncoder:       s.encodingConfig.TxConfig.TxEncoder(),
 		TxDecoder:       s.encodingConfig.TxConfig.TxDecoder(),
 		AnteHandler:     s.setUpAnteHandler(expectedExecution),
@@ -91,7 +91,7 @@ func (s *ProposalsTestSuite) setUpStandardLane(maxBlockSpace math.LegacyDec, exp
 
 func (s *ProposalsTestSuite) setUpTOBLane(maxBlockSpace math.LegacyDec, expectedExecution map[sdk.Tx]bool) *mev.MEVLane {
 	cfg := base.LaneConfig{
-		Logger:          log.NewTestLogger(s.T()),
+		Logger:          log.NewNopLogger(),
 		TxEncoder:       s.encodingConfig.TxConfig.TxEncoder(),
 		TxDecoder:       s.encodingConfig.TxConfig.TxDecoder(),
 		AnteHandler:     s.setUpAnteHandler(expectedExecution),
@@ -105,7 +105,7 @@ func (s *ProposalsTestSuite) setUpTOBLane(maxBlockSpace math.LegacyDec, expected
 
 func (s *ProposalsTestSuite) setUpFreeLane(maxBlockSpace math.LegacyDec, expectedExecution map[sdk.Tx]bool) *free.FreeLane {
 	cfg := base.LaneConfig{
-		Logger:          log.NewTestLogger(s.T()),
+		Logger:          log.NewNopLogger(),
 		TxEncoder:       s.encodingConfig.TxConfig.TxEncoder(),
 		TxDecoder:       s.encodingConfig.TxConfig.TxDecoder(),
 		AnteHandler:     s.setUpAnteHandler(expectedExecution),
@@ -139,11 +139,11 @@ func (s *ProposalsTestSuite) setUpPanicLane(name string, maxBlockSpace math.Lega
 }
 
 func (s *ProposalsTestSuite) setUpProposalHandlers(lanes []block.Lane) *abci.ProposalHandler {
-	mempool, err := block.NewLanedMempool(log.NewTestLogger(s.T()), lanes)
+	mempool, err := block.NewLanedMempool(log.NewNopLogger(), lanes)
 	s.Require().NoError(err)
 
 	return abci.NewProposalHandler(
-		log.NewTestLogger(s.T()),
+		log.NewNopLogger(),
 		s.encodingConfig.TxConfig.TxDecoder(),
 		s.encodingConfig.TxConfig.TxEncoder(),
 		mempool,
diff --git a/lanes/base/abci_test.go b/lanes/base/abci_test.go
index 5801e414..9fb4b789 100644
--- a/lanes/base/abci_test.go
+++ b/lanes/base/abci_test.go
@@ -1632,7 +1632,7 @@ func (s *BaseTestSuite) initLane(
 	expectedExecution map[sdk.Tx]bool,
 ) *defaultlane.DefaultLane {
 	config := base.NewLaneConfig(
-		log.NewTestLogger(s.T()),
+		log.NewNopLogger(),
 		s.encodingConfig.TxConfig.TxEncoder(),
 		s.encodingConfig.TxConfig.TxDecoder(),
 		s.setUpAnteHandler(expectedExecution),
diff --git a/lanes/mev/mev_test.go b/lanes/mev/mev_test.go
index 3d9eb00c..ea500c22 100644
--- a/lanes/mev/mev_test.go
+++ b/lanes/mev/mev_test.go
@@ -55,7 +55,7 @@ func (s *MEVTestSuite) initLane(
 	expectedExecution map[sdk.Tx]bool,
 ) *mev.MEVLane {
 	config := base.NewLaneConfig(
-		log.NewTestLogger(s.T()),
+		log.NewNopLogger(),
 		s.encCfg.TxConfig.TxEncoder(),
 		s.encCfg.TxConfig.TxDecoder(),
 		s.setUpAnteHandler(expectedExecution),