diff --git a/core/preimages.go b/core/preimages.go
index 5034cc0e9..0bb22853a 100644
--- a/core/preimages.go
+++ b/core/preimages.go
@@ -226,7 +226,7 @@ func GeneratePreimages(chain BlockChain, start, end uint64) error {
 			return fmt.Errorf("block %d not found", i)
 		}
 		stateAt, _ := chain.StateAt(block.Root())
-		_, _, _, _, _, _, endingState, errProcess = chain.Processor().Process(block, startingState, *chain.GetVMConfig(), false)
+		_, _, _, _, _, _, _, endingState, errProcess = chain.Processor().Process(block, startingState, *chain.GetVMConfig(), false)
 		if errProcess != nil {
 			return fmt.Errorf("error executing block #%d: %s", i, errProcess)
 		}
diff --git a/core/state_processor.go b/core/state_processor.go
index 6bc808c45..1037941d1 100644
--- a/core/state_processor.go
+++ b/core/state_processor.go
@@ -143,7 +143,7 @@ func (p *StateProcessor) Process(
 			processTxsAndStxs = false
 		}
 		if !errors.Is(err, ErrNoMigrationRequired) && !errors.Is(err, ErrNoMigrationPossible) {
-			return nil, nil, nil, nil, 0, nil, statedb, err
+			return nil, nil, nil, nil, nil, 0, nil, statedb, err
 		}
 	} else {
 		if cxReceipt != nil {
@@ -162,7 +162,7 @@ func (p *StateProcessor) Process(
 				p.bc, &beneficiary, gp, statedb, header, tx, usedGas, cfg,
 			)
 			if err != nil {
-				return nil, nil, nil, nil, 0, nil, statedb, err
+				return nil, nil, nil, nil, nil, 0, nil, statedb, err
 			}
 			receipts = append(receipts, receipt)
 			if cxReceipt != nil {
@@ -185,7 +185,7 @@ func (p *StateProcessor) Process(
 				p.bc, &beneficiary, gp, statedb, header, tx, usedGas, cfg,
 			)
 			if err != nil {
-				return nil, nil, nil, nil, 0, nil, statedb, err
+				return nil, nil, nil, nil, nil, 0, nil, statedb, err
 			}
 			receipts = append(receipts, receipt)
 			allLogs = append(allLogs, receipt.Logs...)
@@ -211,10 +211,6 @@ func (p *StateProcessor) Process(
 		}
 	}
 
-	if err := MayTestnetShardReduction(p.bc, statedb, header); err != nil {
-		return nil, nil, nil, nil, nil, 0, nil, statedb, err
-	}
-
 	if err := MayShardReduction(p.bc, statedb, header); err != nil {
 		return nil, nil, nil, nil, nil, 0, nil, statedb, err
 	}
diff --git a/internal/chain/reward.go b/internal/chain/reward.go
index 407090540..09d883885 100644
--- a/internal/chain/reward.go
+++ b/internal/chain/reward.go
@@ -287,7 +287,7 @@ func AccumulateRewardsAndCountSigs(
 	}
 
 	
-	reader, err := distributeRewardAfterAggregateEpoch(bc, state, header, beaconChain, defaultReward)
+	_, reader, err := distributeRewardAfterAggregateEpoch(bc, state, header, beaconChain, defaultReward)
 	return numeric.ZeroDec(), reader, err
 }
 
@@ -304,13 +304,17 @@ func waitForCommitSigs(sigsReady chan bool) error {
 	return nil
 }
 
-func distributeRewardAfterAggregateEpoch(
-	bc engine.ChainReader,
-	state *state.DB,
-	header *block.Header,
-	beaconChain engine.ChainReader,
-	defaultReward numeric.Dec,
-) (reward.Reader, error) {
+func distributeRewardAfterAggregateEpoch(bc engine.ChainReader, state *state.DB, header *block.Header, beaconChain engine.ChainReader,
+	rewardToDistribute numeric.Dec) (numeric.Dec, reward.Reader, error) {
+	epoch := header.Epoch()
+	defaultReward := rewardToDistribute
+	remainingReward := numeric.ZeroDec()
+	if bc.Config().IsHIP30(epoch) {
+		fractionToRecovery := shard.Schedule.InstanceForEpoch(epoch).HIP30EmissionFraction()
+		fractionToValidators := numeric.OneDec().Sub(fractionToRecovery)
+		defaultReward = rewardToDistribute.Mul(fractionToValidators)
+		remainingReward = rewardToDistribute.Mul(fractionToRecovery)
+	}
 	newRewards, payouts :=
 		big.NewInt(0), []reward.Payout{}
 
@@ -341,7 +345,7 @@ func distributeRewardAfterAggregateEpoch(
 		if cxLinks := curHeader.CrossLinks(); len(cxLinks) > 0 {
 			crossLinks := types.CrossLinks{}
 			if err := rlp.DecodeBytes(cxLinks, &crossLinks); err != nil {
-				return network.EmptyPayout, err
+				return numeric.ZeroDec(), network.EmptyPayout, err
 			}
 			allCrossLinks = append(allCrossLinks, crossLinks...)
 		}
@@ -356,7 +360,7 @@ func distributeRewardAfterAggregateEpoch(
 		payables, _, err := processOneCrossLink(bc, state, cxLink, defaultReward, i)
 
 		if err != nil {
-			return network.EmptyPayout, err
+			return numeric.ZeroDec(), network.EmptyPayout, err
 		}
 
 		allPayables = append(allPayables, payables...)
@@ -395,14 +399,14 @@ func distributeRewardAfterAggregateEpoch(
 	for _, addr := range allAddresses {
 		snapshot, err := bc.ReadValidatorSnapshot(addr)
 		if err != nil {
-			return network.EmptyPayout, err
+			return numeric.ZeroDec(), network.EmptyPayout, err
 		}
 		due := allValidatorPayable[addr]
 		newRewards.Add(newRewards, due)
 
 		shares, err := lookupDelegatorShares(snapshot)
 		if err != nil {
-			return network.EmptyPayout, err
+			return numeric.ZeroDec(), network.EmptyPayout, err
 		}
 		if err := state.AddReward(
 			snapshot.Validator,
@@ -415,7 +419,7 @@ func distributeRewardAfterAggregateEpoch(
 			// and delegations pruned afterwards
 			bc.Config().IsNoNilDelegations(header.Epoch()),
 		); err != nil {
-			return network.EmptyPayout, err
+			return numeric.ZeroDec(), network.EmptyPayout, err
 		}
 	}