diff --git a/.github/workflows/build.yml b/.github/workflows/build.yml
index ae11061..bd5809d 100644
--- a/.github/workflows/build.yml
+++ b/.github/workflows/build.yml
@@ -138,9 +138,6 @@ jobs:
           labels: ${{ steps.meta.outputs.labels }}
           cache-from: type=registry,ref=zone117x/stacks-api-e2e:latest
           cache-to: type=inline
-          build-args: |
-            STACKS_21_HEIGHT=3
-            STACKS_POX2_HEIGHT=4
 
   build-push-stacks2_1-transition-docker:
     needs: build-stacks-node
diff --git a/Dockerfile.e2e b/Dockerfile.e2e
index ab2787d..39e9acb 100644
--- a/Dockerfile.e2e
+++ b/Dockerfile.e2e
@@ -2,7 +2,7 @@
 
 FROM rust:bullseye as builder
 
-ARG GIT_COMMIT=fe314a0b6650ecfa138e15c7ed4014fa829037ef
+ARG GIT_COMMIT=3c6e4eb2e30dedd018085fc7ff3b340bd7dfcb2f
 ARG TARGETPLATFORM
 ENV DEBIAN_FRONTEND noninteractive
 
@@ -40,6 +40,13 @@ ENV DEBIAN_FRONTEND noninteractive
 RUN apt-get update && apt-get install -y curl/bullseye-backports gettext-base jq
 RUN apt-get clean && rm -rf /var/lib/apt/lists/* /tmp/* /var/tmp/*
 
+# Install NodeJS
+RUN curl -fsSL https://deb.nodesource.com/setup_lts.x | bash - && apt-get install -y nodejs
+
+WORKDIR /root
+
+RUN npm init -y && npm install stacks-encoding-native-js@0.2.0-alpha.0
+
 VOLUME /chainstate
 
 # Stacks-node RPC
@@ -61,12 +68,21 @@ ENV BITCOIN_RPC_PASS=btc
 ARG MINE_INTERVAL=5s
 ENV MINE_INTERVAL=$MINE_INTERVAL
 
-ARG STACKS_21_HEIGHT=103
+ARG STACKS_20_HEIGHT=103
+ENV STACKS_20_HEIGHT=$STACKS_20_HEIGHT
+
+ARG STACKS_2_05_HEIGHT=104
+ENV STACKS_2_05_HEIGHT=$STACKS_2_05_HEIGHT
+
+ARG STACKS_21_HEIGHT=105
 ENV STACKS_21_HEIGHT=$STACKS_21_HEIGHT
 
-ARG STACKS_POX2_HEIGHT=104
+ARG STACKS_POX2_HEIGHT=106
 ENV STACKS_POX2_HEIGHT=$STACKS_POX2_HEIGHT
 
+ARG STACKS_LOG_DEBUG=0
+ENV STACKS_LOG_DEBUG=$STACKS_LOG_DEBUG
+
 # priv: 6ad9cadb42d4edbfbe0c5bfb3b8a4125ddced021c4174f829b714ccbf527f02001
 # ARG REWARD_RECIPIENT=STQM73RQC4EX0A07KWG1J5ECZJYBZS4SJ4ERC6WN
 ARG REWARD_RECIPIENT
@@ -74,12 +90,12 @@ ENV REWARD_RECIPIENT=$REWARD_RECIPIENT
 
 COPY ./bitcoin.conf /root/.bitcoin/bitcoin.conf
 COPY ./stacks-krypton-miner.toml /root/config.toml.in
+COPY ./event-observer.js /root/event-observer.js
 
-WORKDIR /root
-
-# Bootstrap chainstates
-SHELL ["/bin/bash", "-ce"]
+# Create run script
 RUN <<EOF
+cat > run.sh <<'EOM'
+#!/bin/bash -e
   if [[ ! -z "${REWARD_RECIPIENT}" ]]; then
     export REWARD_RECIPIENT_CONF="block_reward_recipient = \"$REWARD_RECIPIENT\""
   fi
@@ -92,6 +108,9 @@ RUN <<EOF
   bitcoin-cli importaddress $BTC_ADDR "" false
   bitcoin-cli generatetoaddress 101 $BTC_ADDR
 
+  node event-observer.js &
+  EVENT_OBSERVER_PID=$!
+
   mkdir -p /chainstate/stacks-blockchain-data
   envsubst < config.toml.in > config.toml
   stacks-node start --config=config.toml &
@@ -103,35 +122,10 @@ RUN <<EOF
       echo "Stacks node caught up to block 101"
       break
     fi
-    sleep 0.5s
+    sleep 1.5s
   done
 
-  kill $STACKS_PID
-  wait $STACKS_PID
-
-  bitcoin-cli stop
-  wait $BTCD_PID
-EOF
-
-# Create run script
-RUN <<EOF
-cat > run.sh <<'EOM'
-#!/bin/bash -e
-  if [[ ! -z "${REWARD_RECIPIENT}" ]]; then
-    export REWARD_RECIPIENT_CONF="block_reward_recipient = \"$REWARD_RECIPIENT\""
-  fi
-
-  bitcoind &
-  BTCD_PID=$!
-
-  bitcoin-cli -rpcwait getmininginfo
-
-  envsubst < config.toml.in > config.toml
-  stacks-node start --config=config.toml &
-  STACKS_PID=$!
-
   function start_miner() {
-    bitcoin-cli -rpcwait generatetoaddress 1 $BTC_ADDR
     while true; do
       TX=$(bitcoin-cli listtransactions '*' 1 0 true)
       CONFS=$(echo "$TX" | jq '.[].confirmations')
@@ -148,6 +142,8 @@ cat > run.sh <<'EOM'
     echo "Exiting, signal: $1"
     kill $STACKS_PID 2>/dev/null && echo "Stacks exiting.."
     wait $STACKS_PID 2>/dev/null && echo "Stacks exited"
+    kill $EVENT_OBSERVER_PID 2>/dev/null && echo "Event-observer exiting.."
+    wait $EVENT_OBSERVER_PID 2>/dev/null && echo "Event-observer exited"
     kill $BTCD_PID 2>/dev/null && echo "Bitcoind exiting.."
     wait $BTCD_PID 2>/dev/null && echo "Bitcoind exited"
   }
diff --git a/docker-compose.yml b/docker-compose.yml
index f4f42b3..c2e6a6f 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -9,8 +9,10 @@ x-common-vars:
   - &BITCOIN_RPC_USER btc
   - &BITCOIN_RPC_PASS btc
   - &MINE_INTERVAL ${MINE_INTERVAL:-0.5s}
-  - &STACKS_21_HEIGHT ${STACKS_21_HEIGHT:-103}
-  - &STACKS_POX2_HEIGHT ${STACKS_POX2_HEIGHT:-104} # 104 is is stacks_block=1, 106 is stacks_block=3
+  - &STACKS_20_HEIGHT ${STACKS_20_HEIGHT:-104}
+  - &STACKS_2_05_HEIGHT ${STACKS_2_05_HEIGHT:-105}
+  - &STACKS_21_HEIGHT ${STACKS_21_HEIGHT:-106}
+  - &STACKS_POX2_HEIGHT ${STACKS_POX2_HEIGHT:-106} # 104 is is stacks_block=1, 106 is stacks_block=3
   - &REWARD_RECIPIENT ${REWARD_RECIPIENT:-STQM73RQC4EX0A07KWG1J5ECZJYBZS4SJ4ERC6WN} # priv: 6ad9cadb42d4edbfbe0c5bfb3b8a4125ddced021c4174f829b714ccbf527f02001
 
 services:
@@ -203,7 +205,7 @@ services:
       context: .
       dockerfile: Dockerfile.stacks-api
       args:
-        GIT_COMMIT: 4a332f353ee10802fa7b04e888b32e54d010a69d
+        GIT_COMMIT: e34fab5e5d92222433b19021c584da903b64f27a
     depends_on:
       - postgres
     ports:
diff --git a/event-log.json b/event-log.json
new file mode 100644
index 0000000..8b13789
--- /dev/null
+++ b/event-log.json
@@ -0,0 +1 @@
+
diff --git a/event-observer.js b/event-observer.js
new file mode 100755
index 0000000..1605978
--- /dev/null
+++ b/event-observer.js
@@ -0,0 +1,33 @@
+#!/usr/bin/env node
+
+const http = require('http');
+const fs = require('fs');
+const decodeTransaction = require('stacks-encoding-native-js').decodeTransaction;
+
+const server = http.createServer((request, response) => {
+  const { headers, method, url } = request;
+  let body = [];
+  request.on('error', (err) => {
+    console.error(err);
+    response.writeHead(500).end();
+  }).on('data', (chunk) => {
+    body.push(chunk);
+  }).on('end', () => {
+    body = JSON.parse(Buffer.concat(body).toString());
+    if (body.transactions) {
+      for (const transaction of body.transactions) {
+        transaction.decoded_tx = decodeTransaction(transaction.raw_tx)
+      }
+    }
+    console.log(url, body);
+    fs.appendFileSync('/event-log.json', `["${url}",${JSON.stringify(body)}]\n`);
+    response.writeHead(200).end();
+  });
+});
+server.listen(3998, '0.0.0.0', () => {
+  console.log(`Event-observer started on: ${server.address().address}:${server.address().port}`);
+});
+
+process.on('exit', (code) => {
+  console.log(`Event-observer to exit with code: ${code}`);
+});
diff --git a/readme-dev.md b/readme-dev.md
new file mode 100644
index 0000000..b069521
--- /dev/null
+++ b/readme-dev.md
@@ -0,0 +1,11 @@
+### Locally build and test e2e dockerfile
+
+First build:
+```shell
+docker build -t e2e-test -f Dockerfile.e2e .
+```
+
+Then run:
+```shell
+docker run --rm -p "20443:20443" -e MINE_INTERVAL=0.01s -v "$(pwd)"/event-log.json:/event-log.json e2e-test
+```
diff --git a/stacks-krypton-miner.toml b/stacks-krypton-miner.toml
index c0d0266..e8df0e4 100644
--- a/stacks-krypton-miner.toml
+++ b/stacks-krypton-miner.toml
@@ -9,15 +9,20 @@ local_peer_seed = "$MINER_SEED"
 
 miner = true
 use_test_genesis_chainstate = true
-pox_sync_sample_secs = 0
+pox_sync_sample_secs = 1
 wait_time_for_blocks = 0
 wait_time_for_microblocks = 50
 microblock_frequency = 1000
 # mine_microblocks = true
 # max_microblocks = 10
 
+[[events_observer]]
+endpoint = "localhost:3998"
+retry_count = 255
+events_keys = ["*"]
+
 [miner]
-first_attempt_time_ms = 5000
+first_attempt_time_ms = 30000
 subsequent_attempt_time_ms = 5000
 $REWARD_RECIPIENT_CONF
 
@@ -51,11 +56,11 @@ start_height = 0
 
 [[burnchain.epochs]]
 epoch_name = "2.0"
-start_height = 1
+start_height = $STACKS_20_HEIGHT
 
 [[burnchain.epochs]]
 epoch_name = "2.05"
-start_height = 2
+start_height = $STACKS_2_05_HEIGHT
 
 [[burnchain.epochs]]
 epoch_name = "2.1"