diff --git a/example_env b/example_env
new file mode 100644
index 00000000..858b0be5
--- /dev/null
+++ b/example_env
@@ -0,0 +1,5 @@
+# Options: debug, info, warn, error, fatal
+# Default: info
+LOG_LEVEL=info
+LOG_TRACING=1
+
diff --git a/go.mod b/go.mod
index 0ae6962d..5ac7fa93 100644
--- a/go.mod
+++ b/go.mod
@@ -37,6 +37,7 @@ require (
 	github.com/stretchr/testify v1.10.0
 	go.uber.org/mock v0.5.2
 	go.uber.org/ratelimit v0.3.1
+	go.uber.org/zap v1.27.0
 	golang.org/x/crypto v0.36.0
 	golang.org/x/sync v0.12.0
 	golang.org/x/sys v0.31.0
diff --git a/go.sum b/go.sum
index bea6211f..1d335c9a 100644
--- a/go.sum
+++ b/go.sum
@@ -833,6 +833,8 @@ go.uber.org/atomic v1.7.0/go.mod h1:fEN4uk6kAWBTFdckzkM89CLk9XfWZrxpCo0nPH17wJc=
 go.uber.org/atomic v1.11.0 h1:ZvwS0R+56ePWxUNi+Atn9dWONBPp/AUETXlHW0DxSjE=
 go.uber.org/atomic v1.11.0/go.mod h1:LUxbIzbOniOlMKjJjyPfpl4v+PKK2cNJn91OQbhoJI0=
 go.uber.org/goleak v1.1.10/go.mod h1:8a7PlsEVH3e/a/GLqe5IIrQx6GzcnRmZEufDUTk4A7A=
+go.uber.org/goleak v1.3.0 h1:2K3zAYmnTNqV73imy9J1T3WC+gmCePx2hEGkimedGto=
+go.uber.org/goleak v1.3.0/go.mod h1:CoHD4mav9JJNrW/WLlf7HGZPjdw8EucARQHekz1X6bE=
 go.uber.org/mock v0.5.2 h1:LbtPTcP8A5k9WPXj54PPPbjcI4Y6lhyOZXn+VS7wNko=
 go.uber.org/mock v0.5.2/go.mod h1:wLlUxC2vVTPTaE3UD51E0BGOAElKrILxhVSDYQLld5o=
 go.uber.org/multierr v1.1.0/go.mod h1:wR5kodmAFQ0UK8QlbwjlSNy0Z68gJhDJUG5sjR94q/0=
@@ -846,6 +848,8 @@ go.uber.org/tools v0.0.0-20190618225709-2cfd321de3ee/go.mod h1:vJERXedbb3MVM5f9E
 go.uber.org/zap v1.10.0/go.mod h1:vwi/ZaCAaUcBkycHslxD9B2zi4UTXhF60s6SWpuDF0Q=
 go.uber.org/zap v1.13.0/go.mod h1:zwrFLgMcdUuIBviXEYEH1YKNaOBnKXsx2IPda5bBwHM=
 go.uber.org/zap v1.18.1/go.mod h1:xg/QME4nWcxGxrpdeYfq7UvYrLh66cuVKdrbD1XF/NI=
+go.uber.org/zap v1.27.0 h1:aJMhYGrd5QSmlpLMr2MftRKl7t8J8PTZPA732ud/XR8=
+go.uber.org/zap v1.27.0/go.mod h1:GB2qFLM7cTU87MWRP2mPIjqfIDnGu+VIO4V/SdhGo2E=
 golang.org/x/arch v0.3.0 h1:02VY4/ZcO/gBOH6PUaoiptASxtXU10jazRCP865E97k=
 golang.org/x/arch v0.3.0/go.mod h1:5om86z9Hs0C8fWVUuoMHwpExlXzs5Tkyp9hOrfG7pp8=
 golang.org/x/crypto v0.0.0-20170930174604-9419663f5a44/go.mod h1:6SG95UA2DQfeDnfUPMdvaQW0Q7yPrPDi9nlGo2tz2b4=
diff --git a/p2p/kademlia/bootstrap.go b/p2p/kademlia/bootstrap.go
index 8ce18f10..8685850a 100644
--- a/p2p/kademlia/bootstrap.go
+++ b/p2p/kademlia/bootstrap.go
@@ -192,7 +192,11 @@ func (s *DHT) ConfigureBootstrapNodes(ctx context.Context, bootstrapNodes string
 		for _, node := range mapNodes {
 			hID, _ := utils.Blake3Hash(node.ID)
 			node.HashedID = hID
-			fmt.Println("node adding", node.String(), "hashed id", string(node.HashedID))
+			logtrace.Debug(ctx, "node adding", logtrace.Fields{
+				logtrace.FieldModule: "p2p",
+				"node":               node.String(),
+				"hashed_id":          string(node.HashedID),
+			})
 			boostrapNodes = append(boostrapNodes, node)
 		}
 	}
@@ -267,7 +271,7 @@ func (s *DHT) Bootstrap(ctx context.Context, bootstrapNodes string) error {
 					// So if bootstrap failed, should try to connect to node again for next bootstrap retry
 					// s.cache.SetWithExpiry(addr, []byte("true"), badAddrExpiryHours*time.Hour)
 
-					logtrace.Error(ctx, "network call failed, sleeping 3 seconds", logtrace.Fields{
+					logtrace.Debug(ctx, "network call failed, sleeping 3 seconds", logtrace.Fields{
 						logtrace.FieldModule: "p2p",
 						logtrace.FieldError:  err.Error(),
 					})
diff --git a/p2p/kademlia/network.go b/p2p/kademlia/network.go
index 88100057..107f7421 100644
--- a/p2p/kademlia/network.go
+++ b/p2p/kademlia/network.go
@@ -348,7 +348,7 @@ func (s *Network) handleConn(ctx context.Context, rawConn net.Conn) {
 		conn, err = NewSecureServerConn(ctx, s.tc, rawConn)
 		if err != nil {
 			rawConn.Close()
-			logtrace.Error(ctx, "Server secure handshake failed", logtrace.Fields{
+			logtrace.Warn(ctx, "Server secure handshake failed", logtrace.Fields{
 				logtrace.FieldModule: "p2p",
 				logtrace.FieldError:  err.Error(),
 			})
@@ -373,7 +373,7 @@ func (s *Network) handleConn(ctx context.Context, rawConn net.Conn) {
 			if err == io.EOF {
 				return
 			}
-			logtrace.Error(ctx, "Read and decode failed", logtrace.Fields{
+			logtrace.Warn(ctx, "Read and decode failed", logtrace.Fields{
 				logtrace.FieldModule: "p2p",
 				logtrace.FieldError:  err.Error(),
 			})
diff --git a/pkg/logtrace/grpc_logger.go b/pkg/logtrace/grpc_logger.go
index 5d444b5f..28b5cdcb 100644
--- a/pkg/logtrace/grpc_logger.go
+++ b/pkg/logtrace/grpc_logger.go
@@ -3,81 +3,80 @@ package logtrace
 import (
 	"context"
 	"fmt"
+	"os"
 
 	"google.golang.org/grpc/grpclog"
 )
 
 // grpcLogger implements grpclog.LoggerV2 interface using logtrace
-type grpcLogger struct {
-	ctx context.Context
-}
+type grpcLogger struct{}
 
 // NewGRPCLogger creates a new gRPC-compatible logger using logtrace
-func NewGRPCLogger(ctx context.Context) grpclog.LoggerV2 {
-	return &grpcLogger{ctx: ctx}
+func NewGRPCLogger() grpclog.LoggerV2 {
+	return &grpcLogger{}
 }
 
 // Info logs at info level
-func (g *grpcLogger) Info(args ...interface{}) {
-	Info(g.ctx, fmt.Sprint(args...), Fields{FieldModule: "grpc"})
+func (g *grpcLogger) Info(args ...any) {
+	Debug(context.Background(), fmt.Sprint(args...), Fields{"module": "grpc"}) // Suppress Internal Logs
 }
 
 // Infof logs at info level with format
-func (g *grpcLogger) Infof(format string, args ...interface{}) {
-	Info(g.ctx, fmt.Sprintf(format, args...), Fields{FieldModule: "grpc"})
+func (g *grpcLogger) Infof(format string, args ...any) {
+	Debug(context.Background(), fmt.Sprintf(format, args...), Fields{"module": "grpc"})
 }
 
 // Infoln logs at info level with newline
-func (g *grpcLogger) Infoln(args ...interface{}) {
+func (g *grpcLogger) Infoln(args ...any) {
 	g.Info(args...)
 }
 
 // Warning logs at warn level
-func (g *grpcLogger) Warning(args ...interface{}) {
-	Warn(g.ctx, fmt.Sprint(args...), Fields{FieldModule: "grpc"})
+func (g *grpcLogger) Warning(args ...any) {
+	Warn(context.Background(), fmt.Sprint(args...), Fields{"module": "grpc"})
 }
 
 // Warningf logs at warn level with format
-func (g *grpcLogger) Warningf(format string, args ...interface{}) {
-	Warn(g.ctx, fmt.Sprintf(format, args...), Fields{FieldModule: "grpc"})
+func (g *grpcLogger) Warningf(format string, args ...any) {
+	Warn(context.Background(), fmt.Sprintf(format, args...), Fields{"module": "grpc"})
 }
 
 // Warningln logs at warn level with newline
-func (g *grpcLogger) Warningln(args ...interface{}) {
+func (g *grpcLogger) Warningln(args ...any) {
 	g.Warning(args...)
 }
 
 // Error logs at error level
-func (g *grpcLogger) Error(args ...interface{}) {
-	Error(g.ctx, fmt.Sprint(args...), Fields{FieldModule: "grpc"})
+func (g *grpcLogger) Error(args ...any) {
+	Error(context.Background(), fmt.Sprint(args...), Fields{"module": "grpc"})
 }
 
 // Errorf logs at error level with format
-func (g *grpcLogger) Errorf(format string, args ...interface{}) {
-	Error(g.ctx, fmt.Sprintf(format, args...), Fields{FieldModule: "grpc"})
+func (g *grpcLogger) Errorf(format string, args ...any) {
+	Error(context.Background(), fmt.Sprintf(format, args...), Fields{"module": "grpc"})
 }
 
 // Errorln logs at error level with newline
-func (g *grpcLogger) Errorln(args ...interface{}) {
+func (g *grpcLogger) Errorln(args ...any) {
 	g.Error(args...)
 }
 
-// Fatal logs at error level and panics
-func (g *grpcLogger) Fatal(args ...interface{}) {
+// Fatal logs at error level and exits gracefully
+func (g *grpcLogger) Fatal(args ...any) {
 	msg := fmt.Sprint(args...)
-	Error(g.ctx, msg, Fields{FieldModule: "grpc", "level": "fatal"})
-	panic(msg)
+	Error(context.Background(), msg, Fields{"module": "grpc", "level": "fatal"})
+	os.Exit(1)
 }
 
-// Fatalf logs at error level with format and panics
-func (g *grpcLogger) Fatalf(format string, args ...interface{}) {
+// Fatalf logs at error level with format and exits gracefully
+func (g *grpcLogger) Fatalf(format string, args ...any) {
 	msg := fmt.Sprintf(format, args...)
-	Error(g.ctx, msg, Fields{FieldModule: "grpc", "level": "fatal"})
-	panic(msg)
+	Error(context.Background(), msg, Fields{"module": "grpc", "level": "fatal"})
+	os.Exit(1)
 }
 
-// Fatalln logs at error level with newline and panics
-func (g *grpcLogger) Fatalln(args ...interface{}) {
+// Fatalln logs at error level with newline and exits
+func (g *grpcLogger) Fatalln(args ...any) {
 	g.Fatal(args...)
 }
 
@@ -87,6 +86,6 @@ func (g *grpcLogger) V(l int) bool {
 }
 
 // SetGRPCLogger configures gRPC to use logtrace for internal logging
-func SetGRPCLogger(ctx context.Context) {
-	grpclog.SetLoggerV2(NewGRPCLogger(ctx))
+func SetGRPCLogger() {
+	grpclog.SetLoggerV2(NewGRPCLogger())
 }
diff --git a/pkg/logtrace/log.go b/pkg/logtrace/log.go
index 8cfa77a6..90846308 100644
--- a/pkg/logtrace/log.go
+++ b/pkg/logtrace/log.go
@@ -2,14 +2,13 @@ package logtrace
 
 import (
 	"context"
-	"fmt"
-	"log/slog"
-	"maps"
 	"os"
 	"runtime"
-)
+	"strings"
 
-type LogLevel func(msg string, keysAndValues ...interface{})
+	"go.uber.org/zap"
+	"go.uber.org/zap/zapcore"
+)
 
 // ContextKey is the type used for storing values in context
 type ContextKey string
@@ -17,54 +16,63 @@ type ContextKey string
 // CorrelationIDKey is the key for storing correlation ID in context
 const CorrelationIDKey ContextKey = "correlation_id"
 
-// Setup initializes the logger with a specified log level
-func Setup(serviceName, env string, level string) {
-	var slogLevel slog.Level
-	switch level {
-	case "warn":
-		slogLevel = slog.LevelWarn
-	case "error":
-		slogLevel = slog.LevelError
-	case "debug":
-		slogLevel = slog.LevelDebug
-	default:
-		slogLevel = slog.LevelInfo
-	}
+var logger *zap.Logger
 
-	opts := &slog.HandlerOptions{
-		AddSource: false,
-		Level:     slogLevel,
-	}
+// Setup initializes the logger for readable output in all modes.
+func Setup(serviceName string) {
+	var err error
 
-	hostname, _ := os.Hostname()
+	// Always start with the development config for colored, readable logs.
+	config := zap.NewDevelopmentConfig()
 
-	logger := slog.New(slog.NewJSONHandler(os.Stdout, opts))
-	logger = logger.With("hostname", hostname).With("service", fmt.Sprintf("%s-%s", serviceName, env))
-	slog.SetDefault(logger)
-}
+	// Ensure the log level is always colorized.
+	config.EncoderConfig.EncodeLevel = zapcore.CapitalColorLevelEncoder
 
-// log logs a message with additional fields using the specified log function.
-func log(logLevel slog.Level, logFunc LogLevel, message string, fields Fields) {
-	fieldArgs := make([]interface{}, 0, len(fields)*2+1)
+	tracingEnabled := getTracingEnabled()
+	config.EncoderConfig.TimeKey = "" // Remove the timestamp
+	config.DisableCaller = true
 
-	// Only attach source info for TRACE/DEBUG level
-	if logLevel == slog.LevelDebug || logLevel == slog.LevelError {
-		if pc, file, line, ok := runtime.Caller(2); ok {
-			details := runtime.FuncForPC(pc)
-			fieldArgs = append(fieldArgs, slog.Group(
-				"source",
-				slog.String("filename", file),
-				slog.Int("lineno", line),
-				slog.String("function", details.Name()),
-			))
-		}
+	// Always respect the LOG_LEVEL environment variable.
+	config.Level = zap.NewAtomicLevelAt(getLogLevel())
+
+	// Build the logger from the customized config.
+	if tracingEnabled {
+		logger, err = config.Build(zap.AddCallerSkip(1), zap.AddStacktrace(zapcore.ErrorLevel))
+	} else {
+		logger, err = config.Build()
 	}
+	if err != nil {
+		panic(err)
+	}
+}
 
-	for key, value := range fields {
-		fieldArgs = append(fieldArgs, slog.Any(key, value))
+// getLogLevel returns the log level from environment variable LOG_LEVEL
+func getLogLevel() zapcore.Level {
+	levelStr := strings.ToLower(os.Getenv("LOG_LEVEL"))
+	switch levelStr {
+	case "debug":
+		return zapcore.DebugLevel
+	case "info":
+		return zapcore.InfoLevel
+	case "warn", "warning":
+		return zapcore.WarnLevel
+	case "error":
+		return zapcore.ErrorLevel
+	case "fatal":
+		return zapcore.FatalLevel
+	default:
+		return zapcore.InfoLevel
 	}
+}
 
-	logFunc(message, fieldArgs...)
+// getTracingEnabled returns whether tracing is enabled from LOG_TRACING env var
+func getTracingEnabled() bool {
+	return strings.ToLower(os.Getenv("LOG_TRACING")) == "1"
+}
+
+// CtxWithCorrelationID stores a correlation ID inside the context
+func CtxWithCorrelationID(ctx context.Context, correlationID string) context.Context {
+	return context.WithValue(ctx, CorrelationIDKey, correlationID)
 }
 
 // extractCorrelationID retrieves the correlation ID from context
@@ -75,35 +83,69 @@ func extractCorrelationID(ctx context.Context) string {
 	return "unknown"
 }
 
-// addCorrelationID ensures logs include the correlation ID without modifying the input fields.
-func addCorrelationID(ctx context.Context, fields Fields) Fields {
-	newFields := make(Fields, len(fields)+1) // Copy fields to avoid mutation
-	maps.Copy(newFields, fields)
-	newFields[FieldCorrelationID] = extractCorrelationID(ctx)
-	return newFields
+// logWithLevel logs a message with structured fields.
+func logWithLevel(level zapcore.Level, ctx context.Context, message string, fields Fields) {
+	if logger == nil {
+		Setup("unknown-service") // Fallback if Setup wasn't called
+	}
+
+	// Always enrich logs with the correlation ID.
+	// allFields := make(Fields, len(fields)+1)
+	// for k, v := range fields {
+	// 	allFields[k] = v
+	// }
+	// allFields[FieldCorrelationID] = extractCorrelationID(ctx)
+
+	// Convert the map to a slice of zap.Field
+	zapFields := make([]zap.Field, 0, len(fields))
+	for k, v := range fields {
+		zapFields = append(zapFields, zap.Any(k, v))
+	}
+
+	// Add stack trace if tracing is enabled
+	if getTracingEnabled() {
+		// Get caller information
+		if pc, file, line, ok := runtime.Caller(2); ok {
+			fn := runtime.FuncForPC(pc)
+			if fn != nil {
+				zapFields = append(zapFields, zap.String("caller", fn.Name()))
+				zapFields = append(zapFields, zap.String("file", file))
+				zapFields = append(zapFields, zap.Int("line", line))
+			}
+		}
+	}
+
+	// Log with the structured fields.
+	switch level {
+	case zapcore.DebugLevel:
+		logger.Debug(message, zapFields...)
+	case zapcore.InfoLevel:
+		logger.Info(message, zapFields...)
+	case zapcore.WarnLevel:
+		logger.Warn(message, zapFields...)
+	case zapcore.ErrorLevel:
+		logger.Error(message, zapFields...)
+	case zapcore.FatalLevel:
+		logger.Fatal(message, zapFields...)
+	}
 }
 
-// Error logs an error message with structured fields.
+// Error logs an error message with structured fields
 func Error(ctx context.Context, message string, fields Fields) {
-	log(slog.LevelError, slog.Error, message, addCorrelationID(ctx, fields))
+	logWithLevel(zapcore.ErrorLevel, ctx, message, fields)
 }
 
-// Info logs an informational message with structured fields.
+// Info logs an informational message with structured fields
 func Info(ctx context.Context, message string, fields Fields) {
-	log(slog.LevelInfo, slog.Info, message, addCorrelationID(ctx, fields))
+	logWithLevel(zapcore.InfoLevel, ctx, message, fields)
 }
 
-// Warn logs a warning message with structured fields.
+// Warn logs a warning message with structured fields
 func Warn(ctx context.Context, message string, fields Fields) {
-	log(slog.LevelWarn, slog.Warn, message, addCorrelationID(ctx, fields))
+	logWithLevel(zapcore.WarnLevel, ctx, message, fields)
 }
 
-// Debug logs a debug message with structured fields.
+// Debug logs a debug message with structured fields
 func Debug(ctx context.Context, message string, fields Fields) {
-	log(slog.LevelDebug, slog.Debug, message, addCorrelationID(ctx, fields))
-}
-
-// CtxWithCorrelationID stores a correlation ID inside the context.
-func CtxWithCorrelationID(ctx context.Context, correlationID string) context.Context {
-	return context.WithValue(ctx, CorrelationIDKey, correlationID)
+	logWithLevel(zapcore.DebugLevel, ctx, message, fields)
 }
diff --git a/pkg/lumera/modules/tx/impl.go b/pkg/lumera/modules/tx/impl.go
index 4112ac2d..97ee0493 100644
--- a/pkg/lumera/modules/tx/impl.go
+++ b/pkg/lumera/modules/tx/impl.go
@@ -24,9 +24,6 @@ const (
 	DefaultGasPadding    = uint64(50000)
 	DefaultFeeDenom      = "ulume"
 	DefaultGasPrice      = "0.000001"
-
-	// Gas costs from chain parameters
-	TxSizeCostPerByte = uint64(10) // tx_size_cost_per_byte: "10"
 )
 
 // module implements the Module interface
@@ -45,107 +42,64 @@ func newModule(conn *grpc.ClientConn) (Module, error) {
 	}, nil
 }
 
-// calculateGasForTxSize calculates gas needed for transaction size
-func (m *module) calculateGasForTxSize(txSizeBytes int) uint64 {
-	return uint64(txSizeBytes) * TxSizeCostPerByte
-}
-
 // SimulateTransaction simulates a transaction with given messages and returns gas used
 func (m *module) SimulateTransaction(ctx context.Context, msgs []types.Msg, accountInfo *authtypes.BaseAccount, config *TxConfig) (*sdktx.SimulateResponse, error) {
-	// Create encoding config
+	// Create encoding config and client context
 	encCfg := lumeracodec.GetEncodingConfig()
-
-	// Create client context
 	clientCtx := client.Context{}.
 		WithCodec(encCfg.Codec).
 		WithTxConfig(encCfg.TxConfig).
-		WithKeyring(config.Keyring).
-		WithBroadcastMode("sync")
-
-	// Get the key for public key
-	key, err := config.Keyring.Key(config.KeyName)
-	if err != nil {
-		return nil, fmt.Errorf("failed to get key from keyring: %w", err)
-	}
-
-	pubKey, err := key.GetPubKey()
-	if err != nil {
-		return nil, fmt.Errorf("failed to get public key: %w", err)
-	}
+		WithKeyring(config.Keyring)
 
-	minFee := fmt.Sprintf("1%s", config.FeeDenom)
-
-	// Build transaction with minimal gas to get size
-	txBuilder, err := tx.Factory{}.
+	// Create a transaction factory with Gas set to 0 to trigger auto-estimation
+	// and add a minimal fee to pass the mempool check during simulation.
+	txf := tx.Factory{}.
 		WithTxConfig(clientCtx.TxConfig).
 		WithKeybase(config.Keyring).
 		WithAccountNumber(accountInfo.AccountNumber).
 		WithSequence(accountInfo.Sequence).
 		WithChainID(config.ChainID).
-		WithGas(10000).
-		WithGasAdjustment(config.GasAdjustment).
+		WithGas(0). // Setting Gas to 0 is the key for estimation
 		WithSignMode(signingtypes.SignMode_SIGN_MODE_DIRECT).
-		WithFees(minFee).
-		BuildUnsignedTx(msgs...)
+		WithFees(fmt.Sprintf("1%s", config.FeeDenom)) // Minimal fee for simulation
+
+	// Build the unsigned transaction once
+	txb, err := txf.BuildUnsignedTx(msgs...)
 	if err != nil {
-		return nil, fmt.Errorf("failed to build unsigned tx: %w", err)
+		return nil, fmt.Errorf("failed to build unsigned tx for simulation: %w", err)
 	}
 
-	// Set empty signature
-	txBuilder.SetSignatures(signingtypes.SignatureV2{
-		PubKey:   pubKey,
-		Data:     &signingtypes.SingleSignatureData{SignMode: signingtypes.SignMode_SIGN_MODE_DIRECT, Signature: nil},
-		Sequence: accountInfo.Sequence,
-	})
-
-	// Get transaction size
-	txBytes, err := clientCtx.TxConfig.TxEncoder()(txBuilder.GetTx())
+	// Create a dummy signature to account for its size in the gas estimation
+	key, err := config.Keyring.Key(config.KeyName)
 	if err != nil {
-		return nil, fmt.Errorf("failed to encode transaction: %w", err)
+		return nil, fmt.Errorf("failed to get key from keyring: %w", err)
 	}
-
-	// Calculate required gas and rebuild
-	gasLimit := m.calculateGasForTxSize(len(txBytes))
-
-	txBuilder, err = tx.Factory{}.
-		WithTxConfig(clientCtx.TxConfig).
-		WithKeybase(config.Keyring).
-		WithAccountNumber(accountInfo.AccountNumber).
-		WithSequence(accountInfo.Sequence).
-		WithChainID(config.ChainID).
-		WithGas(gasLimit).
-		WithGasAdjustment(config.GasAdjustment).
-		WithSignMode(signingtypes.SignMode_SIGN_MODE_DIRECT).
-		WithFees(minFee).
-		BuildUnsignedTx(msgs...)
+	pubKey, err := key.GetPubKey()
 	if err != nil {
-		return nil, fmt.Errorf("failed to rebuild tx: %w", err)
+		return nil, fmt.Errorf("failed to get public key: %w", err)
 	}
-
-	// Reset signature
-	txBuilder.SetSignatures(signingtypes.SignatureV2{
+	sig := signingtypes.SignatureV2{
 		PubKey:   pubKey,
-		Data:     &signingtypes.SingleSignatureData{SignMode: signingtypes.SignMode_SIGN_MODE_DIRECT, Signature: nil},
+		Data:     &signingtypes.SingleSignatureData{SignMode: txf.SignMode(), Signature: nil},
 		Sequence: accountInfo.Sequence,
-	})
+	}
+	if err := txb.SetSignatures(sig); err != nil {
+		return nil, fmt.Errorf("failed to set dummy signature: %w", err)
+	}
 
-	// Encode final transaction
-	txBytes, err = clientCtx.TxConfig.TxEncoder()(txBuilder.GetTx())
+	// Encode the transaction for simulation
+	txBytes, err := clientCtx.TxConfig.TxEncoder()(txb.GetTx())
 	if err != nil {
-		return nil, fmt.Errorf("failed to encode transaction: %w", err)
+		return nil, fmt.Errorf("failed to encode transaction for simulation: %w", err)
 	}
 
-	logtrace.Info(ctx, fmt.Sprintf("simulating transaction | txSize=%d gasLimit=%d", len(txBytes), gasLimit), nil)
-
-	// Simulate transaction
+	// Simulate the transaction
 	simRes, err := m.client.Simulate(ctx, &sdktx.SimulateRequest{TxBytes: txBytes})
 	if err != nil {
-		logtrace.Error(ctx, fmt.Sprintf("simulation failed | error=%s txSize=%d gasLimit=%d", err.Error(), len(txBytes), gasLimit), nil)
 		return nil, fmt.Errorf("simulation error: %w", err)
 	}
 
-	logtrace.Info(ctx, fmt.Sprintf("simulation complete | gasUsed=%d gasWanted=%d", simRes.GasInfo.GasUsed, simRes.GasInfo.GasWanted), nil)
-
+	logtrace.Info(ctx, fmt.Sprintf("simulation complete | gasUsed=%d", simRes.GasInfo.GasUsed), nil)
 	return simRes, nil
 }
 
@@ -185,7 +139,7 @@ func (m *module) BuildAndSignTransaction(ctx context.Context, msgs []types.Msg,
 		return nil, fmt.Errorf("failed to sign transaction: %w", err)
 	}
 
-	logtrace.Info(ctx, fmt.Sprintf("transaction signed successfully"), nil)
+	logtrace.Info(ctx, "transaction signed successfully", nil)
 
 	// Encode signed transaction
 	txBytes, err := clientCtx.TxConfig.TxEncoder()(txBuilder.GetTx())
@@ -230,13 +184,13 @@ func (m *module) CalculateFee(gasAmount uint64, config *TxConfig) string {
 // ProcessTransaction handles the complete flow: simulate, build, sign, and broadcast
 func (m *module) ProcessTransaction(ctx context.Context, msgs []types.Msg, accountInfo *authtypes.BaseAccount, config *TxConfig) (*sdktx.BroadcastTxResponse, error) {
 	// Step 1: Simulate transaction to get gas estimate
-	simulatedGas, err := m.SimulateTransaction(ctx, msgs, accountInfo, config)
+	simRes, err := m.SimulateTransaction(ctx, msgs, accountInfo, config)
 	if err != nil {
 		return nil, fmt.Errorf("simulation failed: %w", err)
 	}
 
 	// Step 2: Calculate gas with adjustment and padding
-	simulatedGasUsed := simulatedGas.GasInfo.GasUsed
+	simulatedGasUsed := simRes.GasInfo.GasUsed
 	adjustedGas := uint64(float64(simulatedGasUsed) * config.GasAdjustment)
 	gasToUse := adjustedGas + config.GasPadding
 
diff --git a/pkg/net/grpc/client/client.go b/pkg/net/grpc/client/client.go
index be8ffbe7..37862f18 100644
--- a/pkg/net/grpc/client/client.go
+++ b/pkg/net/grpc/client/client.go
@@ -315,10 +315,9 @@ func (ch *defaultConnectionHandler) retryConnection(ctx context.Context, address
 	return nil, fmt.Errorf("connection failed after %d attempts: %w", opts.MaxRetries, lastErr)
 }
 
-// configureContext ensures the context has a timeout and sets up logging
 // configureContext ensures the context has a timeout and sets up logging
 func (ch *defaultConnectionHandler) configureContext(ctx context.Context) (context.Context, context.CancelFunc) {
-	logtrace.SetGRPCLogger(ctx)
+	logtrace.SetGRPCLogger()
 
 	id, _ := random.String(8, random.Base62Chars)
 	ctx = logtrace.CtxWithCorrelationID(ctx, fmt.Sprintf("%s-%s", logPrefix, id))
diff --git a/pkg/net/grpc/server/server.go b/pkg/net/grpc/server/server.go
index 4eca05d4..55d946a2 100644
--- a/pkg/net/grpc/server/server.go
+++ b/pkg/net/grpc/server/server.go
@@ -217,7 +217,7 @@ func (s *Server) Serve(ctx context.Context, address string, opts *ServerOptions)
 		opts = DefaultServerOptions()
 	}
 
-	logtrace.SetGRPCLogger(ctx)
+	logtrace.SetGRPCLogger()
 	ctx = logtrace.CtxWithCorrelationID(ctx, s.name)
 
 	// Create server with options
diff --git a/sdk/task/download.go b/sdk/task/download.go
index 147ea9f0..62caa145 100644
--- a/sdk/task/download.go
+++ b/sdk/task/download.go
@@ -3,6 +3,7 @@ package task
 import (
 	"context"
 	"fmt"
+	"os"
 	"time"
 
 	"github.com/LumeraProtocol/supernode/sdk/adapters/lumera"
@@ -155,6 +156,13 @@ func (t *CascadeDownloadTask) attemptConcurrentDownload(
 	req *supernodeservice.CascadeSupernodeDownloadRequest,
 	baseIteration int,
 ) (*downloadResult, []error) {
+	// Remove existing file if it exists to allow overwrite (do this once before concurrent attempts)
+	if _, err := os.Stat(req.OutputPath); err == nil {
+		if removeErr := os.Remove(req.OutputPath); removeErr != nil {
+			return nil, []error{fmt.Errorf("failed to remove existing file %s: %w", req.OutputPath, removeErr)}
+		}
+	}
+
 	// Create a cancellable context for this batch
 	batchCtx, cancelBatch := context.WithCancel(ctx)
 	defer cancelBatch()
@@ -208,7 +216,7 @@ func (t *CascadeDownloadTask) attemptConcurrentDownload(
 
 	// Collect results
 	var errors []error
-	for i := 0; i < len(batch); i++ {
+	for i := range len(batch) {
 		select {
 		case result := <-resultCh:
 			if result.success != nil {
diff --git a/supernode/cmd/start.go b/supernode/cmd/start.go
index 6f01fc67..de846824 100644
--- a/supernode/cmd/start.go
+++ b/supernode/cmd/start.go
@@ -34,7 +34,7 @@ var startCmd = &cobra.Command{
 The supernode will connect to the Lumera network and begin participating in the network.`,
 	RunE: func(cmd *cobra.Command, args []string) error {
 		// Initialize logging
-		logtrace.Setup("supernode", "dev", appConfig.LogConfig.Level)
+		logtrace.Setup("supernode")
 
 		// Create context with correlation ID for tracing
 		ctx := logtrace.CtxWithCorrelationID(context.Background(), "supernode-start")
diff --git a/supernode/config.yml b/supernode/config.yml
index 9e3fc579..90c7bed4 100644
--- a/supernode/config.yml
+++ b/supernode/config.yml
@@ -27,7 +27,3 @@ lumera:
 # RaptorQ Configuration
 raptorq:
   files_dir: "raptorq_files"
-
-#Logging Configuration
-log:
-  level: "info" #debug, info, warn, error
diff --git a/supernode/config/config.go b/supernode/config/config.go
index 0c67f14c..69fc2d0f 100644
--- a/supernode/config/config.go
+++ b/supernode/config/config.go
@@ -49,7 +49,6 @@ type Config struct {
 	P2PConfig          `yaml:"p2p"`
 	LumeraClientConfig `yaml:"lumera"`
 	RaptorQConfig      `yaml:"raptorq"`
-	LogConfig          `yaml:"log"`
 
 	// Store base directory (not from YAML)
 	BaseDir string `yaml:"-"`
@@ -145,7 +144,6 @@ func LoadConfig(filename string, baseDir string) (*Config, error) {
 		"keyringDir":      config.GetKeyringDir(),
 		"p2pDataDir":      config.GetP2PDataDir(),
 		"raptorqFilesDir": config.GetRaptorQFilesDir(),
-		"logLevel":        config.LogConfig.Level,
 	})
 
 	return &config, nil
diff --git a/supernode/node/supernode/server/server.go b/supernode/node/supernode/server/server.go
index 157775d8..b9e53060 100644
--- a/supernode/node/supernode/server/server.go
+++ b/supernode/node/supernode/server/server.go
@@ -47,7 +47,7 @@ func (server *Server) Run(ctx context.Context) error {
 	ctx = logtrace.CtxWithCorrelationID(ctx, server.name)
 
 	// Set up gRPC logging
-	logtrace.SetGRPCLogger(ctx)
+	logtrace.SetGRPCLogger()
 	logtrace.Info(ctx, "Server identity configured", logtrace.Fields{logtrace.FieldModule: "server", "identity": server.config.Identity})
 	logtrace.Info(ctx, "Server listening", logtrace.Fields{logtrace.FieldModule: "server", "addresses": server.config.ListenAddresses})
 
diff --git a/tests/system/e2e_cascade_test.go b/tests/system/e2e_cascade_test.go
index f52cefea..25f7ca37 100644
--- a/tests/system/e2e_cascade_test.go
+++ b/tests/system/e2e_cascade_test.go
@@ -3,6 +3,7 @@ package system
 import (
 	"bytes"
 	"context"
+	"crypto/sha256"
 	"encoding/base64"
 	"encoding/json"
 	"fmt"
@@ -269,6 +270,10 @@ func TestCascadeE2E(t *testing.T) {
 	require.NoError(t, err, "Failed to read file contents")
 	t.Logf("Read %d bytes from test file", len(data))
 
+	// Calculate SHA256 hash of original file for later comparison
+	originalHash := sha256.Sum256(data)
+	t.Logf("Original file SHA256 hash: %x", originalHash)
+
 	rqCodec := codec.NewRaptorQCodec(raptorQFilesDir)
 
 	encodeRes, err := rqCodec.Encode(ctx, codec.EncodeRequest{
@@ -615,9 +620,7 @@ func TestCascadeE2E(t *testing.T) {
 	require.NotEmpty(t, toAddress, "Receiver address should not be empty")
 	require.Equal(t, price, amount, "Payment amount should match action price")
 
-	t.Log("Test completed successfully!")
-
-	time.Sleep(120 * time.Second)
+	time.Sleep(10 * time.Second)
 
 	outputFileBaseDir := filepath.Join(".")
 	// Try to download the file using the action ID
@@ -626,7 +629,7 @@ func TestCascadeE2E(t *testing.T) {
 	t.Logf("Download response: %s", dtaskID)
 	require.NoError(t, err, "Failed to download cascade data using action ID")
 
-	time.Sleep(4 * time.Second)
+	time.Sleep(10 * time.Second)
 
 	// ---------------------------------------
 	// Step 11: Validate downloaded files exist
@@ -661,6 +664,53 @@ func TestCascadeE2E(t *testing.T) {
 	// Validate that at least one file was downloaded
 	require.True(t, fileCount >= 1, "Expected at least 1 file in download directory %s, found %d files", expectedDownloadDir, fileCount)
 
+	// ---------------------------------------
+	// Step 12: Validate downloaded file content matches original
+	// ---------------------------------------
+	t.Log("Step 12: Validating downloaded file content matches original file")
+
+	// Find and verify the downloaded file that matches our original test file
+	var downloadedFilePath string
+	for _, fileName := range fileNames {
+		filePath := filepath.Join(expectedDownloadDir, fileName)
+		// Check if this is our test file by comparing base name
+		if filepath.Base(fileName) == filepath.Base(testFileFullpath) {
+			downloadedFilePath = filePath
+			break
+		}
+	}
+
+	if downloadedFilePath == "" {
+		// If exact name match not found, use the first file (common in single-file downloads)
+		if len(fileNames) > 0 {
+			downloadedFilePath = filepath.Join(expectedDownloadDir, fileNames[0])
+			t.Logf("Using first downloaded file for verification: %s", fileNames[0])
+		} else {
+			t.Fatalf("No files found in download directory for content verification")
+		}
+	}
+
+	// Read the downloaded file
+	downloadedFile, err := os.Open(downloadedFilePath)
+	require.NoError(t, err, "Failed to open downloaded file: %s", downloadedFilePath)
+	defer downloadedFile.Close()
+
+	// Read downloaded file content
+	downloadedData, err := io.ReadAll(downloadedFile)
+	require.NoError(t, err, "Failed to read downloaded file content")
+
+	// Calculate SHA256 hash of downloaded file
+	downloadedHash := sha256.Sum256(downloadedData)
+	t.Logf("Downloaded file SHA256 hash: %x", downloadedHash)
+
+	// Compare file sizes
+	require.Equal(t, len(data), len(downloadedData), "Downloaded file size should match original file size")
+
+	// Compare file hashes
+	require.Equal(t, originalHash, downloadedHash, "Downloaded file hash should match original file hash")
+
+	t.Logf("File verification successful: downloaded file content matches original file")
+
 	status, err := actionClient.GetSupernodeStatus(ctx, "lumera1cjyc4ruq739e2lakuhargejjkr0q5vg6x3d7kp")
 	t.Logf("Supernode status: %+v", status)
 	require.NoError(t, err, "Failed to get supernode status")
diff --git a/tests/system/go.mod b/tests/system/go.mod
index 4f9ee576..38ce381a 100644
--- a/tests/system/go.mod
+++ b/tests/system/go.mod
@@ -30,6 +30,7 @@ require (
 	github.com/LumeraProtocol/lumera v1.6.0
 	github.com/LumeraProtocol/supernode v0.0.0-00010101000000-000000000000
 	github.com/cometbft/cometbft v0.38.17
+	github.com/cosmos/btcutil v1.0.5
 	github.com/tidwall/gjson v1.14.2
 	github.com/tidwall/sjson v1.2.5
 	golang.org/x/exp v0.0.0-20250305212735-054e65f0b394
@@ -66,7 +67,6 @@ require (
 	github.com/cockroachdb/redact v1.1.6 // indirect
 	github.com/cockroachdb/tokenbucket v0.0.0-20230807174530-cc333fc44b06 // indirect
 	github.com/cometbft/cometbft-db v0.14.1 // indirect
-	github.com/cosmos/btcutil v1.0.5 // indirect
 	github.com/cosmos/cosmos-db v1.1.1 // indirect
 	github.com/cosmos/go-bip39 v1.0.0 // indirect
 	github.com/cosmos/ics23/go v0.11.0 // indirect
@@ -157,6 +157,7 @@ require (
 	go.opencensus.io v0.24.0 // indirect
 	go.uber.org/mock v0.5.2 // indirect
 	go.uber.org/multierr v1.11.0 // indirect
+	go.uber.org/zap v1.27.0 // indirect
 	golang.org/x/arch v0.15.0 // indirect
 	golang.org/x/crypto v0.37.0 // indirect
 	golang.org/x/net v0.39.0 // indirect
diff --git a/tests/system/go.sum b/tests/system/go.sum
index ba702050..2e5a9978 100644
--- a/tests/system/go.sum
+++ b/tests/system/go.sum
@@ -842,6 +842,8 @@ go.uber.org/atomic v1.4.0/go.mod h1:gD2HeocX3+yG+ygLZcrzQJaqmWj9AIm7n08wl/qW/PE=
 go.uber.org/atomic v1.5.0/go.mod h1:sABNBOSYdrvTF6hTgEIbc7YasKWGhgEQZyfxyTvoXHQ=
 go.uber.org/atomic v1.7.0/go.mod h1:fEN4uk6kAWBTFdckzkM89CLk9XfWZrxpCo0nPH17wJc=
 go.uber.org/goleak v1.1.10/go.mod h1:8a7PlsEVH3e/a/GLqe5IIrQx6GzcnRmZEufDUTk4A7A=
+go.uber.org/goleak v1.3.0 h1:2K3zAYmnTNqV73imy9J1T3WC+gmCePx2hEGkimedGto=
+go.uber.org/goleak v1.3.0/go.mod h1:CoHD4mav9JJNrW/WLlf7HGZPjdw8EucARQHekz1X6bE=
 go.uber.org/mock v0.5.2 h1:LbtPTcP8A5k9WPXj54PPPbjcI4Y6lhyOZXn+VS7wNko=
 go.uber.org/mock v0.5.2/go.mod h1:wLlUxC2vVTPTaE3UD51E0BGOAElKrILxhVSDYQLld5o=
 go.uber.org/multierr v1.1.0/go.mod h1:wR5kodmAFQ0UK8QlbwjlSNy0Z68gJhDJUG5sjR94q/0=
@@ -853,6 +855,8 @@ go.uber.org/tools v0.0.0-20190618225709-2cfd321de3ee/go.mod h1:vJERXedbb3MVM5f9E
 go.uber.org/zap v1.10.0/go.mod h1:vwi/ZaCAaUcBkycHslxD9B2zi4UTXhF60s6SWpuDF0Q=
 go.uber.org/zap v1.13.0/go.mod h1:zwrFLgMcdUuIBviXEYEH1YKNaOBnKXsx2IPda5bBwHM=
 go.uber.org/zap v1.18.1/go.mod h1:xg/QME4nWcxGxrpdeYfq7UvYrLh66cuVKdrbD1XF/NI=
+go.uber.org/zap v1.27.0 h1:aJMhYGrd5QSmlpLMr2MftRKl7t8J8PTZPA732ud/XR8=
+go.uber.org/zap v1.27.0/go.mod h1:GB2qFLM7cTU87MWRP2mPIjqfIDnGu+VIO4V/SdhGo2E=
 golang.org/x/arch v0.15.0 h1:QtOrQd0bTUnhNVNndMpLHNWrDmYzZ2KDqSrEymqInZw=
 golang.org/x/arch v0.15.0/go.mod h1:JmwW7aLIoRUKgaTzhkiEFxvcEiQGyOg9BMonBJUS7EE=
 golang.org/x/crypto v0.0.0-20180904163835-0709b304e793/go.mod h1:6SG95UA2DQfeDnfUPMdvaQW0Q7yPrPDi9nlGo2tz2b4=