diff --git a/config/spec/special_cases.go b/config/spec/special_cases.go
index 77dac006c..1cafd06e6 100644
--- a/config/spec/special_cases.go
+++ b/config/spec/special_cases.go
@@ -20,6 +20,8 @@
 
 package spec
 
+import "math"
+
 // Special cased Bartio for some ad-hoc handling due to the way
 // some bugs were handled on Bartio. To be removed.
 const (
@@ -34,4 +36,6 @@ const (
 	BoonetFork1Height uint64 = 69420
 
 	BoonetFork2Height uint64 = 1722000
+
+	BoonetFork3Height uint64 = math.MaxUint64
 )
diff --git a/state-transition/core/state_processor.go b/state-transition/core/state_processor.go
index cf8ab4433..422daf6cf 100644
--- a/state-transition/core/state_processor.go
+++ b/state-transition/core/state_processor.go
@@ -30,6 +30,7 @@ import (
 	"github.com/berachain/beacon-kit/errors"
 	"github.com/berachain/beacon-kit/log"
 	"github.com/berachain/beacon-kit/primitives/common"
+	"github.com/berachain/beacon-kit/primitives/constants"
 	"github.com/berachain/beacon-kit/primitives/crypto"
 	"github.com/berachain/beacon-kit/primitives/math"
 	"github.com/berachain/beacon-kit/primitives/transition"
@@ -374,15 +375,36 @@ func (sp *StateProcessor[
 ]) processEpoch(
 	st BeaconStateT,
 ) (transition.ValidatorUpdates, error) {
-	// currently no processRewardsAndPenalties
+	slot, err := st.GetSlot()
+	if err != nil {
+		return nil, err
+	}
 
-	if err := sp.processEffectiveBalanceUpdates(st); err != nil {
+	switch {
+	case sp.cs.DepositEth1ChainID() == spec.BartioChainID:
+		if err = sp.hollowProcessRewardsAndPenalties(st); err != nil {
+			return nil, err
+		}
+	case sp.cs.DepositEth1ChainID() == spec.BoonetEth1ChainID &&
+		slot < math.U64(spec.BoonetFork3Height):
+		// We cannot simply drop hollowProcessRewardsAndPenalties because
+		// appHash accounts for the list of operations carried out
+		// over the state even if the operations does not affect the state
+		// (rewards and penalties are always zero at this stage of beaconKit)
+		if err = sp.hollowProcessRewardsAndPenalties(st); err != nil {
+			return nil, err
+		}
+	default:
+		// no real need to perform hollowProcessRewardsAndPenalties
+	}
+
+	if err = sp.processEffectiveBalanceUpdates(st); err != nil {
 		return nil, err
 	}
-	if err := sp.processSlashingsReset(st); err != nil {
+	if err = sp.processSlashingsReset(st); err != nil {
 		return nil, err
 	}
-	if err := sp.processRandaoMixesReset(st); err != nil {
+	if err = sp.processRandaoMixesReset(st); err != nil {
 		return nil, err
 	}
 	return sp.processValidatorsSetUpdates(st)
@@ -470,6 +492,40 @@ func (sp *StateProcessor[
 	return st.SetLatestBlockHeader(lbh)
 }
 
+func (sp *StateProcessor[
+	_, _, _, BeaconStateT, _, _, _, _, _, _, _, _, _, _, _, _, _,
+]) hollowProcessRewardsAndPenalties(st BeaconStateT) error {
+	slot, err := st.GetSlot()
+	if err != nil {
+		return err
+	}
+
+	if sp.cs.SlotToEpoch(slot) == math.U64(constants.GenesisEpoch) {
+		return nil
+	}
+
+	// this has been simplified to make clear that
+	// we are not really doing anything here
+	valCount, err := st.GetTotalValidators()
+	if err != nil {
+		return err
+	}
+
+	for i := range valCount {
+		// Increase the balance of the validator.
+		if err = st.IncreaseBalance(math.ValidatorIndex(i), 0); err != nil {
+			return err
+		}
+
+		// Decrease the balance of the validator.
+		if err = st.DecreaseBalance(math.ValidatorIndex(i), 0); err != nil {
+			return err
+		}
+	}
+
+	return nil
+}
+
 // processEffectiveBalanceUpdates as defined in the Ethereum 2.0 specification.
 // https://github.com/ethereum/consensus-specs/blob/dev/specs/phase0/beacon-chain.md#effective-balances-updates
 //
diff --git a/state-transition/core/state_processor_staking.go b/state-transition/core/state_processor_staking.go
index 0b0039c9d..8c3458e71 100644
--- a/state-transition/core/state_processor_staking.go
+++ b/state-transition/core/state_processor_staking.go
@@ -84,7 +84,7 @@ func (sp *StateProcessor[
 		// We keep it for backward compatibility.
 		depositIndex++
 	case sp.cs.DepositEth1ChainID() == spec.BoonetEth1ChainID &&
-		slot < math.U64(spec.BoonetFork2Height):
+		slot != 0 && slot < math.U64(spec.BoonetFork2Height):
 		// Boonet pre fork2 has a bug which makes DepositEth1ChainID point to
 		// next deposit index, not latest processed deposit index.
 		// We keep it for backward compatibility.