diff --git a/Cargo.lock b/Cargo.lock
index a730d805f..ab4b74e2b 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -3054,6 +3054,7 @@ dependencies = [
  "dhat",
  "dirs 4.0.0",
  "futures-util",
+ "kaspa-addresses",
  "kaspa-addressmanager",
  "kaspa-consensus",
  "kaspa-consensus-core",
@@ -3069,6 +3070,7 @@ dependencies = [
  "kaspa-perf-monitor",
  "kaspa-rpc-core",
  "kaspa-rpc-service",
+ "kaspa-txscript",
  "kaspa-utils",
  "kaspa-utxoindex",
  "kaspa-wrpc-server",
diff --git a/consensus/core/src/config/mod.rs b/consensus/core/src/config/mod.rs
index d46d5f1c3..3e80ed80c 100644
--- a/consensus/core/src/config/mod.rs
+++ b/consensus/core/src/config/mod.rs
@@ -7,6 +7,8 @@ use std::ops::Deref;
 
 use kaspa_utils::networking::{ContextualNetAddress, IpAddress};
 
+use crate::utxo::utxo_collection::UtxoCollection;
+
 use {
     constants::perf::{PerfParams, PERF_PARAMS},
     params::Params,
@@ -53,6 +55,8 @@ pub struct Config {
     pub p2p_listen_address: ContextualNetAddress,
 
     pub externalip: Option<IpAddress>,
+
+    pub initial_utxo_set: UtxoCollection,
 }
 
 impl Config {
@@ -74,6 +78,7 @@ impl Config {
             user_agent_comments: Default::default(),
             externalip: None,
             p2p_listen_address: ContextualNetAddress::unspecified(),
+            initial_utxo_set: Default::default(),
         }
     }
 
diff --git a/consensus/core/src/errors/config.rs b/consensus/core/src/errors/config.rs
index 319d97296..d5e9c8d97 100644
--- a/consensus/core/src/errors/config.rs
+++ b/consensus/core/src/errors/config.rs
@@ -7,6 +7,9 @@ pub enum ConfigError {
 
     #[error("Configuration: --logdir and --nologfiles cannot be used together")]
     MixedLogDirAndNoLogFiles,
+
+    #[error("Cannot set fake UTXOs on any network except devnet")]
+    FakeUTXOsOnNonDevnet,
 }
 
 pub type ConfigResult<T> = std::result::Result<T, ConfigError>;
diff --git a/consensus/src/consensus/mod.rs b/consensus/src/consensus/mod.rs
index cab615e8f..4eea6900c 100644
--- a/consensus/src/consensus/mod.rs
+++ b/consensus/src/consensus/mod.rs
@@ -243,7 +243,7 @@ impl Consensus {
         if config.process_genesis {
             header_processor.process_genesis();
             body_processor.process_genesis();
-            virtual_processor.process_genesis();
+            virtual_processor.process_genesis(&config.initial_utxo_set);
         }
 
         Self {
diff --git a/consensus/src/model/stores/virtual_state.rs b/consensus/src/model/stores/virtual_state.rs
index 79dcfad17..cbd03c477 100644
--- a/consensus/src/model/stores/virtual_state.rs
+++ b/consensus/src/model/stores/virtual_state.rs
@@ -57,7 +57,7 @@ impl VirtualState {
         }
     }
 
-    pub fn from_genesis(genesis: &GenesisBlock, ghostdag_data: GhostdagData) -> Self {
+    pub fn from_genesis(genesis: &GenesisBlock, ghostdag_data: GhostdagData, utxo_diff: UtxoDiff) -> Self {
         Self {
             parents: vec![genesis.hash],
             ghostdag_data,
@@ -65,7 +65,7 @@ impl VirtualState {
             bits: genesis.bits,
             past_median_time: genesis.timestamp,
             multiset: MuHash::new(),
-            utxo_diff: UtxoDiff::default(), // Virtual diff is initially empty since genesis receives no reward
+            utxo_diff,
             accepted_tx_ids: genesis.build_genesis_transactions().into_iter().map(|tx| tx.id()).collect(),
             mergeset_rewards: BlockHashMap::new(),
             mergeset_non_daa: BlockHashSet::from_iter(std::iter::once(genesis.hash)),
diff --git a/consensus/src/pipeline/virtual_processor/processor.rs b/consensus/src/pipeline/virtual_processor/processor.rs
index a34a8e92b..d5963aa01 100644
--- a/consensus/src/pipeline/virtual_processor/processor.rs
+++ b/consensus/src/pipeline/virtual_processor/processor.rs
@@ -54,8 +54,10 @@ use kaspa_consensus_core::{
     config::genesis::GenesisBlock,
     header::Header,
     merkle::calc_hash_merkle_root,
+    muhash::MuHashExtensions,
     tx::{MutableTransaction, Transaction},
     utxo::{
+        utxo_collection::UtxoCollection,
         utxo_diff::UtxoDiff,
         utxo_view::{UtxoView, UtxoViewComposition},
     },
@@ -840,14 +842,22 @@ impl VirtualStateProcessor {
 
     /// Initializes UTXO state of genesis and points virtual at genesis.
     /// Note that pruning point-related stores are initialized by `init`
-    pub fn process_genesis(self: &Arc<Self>) {
+    pub fn process_genesis(self: &Arc<Self>, initial_utxo_set: &UtxoCollection) {
         // Write the UTXO state of genesis
-        self.commit_utxo_state(self.genesis.hash, UtxoDiff::default(), MuHash::new(), AcceptanceData::default());
+        let muhash = {
+            let mut muhash = MuHash::new();
+            for (outpoint, entry) in initial_utxo_set {
+                muhash.add_utxo(&outpoint, &entry);
+            }
+            muhash
+        };
+        let utxo_diff = UtxoDiff::new(initial_utxo_set.clone(), UtxoCollection::default());
+        self.commit_utxo_state(self.genesis.hash, utxo_diff.clone(), muhash, AcceptanceData::default());
         // Init virtual stores
         self.virtual_stores
             .write()
             .state
-            .set(Arc::new(VirtualState::from_genesis(&self.genesis, self.ghostdag_manager.ghostdag(&[self.genesis.hash]))))
+            .set(Arc::new(VirtualState::from_genesis(&self.genesis, self.ghostdag_manager.ghostdag(&[self.genesis.hash]), utxo_diff)))
             .unwrap();
         // Init the virtual selected chain store
         let mut batch = WriteBatch::default();
diff --git a/kaspad/Cargo.toml b/kaspad/Cargo.toml
index 422fbc919..d266e4aff 100644
--- a/kaspad/Cargo.toml
+++ b/kaspad/Cargo.toml
@@ -29,6 +29,8 @@ kaspa-mining.workspace = true
 kaspa-addressmanager.workspace = true
 kaspa-consensusmanager.workspace = true
 kaspa-perf-monitor.workspace = true
+kaspa-addresses.workspace = true
+kaspa-txscript.workspace = true
 
 async-channel.workspace = true
 thiserror.workspace = true
diff --git a/kaspad/src/args.rs b/kaspad/src/args.rs
index 506e08561..26465b82c 100644
--- a/kaspad/src/args.rs
+++ b/kaspad/src/args.rs
@@ -2,11 +2,16 @@ use clap::ArgAction;
 #[allow(unused)]
 use clap::{arg, command, Arg, Command};
 
+use kaspa_addresses::Address;
 use kaspa_consensus_core::{
     config::Config,
     networktype::{NetworkId, NetworkType},
+    tx::{TransactionId, TransactionOutpoint, UtxoEntry},
+    utxo::utxo_collection::UtxoCollection,
 };
 use kaspa_core::kaspad_env::version;
+use kaspa_hashes::TransactionID;
+use kaspa_txscript::pay_to_address_script;
 use kaspa_utils::networking::{ContextualNetAddress, IpAddress};
 use kaspa_wrpc_server::address::WrpcNetAddress;
 
@@ -44,6 +49,9 @@ pub struct Args {
     pub externalip: Option<IpAddress>,
     pub perf_metrics: bool,
     pub perf_metrics_interval_sec: u64,
+    pub num_fake_utxos: Option<u64>,
+    pub fake_utxos_address: Option<String>,
+    pub fake_utxos_amount: u64,
 }
 
 impl Default for Args {
@@ -80,6 +88,9 @@ impl Default for Args {
             perf_metrics: false,
             perf_metrics_interval_sec: 1,
             externalip: None,
+            num_fake_utxos: None,
+            fake_utxos_address: None,
+            fake_utxos_amount: 1_000_000,
         }
     }
 }
@@ -93,6 +104,24 @@ impl Args {
         // TODO: change to `config.enable_sanity_checks = self.sanity` when we reach stable versions
         config.enable_sanity_checks = true;
         config.user_agent_comments = self.user_agent_comments.clone();
+
+        if let Some(num_fake_utxos) = self.num_fake_utxos {
+            let addr = Address::try_from(&self.fake_utxos_address.as_ref().unwrap()[..]).unwrap();
+            let spk = pay_to_address_script(&addr);
+            config.initial_utxo_set = (1..=num_fake_utxos)
+                .map(|i| {
+                    (
+                        TransactionOutpoint { transaction_id: i.into(), index: 0 },
+                        UtxoEntry {
+                            amount: self.fake_utxos_amount,
+                            script_public_key: spk.clone(),
+                            block_daa_score: 0,
+                            is_coinbase: false,
+                        },
+                    )
+                })
+                .collect();
+        }
     }
 
     pub fn network(&self) -> NetworkId {
@@ -261,6 +290,27 @@ pub fn cli() -> Command {
             .value_parser(clap::value_parser!(u64))
             .help("Interval in seconds for performance metrics collection."),
     )
+    .arg(
+        Arg::new("num-fake-utxos")
+            .long("num-fake-utxos")
+            .require_equals(true)
+            .value_parser(clap::value_parser!(u64))
+            .hide(true),
+    )
+    .arg(
+        Arg::new("fake-utxos-address")
+            .long("fake-utxos-address")
+            .require_equals(true)
+            .value_parser(clap::value_parser!(String))
+            .hide(true),
+    )
+    .arg(
+        Arg::new("fake-utxos-amount")
+            .long("fake-utxos-amount")
+            .require_equals(true)
+            .value_parser(clap::value_parser!(u64))
+            .hide(true),
+    )
 }
 
 pub fn parse_args() -> Args {
@@ -302,6 +352,9 @@ pub fn parse_args() -> Args {
             .get_one::<u64>("perf-metrics-interval-sec")
             .cloned()
             .unwrap_or(defaults.perf_metrics_interval_sec),
+        num_fake_utxos: m.get_one::<u64>("num-fake-utxos").cloned(),
+        fake_utxos_address: m.get_one::<String>("fake-utxos-address").cloned(),
+        fake_utxos_amount: m.get_one::<u64>("fake-utxos-amount").cloned().unwrap_or(defaults.fake_utxos_amount),
     }
 }
 
diff --git a/kaspad/src/daemon.rs b/kaspad/src/daemon.rs
index 6e51af673..4b713c6df 100644
--- a/kaspad/src/daemon.rs
+++ b/kaspad/src/daemon.rs
@@ -48,6 +48,10 @@ fn get_app_dir() -> PathBuf {
 }
 
 fn validate_config_and_args(_config: &Arc<Config>, args: &Args) -> ConfigResult<()> {
+    if args.num_fake_utxos.is_some() && !args.devnet {
+        return Err(ConfigError::MixedConnectAndAddPeers);
+    }
+
     if !args.connect_peers.is_empty() && !args.add_peers.is_empty() {
         return Err(ConfigError::MixedConnectAndAddPeers);
     }
diff --git a/rpc/service/src/service.rs b/rpc/service/src/service.rs
index 6631b423a..435c4382a 100644
--- a/rpc/service/src/service.rs
+++ b/rpc/service/src/service.rs
@@ -2,6 +2,7 @@
 
 use super::collector::{CollectorFromConsensus, CollectorFromIndex};
 use crate::converter::{consensus::ConsensusConverter, index::IndexConverter, protocol::ProtocolConverter};
+use crate::service::NetworkType::{Mainnet, Testnet};
 use async_trait::async_trait;
 use kaspa_consensus::pipeline::ProcessingCounters;
 use kaspa_consensus_core::{
@@ -353,7 +354,8 @@ impl RpcApi for RpcCoreService {
             mempool_size: self.mining_manager.clone().transaction_count(true, false).await as u64,
             server_version: version().to_string(),
             is_utxo_indexed: self.config.utxoindex,
-            is_synced: self.flow_context.hub().has_peers() && is_nearly_synced,
+            is_synced: (![Mainnet, Testnet].contains(self.flow_context.config.net.as_type()) || self.flow_context.hub().has_peers())
+                && is_nearly_synced,
             has_notify_command: true,
             has_message_id: true,
         })
diff --git a/wallet/core/src/network.rs b/wallet/core/src/network.rs
index 9e2c913c4..71e7138c2 100644
--- a/wallet/core/src/network.rs
+++ b/wallet/core/src/network.rs
@@ -82,7 +82,7 @@ impl FromStr for NetworkId {
         // diallow network types without suffix (other than mainnet)
         // lack of suffix makes it impossible to distinguish between
         // multiple testnet networks
-        if !matches!(network_type, NetworkType::Mainnet) && suffix.is_none() {
+        if matches!(network_type, NetworkType::Testnet) && suffix.is_none() {
             return Err(Error::MissingNetworkSuffix(network_name.to_string()));
         }
         match parts.next() {