diff --git a/CHANGELOG.md b/CHANGELOG.md
index 011a1464d4..1922cf33f0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,13 @@
 # Changelog
 
+## 8.1.0 /2024-10-03
+
+## What's Changed
+* Implements new logging level 'warning' by @roman-opentensor in https://github.com/opentensor/bittensor/pull/2323
+* Adds ConnectionRefusedError in-case of connection error by @roman-opentensor in https://github.com/opentensor/bittensor/pull/2326
+* Subtensor verbose False by default, debug logging for subtensor connected by @thewhaleking in https://github.com/opentensor/bittensor/pull/2335
+* Fix tests to be ready for rust-based bittensor-wallet by @roman-opentensor in https://github.com/opentensor/bittensor/pull/2336
+
 ## 8.0.0 /2024-09-25
 
 ## What's Changed
diff --git a/bittensor/__init__.py b/bittensor/__init__.py
index 5ddba2abe4..f4d8ee906a 100644
--- a/bittensor/__init__.py
+++ b/bittensor/__init__.py
@@ -22,27 +22,6 @@
 from .utils.deprecated import *
 
 
-# Logging helpers.
-def trace(on: bool = True):
-    """
-    Enables or disables trace logging.
-
-    Args:
-        on (bool): If True, enables trace logging. If False, disables trace logging.
-    """
-    logging.set_trace(on)
-
-
-def debug(on: bool = True):
-    """
-    Enables or disables debug logging.
-
-    Args:
-        on (bool): If True, enables debug logging. If False, disables debug logging.
-    """
-    logging.set_debug(on)
-
-
 def __getattr__(name):
     if name == "version_split":
         warnings.warn(
diff --git a/bittensor/core/axon.py b/bittensor/core/axon.py
index 63b79d49c8..ce967acb80 100644
--- a/bittensor/core/axon.py
+++ b/bittensor/core/axon.py
@@ -32,14 +32,15 @@
 from typing import Any, Awaitable, Callable, Optional, Tuple
 
 import uvicorn
-from bittensor_wallet import Wallet
+from bittensor_wallet import Wallet, Keypair
+
 from fastapi import APIRouter, Depends, FastAPI
 from fastapi.responses import JSONResponse
 from fastapi.routing import serialize_response
 from starlette.middleware.base import BaseHTTPMiddleware, RequestResponseEndpoint
 from starlette.requests import Request
 from starlette.responses import Response
-from substrateinterface import Keypair
+
 
 from bittensor.core.chain_data import AxonInfo
 from bittensor.core.config import Config
diff --git a/bittensor/core/dendrite.py b/bittensor/core/dendrite.py
index 0b9bc5381f..f2d0a5f4d5 100644
--- a/bittensor/core/dendrite.py
+++ b/bittensor/core/dendrite.py
@@ -23,8 +23,7 @@
 from typing import Any, AsyncGenerator, Optional, Union, Type
 
 import aiohttp
-from bittensor_wallet import Wallet
-from substrateinterface import Keypair
+from bittensor_wallet import Keypair, Wallet
 
 from bittensor.core.axon import Axon
 from bittensor.core.chain_data import AxonInfo
diff --git a/bittensor/core/settings.py b/bittensor/core/settings.py
index cfccf362be..f1ab20c1ee 100644
--- a/bittensor/core/settings.py
+++ b/bittensor/core/settings.py
@@ -15,7 +15,7 @@
 # OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER
 # DEALINGS IN THE SOFTWARE.
 
-__version__ = "8.0.0"
+__version__ = "8.1.0"
 
 import os
 import re
diff --git a/bittensor/core/subtensor.py b/bittensor/core/subtensor.py
index 5339645952..ca7397adb6 100644
--- a/bittensor/core/subtensor.py
+++ b/bittensor/core/subtensor.py
@@ -134,7 +134,7 @@ def __init__(
         network: Optional[str] = None,
         config: Optional["Config"] = None,
         _mock: bool = False,
-        log_verbose: bool = True,
+        log_verbose: bool = False,
         connection_timeout: int = 600,
     ) -> None:
         """
@@ -175,17 +175,18 @@ def __init__(
             logging.info(
                 f"You are connecting to {self.network} network with endpoint {self.chain_endpoint}."
             )
-            logging.warning(
+            logging.debug(
                 "We strongly encourage running a local subtensor node whenever possible. "
                 "This increases decentralization and resilience of the network."
             )
-            logging.warning(
+            logging.debug(
                 "In a future release, local subtensor will become the default endpoint. "
                 "To get ahead of this change, please run a local subtensor node and point to it."
             )
 
         self.log_verbose = log_verbose
         self._connection_timeout = connection_timeout
+        self.substrate: "SubstrateInterface" = None
         self._get_substrate()
 
     def __str__(self) -> str:
@@ -201,7 +202,8 @@ def __repr__(self) -> str:
 
     def close(self):
         """Cleans up resources for this subtensor instance like active websocket connection and active extensions."""
-        self.substrate.close()
+        if self.substrate:
+            self.substrate.close()
 
     def _get_substrate(self):
         """Establishes a connection to the Substrate node using configured parameters."""
@@ -214,7 +216,7 @@ def _get_substrate(self):
                 type_registry=settings.TYPE_REGISTRY,
             )
             if self.log_verbose:
-                logging.info(
+                logging.debug(
                     f"Connected to {self.network} network and {self.chain_endpoint}."
                 )
 
@@ -223,14 +225,15 @@ def _get_substrate(self):
             except (AttributeError, TypeError, socket.error, OSError) as e:
                 logging.warning(f"Error setting timeout: {e}")
 
-        except ConnectionRefusedError:
+        except ConnectionRefusedError as error:
             logging.error(
                 f"Could not connect to {self.network} network with {self.chain_endpoint} chain endpoint.",
             )
             logging.info(
                 "You can check if you have connectivity by running this command: nc -vz localhost "
-                f"{self.chain_endpoint.split(':')[2]}"
+                f"{self.chain_endpoint}"
             )
+            raise ConnectionRefusedError(error.args)
 
     @staticmethod
     def config() -> "Config":
diff --git a/bittensor/utils/__init__.py b/bittensor/utils/__init__.py
index 58a7e0a7c2..6239d89808 100644
--- a/bittensor/utils/__init__.py
+++ b/bittensor/utils/__init__.py
@@ -16,10 +16,10 @@
 # DEALINGS IN THE SOFTWARE.
 
 import hashlib
-from typing import List, Dict, Literal, Union, Optional, TYPE_CHECKING
+from typing import Literal, Union, Optional, TYPE_CHECKING
 
 import scalecodec
-from substrateinterface import Keypair
+from bittensor_wallet import Keypair
 from substrateinterface.utils import ss58
 
 from bittensor.core.settings import SS58_FORMAT
@@ -245,7 +245,7 @@ def _is_valid_ed25519_pubkey(public_key: Union[str, bytes]) -> bool:
         else:
             raise ValueError("public_key must be a string or bytes")
 
-        keypair = Keypair(public_key=public_key, ss58_format=SS58_FORMAT)
+        keypair = Keypair(public_key=public_key)
 
         ss58_addr = keypair.ss58_address
         return ss58_addr is not None
diff --git a/bittensor/utils/btlogging/loggingmachine.py b/bittensor/utils/btlogging/loggingmachine.py
index b2cfb2918e..abc4758bf8 100644
--- a/bittensor/utils/btlogging/loggingmachine.py
+++ b/bittensor/utils/btlogging/loggingmachine.py
@@ -69,26 +69,48 @@ class LoggingMachine(StateMachine, Logger):
     Debug = State()
     Trace = State()
     Disabled = State()
+    Warning = State()
 
     enable_default = (
         Debug.to(Default)
         | Trace.to(Default)
         | Disabled.to(Default)
         | Default.to(Default)
+        | Warning.to(Default)
     )
 
+    enable_info = enable_default
+
     enable_trace = (
-        Default.to(Trace) | Debug.to(Trace) | Disabled.to(Trace) | Trace.to(Trace)
+        Default.to(Trace)
+        | Debug.to(Trace)
+        | Disabled.to(Trace)
+        | Trace.to(Trace)
+        | Warning.to(Trace)
     )
 
     enable_debug = (
-        Default.to(Debug) | Trace.to(Debug) | Disabled.to(Debug) | Debug.to(Debug)
+        Default.to(Debug)
+        | Trace.to(Debug)
+        | Disabled.to(Debug)
+        | Debug.to(Debug)
+        | Warning.to(Debug)
+    )
+
+    enable_warning = (
+        Default.to(Warning)
+        | Trace.to(Warning)
+        | Disabled.to(Warning)
+        | Debug.to(Warning)
+        | Warning.to(Warning)
     )
 
     disable_trace = Trace.to(Default)
 
     disable_debug = Debug.to(Default)
 
+    disable_warning = Warning.to(Default)
+
     disable_logging = (
         Trace.to(Disabled)
         | Debug.to(Disabled)
@@ -301,16 +323,36 @@ def after_transition(self, event, state):
     # Default Logging
     def before_enable_default(self):
         """Logs status before enable Default."""
-        self._logger.info(f"Enabling default logging.")
+        self._logger.info("Enabling default logging.")
         self._logger.setLevel(stdlogging.WARNING)
         for logger in all_loggers():
             if logger.name in self._primary_loggers:
                 continue
             logger.setLevel(stdlogging.CRITICAL)
 
+    def before_enable_info(self):
+        """Logs status before enable Default."""
+        self._logger.info("Enabling default logging.")
+        self._logger.setLevel(stdlogging.INFO)
+        for logger in all_loggers():
+            if logger.name in self._primary_loggers:
+                continue
+            logger.setLevel(stdlogging.CRITICAL)
+
     def after_enable_default(self):
         pass
 
+    def before_enable_warning(self):
+        """Logs status before enable Warning."""
+        self._logger.info("Enabling warning.")
+        self._stream_formatter.set_trace(True)
+        for logger in all_loggers():
+            logger.setLevel(stdlogging.WARNING)
+
+    def after_enable_warning(self):
+        """Logs status after enable Warning."""
+        self._logger.info("Warning enabled.")
+
     # Trace
     def before_enable_trace(self):
         """Logs status before enable Trace."""
@@ -325,7 +367,7 @@ def after_enable_trace(self):
 
     def before_disable_trace(self):
         """Logs status before disable Trace."""
-        self._logger.info(f"Disabling trace.")
+        self._logger.info("Disabling trace.")
         self._stream_formatter.set_trace(False)
         self.enable_default()
 
@@ -449,6 +491,25 @@ def set_trace(self, on: bool = True):
             if self.current_state_value == "Trace":
                 self.disable_trace()
 
+    def set_warning(self, on: bool = True):
+        """Sets Warning state."""
+        if on and not self.current_state_value == "Warning":
+            self.enable_warning()
+        elif not on:
+            if self.current_state_value == "Warning":
+                self.disable_warning()
+
+    def set_default(self):
+        """Sets Default state."""
+        if not self.current_state_value == "Default":
+            self.enable_default()
+
+    # as an option to be more obvious. `bittensor.logging.set_info()` is the same `bittensor.logging.set_default()`
+    def set_info(self):
+        """Sets Default state."""
+        if not self.current_state_value == "Default":
+            self.enable_info()
+
     def get_level(self) -> int:
         """Returns Logging level."""
         return self._logger.level
diff --git a/bittensor/utils/deprecated.py b/bittensor/utils/deprecated.py
index 6075a93d8f..146e8395d0 100644
--- a/bittensor/utils/deprecated.py
+++ b/bittensor/utils/deprecated.py
@@ -42,7 +42,7 @@
     Keyfile,
 )
 from bittensor_wallet.wallet import display_mnemonic_msg, Wallet  # noqa: F401
-from substrateinterface import Keypair  # noqa: F401
+from bittensor_wallet import Keypair  # noqa: F401
 
 from bittensor.core import settings
 from bittensor.core.axon import Axon
@@ -112,6 +112,7 @@
 )
 from bittensor.utils.balance import Balance as Balance  # noqa: F401
 from bittensor.utils.mock.subtensor_mock import MockSubtensor as MockSubtensor  # noqa: F401
+from bittensor.utils.btlogging import logging
 from bittensor.utils.subnets import SubnetsAPI  # noqa: F401
 
 # Backwards compatibility with previous bittensor versions.
@@ -148,3 +149,35 @@
 # Makes the `bittensor.core.extrinsics` subpackage available as `bittensor.extrinsics` for backwards compatibility.
 extrinsics_subpackage = importlib.import_module("bittensor.core.extrinsics")
 sys.modules["bittensor.extrinsics"] = extrinsics_subpackage
+
+
+# Logging helpers.
+def trace(on: bool = True):
+    """
+    Enables or disables trace logging.
+    Args:
+        on (bool): If True, enables trace logging. If False, disables trace logging.
+    """
+    logging.set_trace(on)
+
+
+def debug(on: bool = True):
+    """
+    Enables or disables debug logging.
+    Args:
+        on (bool): If True, enables debug logging. If False, disables debug logging.
+    """
+    logging.set_debug(on)
+
+
+def warning(on: bool = True):
+    """
+    Enables or disables warning logging.
+    Args:
+        on (bool): If True, enables warning logging. If False, disables warning logging and sets default (INFO) level.
+    """
+    logging.set_warning(on)
+
+
+# set Warning logging level for bittensor SDK
+warning()
diff --git a/bittensor/utils/weight_utils.py b/bittensor/utils/weight_utils.py
index d7c86bcdca..f004af446c 100644
--- a/bittensor/utils/weight_utils.py
+++ b/bittensor/utils/weight_utils.py
@@ -26,7 +26,7 @@
 
 from numpy.typing import NDArray
 from scalecodec import U16, ScaleBytes, Vec
-from substrateinterface import Keypair
+from bittensor_wallet import Keypair
 
 from bittensor.utils.btlogging import logging
 from bittensor.utils.registration import legacy_torch_api_compat, torch, use_torch
diff --git a/requirements/prod.txt b/requirements/prod.txt
index 631f949be3..9e21dafbc5 100644
--- a/requirements/prod.txt
+++ b/requirements/prod.txt
@@ -20,4 +20,4 @@ python-Levenshtein
 scalecodec==1.2.11
 substrate-interface~=1.7.9
 uvicorn
-bittensor-wallet==1.0.0
\ No newline at end of file
+bittensor-wallet==2.0.0
\ No newline at end of file
diff --git a/tests/e2e_tests/conftest.py b/tests/e2e_tests/conftest.py
index d82944afd5..5f562039ee 100644
--- a/tests/e2e_tests/conftest.py
+++ b/tests/e2e_tests/conftest.py
@@ -45,7 +45,10 @@ def local_chain(request):
 
     # install neuron templates
     logging.info("downloading and installing neuron templates from github")
-    templates_dir = clone_or_update_templates()
+    # commit with subnet-template-repo changes for rust wallet
+    templates_dir = clone_or_update_templates(
+        "334d3da101279218b3a4c9d72a12d517f6e39be3"
+    )
     install_templates(templates_dir)
 
     timestamp = int(time.time())
diff --git a/tests/e2e_tests/utils/e2e_test_utils.py b/tests/e2e_tests/utils/e2e_test_utils.py
index ba662647a4..2568908bea 100644
--- a/tests/e2e_tests/utils/e2e_test_utils.py
+++ b/tests/e2e_tests/utils/e2e_test_utils.py
@@ -3,7 +3,7 @@
 import subprocess
 import sys
 
-from substrateinterface import Keypair
+from bittensor_wallet import Keypair
 
 import bittensor
 
diff --git a/tests/integration_tests/test_subtensor_integration.py b/tests/integration_tests/test_subtensor_integration.py
index 8539839ccc..e252cb63f1 100644
--- a/tests/integration_tests/test_subtensor_integration.py
+++ b/tests/integration_tests/test_subtensor_integration.py
@@ -18,10 +18,12 @@
 import unittest
 from unittest.mock import MagicMock, patch
 
-from substrateinterface import Keypair
+import pytest
+from bittensor_wallet import Keypair
 
 import bittensor
 from bittensor.core import settings
+from bittensor.core.extrinsics import transfer
 from bittensor.utils.balance import Balance
 from bittensor.utils.mock import MockSubtensor
 from tests.helpers import (
@@ -30,7 +32,6 @@
     get_mock_keypair,
     get_mock_wallet,
 )
-from bittensor.core.extrinsics import transfer
 
 
 class TestSubtensor(unittest.TestCase):
@@ -171,7 +172,7 @@ def test_transfer_invalid_dest(self):
         )
         self.assertFalse(fail, msg="Transfer should fail because of invalid dest")
 
-    def test_transfer_dest_as_bytes(self):
+    def test_transfer_dest_as_bytes_fails(self):
         fake_coldkey = get_mock_coldkey(1)
         with patch(
             "bittensor.core.extrinsics.transfer.do_transfer",
@@ -183,13 +184,14 @@ def test_transfer_dest_as_bytes(self):
             self.subtensor.get_balance = MagicMock(return_value=self.balance)
 
             dest_as_bytes: bytes = Keypair(fake_coldkey).public_key
-            success = self.subtensor.transfer(
-                self.wallet,
-                dest_as_bytes,  # invalid dest
-                amount=200,
-                wait_for_inclusion=True,
-            )
-            self.assertTrue(success, msg="Transfer should succeed")
+
+            with pytest.raises(TypeError):
+                self.subtensor.transfer(
+                    self.wallet,
+                    dest_as_bytes,  # invalid dest
+                    amount=200,
+                    wait_for_inclusion=True,
+                )
 
     def test_set_weights(self):
         chain_weights = [0]
diff --git a/tests/unit_tests/test_axon.py b/tests/unit_tests/test_axon.py
index 689d217379..9c473665fe 100644
--- a/tests/unit_tests/test_axon.py
+++ b/tests/unit_tests/test_axon.py
@@ -380,10 +380,16 @@ def test_to_string(info_return, expected_output, test_id):
 )
 def test_valid_ipv4_and_ipv6_address(ip, port, expected_ip_type, test_id):
     # Arrange
+    hotkey = MockHotkey("5EemgxS7cmYbD34esCFoBgUZZC8JdnGtQvV5Qw3QFUCRRtGP")
+    coldkey = MockHotkey("5EemgxS7cmYbD34esCFoBgUZZC8JdnGtQvV5Qw3QFUCRRtGP")
+    coldkeypub = MockHotkey("5EemgxS7cmYbD34esCFoBgUZZC8JdnGtQvV5Qw3QFUCRRtGP")
+    wallet = MockWallet(hotkey, coldkey, coldkeypub)
+
     axon = Axon()
     axon.ip = ip
     axon.external_ip = ip
     axon.port = port
+    axon.wallet = wallet
 
     # Act
     ip_type = axon.info().ip_type
@@ -586,7 +592,7 @@ async def test_ping__no_dendrite(self, http_client):
         assert (response.status_code, response.json()) == (
             401,
             {
-                "message": "Not Verified with error: No SS58 formatted address or public key provided"
+                "message": "Not Verified with error: No SS58 formatted address or public key provided."
             },
         )
 
diff --git a/tests/unit_tests/test_dendrite.py b/tests/unit_tests/test_dendrite.py
index 3150aaf648..d1f9327649 100644
--- a/tests/unit_tests/test_dendrite.py
+++ b/tests/unit_tests/test_dendrite.py
@@ -73,7 +73,8 @@ def axon_info():
 
 @pytest.fixture(scope="session")
 def setup_axon():
-    axon = Axon()
+    wallet = get_mock_wallet()
+    axon = Axon(wallet)
     axon.attach(forward_fn=dummy)
     axon.start()
     yield axon