diff --git a/crates/bin/pd/src/consensus.rs b/crates/bin/pd/src/consensus.rs
index d5772069ff..130e6f42c4 100644
--- a/crates/bin/pd/src/consensus.rs
+++ b/crates/bin/pd/src/consensus.rs
@@ -3,7 +3,7 @@ use anyhow::Result;
 use penumbra_chain::genesis;
 use penumbra_storage::Storage;
 use tendermint::abci::Event;
-use tendermint::v0_34::abci::{
+use tendermint::v0_37::abci::{
     request, response, ConsensusRequest as Request, ConsensusResponse as Response,
 };
 use tokio::sync::mpsc;
@@ -81,6 +81,29 @@ impl Consensus {
                         .await
                         .expect("commit must succeed"),
                 ),
+                // TODO: figure out how to handle these events, otherwise pd panics
+                Request::PrepareProposal(proposal) => {
+                    tracing::warn!(?proposal, "Encountered PrepareProposal request");
+                    let mut txs: Vec<bytes::Bytes> = Vec::new();
+                    let num_candidate_txs = proposal.txs.len();
+                    // Ensure that list of transactions doesn't exceed max tx bytes.
+                    // https://github.com/tendermint/tendermint/blob/v0.37.x/spec/abci/abci%2B%2B_tmint_expected_behavior.md#adapting-existing-applications-that-use-abci
+                    tracing::debug!("Processing PrepareProposal, found {} candidate transactions", proposal.txs.len());
+                    for tx in proposal.txs {
+                        if (tx.len() + txs.len()) <= proposal.max_tx_bytes.try_into()? {
+                            txs.push(tx);
+                        } else {
+                            break
+                        }
+                    }
+                    tracing::debug!("Finished processing PrepareProposal, including {}/{} candidate transactions",
+                        txs.len(), num_candidate_txs);
+                    Response::PrepareProposal(tendermint::abci::response::PrepareProposal { txs: txs })
+                },
+                Request::ProcessProposal(proposal) => {
+                    tracing::warn!(?proposal, "Encountered ProcessProposal request");
+                    Response::ProcessProposal(tendermint::abci::response::ProcessProposal::Accept)
+                }
             }));
         }
         Ok(())
diff --git a/crates/bin/pd/src/events.rs b/crates/bin/pd/src/events.rs
index ee3e9f131c..2ceded6c7b 100644
--- a/crates/bin/pd/src/events.rs
+++ b/crates/bin/pd/src/events.rs
@@ -4,7 +4,7 @@ use anyhow::Result;
 use futures::FutureExt;
 use regex::RegexSet;
 use tendermint::abci::Event;
-use tendermint::v0_34::abci::{ConsensusRequest as Request, ConsensusResponse as Response};
+use tendermint::v0_37::abci::{ConsensusRequest as Request, ConsensusResponse as Response};
 use tower::{Layer, Service};
 
 #[derive(Debug, Clone)]
@@ -102,6 +102,8 @@ where
                 // No events.
                 Response::InitChain(_) => {}
                 Response::Commit(_) => {}
+                Response::PrepareProposal(_) => {},
+                Response::ProcessProposal(_) => {},
                 // These responses have events.
                 Response::BeginBlock(ref mut msg) => config.adjust_events(&mut msg.events),
                 Response::DeliverTx(ref mut msg) => config.adjust_events(&mut msg.events),
diff --git a/crates/bin/pd/src/info.rs b/crates/bin/pd/src/info.rs
index 494288cde8..5e4efd2bf3 100644
--- a/crates/bin/pd/src/info.rs
+++ b/crates/bin/pd/src/info.rs
@@ -33,7 +33,7 @@ use penumbra_ibc::component::ConnectionStateReadExt as _;
 use penumbra_storage::Storage;
 use prost::Message;
 use std::str::FromStr;
-use tendermint::v0_34::abci::{
+use tendermint::v0_37::abci::{
     request,
     response::{self, Echo},
     InfoRequest, InfoResponse,
@@ -41,7 +41,7 @@ use tendermint::v0_34::abci::{
 use tower_abci::BoxError;
 use tracing::Instrument;
 
-use penumbra_tower_trace::v034::RequestExt;
+use penumbra_tower_trace::v037::RequestExt;
 
 const ABCI_INFO_VERSION: &str = env!("VERGEN_GIT_SEMVER");
 
@@ -609,7 +609,6 @@ impl tower_service::Service<InfoRequest> for Info {
                 InfoRequest::Echo(echo) => Ok(InfoResponse::Echo(Echo {
                     message: echo.message,
                 })),
-                InfoRequest::SetOption(_) => todo!(),
             }
         }
         .instrument(span)
diff --git a/crates/bin/pd/src/main.rs b/crates/bin/pd/src/main.rs
index 4fea7ac388..5d6c247578 100644
--- a/crates/bin/pd/src/main.rs
+++ b/crates/bin/pd/src/main.rs
@@ -33,8 +33,8 @@ use tonic::transport::Server;
 use tracing_subscriber::{prelude::*, EnvFilter};
 use url::Url;
 
-use penumbra_tower_trace::v034::RequestExt;
-use tendermint::v0_34::abci::{ConsensusRequest, MempoolRequest};
+use penumbra_tower_trace::v037::RequestExt;
+use tendermint::v0_37::abci::{ConsensusRequest, MempoolRequest};
 
 #[derive(Debug, Parser)]
 #[clap(
@@ -318,7 +318,7 @@ async fn main() -> anyhow::Result<()> {
             let abci_server = tokio::task::Builder::new()
                 .name("abci_server")
                 .spawn(
-                    tower_abci::v034::Server::builder()
+                    tower_abci::v037::Server::builder()
                         .consensus(consensus)
                         .snapshot(snapshot)
                         .mempool(mempool)
diff --git a/crates/bin/pd/src/mempool.rs b/crates/bin/pd/src/mempool.rs
index 3bb37c2e6f..7716c5af90 100644
--- a/crates/bin/pd/src/mempool.rs
+++ b/crates/bin/pd/src/mempool.rs
@@ -2,7 +2,7 @@ use anyhow::Result;
 
 use penumbra_storage::{Snapshot, Storage};
 
-use tendermint::v0_34::abci::{
+use tendermint::v0_37::abci::{
     request::CheckTx as CheckTxReq, request::CheckTxKind, response::CheckTx as CheckTxRsp,
     MempoolRequest as Request, MempoolResponse as Response,
 };
diff --git a/crates/bin/pd/src/snapshot.rs b/crates/bin/pd/src/snapshot.rs
index 7147c8fe64..bc297b42f0 100644
--- a/crates/bin/pd/src/snapshot.rs
+++ b/crates/bin/pd/src/snapshot.rs
@@ -5,7 +5,7 @@ use std::{
 };
 
 use futures::FutureExt;
-use tendermint::v0_34::abci::{SnapshotRequest, SnapshotResponse};
+use tendermint::v0_37::abci::{SnapshotRequest, SnapshotResponse};
 use tower_abci::BoxError;
 
 #[derive(Clone, Debug)]
diff --git a/crates/core/component/dex/src/component/dex.rs b/crates/core/component/dex/src/component/dex.rs
index 6d79cf8554..c25dd77919 100644
--- a/crates/core/component/dex/src/component/dex.rs
+++ b/crates/core/component/dex/src/component/dex.rs
@@ -7,7 +7,7 @@ use penumbra_chain::component::StateReadExt as _;
 use penumbra_component::Component;
 use penumbra_proto::{StateReadProto, StateWriteProto};
 use penumbra_storage::{StateRead, StateWrite};
-use tendermint::v0_34::abci;
+use tendermint::v0_37::abci;
 use tracing::instrument;
 
 use crate::{
diff --git a/crates/core/component/governance/src/component.rs b/crates/core/component/governance/src/component.rs
index 8f2b16fed4..12252eaa2e 100644
--- a/crates/core/component/governance/src/component.rs
+++ b/crates/core/component/governance/src/component.rs
@@ -3,7 +3,7 @@ use std::sync::Arc;
 use anyhow::{Context, Result};
 use async_trait::async_trait;
 use penumbra_storage::StateWrite;
-use tendermint::v0_34::abci;
+use tendermint::v0_37::abci;
 use tracing::instrument;
 
 use penumbra_component::Component;
diff --git a/crates/core/component/shielded-pool/src/component/shielded_pool.rs b/crates/core/component/shielded-pool/src/component/shielded_pool.rs
index 7876e7f30a..93e5540f21 100644
--- a/crates/core/component/shielded-pool/src/component/shielded_pool.rs
+++ b/crates/core/component/shielded-pool/src/component/shielded_pool.rs
@@ -9,7 +9,7 @@ use penumbra_proto::StateReadProto;
 use penumbra_sct::Nullifier;
 use penumbra_storage::StateRead;
 use penumbra_storage::StateWrite;
-use tendermint::v0_34::abci;
+use tendermint::v0_37::abci;
 use tracing::instrument;
 
 use crate::state_key;
diff --git a/crates/narsil/narsil/src/bin/narsild.rs b/crates/narsil/narsil/src/bin/narsild.rs
index 216b889283..89078ff297 100644
--- a/crates/narsil/narsil/src/bin/narsild.rs
+++ b/crates/narsil/narsil/src/bin/narsild.rs
@@ -7,8 +7,8 @@ use console_subscriber::ConsoleLayer;
 use metrics_tracing_context::{MetricsLayer, TracingContextLayer};
 use metrics_util::layers::Stack;
 use penumbra_tendermint_proxy::TendermintProxy;
-use penumbra_tower_trace::v034::RequestExt;
-use tendermint::v0_34::abci::{ConsensusRequest, MempoolRequest};
+use penumbra_tower_trace::v037::RequestExt;
+use tendermint::v0_37::abci::{ConsensusRequest, MempoolRequest};
 
 use narsil::{
     ledger::{consensus::Consensus, mempool::Mempool, snapshot::Snapshot, Info},
@@ -159,7 +159,7 @@ async fn main() -> anyhow::Result<()> {
             let abci_server = tokio::task::Builder::new()
                 .name("abci_server")
                 .spawn(
-                    tower_abci::v034::Server::builder()
+                    tower_abci::v037::Server::builder()
                         .consensus(consensus)
                         .snapshot(snapshot)
                         .mempool(mempool)
diff --git a/crates/narsil/narsil/src/ledger/consensus.rs b/crates/narsil/narsil/src/ledger/consensus.rs
index 3858fd4651..b48ab8faeb 100644
--- a/crates/narsil/narsil/src/ledger/consensus.rs
+++ b/crates/narsil/narsil/src/ledger/consensus.rs
@@ -3,7 +3,7 @@ use anyhow::Result;
 use penumbra_chain::genesis;
 use penumbra_storage::Storage;
 use tendermint::abci::Event;
-use tendermint::v0_34::abci::{
+use tendermint::v0_37::abci::{
     request, response, ConsensusRequest as Request, ConsensusResponse as Response,
 };
 use tokio::sync::mpsc;
@@ -81,6 +81,10 @@ impl Consensus {
                         .await
                         .expect("commit must succeed"),
                 ),
+                // The proposal types were added in CometBFT v0.37.x.
+                // How should they be handled in narsil?
+                Request::PrepareProposal(_proposal) => todo!(),
+                Request::ProcessProposal(_proposal) => todo!(),
             }));
         }
         Ok(())
diff --git a/crates/narsil/narsil/src/ledger/info.rs b/crates/narsil/narsil/src/ledger/info.rs
index 1f886ee06e..6e1dba0bc9 100644
--- a/crates/narsil/narsil/src/ledger/info.rs
+++ b/crates/narsil/narsil/src/ledger/info.rs
@@ -7,8 +7,8 @@ use std::{
 use futures::FutureExt;
 use penumbra_chain::component::{AppHashRead, StateReadExt};
 use penumbra_storage::Storage;
-use penumbra_tower_trace::v034::RequestExt;
-use tendermint::v0_34::abci::{self, response::Echo, InfoRequest, InfoResponse};
+use penumbra_tower_trace::v037::RequestExt;
+use tendermint::v0_37::abci::{self, response::Echo, InfoRequest, InfoResponse};
 use tower_abci::BoxError;
 use tracing::Instrument;
 
@@ -78,7 +78,6 @@ impl tower_service::Service<InfoRequest> for Info {
                 InfoRequest::Echo(echo) => Ok(InfoResponse::Echo(Echo {
                     message: echo.message,
                 })),
-                InfoRequest::SetOption(_) => todo!(),
             }
         }
         .instrument(span)
diff --git a/crates/narsil/narsil/src/ledger/mempool.rs b/crates/narsil/narsil/src/ledger/mempool.rs
index b77d35cecd..d03fbc6f22 100644
--- a/crates/narsil/narsil/src/ledger/mempool.rs
+++ b/crates/narsil/narsil/src/ledger/mempool.rs
@@ -2,9 +2,9 @@ use anyhow::Result;
 
 use penumbra_storage::{Snapshot, Storage};
 
-use tendermint::v0_34::abci::request::{CheckTx as CheckTxReq, CheckTxKind};
-use tendermint::v0_34::abci::response::CheckTx as CheckTxRsp;
-use tendermint::v0_34::abci::{MempoolRequest as Request, MempoolResponse as Response};
+use tendermint::v0_37::abci::request::{CheckTx as CheckTxReq, CheckTxKind};
+use tendermint::v0_37::abci::response::CheckTx as CheckTxRsp;
+use tendermint::v0_37::abci::{MempoolRequest as Request, MempoolResponse as Response};
 
 use tokio::sync::{mpsc, watch};
 use tower_actor::Message;
diff --git a/crates/narsil/narsil/src/ledger/snapshot.rs b/crates/narsil/narsil/src/ledger/snapshot.rs
index 7147c8fe64..bc297b42f0 100644
--- a/crates/narsil/narsil/src/ledger/snapshot.rs
+++ b/crates/narsil/narsil/src/ledger/snapshot.rs
@@ -5,7 +5,7 @@ use std::{
 };
 
 use futures::FutureExt;
-use tendermint::v0_34::abci::{SnapshotRequest, SnapshotResponse};
+use tendermint::v0_37::abci::{SnapshotRequest, SnapshotResponse};
 use tower_abci::BoxError;
 
 #[derive(Clone, Debug)]
diff --git a/crates/proto/src/gen/proto_descriptor.bin.no_lfs b/crates/proto/src/gen/proto_descriptor.bin.no_lfs
index 7aa438f4b1..fa7db136d4 100644
Binary files a/crates/proto/src/gen/proto_descriptor.bin.no_lfs and b/crates/proto/src/gen/proto_descriptor.bin.no_lfs differ
diff --git a/deployments/scripts/smoke-test.sh b/deployments/scripts/smoke-test.sh
index 5033791abc..1f605741f8 100755
--- a/deployments/scripts/smoke-test.sh
+++ b/deployments/scripts/smoke-test.sh
@@ -34,6 +34,9 @@ TESTNET_RUNTIME="${TESTNET_RUNTIME:-120}"
 # Duration that the network will run before integration tests are run.
 TESTNET_BOOTTIME="${TESTNET_BOOTTIME:-20}"
 
+echo "Building latest version of pd from source..."
+cargo build --quiet --release --bin pd
+
 echo "Generating testnet config..."
 EPOCH_DURATION="${EPOCH_DURATION:-100}"
 cargo run --quiet --release --bin pd -- testnet generate --epoch-duration "$EPOCH_DURATION" --timeout-commit 500ms
diff --git a/justfile b/justfile
new file mode 100644
index 0000000000..878678ec3e
--- /dev/null
+++ b/justfile
@@ -0,0 +1,5 @@
+devnet:
+    # removing previous state for penumbra networks
+    rm -rf ~/.penumbra/testnet_data
+    # generate local devnet config
+    cargo run --release --bin pd -- testnet generate