diff --git a/.env b/.env
index 86b4545..60dbe08 100644
--- a/.env
+++ b/.env
@@ -2,11 +2,11 @@ COMPOSE_FILE=network.yml:contracts.yml:subnet-topos.yml:subnet-incal.yml:executo
 COMPOSE_PROJECT_NAME=infra
 
 # Topos Subnet
-export TOPOS_HOST_PORT=10002
+TOPOS_HOST_PORT=10002
 TOPOS_CHAIN_ID=2357
 
 # Incal
-export INCAL_HOST_PORT=20002
+INCAL_HOST_PORT=20002
 INCAL_CHAIN_ID=2358
 INCAL_LOGO_URL=https://toposware.com/logo-incal.svg
 
@@ -25,7 +25,7 @@ REDIS_PORT=6379
 TOPOS_EDGE_VERSION=1.3.0-topos
 
 # Find latest here: https://github.com/topos-protocol/topos-smart-contracts/releases
-TOPOS_MESSAGING_PROTOCOL_CONTRACTS_VERSION=3.3.0
+TOPOS_MESSAGING_PROTOCOL_CONTRACTS_VERSION=3.2.0
 
 # Find latest here: https://github.com/topos-protocol/topos/releases
 TOPOS_VERSION=0.0.11
@@ -34,4 +34,4 @@ TOPOS_VERSION=0.0.11
 EXECUTOR_SERVICE_VERSION=1.2.0
 
 # TESTS
-export LOCAL_ERC20_HOME=./
+LOCAL_ERC20_HOME=./
diff --git a/.env.secrets b/.env.secrets
index b6c4d1f..1a15605 100644
--- a/.env.secrets
+++ b/.env.secrets
@@ -1,8 +1,8 @@
-export PRIVATE_KEY=0xd7e2e00b43c12cf17239d4755ed744df6ca70a933fc7c8bbb7da1342a5ff2e38
-export TOKEN_DEPLOYER_SALT=m1Ln9uF9MGZ2PcR
-export TOPOS_CORE_SALT=dCyN8VZz5sXgqMO
-export TOPOS_CORE_PROXY_SALT=aRV8Mp9o4xRpLbF
-export ERC20_MESSAGING_SALT=ho37cJbGkgI6vnp
-export SUBNET_REGISTRATOR_SALT=azsRlXyGu0ty291
-export AUTH0_CLIENT_ID=xVF6EuPDaazQchfjFpGAdcJUpHk2W5I2
-export AUTH0_CLIENT_SECRET=-CrwnrgSx1EaP_oaKAFXFdqrIvA4WK8Pcpd5xC4o3ZfYB4H4V4FPHfEbqpu4KZN8
+PRIVATE_KEY=0xd7e2e00b43c12cf17239d4755ed744df6ca70a933fc7c8bbb7da1342a5ff2e38
+TOKEN_DEPLOYER_SALT=m1Ln9uF9MGZ2PcR
+TOPOS_CORE_SALT=dCyN8VZz5sXgqMO
+TOPOS_CORE_PROXY_SALT=aRV8Mp9o4xRpLbF
+ERC20_MESSAGING_SALT=ho37cJbGkgI6vnp
+SUBNET_REGISTRATOR_SALT=azsRlXyGu0ty291
+AUTH0_CLIENT_ID=xVF6EuPDaazQchfjFpGAdcJUpHk2W5I2
+AUTH0_CLIENT_SECRET=-CrwnrgSx1EaP_oaKAFXFdqrIvA4WK8Pcpd5xC4o3ZfYB4H4V4FPHfEbqpu4KZN8
diff --git a/.github/workflows/test:e2e.yml b/.github/workflows/test:e2e.yml
index 28ca17f..36dbfef 100644
--- a/.github/workflows/test:e2e.yml
+++ b/.github/workflows/test:e2e.yml
@@ -17,4 +17,4 @@ jobs:
           workflow_file_name: frontend:erc20-messaging.yml
           ref: main
           wait_interval: 60
-          client_payload: '{ "local-erc20-messaging-infra-ref": "${{ github.head_ref }}" }'
+          client_payload: '{ "local-erc20-messaging-infra-ref": "${{ github.head_ref }}", "e2e-test-type": "light" }'
diff --git a/scripts/sequencer-init.sh b/scripts/sequencer-init.sh
new file mode 100755
index 0000000..a52c419
--- /dev/null
+++ b/scripts/sequencer-init.sh
@@ -0,0 +1,57 @@
+#!/bin/bash
+
+# This script is used to initialize a sequencer node in local-ERC20 tests
+# It replaces the default topos command by this script manipulating resources
+# and updating configurations.
+#
+# What it does:
+# 1. Install net-tools package to use netstat command in the healthcheck
+# 2. Copy consensus and libp2p directories from $DATA_FOLDER to $CONFIG_FOLDER
+# 3. Copy genesis.json from $GENESIS_FOLDER to $SUBNET_FOLDER
+# 4. Start the sequencer node using topos node up command
+
+set -e
+
+if [[ -z "${SUBNET}" ]]; then
+    echo "SUBNET is not set"
+    exit 1
+fi
+
+if [[ -z "${CONFIG_FOLDER}" ]]; then
+    echo "CONFIG_FOLDER is not set"
+    exit 1
+fi
+
+if [[ -z "${DATA_FOLDER}" ]]; then
+    echo "DATA_FOLDER is not set"
+    exit 1
+fi
+
+if [[ -z "${GENESIS_FOLDER}" ]]; then
+    echo "GENESIS_FOLDER is not set"
+    exit 1
+fi
+
+if [[ -z "${SUBNET_FOLDER}" ]]; then
+    echo "SUBNET_FOLDER is not set"
+    exit 1
+fi
+
+apt-get update
+apt-get install -y net-tools
+source /contracts/.env
+
+mkdir -p $CONFIG_FOLDER/node/sequencer-$SUBNET/consensus -p $CONFIG_FOLDER/node/sequencer-$SUBNET/libp2p -p $SUBNET_FOLDER
+
+cp -vr $DATA_FOLDER/consensus $CONFIG_FOLDER/node/sequencer-$SUBNET/
+cp -vr $DATA_FOLDER/libp2p $CONFIG_FOLDER/node/sequencer-$SUBNET/
+cp -vr $GENESIS_FOLDER/genesis.json $SUBNET_FOLDER/genesis.json
+
+cp -f $CONFIG_FOLDER/node/sequencer-$SUBNET/config.toml $CONFIG_FOLDER/node/sequencer-$SUBNET/config.toml.new
+sed -i -e '/subnet-contract-address =/ s/= .*/= "'$TOPOS_CORE_PROXY_CONTRACT_ADDRESS'"/' $CONFIG_FOLDER/node/sequencer-$SUBNET/config.toml.new
+cp -f $CONFIG_FOLDER/node/sequencer-$SUBNET/config.toml.new $CONFIG_FOLDER/node/sequencer-$SUBNET/config.toml
+
+echo "Topos Core contract address: $TOPOS_CORE_PROXY_CONTRACT_ADDRESS, set manually in config"
+
+topos node up --name sequencer-$SUBNET --home $CONFIG_FOLDER --no-edge-process
+
diff --git a/subnet-incal.yml b/subnet-incal.yml
index e2c4696..bd9e6e7 100644
--- a/subnet-incal.yml
+++ b/subnet-incal.yml
@@ -161,6 +161,7 @@ services:
     container_name: incal-sequencer
     init: true
     volumes:
+      - ./scripts/sequencer-init.sh:/tmp/init.sh
       - contracts:/contracts
       - incal-data:/data
       - ./node_config/node/sequencer-incal/config.toml:/tmp/node_config/node/sequencer-incal/config.toml
@@ -173,21 +174,18 @@ services:
         condition: service_completed_successfully
       incal-node-4:
         condition: service_healthy
-    entrypoint: ""
-    command: bash -c "
-      apt-get update && apt-get install -y net-tools &&
-      source /contracts/.env &&
-      cp -vr /data/data-1/consensus /tmp/node_config/node/sequencer-incal/consensus &&
-      cp -vr /data/data-1/libp2p /tmp/node_config/node/sequencer-incal/libp2p &&
-      mkdir -p /tmp/node_config/subnet/incal/ &&
-      cp -v /data/genesis.json /tmp/node_config/subnet/incal/genesis.json  &&
-      echo Topos core contract address=$(printenv TOPOS_CORE_PROXY_CONTRACT_ADDRESS), set manually in config &&
-      topos node up --name sequencer-incal --home /tmp/node_config --no-edge-process"
+    entrypoint: "bash -c"
+    command: /tmp/init.sh
     healthcheck:
       test: ["CMD-SHELL", "test $(netstat -ntu | grep ':8545' | wc -l) -gt 0"]
       interval: 1s
       retries: 10
     environment:
+      - SUBNET=incal
+      - DATA_FOLDER=/data/data-1
+      - CONFIG_FOLDER=/tmp/node_config
+      - GENESIS_FOLDER=/data
+      - SUBNET_FOLDER=/tmp/node_config/subnet/incal
       - RUST_LOG=info,topos=debug
       - TOOLCHAIN_VERSION=stable
       - RUST_BACKTRACE=full
diff --git a/subnet-topos.yml b/subnet-topos.yml
index 425b2db..3d40b6c 100644
--- a/subnet-topos.yml
+++ b/subnet-topos.yml
@@ -226,6 +226,7 @@ services:
     container_name: topos-sequencer
     init: true
     volumes:
+      - ./scripts/sequencer-init.sh:/tmp/init.sh
       - contracts:/contracts
       - topos-data:/data
       - ./node_config/node/sequencer-topos/config.toml:/data/node/sequencer-topos/config.toml
@@ -234,21 +235,18 @@ services:
         condition: service_healthy
       contracts-topos:
         condition: service_completed_successfully
-    entrypoint: ""
-    command: bash -c "
-      apt-get update && apt-get install -y net-tools &&
-      source /contracts/.env &&
-      mkdir -p /data/node/sequencer-topos/consensus -p /data/node/sequencer-topos/libp2p -p /data/subnet/topos-sequencer/ &&
-      cp -vr /data/node/node-1/consensus /data/node/sequencer-topos/ &&
-      cp -vr /data/node/node-1/libp2p /data/node/sequencer-topos/ &&
-      cp -vr /data/subnet/topos/genesis.json /data/subnet/topos-sequencer/genesis.json &&
-      echo \"Topos Core contract address:\" $(printenv TOPOS_CORE_PROXY_CONTRACT_ADDRESS), set manually in config &&
-      topos node up --name sequencer-topos --home /data/ --no-edge-process"
+    entrypoint: "bash -c"
+    command: /tmp/init.sh
     healthcheck:
       test: ["CMD-SHELL", "test $(netstat -ntu | grep ':8545' | wc -l) -gt 0"]
       interval: 1s
       retries: 10
     environment:
+      - SUBNET=topos
+      - DATA_FOLDER=/data/node/node-1
+      - CONFIG_FOLDER=/data
+      - GENESIS_FOLDER=/data/subnet/topos
+      - SUBNET_FOLDER=/data/subnet/topos-sequencer
       - RUST_LOG=info,topos=debug
       - TOOLCHAIN_VERSION=stable
       - RUST_BACKTRACE=full
diff --git a/tests/README.md b/tests/README.md
index cf7fbed..5e8397a 100644
--- a/tests/README.md
+++ b/tests/README.md
@@ -19,7 +19,7 @@ $ npm install
 Then, edit the `.env` file to your liking. The default values should work for most cases. Then, source the `.env` file:
 
 ```sh
-$ source .env
+$ source ./tests/environment.sh
 ```
 
 To run the tests, execute the tests from the root of the repository:
@@ -29,6 +29,11 @@ $ ./tests/<NAME_OF_TEST>.sh
 # e.g. ./tests/test_network_health.sh
 ```
 
+After your tests if you want to unset the environment variables:
+
+```sh
+source ./tests/environment.sh unset
+```
 ### Notes
 
 - The tests use TypeScript scripts to interact with the infrastructure. These scripts can be found in the `./scripts` directory. Currently, there are two main scripts available:
diff --git a/tests/environment.sh b/tests/environment.sh
new file mode 100755
index 0000000..3be4a47
--- /dev/null
+++ b/tests/environment.sh
@@ -0,0 +1,27 @@
+#!/bin/bash
+
+# This script is used to set up the environment variables for the local test environment
+# It reads the .env and .env.secrets files and sets the environment variables accordingly
+# If the first argument is "unset", it will unset the environment variables instead of setting them
+
+if test -f .env; then
+    if [ "$1" = "unset" ]; then
+        echo "Unsetting local test environment based on .env file"
+        unset $(grep -v '^#' .env | sed -E 's/(.*)=.*/\1/' | xargs)
+    else
+        echo "Setting up local test environment based on .env file"
+        export $(grep -v '^#' .env | xargs)
+    fi
+else
+    echo ".env file doesn't exists, this command do nothing"
+fi
+
+if test -f .env.secrets; then
+   if [ "$1" = "unset" ]; then
+        echo "Unsetting local test environment based on .env.secrets file"
+        unset $(grep -v '^#' .env.secrets | sed -E 's/(.*)=.*/\1/' | xargs)
+    else
+        echo "Setting up local test environment based on .env.secrets file"
+        export $(grep -v '^#' .env.secrets | xargs)
+    fi
+fi
diff --git a/tests/network.sh b/tests/network.sh
index b777874..74e87fa 100755
--- a/tests/network.sh
+++ b/tests/network.sh
@@ -1,21 +1,27 @@
 #!/bin/bash
 set -e
 
+if [[ -z "${LOCAL_ERC20_HOME}" ]]; then
+    echo "You need to setup the environment first. For local tests: source ./tests/environment.sh"
+    exit 1
+fi
+
 source $LOCAL_ERC20_HOME/tests/utils.sh
 
-if [ $1 = 'start' ]; then
+if [ "$1" = 'start' ]; then
     start_network
     exit $?
-elif [ $1 = 'stop' ]; then
+elif [ "$1" = 'stop' ]; then
     stop_network
     exit $?
-elif [ $1 = 'check' ]; then
+elif [ "$1" = 'check' ]; then
     check_network_health
     exit $?
-elif [ $1 = 'is_running' ]; then
+elif [ "$1" = 'is_running' ]; then
     is_network_running
     exit $?        
 else
     echo "Invalid argument"
+    echo "Usage: network.sh [start|stop|check|is_running]"
     exit 1
 fi
diff --git a/tests/test_cert_delivery.sh b/tests/test_cert_delivery.sh
index 088f912..857c2a8 100755
--- a/tests/test_cert_delivery.sh
+++ b/tests/test_cert_delivery.sh
@@ -1,8 +1,12 @@
 #!/bin/bash
 set -e
 
-source $LOCAL_ERC20_HOME/tests/utils.sh
+if [[ -z "${LOCAL_ERC20_HOME}" ]]; then
+    echo "You need to setup the environment first. For local tests: source ./tests/environment.sh"
+    exit 1
+fi
 
+source $LOCAL_ERC20_HOME/tests/utils.sh
 
 function get_last_sequncer_generated_certificate () {
     # $1 - node name
diff --git a/tests/test_cert_inclusion.sh b/tests/test_cert_inclusion.sh
index d50371d..3b06093 100755
--- a/tests/test_cert_inclusion.sh
+++ b/tests/test_cert_inclusion.sh
@@ -1,6 +1,11 @@
 #!/bin/bash
 set -e
 
+if [[ -z "${LOCAL_ERC20_HOME}" ]]; then
+    echo "You need to setup the environment first. For local tests: source ./tests/environment.sh"
+    exit 1
+fi
+
 source $LOCAL_ERC20_HOME/tests/utils.sh
 
 
diff --git a/tests/test_cert_production.sh b/tests/test_cert_production.sh
index af5174c..41265a6 100755
--- a/tests/test_cert_production.sh
+++ b/tests/test_cert_production.sh
@@ -1,6 +1,11 @@
 #!/bin/bash
 set -e
 
+if [[ -z "${LOCAL_ERC20_HOME}" ]]; then
+    echo "You need to setup the environment first. For local tests: source ./tests/environment.sh"
+    exit 1
+fi
+
 source $LOCAL_ERC20_HOME/tests/utils.sh
 
 
diff --git a/tests/test_cert_sequencer_delivery.sh b/tests/test_cert_sequencer_delivery.sh
index 2e2ff12..a8def29 100755
--- a/tests/test_cert_sequencer_delivery.sh
+++ b/tests/test_cert_sequencer_delivery.sh
@@ -1,6 +1,11 @@
 #!/bin/bash
 set -e
 
+if [[ -z "${LOCAL_ERC20_HOME}" ]]; then
+    echo "You need to setup the environment first. For local tests: source ./tests/environment.sh"
+    exit 1
+fi
+
 source $LOCAL_ERC20_HOME/tests/utils.sh
 
 
diff --git a/tests/test_network_health.sh b/tests/test_network_health.sh
index 5f6c6a5..00cc03a 100755
--- a/tests/test_network_health.sh
+++ b/tests/test_network_health.sh
@@ -1,6 +1,11 @@
 #!/bin/bash
 set -e
 
+if [[ -z "${LOCAL_ERC20_HOME}" ]]; then
+    echo "You need to setup the environment first. For local tests: source ./tests/environment.sh"
+    exit 1
+fi
+
 source $LOCAL_ERC20_HOME/tests/utils.sh
 
 
diff --git a/tests/test_transaction_in_certificate.sh b/tests/test_transaction_in_certificate.sh
index 36b5dca..b357917 100755
--- a/tests/test_transaction_in_certificate.sh
+++ b/tests/test_transaction_in_certificate.sh
@@ -1,13 +1,18 @@
 #!/bin/bash
 set -e
 
+if [[ -z "${LOCAL_ERC20_HOME}" ]]; then
+    echo "You need to setup the environment first. For local tests: source ./tests/environment.sh"
+    exit 1
+fi
+
 source $LOCAL_ERC20_HOME/tests/utils.sh
 
 
 function get_transaction_in_certificate()
 {
     echo $(docker compose logs incal-sequencer | grep "CrossSubnetMessageSentFilter" | \
-     awk -F 'transaction_hash: ' '{print $2}' | awk -F ',' '{print $1'} | tail -1)
+     awk -F 'transaction_hash: ' '{print $2}' | awk -F ',' '{print $1}' | tail -1)
 }
 
 
@@ -29,6 +34,11 @@ wait_network_healthy
 echo "Executing test of transaction inclusion in certificate..."
 check_artifacts
 topos_subnet_id=$(get_topos_subnet_id)
+
+echo "Checking connectivity with incal node 1"
+echo "Dialing incal node 1 on localhost:$INCAL_HOST_PORT"
+nc -z localhost $INCAL_HOST_PORT
+
 tx_hash=$(send_token_with_retry 3 $topos_subnet_id $INCAL_HOST_PORT "txhash")
 transaction_valid=$?
 echo "Transaction send token result: $transaction_valid, tx hash: $tx_hash"