diff --git a/.circleci/config.yml b/.circleci/config.yml
index 41e809207..4f806b00f 100644
--- a/.circleci/config.yml
+++ b/.circleci/config.yml
@@ -60,15 +60,15 @@ jobs:
       - restore_cache:
           key: v1-specs-repo-{{ .Branch }}-{{ .Revision }}
       - restore_cached_venv:
-          venv_name: v1-test_libs
-          reqs_checksum: '{{ checksum "test_libs/pyspec/setup.py" }}'
+          venv_name: v1-pyspec
+          reqs_checksum: '{{ checksum "test_libs/pyspec/requirements.txt" }}-{{ checksum "test_libs/pyspec/requirements-testing.txt" }}'
       - run:
           name: Install pyspec requirements
           command: make install_test
       - save_cached_venv:
-          venv_name: v1-test_libs
-          reqs_checksum: '{{ checksum "test_libs/pyspec/setup.py" }}'
-          venv_path: ./test_libs/venv
+          venv_name: v1-pyspec
+          reqs_checksum: '{{ checksum "test_libs/pyspec/requirements.txt" }}-{{ checksum "test_libs/pyspec/requirements-testing.txt" }}'
+          venv_path: ./test_libs/pyspec/venv
   test:
     docker:
       - image: circleci/python:3.6
@@ -77,8 +77,8 @@ jobs:
       - restore_cache:
           key: v1-specs-repo-{{ .Branch }}-{{ .Revision }}
       - restore_cached_venv:
-          venv_name: v1-test_libs
-          reqs_checksum: '{{ checksum "test_libs/pyspec/setup.py" }}'
+          venv_name: v1-pyspec
+          reqs_checksum: '{{ checksum "test_libs/pyspec/requirements.txt" }}-{{ checksum "test_libs/pyspec/requirements-testing.txt" }}'
       - run:
           name: Run py-tests
           command: make citest
diff --git a/.gitignore b/.gitignore
index 84938d298..3dd86fc80 100644
--- a/.gitignore
+++ b/.gitignore
@@ -4,10 +4,6 @@ venv
 .venvs
 .venv
 /.pytest_cache
-*.egg
-*.egg-info
-eggs
-.eggs
 
 build/
 output/
@@ -17,6 +13,3 @@ eth2.0-spec-tests/
 
 # Dynamically built from Markdown spec
 test_libs/pyspec/eth2spec/phase0/spec.py
-
-# vscode
-.vscode/**
diff --git a/Makefile b/Makefile
index 135124898..73d8adea8 100644
--- a/Makefile
+++ b/Makefile
@@ -2,7 +2,6 @@ SPEC_DIR = ./specs
 SCRIPT_DIR = ./scripts
 TEST_LIBS_DIR = ./test_libs
 PY_SPEC_DIR = $(TEST_LIBS_DIR)/pyspec
-CONFIG_HELPERS_DIR = $(TEST_LIBS_DIR)/config_helpers
 YAML_TEST_DIR = ./eth2.0-spec-tests/tests
 GENERATOR_DIR = ./test_generators
 CONFIGS_DIR = ./configs
@@ -24,8 +23,7 @@ all: $(PY_SPEC_ALL_TARGETS) $(YAML_TEST_DIR) $(YAML_TEST_TARGETS)
 clean:
 	rm -rf $(YAML_TEST_DIR)
 	rm -rf $(GENERATOR_VENVS)
-	rm -rf $(TEST_LIBS_DIR)/venv
-	rm -rf $(PY_SPEC_DIR)/.pytest_cache
+	rm -rf $(PY_SPEC_DIR)/venv $(PY_SPEC_DIR)/.pytest_cache
 	rm -rf $(PY_SPEC_ALL_TARGETS)
 
 # "make gen_yaml_tests" to run generators
@@ -33,17 +31,13 @@ gen_yaml_tests: $(PY_SPEC_ALL_TARGETS) $(YAML_TEST_TARGETS)
 
 # installs the packages to run pyspec tests
 install_test:
-	cd $(TEST_LIBS_DIR); python3 -m venv venv; . venv/bin/activate; \
-	cd ..; cd $(CONFIG_HELPERS_DIR); pip3 install -e .; \
-	cd ../..; cd $(PY_SPEC_DIR); pip3 install -e .[dev];
+	cd $(PY_SPEC_DIR); python3 -m venv venv; . venv/bin/activate; pip3 install -r requirements-testing.txt;
 
 test: $(PY_SPEC_ALL_TARGETS)
-	cd $(TEST_LIBS_DIR); . venv/bin/activate; \
-	cd ..; cd $(PY_SPEC_DIR); python -m pytest .;
+	cd $(PY_SPEC_DIR); . venv/bin/activate; python -m pytest .
 
 citest: $(PY_SPEC_ALL_TARGETS)
-	cd $(TEST_LIBS_DIR); . venv/bin/activate; \
-	cd ..; cd $(PY_SPEC_DIR); mkdir -p test-reports/eth2spec; python -m pytest --junitxml=test-reports/eth2spec/test_results.xml .
+	cd $(PY_SPEC_DIR); mkdir -p test-reports/eth2spec; . venv/bin/activate; python -m pytest --junitxml=test-reports/eth2spec/test_results.xml .
 
 # "make pyspec" to create the pyspec for all phases.
 pyspec: $(PY_SPEC_ALL_TARGETS)
diff --git a/configs/constant_presets/mainnet.yaml b/configs/constant_presets/mainnet.yaml
index d63c617b7..72d0fdc8f 100644
--- a/configs/constant_presets/mainnet.yaml
+++ b/configs/constant_presets/mainnet.yaml
@@ -15,6 +15,8 @@ MAX_INDICES_PER_ATTESTATION: 4096
 MIN_PER_EPOCH_CHURN_LIMIT: 4
 # 2**16 (= 65,536)
 CHURN_LIMIT_QUOTIENT: 65536
+# Normalizes base rewards
+BASE_REWARDS_PER_EPOCH: 5
 # See issue 563
 SHUFFLE_ROUND_COUNT: 90
 
@@ -36,7 +38,7 @@ MAX_EFFECTIVE_BALANCE: 32000000000
 # 2**4 * 10**9 (= 16,000,000,000) Gwei
 EJECTION_BALANCE: 16000000000
 # 2**0 * 10**9 (= 1,000,000,000) Gwei
-HIGH_BALANCE_INCREMENT: 1000000000
+EFFECTIVE_BALANCE_INCREMENT: 1000000000
 
 
 # Initial values
@@ -71,6 +73,8 @@ MIN_VALIDATOR_WITHDRAWABILITY_DELAY: 256
 PERSISTENT_COMMITTEE_PERIOD: 2048
 # 2**6 (= 64) epochs ~7 hours
 MAX_CROSSLINK_EPOCHS: 64
+# 2**2 (= 4) epochs 25.6 minutes
+MIN_EPOCHS_TO_INACTIVITY_PENALTY: 4
 
 
 # State list lengths
@@ -91,14 +95,14 @@ BASE_REWARD_QUOTIENT: 32
 WHISTLEBLOWING_REWARD_QUOTIENT: 512
 # 2**3 (= 8)
 PROPOSER_REWARD_QUOTIENT: 8
-# 2**24 (= 16,777,216)
-INACTIVITY_PENALTY_QUOTIENT: 16777216
+# 2**25 (= 33,554,432)
+INACTIVITY_PENALTY_QUOTIENT: 33554432
+# 2**5 (= 32)
+MIN_SLASHING_PENALTY_QUOTIENT: 32
 
 
 # Max operations per block
 # ---------------------------------------------------------------
-# 2**5 (= 32)
-MIN_PENALTY_QUOTIENT: 32
 # 2**4 (= 16)
 MAX_PROPOSER_SLASHINGS: 16
 # 2**0 (= 1)
diff --git a/configs/constant_presets/minimal.yaml b/configs/constant_presets/minimal.yaml
index 711f6737d..0a6cab687 100644
--- a/configs/constant_presets/minimal.yaml
+++ b/configs/constant_presets/minimal.yaml
@@ -6,7 +6,6 @@
 
 # [customized] Just 8 shards for testing purposes
 SHARD_COUNT: 8
-
 # [customized] unsecure, but fast
 TARGET_COMMITTEE_SIZE: 4
 # 2**12 (= 4,096)
@@ -15,6 +14,8 @@ MAX_INDICES_PER_ATTESTATION: 4096
 MIN_PER_EPOCH_CHURN_LIMIT: 4
 # 2**16 (= 65,536)
 CHURN_LIMIT_QUOTIENT: 65536
+# Normalizes base rewards
+BASE_REWARDS_PER_EPOCH: 5
 # [customized] Faster, but unsecure.
 SHUFFLE_ROUND_COUNT: 10
 
@@ -36,7 +37,7 @@ MAX_EFFECTIVE_BALANCE: 32000000000
 # 2**4 * 10**9 (= 16,000,000,000) Gwei
 EJECTION_BALANCE: 16000000000
 # 2**0 * 10**9 (= 1,000,000,000) Gwei
-HIGH_BALANCE_INCREMENT: 1000000000
+EFFECTIVE_BALANCE_INCREMENT: 1000000000
 
 
 # Initial values
@@ -71,6 +72,8 @@ MIN_VALIDATOR_WITHDRAWABILITY_DELAY: 256
 PERSISTENT_COMMITTEE_PERIOD: 2048
 # 2**6 (= 64) epochs ~7 hours
 MAX_CROSSLINK_EPOCHS: 64
+# 2**2 (= 4) epochs 25.6 minutes
+MIN_EPOCHS_TO_INACTIVITY_PENALTY: 4
 
 
 # State list lengths
@@ -91,14 +94,14 @@ BASE_REWARD_QUOTIENT: 32
 WHISTLEBLOWING_REWARD_QUOTIENT: 512
 # 2**3 (= 8)
 PROPOSER_REWARD_QUOTIENT: 8
-# 2**24 (= 16,777,216)
-INACTIVITY_PENALTY_QUOTIENT: 16777216
+# 2**25 (= 33,554,432)
+INACTIVITY_PENALTY_QUOTIENT: 33554432
+# 2**5 (= 32)
+MIN_SLASHING_PENALTY_QUOTIENT: 32
 
 
 # Max operations per block
 # ---------------------------------------------------------------
-# 2**5 (= 32)
-MIN_PENALTY_QUOTIENT: 32
 # 2**4 (= 16)
 MAX_PROPOSER_SLASHINGS: 16
 # 2**0 (= 1)
diff --git a/scripts/phase0/build_spec.py b/scripts/phase0/build_spec.py
index c8e115576..9d6b5180b 100644
--- a/scripts/phase0/build_spec.py
+++ b/scripts/phase0/build_spec.py
@@ -5,10 +5,8 @@ import function_puller
 def build_phase0_spec(sourcefile, outfile):
     code_lines = []
     code_lines.append("""
-    
 from typing import (
     Any,
-    Callable,
     Dict,
     List,
     NewType,
@@ -17,19 +15,16 @@ from typing import (
 from eth2spec.utils.minimal_ssz import *
 from eth2spec.utils.bls_stub import *
 
-
-    """)
+""")
     for i in (1, 2, 3, 4, 8, 32, 48, 96):
         code_lines.append("def int_to_bytes%d(x): return x.to_bytes(%d, 'little')" % (i, i))
 
     code_lines.append("""
+
 # stub, will get overwritten by real var
 SLOTS_PER_EPOCH = 64
 
 
-def slot_to_epoch(x): return x // SLOTS_PER_EPOCH
-
-
 Slot = NewType('Slot', int)  # uint64
 Epoch = NewType('Epoch', int)  # uint64
 Shard = NewType('Shard', int)  # uint64
@@ -38,9 +33,8 @@ Gwei = NewType('Gwei', int)  # uint64
 Bytes32 = NewType('Bytes32', bytes)  # bytes32
 BLSPubkey = NewType('BLSPubkey', bytes)  # bytes48
 BLSSignature = NewType('BLSSignature', bytes)  # bytes96
-Any = None
 Store = None
-    """)
+""")
 
     code_lines += function_puller.get_spec(sourcefile)
 
@@ -84,7 +78,7 @@ def apply_constants_preset(preset: Dict[str, Any]):
 
     # Deal with derived constants
     global_vars['GENESIS_EPOCH'] = slot_to_epoch(GENESIS_SLOT)
-    
+
     # Initialize SSZ types again, to account for changed lengths
     init_SSZ_types()
 """)
diff --git a/scripts/phase0/function_puller.py b/scripts/phase0/function_puller.py
index 635797d39..1fad41fa9 100644
--- a/scripts/phase0/function_puller.py
+++ b/scripts/phase0/function_puller.py
@@ -62,9 +62,10 @@ def get_spec(file_name: str) -> List[str]:
         code_lines.append('')
         for type_line in ssz_type:
             code_lines.append('    ' + type_line)
-    code_lines.append('')
+    code_lines.append('\n')
     code_lines.append('ssz_types = [' + ', '.join([f'\'{ssz_type_name}\'' for (ssz_type_name, _) in type_defs]) + ']')
-    code_lines.append('')
-    code_lines.append('def get_ssz_type_by_name(name: str) -> SSZType: return globals()[name]')
+    code_lines.append('\n')
+    code_lines.append('def get_ssz_type_by_name(name: str) -> SSZType:')
+    code_lines.append('    return globals()[name]')
     code_lines.append('')
     return code_lines
diff --git a/specs/core/0_beacon-chain.md b/specs/core/0_beacon-chain.md
index f496952fc..8edc7cbca 100644
--- a/specs/core/0_beacon-chain.md
+++ b/specs/core/0_beacon-chain.md
@@ -687,7 +687,6 @@ def is_slashable_validator(validator: Validator, epoch: Epoch) -> bool:
     Check if ``validator`` is slashable.
     """
     return validator.slashed is False and (validator.activation_epoch <= epoch < validator.withdrawable_epoch)
-
 ```
 
 ### `get_active_validator_indices`
@@ -857,10 +856,11 @@ def get_beacon_proposer_index(state: BeaconState) -> ValidatorIndex:
     shard = (get_epoch_start_shard(state, epoch) + offset) % SHARD_COUNT
     first_committee = get_crosslink_committee(state, epoch, shard)
     MAX_RANDOM_BYTE = 2**8 - 1
+    seed = generate_seed(state, epoch)
     i = 0
     while True:
         candidate_index = first_committee[(epoch + i) % len(first_committee)]
-        random_byte = hash(generate_seed(state, epoch) + int_to_bytes8(i // 32))[i % 32]
+        random_byte = hash(seed + int_to_bytes8(i // 32))[i % 32]
         effective_balance = state.validator_registry[candidate_index].effective_balance
         if effective_balance * MAX_RANDOM_BYTE >= MAX_EFFECTIVE_BALANCE * random_byte:
             return candidate_index
@@ -1206,7 +1206,7 @@ def get_genesis_beacon_state(genesis_validator_deposits: List[Deposit],
         process_deposit(state, deposit)
 
     # Process genesis activations
-    for index, validator in enumerate(state.validator_registry):
+    for validator in state.validator_registry:
         if validator.effective_balance >= MAX_EFFECTIVE_BALANCE:
             validator.activation_eligibility_epoch = GENESIS_EPOCH
             validator.activation_epoch = GENESIS_EPOCH
@@ -1409,15 +1409,14 @@ def get_base_reward(state: BeaconState, index: ValidatorIndex) -> Gwei:
     if adjusted_quotient == 0:
         return 0
     return state.validator_registry[index].effective_balance // adjusted_quotient // BASE_REWARDS_PER_EPOCH
-
 ```
 
 ```python
 def get_attestation_deltas(state: BeaconState) -> Tuple[List[Gwei], List[Gwei]]:
     previous_epoch = get_previous_epoch(state)
     total_balance = get_total_active_balance(state)
-    rewards = [0 for index in range(len(state.validator_registry))]
-    penalties = [0 for index in range(len(state.validator_registry))]
+    rewards = [0 for _ in range(len(state.validator_registry))]
+    penalties = [0 for _ in range(len(state.validator_registry))]
     eligible_validator_indices = [
         index for index, v in enumerate(state.validator_registry)
         if is_active_validator(v, previous_epoch) or (v.slashed and previous_epoch + 1 < v.withdrawable_epoch)
@@ -1453,7 +1452,7 @@ def get_attestation_deltas(state: BeaconState) -> Tuple[List[Gwei], List[Gwei]]:
             if index not in matching_target_attesting_indices:
                 penalties[index] += state.validator_registry[index].effective_balance * finality_delay // INACTIVITY_PENALTY_QUOTIENT
 
-    return [rewards, penalties]
+    return rewards, penalties
 ```
 
 ```python
@@ -1473,7 +1472,7 @@ def get_crosslink_deltas(state: BeaconState) -> Tuple[List[Gwei], List[Gwei]]:
                 rewards[index] += base_reward * attesting_balance // committee_balance
             else:
                 penalties[index] += base_reward
-    return [rewards, penalties]
+    return rewards, penalties
 ```
 
 Run the following function:
@@ -1512,6 +1511,7 @@ def process_registry_updates(state: BeaconState) -> None:
     ], key=lambda index: state.validator_registry[index].activation_eligibility_epoch)
     # Dequeued validators for activation up to churn limit (without resetting activation epoch)
     for index in activation_queue[:get_churn_limit(state)]:
+        validator = state.validator_registry[index]
         if validator.activation_epoch == FAR_FUTURE_EPOCH:
             validator.activation_epoch = get_delayed_activation_exit_epoch(get_current_epoch(state))
 ```
@@ -1553,10 +1553,10 @@ def process_final_updates(state: BeaconState) -> None:
         state.eth1_data_votes = []
     # Update effective balances with hysteresis
     for index, validator in enumerate(state.validator_registry):
-        balance = min(state.balances[index], MAX_EFFECTIVE_BALANCE)
+        balance = state.balances[index]
         HALF_INCREMENT = EFFECTIVE_BALANCE_INCREMENT // 2
         if balance < validator.effective_balance or validator.effective_balance + 3 * HALF_INCREMENT < balance:
-            validator.effective_balance = balance - balance % EFFECTIVE_BALANCE_INCREMENT
+            validator.effective_balance = min(balance - balance % EFFECTIVE_BALANCE_INCREMENT, MAX_EFFECTIVE_BALANCE)
     # Update start shard
     state.latest_start_shard = (state.latest_start_shard + get_shard_delta(state, current_epoch)) % SHARD_COUNT
     # Set active index root
@@ -1778,7 +1778,7 @@ def process_deposit(state: BeaconState, deposit: Deposit) -> None:
             activation_epoch=FAR_FUTURE_EPOCH,
             exit_epoch=FAR_FUTURE_EPOCH,
             withdrawable_epoch=FAR_FUTURE_EPOCH,
-            effective_balance=amount - amount % EFFECTIVE_BALANCE_INCREMENT
+            effective_balance=min(amount - amount % EFFECTIVE_BALANCE_INCREMENT, MAX_EFFECTIVE_BALANCE)
         ))
         state.balances.append(amount)
     else:
diff --git a/specs/core/0_deposit-contract.md b/specs/core/0_deposit-contract.md
index 6652ae2c2..6843e407e 100644
--- a/specs/core/0_deposit-contract.md
+++ b/specs/core/0_deposit-contract.md
@@ -9,13 +9,16 @@
     - [Table of contents](#table-of-contents)
     - [Introduction](#introduction)
     - [Constants](#constants)
-        - [Deposit contract](#time-parameters)
+        - [Gwei values](#gwei-values)
+        - [Contract](#contract)
     - [Ethereum 1.0 deposit contract](#ethereum-10-deposit-contract)
-        - [Deposit arguments](#deposit-arguments)
-        - [Withdrawal credentials](#withdrawal-credentials)
+        - [Arguments](#arguments)
+            - [Withdrawal credentials](#withdrawal-credentials)
+            - [Amount](#amount)
+    - [Event logs](#event-logs)
         - [`Deposit` logs](#deposit-logs)
         - [`Eth2Genesis` log](#eth2genesis-log)
-        - [Vyper code](#vyper-code)
+    - [Vyper code](#vyper-code)
 
 <!-- /TOC -->
 
@@ -25,22 +28,29 @@ This document represents is the specification for the beacon chain deposit contr
 
 ## Constants
 
-### Deposit contract
+### Gwei values
+
+| Name | Value | Unit |
+| - | - | - |
+| `FULL_DEPOSIT_AMOUNT` | `32 * 10**9` | Gwei |
+
+### Contract
 
 | Name | Value |
 | - | - |
 | `DEPOSIT_CONTRACT_ADDRESS` | **TBD** |
 | `DEPOSIT_CONTRACT_TREE_DEPTH` | `2**5` (= 32) |
+| `CHAIN_START_FULL_DEPOSIT_THRESHOLD` | `2**16` (=65,536) |
 
 ## Ethereum 1.0 deposit contract
 
 The initial deployment phases of Ethereum 2.0 are implemented without consensus changes to Ethereum 1.0. A deposit contract at address `DEPOSIT_CONTRACT_ADDRESS` is added to Ethereum 1.0 for deposits of ETH to the beacon chain. Validator balances will be withdrawable to the shards in phase 2, i.e. when the EVM2.0 is deployed and the shards have state.
 
-### Deposit arguments
+### Arguments
 
-The deposit contract has a single `deposit` function which takes as argument a SimpleSerialize'd `DepositData`.
+The deposit contract has a `deposit` function which takes the amount in Ethereum 1.0 transaction, and arguments `pubkey: bytes[48], withdrawal_credentials: bytes[32], signature: bytes[96]` corresponding to `DepositData`.
 
-### Withdrawal credentials
+#### Withdrawal credentials
 
 One of the `DepositData` fields is `withdrawal_credentials`. It is a commitment to credentials for withdrawals to shards. The first byte of `withdrawal_credentials` is a version number. As of now the only expected format is as follows:
 
@@ -49,13 +59,20 @@ One of the `DepositData` fields is `withdrawal_credentials`. It is a commitment
 
 The private key corresponding to `withdrawal_pubkey` will be required to initiate a withdrawal. It can be stored separately until a withdrawal is required, e.g. in cold storage.
 
+#### Amount
+
+* A valid deposit amount should be at least `MIN_DEPOSIT_AMOUNT` in Gwei.
+* A deposit with an amount greater than or equal to `FULL_DEPOSIT_AMOUNT` in Gwei is considered as a full deposit.
+
+## Event logs
+
 ### `Deposit` logs
 
-Every Ethereum 1.0 deposit, of size between `MIN_DEPOSIT_AMOUNT` and `MAX_DEPOSIT_AMOUNT`, emits a `Deposit` log for consumption by the beacon chain. The deposit contract does little validation, pushing most of the validator onboarding logic to the beacon chain. In particular, the proof of possession (a BLS12 signature) is not verified by the deposit contract.
+Every Ethereum 1.0 deposit, of size at least `MIN_DEPOSIT_AMOUNT`, emits a `Deposit` log for consumption by the beacon chain. The deposit contract does little validation, pushing most of the validator onboarding logic to the beacon chain. In particular, the proof of possession (a BLS12-381 signature) is not verified by the deposit contract.
 
 ### `Eth2Genesis` log
 
-When a sufficient amount of full deposits have been made, the deposit contract emits the `Eth2Genesis` log. The beacon chain state may then be initialized by calling the `get_genesis_beacon_state` function (defined below) where:
+When `CHAIN_START_FULL_DEPOSIT_THRESHOLD` of full deposits have been made, the deposit contract emits the `Eth2Genesis` log. The beacon chain state may then be initialized by calling the `get_genesis_beacon_state` function (defined below) where:
 
 * `genesis_time` equals `time` in the `Eth2Genesis` log
 * `latest_eth1_data.deposit_root` equals `deposit_root` in the `Eth2Genesis` log
@@ -63,7 +80,7 @@ When a sufficient amount of full deposits have been made, the deposit contract e
 * `latest_eth1_data.block_hash` equals the hash of the block that included the log
 * `genesis_validator_deposits` is a list of `Deposit` objects built according to the `Deposit` logs up to the deposit that triggered the `Eth2Genesis` log, processed in the order in which they were emitted (oldest to newest)
 
-### Vyper code
+## Vyper code
 
 The source for the Vyper contract lives in a [separate repository](https://github.com/ethereum/deposit_contract) at [https://github.com/ethereum/deposit_contract/blob/master/deposit_contract/contracts/validator_registration.v.py](https://github.com/ethereum/deposit_contract/blob/master/deposit_contract/contracts/validator_registration.v.py).
 
@@ -73,4 +90,4 @@ For convenience, we provide the interface to the contract here:
 
 * `__init__()`: initializes the contract
 * `get_deposit_root() -> bytes32`: returns the current root of the deposit tree
-* `deposit(bytes[512])`: adds a deposit instance to the deposit tree, incorporating the input argument and the value transferred in the given call. Note: the amount of value transferred *must* be within `MIN_DEPOSIT_AMOUNT` and `MAX_DEPOSIT_AMOUNT`, inclusive. Each of these constants are specified in units of Gwei.
+* `deposit(pubkey: bytes[48], withdrawal_credentials: bytes[32], signature: bytes[96])`: adds a deposit instance to the deposit tree, incorporating the input arguments and the value transferred in the given call. Note: the amount of value transferred *must* be at least `MIN_DEPOSIT_AMOUNT`. Each of these constants are specified in units of Gwei.
diff --git a/specs/core/0_fork-choice.md b/specs/core/0_fork-choice.md
index 0b19f1559..6936df55c 100644
--- a/specs/core/0_fork-choice.md
+++ b/specs/core/0_fork-choice.md
@@ -46,9 +46,9 @@ Note: Nodes needs to have a clock that is roughly (i.e. within `SECONDS_PER_SLOT
 
 ### Beacon chain fork choice rule
 
-The beacon chain fork choice rule is a hybrid that combines justification and finality with Latest Message Driven (LMD) Greediest Heaviest Observed SubTree (GHOST). At any point in time a [validator](#dfn-validator) `v` subjectively calculates the beacon chain head as follows.
+The beacon chain fork choice rule is a hybrid that combines justification and finality with Latest Message Driven (LMD) Greediest Heaviest Observed SubTree (GHOST). At any point in time a validator `v` subjectively calculates the beacon chain head as follows.
 
-* Abstractly define `Store` as the type of storage object for the chain data and `store` be the set of attestations and blocks that the [validator](#dfn-validator) `v` has observed and verified (in particular, block ancestors must be recursively verified). Attestations not yet included in any chain are still included in `store`.
+* Abstractly define `Store` as the type of storage object for the chain data and `store` be the set of attestations and blocks that the validator `v` has observed and verified (in particular, block ancestors must be recursively verified). Attestations not yet included in any chain are still included in `store`.
 * Let `finalized_head` be the finalized block with the highest epoch. (A block `B` is finalized if there is a descendant of `B` in `store` the processing of which sets `B` as finalized.)
 * Let `justified_head` be the descendant of `finalized_head` with the highest epoch that has been justified for at least 1 epoch. (A block `B` is justified if there is a descendant of `B` in `store` the processing of which sets `B` as justified.) If no such descendant exists set `justified_head` to `finalized_head`.
 * Let `get_ancestor(store: Store, block: BeaconBlock, slot: Slot) -> BeaconBlock` be the ancestor of `block` with slot number `slot`. The `get_ancestor` function can be defined recursively as:
@@ -66,7 +66,7 @@ def get_ancestor(store: Store, block: BeaconBlock, slot: Slot) -> BeaconBlock:
         return get_ancestor(store, store.get_parent(block), slot)
 ```
 
-* Let `get_latest_attestation(store: Store, index: ValidatorIndex) -> Attestation` be the attestation with the highest slot number in `store` from the validator with the given `index`. If several such attestations exist, use the one the [validator](#dfn-validator) `v` observed first.
+* Let `get_latest_attestation(store: Store, index: ValidatorIndex) -> Attestation` be the attestation with the highest slot number in `store` from the validator with the given `index`. If several such attestations exist, use the one the validator `v` observed first.
 * Let `get_latest_attestation_target(store: Store, index: ValidatorIndex) -> BeaconBlock` be the target block in the attestation `get_latest_attestation(store, index)`.
 * Let `get_children(store: Store, block: BeaconBlock) -> List[BeaconBlock]` returns the child blocks of the given `block`.
 * Let `justified_head_state` be the resulting `BeaconState` object from processing the chain up to the `justified_head`.
diff --git a/specs/validator/0_beacon-chain-validator.md b/specs/validator/0_beacon-chain-validator.md
index 3da1615a4..82f740f7d 100644
--- a/specs/validator/0_beacon-chain-validator.md
+++ b/specs/validator/0_beacon-chain-validator.md
@@ -224,7 +224,7 @@ Up to `MAX_ATTESTATIONS` aggregate attestations can be included in the `block`.
 
 ##### Deposits
 
-If there are any unprocessed deposits for the existing `state.latest_eth1_data` (i.e. `state.latest_eth1_data.deposit_count > state.deposit_index`), then pending deposits _must_ be added to the block. The expected number of deposits is exactly `min(MAX_DEPOSITS, latest_eth1_data.deposit_count - state.deposit_index)`.  These [`deposits`](../core/0_beacon-chain.md#deposit) are constructed from the `Deposit` logs from the [Eth1.0 deposit contract](../core/0_deposit-contract.md) and must be processed in sequential order. The deposits included in the `block` must satisfy the verification conditions found in [deposits processing](../core/0_beacon-chain.md#deposits).
+If there are any unprocessed deposits for the existing `state.latest_eth1_data` (i.e. `state.latest_eth1_data.deposit_count > state.deposit_index`), then pending deposits _must_ be added to the block. The expected number of deposits is exactly `min(MAX_DEPOSITS, latest_eth1_data.deposit_count - state.deposit_index)`.  These [`deposits`](../core/0_beacon-chain.md#deposit) are constructed from the `Deposit` logs from the [Eth1.0 deposit contract](../core/0_deposit-contract) and must be processed in sequential order. The deposits included in the `block` must satisfy the verification conditions found in [deposits processing](../core/0_beacon-chain.md#deposits).
 
 The `proof` for each deposit must be constructed against the deposit root contained in `state.latest_eth1_data` rather than the deposit root at the time the deposit was initially logged from the 1.0 chain. This entails storing a full deposit merkle tree locally and computing updated proofs against the `latest_eth1_data.deposit_root` as needed. See [`minimal_merkle.py`](https://github.com/ethereum/research/blob/master/spec_pythonizer/utils/merkle_minimal.py) for a sample implementation.
 
diff --git a/test_generators/README.md b/test_generators/README.md
index 94db105c0..43bf7af03 100644
--- a/test_generators/README.md
+++ b/test_generators/README.md
@@ -1,23 +1,22 @@
-# Eth2.0 Test Generators
+# Eth 2.0 Test Generators
 
 This directory contains all the generators for YAML tests, consumed by Eth 2.0 client implementations.
 
-Any issues with the generators and/or generated tests should be filed
- in the repository that hosts the generator outputs, here: [ethereum/eth2.0-tests](https://github.com/ethereum/eth2.0-tests/).
+Any issues with the generators and/or generated tests should be filed in the repository that hosts the generator outputs, here: [ethereum/eth2.0-tests](https://github.com/ethereum/eth2.0-tests).
 
-Whenever a release is made, the new tests are automatically built and
+Whenever a release is made, the new tests are automatically built, and
 [eth2TestGenBot](https://github.com/eth2TestGenBot) commits the changes to the test repository.
 
 ## How to run generators
 
-pre-requisites:
+Prerequisites:
 - Python 3 installed
 - PIP 3
 - GNU make
 
 ### Cleaning
 
-This removes the existing virtual environments (`/test_generators/<generator>/venv`), and generated tests (`/yaml_tests/`).
+This removes the existing virtual environments (`/test_generators/<generator>/venv`) and generated tests (`/yaml_tests/`).
 
 ```bash
 make clean 
@@ -25,7 +24,7 @@ make clean
 
 ### Running all test generators
 
-This runs all the generators.
+This runs all of the generators.
 
 ```bash
 make -j 4 gen_yaml_tests
@@ -36,8 +35,7 @@ The `-j N` flag makes the generators run in parallel, with `N` being the amount
 
 ### Running a single generator
 
-The make file auto-detects generators in the `test_generators/` directory,
- and provides a tests-gen target for each generator, see example.
+The makefile auto-detects generators in the `test_generators` directory and provides a tests-gen target for each generator. See example:
 
 ```bash
 make ./yaml_tests/shuffling/
@@ -45,7 +43,7 @@ make ./yaml_tests/shuffling/
 
 ## Developing a generator
 
-Simply open up the generator (not all at once) of choice in your favorite IDE/editor, and run:
+Simply open up the generator (not all at once) of choice in your favorite IDE/editor and run:
 
 ```bash
 # From the root of the generator directory:
@@ -65,19 +63,19 @@ eth-utils==1.4.1
 ../../test_libs/config_helpers
 ../../test_libs/pyspec
 ```
-The config helper and pyspec is optional, but preferred. We encourage generators to derive tests from the spec itself, to prevent code duplication and outdated tests.
-Applying configurations to the spec is simple, and enables you to create test suites with different contexts.
+The config helper and pyspec is optional, but preferred. We encourage generators to derive tests from the spec itself in order to prevent code duplication and outdated tests.
+Applying configurations to the spec is simple and enables you to create test suites with different contexts.
 
-Note: make sure to run `make pyspec` from the root of the specs repository, to build the pyspec requirement.
+Note: make sure to run `make pyspec` from the root of the specs repository in order to build the pyspec requirement.
 
 Install all the necessary requirements (re-run when you add more):
 ```bash
-pip3 install -e .[pyspec]
+pip3 install -r requirements.txt
 ```
 
 And write your initial test generator, extending the base generator:
 
-Write a `main.py` file, here's an example:
+Write a `main.py` file. See example:
 
 ```python
 from gen_base import gen_runner, gen_suite, gen_typing
@@ -134,26 +132,26 @@ if __name__ == "__main__":
 ```
 
 Recommendations:
-- you can have more than just 1 suite creator, e.g. ` gen_runner.run_generator("foo", [bar_test_suite, abc_test_suite, example_test_suite])`
-- you can concatenate lists of test cases, if you don't want to split it up in suites, however make sure they could be run with one handler.
-- you can split your suite creators into different python files/packages, good for code organization.
-- use config "minimal" for performance. But also implement a suite with the default config where necessary. 
-- you may be able to write your test suite creator in a way where it does not make assumptions on constants.
+- You can have more than just one suite creator, e.g. ` gen_runner.run_generator("foo", [bar_test_suite, abc_test_suite, example_test_suite])`.
+- You can concatenate lists of test cases if you don't want to split it up in suites, however, make sure they can be run with one handler.
+- You can split your suite creators into different python files/packages; this is good for code organization.
+- Use config "minimal" for performance, but also implement a suite with the default config where necessary. 
+- You may be able to write your test suite creator in a way where it does not make assumptions on constants.
   If so, you can generate test suites with different configurations for the same scenario (see example). 
-- the test-generator accepts `--output` and `--force` (overwrite output)
+- The test-generator accepts `--output` and `--force` (overwrite output).
 
 ## How to add a new test generator
 
-In order to add a new test generator that builds `New Tests`:
+To add a new test generator that builds `New Tests`:
 
-1. Create a new directory `new_tests`, within the `test_generators` directory.
+1. Create a new directory `new_tests` within the `test_generators` directory.
  Note that `new_tests` is also the name of the directory in which the tests will appear in the tests repository later.
 2. Your generator is assumed to have a `requirements.txt` file,
  with any dependencies it may need. Leave it empty if your generator has none.
 3. Your generator is assumed to have a `main.py` file in its root.
  By adding the base generator to your requirements, you can make a generator really easily. See docs below.
 4. Your generator is called with `-o some/file/path/for_testing/can/be_anything -c some/other/path/to_configs/`.
- The base generator helps you handle this; you only have to define suite headers,
+ The base generator helps you handle this; you only have to define suite headers
  and a list of tests for each suite you generate.
 5. Finally, add any linting or testing commands to the
  [circleci config file](https://github.com/ethereum/eth2.0-test-generators/blob/master/.circleci/config.yml)
@@ -168,6 +166,6 @@ Do note that generators should be easy to maintain, lean, and based on the spec.
 
 If a test generator is not needed anymore, undo the steps described above and make a new release:
 
-1. remove the generator directory
-2. remove the generated tests in the `eth2.0-tests` repository by opening a PR there.
-3. make a new release
+1. Remove the generator directory.
+2. Remove the generated tests in the [`eth2.0-tests`](https://github.com/ethereum/eth2.0-tests) repository by opening a PR there.
+3. Make a new release.
diff --git a/test_generators/operations/deposits.py b/test_generators/operations/deposits.py
index bd523abe4..075ccbd5b 100644
--- a/test_generators/operations/deposits.py
+++ b/test_generators/operations/deposits.py
@@ -77,7 +77,7 @@ def build_deposit_for_index(initial_validator_count: int, index: int) -> Tuple[s
         keys.pubkeys[index],
         keys.withdrawal_creds[index],
         keys.privkeys[index],
-        spec.MAX_DEPOSIT_AMOUNT,
+        spec.MAX_EFFECTIVE_BALANCE,
     )
 
     state.latest_eth1_data.deposit_root = get_merkle_root(tuple(deposit_data_leaves))
diff --git a/test_generators/operations/genesis.py b/test_generators/operations/genesis.py
index decb822f8..f4d63c10e 100644
--- a/test_generators/operations/genesis.py
+++ b/test_generators/operations/genesis.py
@@ -26,7 +26,7 @@ def create_deposits(pubkeys: List[spec.BLSPubkey], withdrawal_cred: List[spec.By
         spec.DepositData(
             pubkey=pubkeys[i],
             withdrawal_credentials=spec.BLS_WITHDRAWAL_PREFIX_BYTE + withdrawal_cred[i][1:],
-            amount=spec.MAX_DEPOSIT_AMOUNT,
+            amount=spec.MAX_EFFECTIVE_BALANCE,
             proof_of_possession=proof_of_possession,
         ) for i in range(len(pubkeys))
     ]
diff --git a/test_libs/config_helpers/requirements.txt b/test_libs/config_helpers/requirements.txt
new file mode 100644
index 000000000..e441a474b
--- /dev/null
+++ b/test_libs/config_helpers/requirements.txt
@@ -0,0 +1 @@
+ruamel.yaml==0.15.87
diff --git a/test_libs/config_helpers/setup.py b/test_libs/config_helpers/setup.py
index 88669c092..90ad94ee4 100644
--- a/test_libs/config_helpers/setup.py
+++ b/test_libs/config_helpers/setup.py
@@ -1,20 +1,9 @@
-from setuptools import setup, find_packages
-
-
-deps = {
-    'preset_loader': [
-        "ruamel.yaml==0.15.87",
-    ],
-}
-
-deps['dev'] = (
-    deps['preset_loader']
-)
-
-install_requires = deps['preset_loader']
+from distutils.core import setup
 
 setup(
     name='config_helpers',
-    packages=find_packages(exclude=["tests", "tests.*"]),
-    install_requires=install_requires,
+    packages=['preset_loader'],
+    install_requires=[
+        "ruamel.yaml==0.15.87"
+    ]
 )
diff --git a/test_libs/gen_helpers/gen_base/gen_typing.py b/test_libs/gen_helpers/gen_base/gen_typing.py
index 1cb315315..011326a69 100644
--- a/test_libs/gen_helpers/gen_base/gen_typing.py
+++ b/test_libs/gen_helpers/gen_base/gen_typing.py
@@ -1,4 +1,10 @@
-from typing import Callable, Dict, Tuple, Any
+from typing import (
+    Any,
+    Callable,
+    Dict,
+    Tuple,
+)
+
 
 TestCase = Dict[str, Any]
 TestSuite = Dict[str, Any]
diff --git a/test_libs/gen_helpers/requirements.txt b/test_libs/gen_helpers/requirements.txt
new file mode 100644
index 000000000..3d6a39458
--- /dev/null
+++ b/test_libs/gen_helpers/requirements.txt
@@ -0,0 +1,2 @@
+ruamel.yaml==0.15.87
+eth-utils==1.4.1
diff --git a/test_libs/gen_helpers/setup.py b/test_libs/gen_helpers/setup.py
index 0c84ff2e2..5de27a6db 100644
--- a/test_libs/gen_helpers/setup.py
+++ b/test_libs/gen_helpers/setup.py
@@ -1,21 +1,10 @@
-from setuptools import setup, find_packages
-
-
-deps = {
-    'gen_base': [
-        "ruamel.yaml==0.15.87",
-        "eth-utils==1.4.1",
-    ],
-}
-
-deps['dev'] = (
-    deps['gen_base']
-)
-
-install_requires = deps['gen_base']
+from distutils.core import setup
 
 setup(
     name='gen_helpers',
-    packages=find_packages(exclude=["tests", "tests.*"]),
-    install_requires=install_requires,
+    packages=['gen_base'],
+    install_requires=[
+        "ruamel.yaml==0.15.87",
+        "eth-utils==1.4.1"
+    ]
 )
diff --git a/test_libs/pyspec/README.md b/test_libs/pyspec/README.md
index ab2967024..df1834210 100644
--- a/test_libs/pyspec/README.md
+++ b/test_libs/pyspec/README.md
@@ -38,7 +38,7 @@ Install dependencies:
 ```bash
 python3 -m venv venv
 . venv/bin/activate
-pip3 install -e .[dev]
+pip3 install -r requirements-testing.txt
 ```
 Note: make sure to run `make -B pyspec` from the root of the specs repository,
  to build the parts of the pyspec module derived from the markdown specs.
diff --git a/test_libs/pyspec/requirements-testing.txt b/test_libs/pyspec/requirements-testing.txt
new file mode 100644
index 000000000..388a878a9
--- /dev/null
+++ b/test_libs/pyspec/requirements-testing.txt
@@ -0,0 +1,3 @@
+-r requirements.txt
+pytest>=3.6,<3.7
+../config_helpers
diff --git a/test_libs/pyspec/requirements.txt b/test_libs/pyspec/requirements.txt
new file mode 100644
index 000000000..78d41708d
--- /dev/null
+++ b/test_libs/pyspec/requirements.txt
@@ -0,0 +1,4 @@
+eth-utils>=1.3.0,<2
+eth-typing>=2.1.0,<3.0.0
+pycryptodome==3.7.3
+py_ecc>=1.6.0
diff --git a/test_libs/pyspec/setup.py b/test_libs/pyspec/setup.py
index 3fd9d4c0f..1a131a417 100644
--- a/test_libs/pyspec/setup.py
+++ b/test_libs/pyspec/setup.py
@@ -1,28 +1,13 @@
 from setuptools import setup, find_packages
 
-
-deps = {
-    'pyspec': [
+setup(
+    name='pyspec',
+    packages=find_packages(),
+    tests_require=["pytest"],
+    install_requires=[
         "eth-utils>=1.3.0,<2",
         "eth-typing>=2.1.0,<3.0.0",
         "pycryptodome==3.7.3",
         "py_ecc>=1.6.0",
-    ],
-    'test': [
-        "pytest>=3.6,<3.7",
-    ],
-}
-
-deps['dev'] = (
-    deps['pyspec'] +
-    deps['test']
-)
-
-install_requires = deps['pyspec']
-
-setup(
-    name='pyspec',
-    packages=find_packages(exclude=["tests", "tests.*"]),
-    install_requires=install_requires,
-    extras_require=deps,
+    ]
 )
diff --git a/test_libs/pyspec/tests/epoch_processing/test_process_registry_updates.py b/test_libs/pyspec/tests/epoch_processing/test_process_registry_updates.py
new file mode 100644
index 000000000..11f5de2ad
--- /dev/null
+++ b/test_libs/pyspec/tests/epoch_processing/test_process_registry_updates.py
@@ -0,0 +1,67 @@
+from copy import deepcopy
+
+import pytest
+
+import eth2spec.phase0.spec as spec
+
+from eth2spec.phase0.spec import (
+    get_current_epoch,
+    is_active_validator,
+)
+from tests.helpers import (
+    next_epoch,
+)
+
+# mark entire file as 'state'
+pytestmark = pytest.mark.state
+
+
+def test_activation(state):
+    index = 0
+    assert is_active_validator(state.validator_registry[index], get_current_epoch(state))
+
+    # Mock a new deposit
+    state.validator_registry[index].activation_eligibility_epoch = spec.FAR_FUTURE_EPOCH
+    state.validator_registry[index].activation_epoch = spec.FAR_FUTURE_EPOCH
+    state.validator_registry[index].effective_balance = spec.MAX_EFFECTIVE_BALANCE
+    assert not is_active_validator(state.validator_registry[index], get_current_epoch(state))
+
+    pre_state = deepcopy(state)
+
+    blocks = []
+    for _ in range(spec.ACTIVATION_EXIT_DELAY + 1):
+        block = next_epoch(state)
+        blocks.append(block)
+
+    assert state.validator_registry[index].activation_eligibility_epoch != spec.FAR_FUTURE_EPOCH
+    assert state.validator_registry[index].activation_epoch != spec.FAR_FUTURE_EPOCH
+    assert is_active_validator(
+        state.validator_registry[index],
+        get_current_epoch(state),
+    )
+
+    return pre_state, blocks, state
+
+
+def test_ejection(state):
+    index = 0
+    assert is_active_validator(state.validator_registry[index], get_current_epoch(state))
+    assert state.validator_registry[index].exit_epoch == spec.FAR_FUTURE_EPOCH
+
+    # Mock an ejection
+    state.validator_registry[index].effective_balance = spec.EJECTION_BALANCE
+
+    pre_state = deepcopy(state)
+
+    blocks = []
+    for _ in range(spec.ACTIVATION_EXIT_DELAY + 1):
+        block = next_epoch(state)
+        blocks.append(block)
+
+    assert state.validator_registry[index].exit_epoch != spec.FAR_FUTURE_EPOCH
+    assert not is_active_validator(
+        state.validator_registry[index],
+        get_current_epoch(state),
+    )
+
+    return pre_state, blocks, state
diff --git a/test_libs/pyspec/tests/helpers.py b/test_libs/pyspec/tests/helpers.py
index 5f694cc84..8ef809184 100644
--- a/test_libs/pyspec/tests/helpers.py
+++ b/test_libs/pyspec/tests/helpers.py
@@ -394,11 +394,21 @@ def add_attestation_to_state(state, attestation, slot):
 
 
 def next_slot(state):
+    """
+    Transition to the next slot via an empty block.
+    Return the empty block that triggered the transition.
+    """
     block = build_empty_block_for_next_slot(state)
     state_transition(state, block)
+    return block
 
 
 def next_epoch(state):
+    """
+    Transition to the start slot of the next epoch via an empty block.
+    Return the empty block that triggered the transition.
+    """
     block = build_empty_block_for_next_slot(state)
     block.slot += spec.SLOTS_PER_EPOCH - (state.slot % spec.SLOTS_PER_EPOCH)
     state_transition(state, block)
+    return block
diff --git a/test_libs/setup.py b/test_libs/setup.py
deleted file mode 100644
index b82fc369c..000000000
--- a/test_libs/setup.py
+++ /dev/null
@@ -1,29 +0,0 @@
-from setuptools import setup, find_packages
-
-
-deps = {
-    'pyspec': [
-        "eth-utils>=1.3.0,<2",
-        "eth-typing>=2.1.0,<3.0.0",
-        "pycryptodome==3.7.3",
-        "py_ecc>=1.6.0",
-    ],
-    'test': [
-        "pytest>=3.6,<3.7",
-    ],
-}
-
-deps['dev'] = (
-    deps['pyspec'] +
-    deps['test']
-)
-
-install_requires = deps['pyspec']
-
-
-setup(
-    name='pyspec',
-    packages=find_packages(exclude=["tests", "tests.*"]),
-    install_requires=install_requires,
-    extras_require=deps,
-)