diff --git a/consensus/src/main/java/org/ethereum/beacon/consensus/spec/GenesisFunction.java b/consensus/src/main/java/org/ethereum/beacon/consensus/spec/GenesisFunction.java
index 540c2720c..286d7a603 100644
--- a/consensus/src/main/java/org/ethereum/beacon/consensus/spec/GenesisFunction.java
+++ b/consensus/src/main/java/org/ethereum/beacon/consensus/spec/GenesisFunction.java
@@ -55,18 +55,19 @@ default BeaconState initialize_beacon_state_from_eth1(
     state.setLatestBlockHeader(get_block_header(get_empty_block()));
 
     // Process deposits
-    for (int index = 0; index < deposits.size(); index++) {
-      Deposit deposit = deposits.get(index);
-      ReadList<Integer, DepositData> deposit_data_list =
-          ReadList.wrap(
-              deposits.stream().map(Deposit::getData).limit(index + 1).collect(Collectors.toList()),
-              Integer::new,
-              1L << getConstants().getDepositContractTreeDepth().getIntValue());
-      state.setEth1Data(new Eth1Data(
-          hash_tree_root(deposit_data_list), UInt64.valueOf(deposits.size()), eth1_block_hash));
-      verify_deposit(state, deposit);
-      process_deposit(state, deposit);
-    }
+    ReadList<Integer, DepositData> deposit_data_list =
+        ReadList.wrap(
+            deposits.stream().map(Deposit::getData).collect(Collectors.toList()),
+            Integer::new,
+            1L << getConstants().getDepositContractTreeDepth().getIntValue());
+    state.setEth1Data(new Eth1Data(
+        hash_tree_root(deposit_data_list), UInt64.valueOf(deposits.size()), eth1_block_hash));
+
+    // according to the spec deposits are verified before processing
+    // but this is redundant for genesis initialisation
+    // since passed deposits are created by our own code
+    // hence, we are able to avoid verification which saves us some computational resources
+    deposits.forEach(deposit -> process_deposit(state, deposit));
 
     // Process activations
     for (ValidatorIndex index : state.getValidators().size().iterateFromZero()) {
diff --git a/consensus/src/test/java/org/ethereum/beacon/consensus/transition/InitialStateTransitionTest.java b/consensus/src/test/java/org/ethereum/beacon/consensus/transition/InitialStateTransitionTest.java
index 4aff42278..dd0f5410d 100644
--- a/consensus/src/test/java/org/ethereum/beacon/consensus/transition/InitialStateTransitionTest.java
+++ b/consensus/src/test/java/org/ethereum/beacon/consensus/transition/InitialStateTransitionTest.java
@@ -48,6 +48,6 @@ public void handleChainStartCorrectly() {
             .plus(spec.getConstants().getSecondsPerDay().times(2));
 
     assertThat(initialState.getGenesisTime()).isEqualTo(expectedTime);
-    assertThat(initialState.getEth1Data()).isEqualTo(Eth1Data.EMPTY);
+    assertThat(initialState.getEth1Data()).isEqualTo(eth1Data);
   }
 }
diff --git a/pow/core/src/main/java/org/ethereum/beacon/pow/AbstractDepositContract.java b/pow/core/src/main/java/org/ethereum/beacon/pow/AbstractDepositContract.java
index f898b771a..824b4fdad 100644
--- a/pow/core/src/main/java/org/ethereum/beacon/pow/AbstractDepositContract.java
+++ b/pow/core/src/main/java/org/ethereum/beacon/pow/AbstractDepositContract.java
@@ -100,12 +100,16 @@ protected synchronized void newDeposits(List<DepositEventData> eventDataList, by
   }
 
   private void tryChainStart(byte[] blockHash, long blockTimestamp) {
+    // use fake proof for initial deposits to avoid of unnecessary merklizing
+    List<Hash32> fakeProof =
+        Collections.nCopies(
+            spec.getConstants().getDepositContractTreeDepthPlusOne().getIntValue(), Hash32.ZERO);
     // instantiate initial deposits
-    List<Deposit> genesisDeposits = new ArrayList<>();
-    for (int i = 0; i < initialDeposits.size(); i++) {
-      genesisDeposits.add(
-          Deposit.create(tree.getProof(i, initialDeposits.size()), initialDeposits.get(i)));
-    }
+    List<Deposit> genesisDeposits =
+        initialDeposits.stream()
+            .map(data -> Deposit.create(fakeProof, data))
+            .collect(Collectors.toList());
+
     try {
       // check if genesis conditions met
       Eth1Data genesisEth1Data =